Steel Dynamics cites favorable conditions in Q1

Fort Wayne, Indiana-based metals producer and recycler Steel Dynamics Inc. (SDI) says it expects first quarter 2025 earnings per share (EPS) that will approximate its results from the fourth quarter of last year but that are down about 62 percent from the first quarter of 2024.

SDI has offered first quarter 2025 earnings guidance in the range of $1.36 to $1.40 per diluted share after earning $1.36 per share in late 2024. In the first quarter of 2024, however, SDI attained an EPS figure of $3.67.

The firm strikes a largely upbeat tone when describing its current situation. “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,” writes the firm.

Unlike several previous quarters with consistently low ferrous scrap prices, SDI says its metals recycling operations will be a bright spot this quarter.

“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,” says SDI of that business unit, which includes the OmniSource Corp. operations.

On the finished steel front, SDI says the energy, nonresidential construction, automotive and industrial sectors “continue to lead demand” for its recycled-content steel.

The company says its Sinton, Texas, flat roll division operated at production levels in excess of 90 percent in the first quarter 2025 “while continuing to improve product quality and cost efficiency, continuing its clear path to profitability in the second quarter [of] 2025.”

Startup activity is underway at the Aluminum Dynamics facility in Mississippi, says the firm in its earnings guidance news release.

“The aluminum team is continuing with successful commissioning of the company’s Columbus, Mississippi, aluminum flat rolled products mill, along with the San Luis Potosi [Mexico] satellite recycled slab center,” writes SDI.

The company says it cast its first aluminum ingot at the Mexican facility in January and has since completed start-up of an ingot scalper. “The company continues to expect to begin shipping material [in] mid-2025,” it says of its overall aluminum effort.

In its downstream steel fabrication units, SDI says it expects first quarter 2025 earnings from those operations to be lower than sequential fourth quarter results, “based on seasonally lower shipments and less than a five percent decline in realized pricing.”

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Offering better news, SDI says “the pace of order activity increased in the first quarter, and the order backlog improved, extending well into the third quarter of 2025, with attractive related pricing levels. Improved demand was supported largely by the commercial, data center, manufacturing, warehouse and health care sectors.”

Continues SDI, “The accelerated announcements for meaningful manufacturing domestic investment and onshoring, coupled with the United States infrastructure program, are expected to positively impact demand for not only steel joist and deck products, but also for flat rolled and long product steel.”

SDI says it plans to release its first quarter 2025 earnings on Tuesday, April 22, and will hold a conference call the following day.