In This Article:
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Revenue: $4.4 billion, a 13% increase from the previous quarter.
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Net Income: $217 million or $1.44 per diluted share.
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Adjusted EBITDA: $448 million.
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Operating Income: $275 million, a 16% increase from the previous quarter.
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Steel Shipments: Record 3.5 million tons.
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Steel Operations Operating Income: $230 million.
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Metal Recycling Operating Income: $26 million.
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Steel Fabrication Operating Income: $117 million.
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Cash Flow from Operations: $153 million, reduced by a $165 million profit-sharing retirement distribution.
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Capital Expenditures: $306 million in the quarter.
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Liquidity: $2.6 billion.
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Capital Investments for 2025: Expected to be $800 million to $1 billion.
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Bond Issuance: $1 billion of unsecured notes.
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Interest Expense: Expected to be $40 million per quarter starting in the second quarter.
Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Steel Dynamics Inc (NASDAQ:STLD) achieved record steel shipments of 3.5 million tons in the first quarter of 2025.
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The company reported an adjusted EBITDA of $448 million, showcasing strong financial performance.
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The ramp-up of four new value-add flat-rolled steel coating lines is expected to contribute significantly to earnings later in the year.
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Aluminum Dynamics successfully cast its first aluminum ingot, with commercial quality coil shipments expected by June 2025.
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Steel Dynamics Inc (NASDAQ:STLD) maintains a strong liquidity position with $2.6 billion available, supporting future growth and investment.
Negative Points
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The company faced a decline in average realized external steel prices by $13 per ton, impacting metal spread.
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Operating income from steel fabrication was lower due to a 4% decline in realized pricing and seasonal shipment decreases.
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Increased imports have affected demand for certain steel products, particularly coated flat-rolled steel.
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Non-capitalizable expenses related to aluminum operations increased SG&A by approximately $37 million in the first quarter.
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The company anticipates some impact from tariffs on pig iron and aluminum slab imports, which could affect costs.
Q & A Highlights
Q: Can you discuss your exposure to importing raw materials and the impact of tariffs and trade actions? A: Mark Millett, CEO: Tariffs and trade actions have been beneficial for us, especially with the recent trade case against coated steels, which is already having a positive impact. We import scrap from Canada and Mexico, which is not currently affected by tariffs. The tariffs on aluminum are absorbed through the Midwest premium and passed on to customers. We might see some impact from tariffs on pig iron, but we can adjust our scrap mix to mitigate this. Overall, we are well-positioned relative to our peers.