- Steel Dynamics (STLD, Financial) reports Q1 2025 net income of $217 million.
- Record steel shipments of 3.5 million tons.
- Issued $1.0 billion in unsecured notes for strategic initiatives.
Steel Dynamics, Inc. (STLD) unveiled its financial outcomes for the first quarter of 2025, reporting net sales of $4.4 billion and net income amounting to $217 million, or $1.44 per diluted share. This represents a 5% increase from the previous quarter's income of $207 million, albeit a significant drop from the $584 million observed in the same quarter of the previous year.
The company achieved a milestone with record steel shipments totaling 3.5 million tons, demonstrating robust operational execution despite challenging market conditions. Operating income rose to $275 million, 39% higher than the previous quarter. However, the average external steel selling price saw a sequential decline of $13, settling at $998 per ton.
Steel Dynamics maintained a strong liquidity position with $2.6 billion as of March 31, 2025. The company returned capital to shareholders via $250 million in share repurchases, representing 1.3% of outstanding shares, and increased the quarterly cash dividend by 9%.
In a strategic move, Steel Dynamics issued $1.0 billion in unsecured notes, comprising $600 million at a 5.25% rate due in 2035 and $400 million at a 5.75% rate due in 2055. The proceeds are intended for general corporate purposes, including addressing a $400 million note maturity in June 2025.
CEO Mark D. Millett expressed optimism regarding domestic steel consumption trends for the remainder of 2025, supported by improved order activity and firming steel prices. The company's proactive expansions into value-added flat rolled steel and aluminum initiatives are anticipated to reinforce continued growth.
The operational metrics reflect a reinforcing steel market trajectory, highlighted by the Sinton Texas Flat Roll Division operating at 86% capacity and achieving EBITDA-positive status. Additionally, strategic aluminum diversification projects are progressing, positioning the company to exploit new market opportunities by mid-2025.
