01—Abstract
Summary
Summary of the 10-Q filed August 11, 2025. Cited figures are marked; the original filing is the authoritative source.
Steel Dynamics, Inc. (STLD) reported second-quarter 2025 net sales of $4.57 billiona, down from $4.63 billion in the second quarter of 2024, and net income attributable to Steel Dynamics, Inc. of $298.7 million, compared with $428.0 million a year earlier.
Diluted earnings per share were $2.01b, versus $2.72. Consolidated operating income fell to $382.9 million from $559.1 million, which the filing attributes to contracted steel and steel fabrication metal spreads, along with a $32.3 million noncash write-off of consumable assets in Steel Operations. For the first half of 2025, operating income was $658.0 million and net income attributable to the company was $515.9 million, both down roughly half from the prior year period.
Segment results were mixed. Metals recycling operations and aluminum-related volume grew, with record quarterly ferrous scrap shipments, while steel fabrication operating income fell 48% in the quarter and aluminum operations posted an operating loss of $40.6 millionc as start-up costs rose. The company reported first aluminum coils sold late in the second quarter, and it expects volume to increase over the coming months.
Steel shipments rose 5% to 3.3 million tons in the quarter. Balance sheet leverage increased. Total debt reached $3.8 billiond after the March 2025 issuance of $1.0 billion of senior unsecured notes, which included repayment of $400.0 million of 2.400% notes at maturity.
Cash and equivalents were $458.0 million, and total liquidity was $1.93 billion, including $1.19 billion of Revolver availability. Operating cash flow was $454.2 million for the first half, compared with $737.8 million a year earlier, and the company repurchased $450.2 million of stock in the first half. The long-term debt to capitalization ratio rose to 29.9% from 26.5%.
02—Key points
Key Highlights
- Net sales of $4.57 billion in Q2 2025, down from $4.63 billion in Q2 2024; first-half net sales of $8.93 billion versus $9.33 billion.
- Net income attributable to Steel Dynamics of $298.7 million in Q2 2025 versus $428.0 million; diluted EPS of $2.01 versus $2.72.
- Consolidated operating income of $382.9 million in Q2 2025, down from $559.1 million, including a $32.3 million noncash write-off of consumable assets in Steel Operations.
- Steel fabrication operating income fell 48% to $93.1 million in Q2, and aluminum operations recorded an operating loss of $40.6 million as start-up costs rose.
- Total debt rose to $3.8 billion after $1.0 billion of senior unsecured notes issued in March 2025; the company reported total liquidity of $1.93 billion and was in compliance with its covenants.
- Operating cash flow of $454.2 million in the first half of 2025, compared with $737.8 million a year earlier; $450.2 million was spent on share repurchases in the period.
- The quarterly dividend was raised to $0.50 per share from $0.46, and the company estimates the impact of the OBBBA tax legislation will be recorded in the third quarter of 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Steel Dynamics kept $0.07.
- Revenue$4.57B100.0%
- Cost of revenue−$3.95B86.5%
- Gross profit$618.5M13.5%
- Operating costs−$235.6M5.2%
- Operating income$382.9M8.4%
- Interest, other & tax−$81.7M1.8%
- Net income$301.2M6.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 11, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $4.57B$4.63B | −1.5% |
| Cost of Revenue | $3.95B$3.86B | +2.3% |
| Gross Profit | $618.47M$774.84M | −20.2% |
| SG&A Expenses | $198.01M$160.02M | +23.7% |
| Operating Income | $382.86M$559.12M | −31.5% |
| Net Income | $301.19M$431.69M | −30.2% |
| EPS (Basic) | $2.01$2.73 | −26.4% |
| EPS (Diluted) | $2.01$2.72 | −26.1% |
| Shares Outstanding (Basic) | 148.39M156.86M | −5.4% |
| Shares Outstanding (Diluted) | 148.96M157.58M | −5.5% |
05—Questions
Frequently Asked Questions
Why did operating income decline so sharply in the second quarter of 2025?
The filing attributes the decline to steel and steel fabrication metal spreads contracting, with steel mill metal spread down 3% and steel fabrication metal spread down 19%. Steel Operations also recorded a $32.3 million noncash write-off of consumable assets, and aluminum start-up costs increased SG&A expenses.
How is the company's debt position changing?
Total debt was $3.8 billion at June 30, 2025, up $550.0 million from December 31, 2024. The increase reflects the March 2025 issuance of $600.0 million of 5.250% notes due 2035 and $400.0 million of 5.750% notes due 2055, partly offset by repayment of $400.0 million of 2.400% notes in June 2025. The long-term debt to capitalization ratio was 29.9%, and the company reported an interest coverage ratio of 13.63:1.00 against a required minimum of 2.50:1.00.
What is the status of the aluminum business?
The company said it nearing completion of its recycled aluminum flat rolled products mill in Columbus, Mississippi, and produced and sold its first aluminum coils late in the second quarter of 2025. Aluminum operations posted an operating loss of $40.6 million in the quarter, and the filing says volume is expected to increase steadily over the coming months.
How much liquidity does the company have and how is it being used?
At June 30, 2025, total liquidity was $1.93 billion, consisting of $458.0 million of cash, $285.5 million of short-term and other investments, and $1.19 billion of Revolver availability. Capital expenditures were $593.8 million in the first half, and the company repurchased $450.2 million of stock, with $1.2 billion remaining under the February 2025 program.
06—Continue