Steel Dynamics Inc. (NASDAQ:STLD) released its earnings outlook for the second quarter of fiscal 2025 on Wednesday, projecting earnings per diluted share between $2.00 and $2.04. This represents an improvement from the $1.44 per share reported in Q1 2025, though it trails the $2.72 per share earned during the same period last year.
The company said profitability in its steel operations is set to rise notably from the previous quarter, driven by wider metal spreads and an increase in average steel selling prices that outpaced scrap cost inflation. While long product shipments grew, flat rolled volumes dipped slightly, largely due to a glut of imported coated flat rolled steel. Demand remained strong in key sectors such as energy, industrial manufacturing, automotive, and non-residential construction.
The steel division’s Q2 performance includes a non-cash charge of approximately $32 million, linked to the write-off of consumable assets.
In its metals recycling segment, the company anticipates stable earnings quarter-over-quarter, as higher shipment volumes counterbalance weaker pricing.
However, steel fabrication results are expected to decline sequentially, with margins pressured by rising input costs and a slight dip in average sales prices. Still, the company noted a pickup in order activity and a stronger backlog, supported by demand from sectors like commercial construction, healthcare, data centers, warehousing, and manufacturing. Longer-term tailwinds include growing onshoring investments and ongoing U.S. infrastructure spending.
Steel Dynamics also provided an update on its aluminum operations, stating that commissioning is progressing at both its Columbus, Mississippi aluminum flat-rolled facility and the San Luis Potosí, Mexico slab center. The first aluminum ingots were successfully cast earlier this year, and initial shipments are expected by mid-2025.
As of June 11, 2025, the company had repurchased $179 million worth of its stock, roughly 1% of outstanding shares, during the second quarter.
Steel Dynamics plans to officially report Q2 earnings after market close on July 21, 2025, followed by a conference call the next morning at 11:00 a.m. EDT.