Steel Dynamics Reports Decline in Revenue and Profitability for Q2 2025

Steel Dynamics, Inc. (SDI) reported its financial results for the second quarter of 2025, revealing a decline in both revenue and profitability compared to the same period in 2024. The company generated total net sales of $4.57 billion, a decrease of 1% from $4.63 billion in the prior year. Net income attributable to Steel Dynamics, Inc. was $298.7 million, down 30% from $428.0 million in the second quarter of 2024. Basic earnings per share fell to $2.01 from $2.73, reflecting the overall decrease in profitability.

The company's financial performance for the first half of 2025 also showed significant declines, with net sales of $8.93 billion, down 4% from $9.33 billion in the first half of 2024. Net income for the first six months was $515.9 million, a 49% decrease from $1.01 billion in the same period last year. The decline in profitability was attributed to reduced operating income, which fell by 50% to $658.0 million, primarily due to compressed metal spreads in the steel and steel fabrication segments.

Operationally, Steel Dynamics reported a 5% increase in steel shipments, totaling 3.35 million tons in the second quarter of 2025. The metals recycling segment experienced a 6% increase in ferrous scrap shipments, benefiting from strong domestic steel demand. However, the steel fabrication segment saw a 28% decrease in net sales, attributed to a decline in average selling prices and volume. The aluminum operations segment, which includes a new recycled aluminum flat rolled products mill nearing completion, reported a 14% increase in net sales, indicating a positive trend in this area.

In terms of strategic developments, Steel Dynamics completed the issuance of $1 billion in senior unsecured notes in March 2025, which contributed to an increase in total outstanding debt to $3.8 billion. The company also repaid $400 million in senior notes due in June 2025. The increase in debt was primarily for general corporate purposes, including capital expenditures and potential acquisitions. The company’s liquidity position remains strong, with $1.2 billion available under its revolving credit facility.

Looking ahead, Steel Dynamics anticipates continued challenges in the steel market, including fluctuating prices and demand uncertainties. The company is focused on executing its growth strategy, particularly in its aluminum operations, and remains committed to maintaining its financial health through prudent capital management and operational efficiencies. The outlook for the remainder of 2025 will depend on market conditions and the company's ability to navigate the evolving landscape of the steel and metals industries.