Mon, May 12, 7:02 PM (63 days ago)
**Steel Dynamics, Inc. (STLD) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $4,369,195,000, down 7% from $4,694,003,000 in Q1 2024. - **Profit Margins:** Gross profit decreased to $486,544,000 (11.1%) from $980,798,000 (20.9%) in Q1 2024. Operating income fell 63% to $275,144,000. - **Net Income:** Net income attributable to Steel Dynamics, Inc. was $217,151,000, down 63% from $584,041,000 in Q1 2024. - **Earnings Per Share (EPS):** Basic EPS was $1.45, down from $3.68 in Q1 2024. Diluted EPS was $1.44, down from $3.67. - **Cash Flow:** Operating cash flow was $152,603,000, down from $355,217,000 in Q1 2024. Capital expenditures were $305,506,000, down from $374,310,000. **Segment Performance:** - **Steel Operations:** Record shipments of 3.5 million tons, but lower realized average selling prices led to a 66% decrease in operating income. - **Metals Recycling:** Benefitted from steady domestic steel mill utilization and increased metal spreads, resulting in a 102% increase in operating income. - **Steel Fabrication:** Experienced decreased volumes and selling prices, leading to a 35% decrease in operating income. - **Aluminum Operations:** Continued construction and start-up costs led to an operating loss. **Trends and Uncertainties:** - **Market Conditions:** Steel and fabrication operations faced metal spread contractions. Aluminum operations are expected to begin commercial shipments mid-2025. - **Liquidity:** Total liquidity was $2,640,538,000. The company issued $1.0 billion in senior unsecured notes in March 2025. - **Dividends and Share Repurchases:** Increased quarterly dividend by 9% to $0.50 per share. Repurchased $250,138,000 of common stock. **Future Operations Impact:** - **Capital Investments:** Continued investment in aluminum operations and steel operations. - **Debt and Financial Covenants:** Total outstanding debt increased to $4,200,000,000. The company remains in compliance with financial covenants. **Risk Factors:** - **Market Risks:** Exposure to commodity price fluctuations and supply chain disruptions. - **Regulatory Risks:** Compliance with environmental and other regulations. - **Operational Risks:** Dependence on key personnel and potential equipment downtime. **Conclusion:** Steel Dynamics, Inc. faced challenges in Q1 2025 due to decreased metal spreads and lower selling prices, particularly in steel and fabrication operations. However, the company maintained strong liquidity and continued investments in growth areas like aluminum operations. The outlook remains positive with expected commercial shipments from the aluminum mill and ongoing capital investments.