Steel Dynamics, Inc. (STLD, Financial) reported impressive financial results for the first quarter of 2025, surpassing revenue expectations by delivering $4.4 billion compared to the projected $4.18 billion. The company’s performance was bolstered by record steel shipments alongside robust outcomes from its metals recycling and steel fabrication segments.
At the helm of this success, Chairman and CEO Mark D. Millett highlighted a significant 16% sequential rise in operating income and a 21% increase in adjusted EBITDA. This robust performance is reflected in the company’s three-year after-tax return on invested capital, which stands at an impressive 20%.
The quarter witnessed an upsurge in underlying steel demand, as evidenced by the rebound in customer orders and growing backlogs. Steel prices also saw an upward trend following a downturn in the latter half of 2024, aided by a reduction in imports due to trade actions. As contracts for flat rolled steel adjust to these higher prices, Steel Dynamics anticipates further benefits in the upcoming months.
Looking ahead, the company is optimistic about its growth prospects, supported by ongoing expansions in its value-added flat rolled steel and aluminum operations. These strategic initiatives are expected to further enhance Steel Dynamics’ market position and financial performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Steel Dynamics Inc (STLD, Financial) is $145.68 with a high estimate of $155.00 and a low estimate of $128.91. The average target implies an upside of 24.10% from the current price of $117.39. More detailed estimate data can be found on the Steel Dynamics Inc (STLD) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Steel Dynamics Inc's (STLD, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Steel Dynamics Inc (STLD, Financial) in one year is $118.10, suggesting a upside of 0.6% from the current price of $117.39. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Steel Dynamics Inc (STLD) Summary page.
