Steel Dynamics · Earnings release

Press Release

Steel

Dynamics Reports Second Quarter 2025 Results

FORT WAYNE, INDIANA, July 21, 2025 / PRNewswire /

Second Quarter 2025 Performance Highlights:

§

The company shipped its first aluminum flat rolled product coils June 16, 2025

§

Steel shipments of 3.3 million tons

§

Net sales of $4.6 billion, operating income of $383 million, and net income of $299 million

§

Adjusted EBITDA of $533 million and cash flow from operations of $302 million

§

Liquidity of $1.9 billion as of June 30, 2025, after repayment of $400 million of senior notes due June 2025

§

Share repurchases of $200 million of the company’s common stock, representing 1.1 percent of its outstanding shares

Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced second quarter

2025 financial results. The company reported second quarter 2025 net sales of $4.6 billion and net income of $299 million, or $2.01 per

diluted share. Comparatively, the company’s sequential first quarter 2025 net income was $217 million, or $1.44 per diluted share

and prior year second quarter net income was $428 million, or $2.72 per diluted share.

“During the second quarter 2025, steel pricing stabilized at

higher levels, resulting in a significant sequential improvement in consolidated operating income of 39 percent and adjusted EBITDA of

19 percent,” said Mark D. Millett, Chairman and Chief Executive Officer. “The earnings improvement was driven by expanded

margins across our steel platform and stronger shipments from our long products steel operations. Our three-year after-tax return-on-invested

capital of 17 percent is a testament to our ongoing high-return capital allocation strategy. Across the company, our teams delivered a

solid performance in an uncertain trade environment while continuing to prioritize the safety and well-being of one another.

"The uncertainty regarding trade policy continues to cause hesitancy

in customer order patterns across our businesses, despite healthy underlying demand factors, such as manufacturing onshoring, infrastructure

program funding, and increased regionalization of supply chains in the U.S.,” continued Millett. “This hesitancy, combined

with an inventory overhang of coated flat rolled steel, resulted in lower steel and steel fabrication shipments in the second quarter

2025. We strongly believe that as individual country trade agreements are negotiated and trade policy is generally stabilized in the coming

months, strong pent up demand for our products will result. Coupled with our expansion in value-added steel and now aluminum flat rolled

products, we are firmly positioned for continued growth and long-term value creation.”

Second Quarter 2025 Comments

Second

quarter 2025 operating income for the company’s steel operations was $382 million, or 66 percent higher than sequential first quarter

results, due to metal spread expansion across the platform as average realized selling values increased significantly more than scrap

raw material costs. The second quarter 2025 average external product selling price for the company’s steel operations increased

$136 sequentially to $1,134 per ton. The average ferrous scrap cost per ton melted at the company’s steel mills increased $22 sequentially

to $408 per ton. Flat rolled steel pricing rebounded in March and continued to improve from the lower values experienced at the

beginning of the year and has since stabilized at higher levels. Additionally, long product steel pricing also improved during this timeframe,

and has increased further in July. The energy, non-residential construction, automotive, and industrial sectors led steel demand in the

quarter. The company’s Sinton, Texas Flat Roll Division achieved higher sequential earnings in the second quarter, despite operating

at a lower production rate, due primarily to a supplier limitation. Sinton’s access to oxygen required for production was limited

by its supplier for over 65 days, negatively impacting volume by an estimated 55,000 tons in the second quarter. Full access to the required

oxygen has been restored. Ongoing initiatives focused on value-added product quality and cost efficiency continue to gain traction at

Sinton, providing a clear path to significantly higher profitability in the second half of the year. Second quarter 2025 earnings from

the company’s steel operations were also reduced by $32 million due to a noncash write-off of consumable assets.

Second

quarter 2025 operating income from the company’s metals recycling operations was $21 million, or $4 million lower than sequential

earnings, based on lower realized ferrous scrap pricing more than offsetting record quarterly shipments.

The company’s steel fabrication operations generated operating

income of $93 million in the second quarter 2025, lower than sequential first quarter results of $117 million, due to metal spread compression

as steel raw material costs increased and the average realized sales price modestly declined. Order activity remained solid in the quarter,

with the order backlog increasing 15 percent since the beginning of the year and now extends into 2026, supported by stable pricing. Demand

was largely driven by the commercial, data center, manufacturing, warehouse, and healthcare sectors. Looking ahead, the pace of domestic

manufacturing investment, increased domestic onshoring activity, and momentum from the U.S. infrastructure program are expected to further

support demand — not only for steel joist and deck products, but also for flat rolled and long product steel. Based on the current

market environment, the company believes profitability from its steel fabrication operations reached an inflection point in the second

quarter 2025, with expectations for improvement in the sequential third quarter.

Based

on the company’s differentiated business model and highly variable cost structure, the company generated cash flow from operations

of $302 million during the quarter. The company also invested $288 million in capital investments, repaid $400 million of its senior notes,

paid cash dividends of $75 million, and repurchased $200 million of its outstanding common stock, representing 1.1 percent of its outstanding

shares, while maintaining liquidity of $1.9 billion as of June 30, 2025.

For the six months ended June 30, 2025, net income was $516 million,

or $3.44 per diluted share, with net sales of $8.9 billion, as compared to net income of $1.0 billion, or $6.39 per diluted share, with

net sales of $9.3 billion for the same period in 2024.

First half 2025 net sales decreased four percent to $8.9 billion and

operating income declined 50 percent to $658 million, when compared to the same period in 2024. Decreased earnings were primarily the

result of lower realized pricing in the company’s steel and steel fabrication operations during the period. First half 2025 operating

income from the company’s steel operations was $612 million, compared to $1.1 billion for the same prior year period. The average

first half 2025 external selling price for the company's steel operations decreased $105 per ton to $1,064 per ton compared to the same

prior year period, and the average ferrous scrap cost per ton melted at the company’s steel mills decreased $6 per ton to $397 per

ton. First half 2025 operating income from the company’s steel fabrication operations was $210 million, compared to $359 million

in the same prior year period.

Based on the company’s differentiated business model and highly

variable cost structure, the company achieved cash flow from operations of $454 million in the first half 2025. The company also invested

$594 million in capital investments, repaid $400 million of its senior notes, paid cash dividends of $144 million, and repurchased $450

million of its outstanding common stock, representing 2.4 percent of its outstanding shares, while maintaining liquidity of $1.9 billion.

Outlook

“We remain confident that market factors are in place to support

strong domestic steel and aluminum product consumption in the coming years, as the uncertainty concerning trade and tax policies is mitigated

and the interest rate environment improves,” continued Millett. “Additionally, based on conversations with our customer base,

we believe demand for lower-carbon-emission, domestically produced steel and aluminum products will competitively advantage our businesses

now and in the future. As unfairly traded imports decline, uncertainty dissipates, and growth of manufacturing continues to increase in

the U.S., we believe a strong market environment will emerge, supporting pricing and demand.

“Additionally, we view the U.S. International Trade Commission’s

preliminary determinations on coated flat rolled steel as a significant positive development. A reduction in unfairly traded imports of

these products would be a meaningful tailwind for us, as we are the largest non-automotive flat rolled steel coater in the United States.

We expect to receive final determinations before the end of the third quarter 2025. Taken together, these broader market dynamics are

expected to positively impact all of our operating platforms.

“Our aluminum team continues to successfully commission the company’s

Columbus, Mississippi

aluminum flat rolled products mill, along with the San Luis Potosi,

Mexico satellite recycled slab center. Last month we successfully produced and sold our first aluminum coils, and we expect volume to

steadily increase over the coming months. We anticipate G1exiting 2025 at a utilization rate of between 40 and 50 percent, and G22026 at an

exit rate of 75 percent, as product certifications occur.

"We have intentionally aligned our growth with the evolving needs

of our customers by delivering efficient, sustainable supply chain solutions alongside the highest quality products. To date, this strategy

has been focused primarily on the steel industry. However, many of our flat rolled steel customers are also significant consumers and

processors of aluminum flat rolled products. We are excited to expand and diversify our end markets by supplying aluminum flat rolled

products with high recycled content—serving the counter-cyclical, sustainability-driven beverage can and packaging industry, as

well as the automotive, industrial, and construction sectors. Our proven, performance-based operating culture—combined with deep

expertise in building and running cost-effective, highly profitable flat rolled steel mills—positions us exceptionally well to execute

on this strategic initiative. We believe this expansion represents a compelling opportunity for long-term value creation, and both our

customers and our teams are energized by the potential it brings.

“We remain firmly committed to the health and safety of our teams,

their families, and the communities we serve, while meeting the evolving needs of our customers. Our culture and performance-driven business

model continue to positively differentiate our company. We remain focused on delivering superior value to our team members, customers,

and shareholders,” concluded Millett.

Conference Call and Webcast

Steel Dynamics, Inc. will hold a conference call to discuss second

quarter 2025 operating and financial results on Tuesday, July 22, 2025, at 11:00 a.m. Eastern Daylight Time. You may access the call

and find dial-in information on the Investors section of the company’s website at www.steeldynamics.com. A replay of the call

will be available on our website until 11:59 p.m. Eastern Daylight Time on July 29, 2025.

About Steel Dynamics, Inc.

Steel Dynamics is a leading industrial metals solutions company, with

facilities located throughout the United States, and in Mexico. The company operates using a circular manufacturing model, producing lower-carbon-emission,

quality products with recycled scrap as the primary input. Steel Dynamics is one of the largest domestic steel producers and metal recyclers

in North America, combined with a meaningful downstream steel fabrication platform. The company is also currently investing in aluminum

operations to further diversify its product offerings, with plans to supply aluminum flat rolled products with high recycled content to

the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors. Steel Dynamics is committed

to operating with the highest integrity and to being the safest, most efficient producer of high-quality, broadly diversified, value-added

metal products.

Note Regarding Financial Metrics

The company believes that after-tax return-on-invested capital (After-tax

ROIC) provides an indication of the effectiveness of the company’s invested capital and is calculated as follows:

After-tax ROIC =

Net Income Attributable to Steel Dynamics, Inc.

(Quarterly Average Current Maturities of Long-term Debt + Long-term Debt + Total Equity)

Note Regarding Non-GAAP Financial Measures

The company reports its financial results in accordance with U.S. generally

accepted accounting principles (GAAP). Management believes that the non-GAAP financial measures EBITDA and Adjusted EBITDA provide additional

meaningful information regarding the company’s performance and financial strength. Non-GAAP financial measures should be viewed

in addition to and not as an alternative for the company’s reported results prepared in accordance with GAAP. In addition, not all

companies use identical calculations for EBITDA or Adjusted EBITDA; therefore, EBITDA and Adjusted EBITDA included in this release may

not be comparable to similarly titled measures of other companies.

Forward-Looking Statements

This press release contains

some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions

in steel, aluminum, and recycled metals market places, Steel Dynamics’ revenues, costs of purchased materials, future profitability

and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such

typical conditional words as “anticipate”, “intend”, “believe”, “estimate”, “plan”, “seek”, “project”, or “expect”, or by the words “may”, “will”, or “should”,

are intended to be made as “forward-looking”, subject to many risks and uncertainties, within the safe harbor protections

of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and

assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such

predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some

factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic

factors; (2) global steelmaking overcapacity and imports of steel, together with increased scrap prices; (3) pandemics, epidemics, widespread

illness or other health issues; (4) the cyclical nature of the steel industry and the industries we serve; (5) volatility and major fluctuations

in prices and availability of scrap metal, scrap substitutes and supplies, and our potential inability to pass higher costs on to our

customers; (6) cost and availability of electricity, natural gas, oil, and other energy resources are subject to volatile market conditions;

(7) increased environmental, greenhouse gas emissions and sustainability considerations from our customers and investors or related regulations;

(8) compliance with and changes in environmental and remediation requirements; (9) significant price and other forms of competition from

other steel and aluminum producers, scrap processors and alternative materials; (10) availability of an adequate source of supply of scrap

for our metals recycling operations; (11) cybersecurity threats and risks to the security of our sensitive data and information technology;

(12) the implementation of our growth strategy; (13) our ability to retain, develop, and attract key personnel; (14) litigation and legal

compliance; (15) unexpected equipment downtime or shutdowns; (16) governmental agencies may refuse to grant or renew some of our licenses

and permits; (17) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants

that may limit our flexibility; and (18) the impacts of impairment charges.

More specifically,

we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out

differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements

and Risk Factors, in our Quarterly Reports on Form 10-Q, or in other reports which we file with the Securities and Exchange Commission.

These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov,

and on our website, www.steeldynamics.com under “Investors – SEC Filings.”

SOURCE Steel Dynamics, Inc.

Steel Dynamics, Inc.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except per share data)

Three Months Ended

Six Months Ended

Three Months

Ended

Net sales

$

$

$

$

$

Costs of goods sold

Gross profit

Selling, general and administrative expenses

Profit sharing

Amortization of intangible assets

Operating income

Interest expense, net of capitalized interest

Other (income) expense, net

)

)

)

)

)

Income before income taxes

Income tax expense

Net income

Net income attributable to noncontrolling interests

)

)

)

)

)

Net income attributable to Steel Dynamics, Inc.

$

$

$

$

$

Basic earnings per share attributable to Steel Dynamics, Inc. stockholders

$

$

$

$

$

Weighted average common shares outstanding

Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive

$

$

$

$

$

Weighted average common shares and share equivalents outstanding

Dividends declared per share

$

$

$

$

$

Steel Dynamics, Inc.

CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

Assets

Current assets

Cash and equivalents

$

$

Short-term investments

Accounts receivable, net

Inventories

Other current assets

Total current assets

Property, plant and equipment, net

Intangible assets, net

Goodwill

Other assets

Total assets

$

$

Liabilities and Equity

Current liabilities

Accounts payable

$

$

Income taxes payable

Accrued expenses

Current maturities of long-term debt

Total current liabilities

Long-term debt

Deferred income taxes

Other liabilities

Total liabilities

Commitments and contingencies

Redeemable noncontrolling interests

Equity

Common stock

Treasury stock, at cost

)

)

Additional paid-in capital

Retained earnings

Accumulated other comprehensive income

-

Total Steel Dynamics, Inc. equity

Noncontrolling interests

)

)

Total equity

Total liabilities and equity

$

$

Steel Dynamics, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

Three Months Ended

Six Months Ended

Operating activities:

Net income

$

$

$

$

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Equity-based compensation

Deferred income taxes

)

Other adjustments

)

)

)

Changes in certain assets and liabilities:

Accounts receivable

)

)

)

Inventories

)

)

)

)

Other assets

)

)

Accounts payable

)

)

Income taxes receivable/payable

)

)

)

Accrued expenses

)

)

Net cash provided by operating activities

Investing activities:

Purchases of property, plant and equipment

)

)

)

)

Purchases of short-term investments

)

)

)

)

Proceeds from maturities of short-term investments

Other investing activities

)

)

Net cash used in investing activities

)

)

)

)

Financing activities:

Issuance of current and long-term debt

Repayment of current and long-term debt

)

)

)

)

Dividends paid

)

)

)

)

Purchase of treasury stock

)

)

)

)

Other financing activities

)

)

)

Net cash used in financing activities

)

)

)

)

Decrease in cash, cash equivalents, and restricted cash

)

)

)

)

Cash, cash equivalents, and restricted cash at beginning of period

Cash, cash equivalents, and restricted cash at end of period

$

$

$

$

Supplemental disclosure information:

Cash paid for interest

$

$

$

$

Cash paid for income taxes, net

$

$

$

$

Steel Dynamics, Inc.

SUPPLEMENTAL INFORMATION (UNAUDITED)

(dollars in thousands)

Second Quarter

YTD

External Net Sales

Steel

$

$

$

$

$

Steel Fabrication

Metals Recycling

Aluminum

Other

Consolidated Net Sales

$

$

$

$

$

Operating Income (Loss)

Steel

$

$

$

$

$

Steel Fabrication

Metals Recycling

Aluminum

)

)

)

)

)

Non-cash amortization of intangible assets

)

)

)

)

)

Profit sharing expense

)

)

)

)

)

Non-segment operations

)

)

)

)

)

Consolidated Operating Income

$

$

$

$

$

Adjusted EBITDA

Net income

$

$

$

$

$

Income taxes

Net interest expense (income)

)

)

Depreciation

Amortization of intangible assets

EBITDA

Non-cash adjustments

Unrealized (gains) losses on derivatives and currency remeasurement

)

)

Equity-based compensation

Adjusted EBITDA

$

$

$

$

$

Other Operating Information

Steel

Average external sales price (Per ton)

$

$

$

$

$

Average ferrous cost (Per ton melted)

$

$

$

$

$

Flat Roll shipments

Butler, Columbus, and Sinton

Steel Processing divisions *

Long Product shipments

Structural and Rail Division

Engineered Bar Products Division

Roanoke Bar Division

Steel of West Virginia

Total Shipments (Tons)

External Shipments (Tons)

Steel Mill Production (Tons)

Metals Recycling

Nonferrous shipments (000's of pounds)

Ferrous shipments (Gross tons)

External ferrous shipments (Gross tons)

Steel Fabrication

Average sales price (Per ton)

$

$

$

$

$

Shipments (Tons)

Beginning the fourth quarter 2024, results from an entity previously included in Metals Recycling are presented within Aluminum. All prior periods presented have been recast to reflect the change.

* Includes Heartland, The Techs and United Steel Supply operations