Steel Dynamics (STLD) Q1 2025 earnings summary

Executive summary

• Achieved record steel shipments of 3.5 million tons in Q1 2025, with net sales of $4.4 billion and net income of $217 million ($1.44 per diluted share), up from Q4 2024 but down 63% year-over-year due to lower steel prices and metal spreads.

• Adjusted EBITDA reached $448 million (10% margin), with strong operational execution and safety focus; cash flow from operations was $153 million, impacted by profit-sharing payments.

• Successfully ramped four new value-add flat rolled steel coating lines, with full earnings benefit expected later in 2025.

• Aluminum Dynamics cast its first aluminum ingots in both U.S. and Mexico, with commercial shipments targeted for June/mid-2025.

• Increased quarterly dividend by 9% to $0.50 per share and repurchased $250 million in shares (1.3% of outstanding shares).

Financial highlights

• Q1 2025 net income was $217 million ($1.44 per diluted share); adjusted EBITDA reached $448 million; revenue of $4.4 billion was up 13% sequentially but down 7% year-over-year.

• Operating income rose 16% sequentially to $275 million; gross profit was $486.5 million, down from $980.8 million in Q1 2024.

• Cash and equivalents increased to $1.19 billion as of March 31, 2025, with total liquidity at $2.6 billion.

• Capital investments totaled $306 million; cash dividends paid were $70 million.

• Share repurchases totaled $250 million in Q1 2025.

Outlook and guidance

• Aluminum flat rolled products mill and Mexico slab center expected to begin commercial shipments mid to late 2025, with positive EBITDA for aluminum operations in H2 2025.

• Expect higher steel and fabrication volumes year-over-year, supported by strong backlogs and order activity.

• Sinton mill expected to see significant earnings growth as utilization and product mix improve; operated at 86% capacity in Q1 2025.

• Normal seasonality expected for Q2 steel shipments, with no anticipated decline.

• Biocarbon production facility expected to start Q2 2025, targeting up to 35% reduction in Scope 1 GHG emissions.