Steel Dynamics Q3 Profit Down, But Results Top Estimates

Steel Dynamics

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(RTTNews) - Steel Dynamics Inc. (STLD) reported that its third quarter net income attributable to the company declined to $317.80 million or $2.05 per share from $577.20 million or $3.47 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.97 per share for the third quarter. Analysts' estimates typically exclude special items.

Net sales for the third quarter declined to $4.34 billion from $4.59 billion in the prior year. Analysts expected revenue of $4.18 billion for the quarter.

"Based on domestic steel demand fundamentals, we are constructive regarding the outlook for 2025 metal market dynamics," said Mark Millett, Co-Founder, Chairman, and Chief Executive Officer.

The company expects steel pricing to recover with an anticipated lower domestic interest rate environment, coupled with continuing onshoring of manufacturing businesses, and the expectation of significant fixed asset investment to be derived from public funding related to the U.S. Infrastructure, Inflation Reduction Act, and Department of Energy programs.

The company believes current trade actions could also reduce volumes of unfairly traded steel imports into the United States, especially for coated flat rolled steel, which could have a significant positive impact for the company, as it is the largest non-automotive flat rolled steel coater in the United States. The company plans to begin operating the aluminum flat rolled mill mid-2025.

STLD closed Wednesday's regular trading at $129.86 up $1.40 or 1.09%. In the after-hours trading the stock further gained $3.76 or 2.90%.

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