Steel Dynamics Reports Second Quarter 2025 Results
Steel Dynamics, Inc., a leading industrial metals solutions company, has released its second quarter 2025 financial results. The company, known for its circular manufacturing model and significant presence in the steel and aluminum markets, reported notable financial and operational performance for the period ending June 30, 2025.
Financial Highlights
For the second quarter of 2025, Steel Dynamics reported net sales of $4.6 billion and a net income of $299 million, translating to $2.01 per diluted share. This marks an improvement from the first quarter of 2025, where net income was $217 million, or $1.44 per diluted share. However, it is a decline compared to the second quarter of 2024, which saw a net income of $428 million, or $2.72 per diluted share.
Key financial metrics include:
- Operating income of $383 million
- Adjusted EBITDA of $533 million
- Cash flow from operations of $302 million
- Liquidity of $1.9 billion as of June 30, 2025
- Share repurchases of $200 million, representing 1.1% of outstanding shares
Business and Operational Highlights
Steel Dynamics achieved several operational milestones during the second quarter of 2025:
- First shipment of aluminum flat rolled product coils on June 16, 2025
- Steel shipments totaled 3.3 million tons
- Average external product selling price for steel operations increased to $1,134 per ton
- Average ferrous scrap cost per ton melted increased to $408 per ton
The company's Sinton, Texas Flat Roll Division faced a supplier limitation, impacting production by an estimated 55,000 tons. However, full access to the required oxygen has been restored, and initiatives focused on value-added product quality and cost efficiency are expected to drive higher profitability in the second half of the year.
Strategic Initiatives and Corporate Developments
Steel Dynamics continued to execute its high-return capital allocation strategy, evidenced by:
- Repayment of $400 million of senior notes due June 2025
- Capital investments totaling $288 million
- Cash dividends of $75 million
- Share repurchases amounting to $200 million
The company is also expanding its aluminum operations, with successful production and sale of its first aluminum coils from the Columbus, Mississippi mill. The company anticipates increasing utilization rates for aluminum production through 2025 and 2026.
Management's Perspective
Mark D. Millett, Chairman and Chief Executive Officer, commented on the results, highlighting the stabilization of steel pricing and the significant improvement in consolidated operating income and adjusted EBITDA. Millett emphasized the company's focus on high-return capital allocation and the solid performance delivered by the teams despite an uncertain trade environment.
Millett also noted the hesitancy in customer order patterns due to trade policy uncertainty and inventory overhang of coated flat rolled steel. However, he expressed confidence that as trade agreements are negotiated and trade policy stabilizes, strong pent-up demand for the company's products will emerge.
Future Outlook
Looking ahead, Steel Dynamics remains optimistic about the market factors supporting strong domestic steel and aluminum product consumption. The company expects demand for lower-carbon-emission, domestically produced steel and aluminum products to provide a competitive advantage. Additionally, the U.S. International Trade Commission's preliminary determinations on coated flat rolled steel are seen as a positive development, potentially reducing unfairly traded imports and benefiting the company's operations.
The company anticipates continued growth and long-term value creation through its strategic initiatives and expansion into aluminum flat rolled products, serving various sectors including beverage can, automotive, industrial, and construction.
SEC Filing: STEEL DYNAMICS INC [ STLD ] - 8-K - Jul. 22, 2025