01—Abstract
Summary
Summary of the 10-K filed February 27, 2026. Cited figures are marked; the original filing is the authoritative source.
Steel Dynamics, Inc. reported record 2025 steel shipments of 13.7 million tons, up 9%a, but net income fell as metal spreads compressed.
Net sales rose 4% to $18.18 billionb, while operating income dropped 24% to $1.48 billion and net income attributable to Steel Dynamics decreased 23% to $1.19 billion. Diluted EPS was $7.99 versus $9.84 in 2024. Steel operations operating income fell 10% to $1.43 billion and steel fabrication operating income fell 39% to $407.4 million, while metals recycling operating income rose 27% to $97.2 million.
The balance sheet expanded materially. Total debt reached $4.2 billionc after $980.2 million of net new borrowings tied to senior notes issued in March and November 2025. The long-term debt to capitalization ratio rose to 32.1% from 26.5%.
Liquidity totaled $2.2 billiond at year-end, including $1.19 billion of revolver availability. Capital expenditures fell to $948.0 million from $1.9 billion, primarily for the aluminum and steel segments. Cash flow from operations was $1.4 billion, and the company returned capital through $291.2 million of dividends paid and $900.9 million of share repurchases.
The filing highlights the start-up of the recycled aluminum flat rolled products mill in Columbus, Mississippi, which began shipping in the second half of 2025, and the December 1, 2025 acquisition of the remaining 55% of New Process Steel, L.P. for $229 million in cash. Aluminum operations sales rose 49% to $473.9 million but operating loss widened to $173.0 million. Ernst & Young issued an unqualified opinion on both the financial statements and internal control over financial reporting.
02—Key points
Key Highlights
- Record steel shipments of 13.7 million tons in 2025, up 9%, though average steel selling prices decreased 1%, or $14 per ton.
- Consolidated operating income fell 24% to $1.48 billion and diluted EPS declined to $7.99 from $9.84, reflecting metal spread compression in steel and steel fabrication.
- Steel fabrication operating income fell 39% to $407.4 million as average selling prices decreased 13% and volumes decreased 8%.
- Total debt rose to $4.2 billion, up $980.2 million, after issuing $1.4 billion of senior notes in 2025 (March and November); long-term debt to capitalization rose to 32.1% from 26.5%.
- Aluminum operating loss widened to $173.0 million as the Columbus recycled aluminum flat rolled mill began shipments in the second half of 2025; segment sales rose 49% to $473.9 million.
- Acquired remaining 55% of New Process Steel, L.P. on December 1, 2025 for $229 million in cash, with total consideration of $449.3 million.
- Returned capital through $291.2 million of dividends paid and $900.9 million of share repurchases; $801.0 million remained under the February 2025 repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Steel Dynamics kept $0.07.
- Revenue$18.18B100.0%
- Cost of revenue−$15.78B86.8%
- Gross profit$2.39B13.2%
- Operating costs−$916.2M5.0%
- Operating income$1.48B8.1%
- Interest, other & tax−$288.7M1.6%
- Net income$1.19B6.5%
Where FY2025 revenue went
$18.18B- Cost of revenue: $15.78B, 87% of revenue
- Net income: $1.19B, 6.5% of revenue
- SG&A: $765.3M, 4.2% of revenue
- Other operating costs: $150.9M, 0.8% of revenue
- Interest, other & tax: $288.7M, 1.6% of revenue
Kept 6.5% as net incomeNet income $1.19B · 6.5%Other operating costs $150.9M · 0.8%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 27, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $18.18B$17.54B | +3.6% |
| Cost of Revenue | $15.78B$14.74B | +7.1% |
| Gross Profit | $2.39B$2.80B | −14.6% |
| SG&A Expenses | $765.31M$664.12M | +15.2% |
| Operating Income | $1.48B$1.94B | −24.0% |
| Net Income | $1.19B$1.55B | −23.4% |
| EPS (Basic) | $8.02$9.89 | −18.9% |
| EPS (Diluted) | $7.99$9.84 | −18.8% |
| Shares Outstanding (Basic) | 147.81M155.42M | −4.9% |
| Shares Outstanding (Diluted) | 148.40M156.14M | −5.0% |
05—Questions
Frequently Asked Questions
Why did Steel Dynamics' earnings decline in 2025 despite record shipments?
Average steel selling prices fell modestly while the cost of ferrous scrap held steady, compressing metal spread in the steel operations segment. Steel fabrication saw a larger compression, with average selling prices down 13% and metal spread down 17%. Net income attributable to Steel Dynamics fell 23% to $1.19 billion.
How did the company's debt and liquidity change?
Total debt increased to $4.2 billion, up $980.2 million, from new senior notes issued in 2025 that were used to redeem $800 million of maturing notes and for general corporate purposes. Liquidity at December 31, 2025 was $2.2 billion, including $1.19 billion of unsecured revolver availability with no borrowings outstanding. The company stated it was in compliance with its financial covenants.
What is the status of the aluminum business?
The recycled aluminum flat rolled products mill in Columbus, Mississippi produced finished products and achieved product certifications in the second half of 2025, with shipments beginning in late 2025. Aluminum segment sales rose 49% to $473.9 million, but the segment reported an operating loss of $173.0 million, largely due to construction, start-up and commissioning costs. Finishing lines were still under construction at year-end.
How much did the company spend on capital investments and what is planned?
Capital expenditures were $948.0 million in 2025, down from $1.9 billion in 2024, primarily in the aluminum and steel operations segments. Management stated that liquidity and expected operating cash flow are sufficient to fund planned 2026 capital requirements. Outstanding construction commitments were $335.5 million at December 31, 2025.
What shareholder returns did the company provide in 2025?
The quarterly cash dividend was increased 9% to $0.50 per share in the first quarter of 2025, with dividends declared totaling $2.00 per share. The company repurchased 6.7 million shares for $900.9 million during 2025 under its repurchase programs.
06—Continue