- Steel Dynamics reported an adjusted EBITDA of $533.4 million for the second quarter of 2025, which was below the estimated $570.6 million.
- Earnings per share (EPS) stood at $2.01.
- Net sales were reported at $4.57 billion, falling short of the estimated $4.72 billion.
- Steel net sales were $3.28 billion, missing the estimate of $3.36 billion.
- Steel fabrication net sales came in at $340.6 million, lower than the estimated $345.4 million.
- Metals recycling net sales totaled $522.7 million, below the forecasted $546.4 million.
- Other products net sales surpassed estimates, reaching $360.6 million against the anticipated $331.7 million.
- Ferrous shipments were 1.60 million tons, beating the estimate of 1.51 million tons.
- Nonferrous shipments were 245.58 million pounds, missing the estimated 255.54 million pounds.
- Steel fabrication shipments were 135,347 tons, slightly below the estimate of 142,313 tons.
- Cash flow from operations was $301.6 million, not meeting the expected $369.4 million.
- CEO Mark D. Millett highlighted a significant improvement in operating income and adjusted EBITDA due to higher steel pricing and stronger shipments.
- Despite stable steel pricing, customer hesitancy due to trade policy uncertainty and inventory overhang impacted shipments.
- The company expects utilization rates to improve by the end of 2025 and further in 2026 with ongoing product certifications.
- Recommendations include 9 buys, 3 holds, and 1 sell.
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Steel Dynamics on Smartkarma
Analyst coverage on Steel Dynamics by independent research network Smartkarma reveals positive sentiments from Baptista Research. In a report titled “Steel Dynamics: An Insight Into Its Shareholder Value & Strategic Capital Allocation!” by Baptista Research, Steel Dynamics, Inc. showcased operational and financial stability in the first quarter of 2025. The company reported a net income of $217 million, supported by adjusted EBITDA of $448 million, with total revenue reaching $4.4 billion, marking a 13% increase from the previous quarter, driven by record steel shipments.
Furthermore, in another bullish report titled “Steel Dynamics: Expanding Aluminum Operations To Act As A Formidable Player In The Aluminum Market! – Major Drivers” by Baptista Research, Steel Dynamics successfully navigated a challenging market landscape in 2024. The company achieved the second-highest annual steel shipments of 12.7 million tons and recorded a net income of $1.5 billion for 2024. With cash from operations at $1.8 billion and adjusted EBITDA of $2.5 billion, Steel Dynamics demonstrated strong financial performance and strategic growth amidst market pressures.
A look at Steel Dynamics Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have reported a mixed long-term outlook for Steel Dynamics, Inc., a major U.S.-based carbon-steel producer and metals recycler. The company has received a score of 3 for Value and Dividend, indicating moderate performance in these areas. However, its Growth score is lower at 2, suggesting some challenges in this aspect. On the brighter side, Steel Dynamics has scored a solid 4 in Momentum, reflecting positive market momentum. Its Resilience score stands at 3, indicating a moderate level of resilience in unpredictable market conditions.
Steel Dynamics‘ diversified operations in Steel, Metals Recycling & Ferrous Resources, and Steel Fabrication contribute to its product line, which includes flat rolled steel sheet, engineered bar special-bar-quality, and structural beams. While the company shows strength in certain areas like Momentum, it may need to focus on enhancing its growth prospects to boost its overall long-term performance, as highlighted by the Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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