Steel Dynamics Issues Q1 Earnings Outlook

(RTTNews) - Steel Dynamics, Inc. (STLD) Monday provided first quarter 2025 earnings guidance in the range of $1.36 to $1.40 per share.

Comparatively, the company's sequential fourth quarter 2024 earnings were $1.36 per share and prior year first quarter earnings were $3.67 per share.

First quarter 2025 profitability from the company's steel operations is expected to be stronger than sequential fourth quarter results, based on increased shipments more than offsetting some metal margin compression, as contractual steel pricing lagged recent spot price improvements, which will be realized in the coming months. The energy, non-residential construction, automotive, and industrial sectors continue to lead demand.

First quarter 2025 earnings from the company's metals recycling operations are expected to be higher than sequential fourth quarter 2024 results, based on stronger realized pricing and stable volumes for ferrous and nonferrous materials.

First quarter 2025 earnings from the company's steel fabrication operations are expected to be lower than sequential fourth quarter results, based on seasonally lower shipments and less than a five percent decline in realized pricing.

Based on continued confidence in the company's earnings outlook and cash flow generation, in February 2025 the company's board of directors increased the company's first quarter 2025 cash dividend by nine percent to $0.50 per common share and also authorized an additional $1.5 billion for share repurchases, as the previous program of $1.5 billion was exhausted.