Steel Dynamics Tops Q4 Earnings, Misses Revenue Estimates

Steel Dynamics, Inc. STLD reported fourth-quarter 2025 earnings of $1.82 per share, up from $1.36 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 1.72. 

Net sales in the fourth quarter were up around 14% year over year to $4,414 million. The metric fell short of the Zacks Consensus Estimate of $4,539.1 million. 

Steel Dynamics, Inc. Price, Consensus and EPS Surprise

STLD’s Segment Highlights

Net sales for steel operations were $3,141.4 million in the reported quarter, up around 18.7% year over year. STLD registered steel shipments of roughly 3.3 million tons in the quarter topping the consensus estimate of 3.29 million tons.

STLD's steel operations reported an average external product selling price of $1,107 per ton, up from $1,011 in the year-ago quarter and down from $1,119 in the previous quarter. The figure beat the consensus estimate of $1092 per ton. 

Net sales of Metal’s recycling operations were $463 million in the quarter under review, down around 4% from the year-ago quarter. STLD registered ferrous shipments of around 1.52 million gross tons in the quarter, up roughly 7% year over year. The figure outpaced the consensus of 1.44 million gross tons. 

The company's steel fabrication operations reported sales of around $347.3 million, down roughly 12.3% year over year. Steel Dynamics recorded steel fabrication shipments of 138,375 tons in the quarter, down around 5.2% year over year. The figure missed the consensus estimate of 142,000 tons. 

STLD’s Financial Position

Steel Dynamics ended the quarter with cash and cash equivalents of $769.9 million, up around 31% year over year. Long-term debt was $4,176.5 million, up roughly 49%. 

The company generated cash flow from operations of $272.7 million in the reported quarter, down around 21.4% year over year. 

STLD’s Outlook

The company expects better trade conditions and a favorable interest rate environment to support solid steel and aluminum demand, with rising interest in low-carbon, U.S.-made metals. Commissioning and start-up of the Columbus aluminum flat rolled mill and San Luis Potosí slab center are progressing well. Backed by a focus on quality, efficiency and sustainability, the company expects strong long-term growth and value creation ahead. 

STLD’s Price Performance

Shares of Steel Dynamics have gained 48.6% over the past year compared with a 59.1% rise in its industry. 

STLD’s Zacks Rank & Key Picks

STLD currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks worth a look in the basic materials space are Thyssenkrupp AG ADR TKAMY, Algoma Steel Group Inc. ASTL, and AngloGold Ashanti plc AU. 

Thyssenkrupp is expected to report quarterly results on Feb. 12. The Zacks Consensus Estimate for earnings is pegged at 20 cents per share. TKAMY flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Algoma Steel is expected to report fourth-quarter results on March 11. The Zacks Consensus Estimate for ASTL’s fourth-quarter earnings is pegged at 32 cents per share. ASTL carries a Zacks Rank #1 at present. Algoma’s earnings beat the consensus estimate in three of the last four quarters and missed thrice, with the average surprise being 36%. 

AngloGold Ashanti is scheduled to report fourth-quarter results on Feb. 20. The Zacks Consensus Estimate for AU’s fourth-quarter earnings is pegged at $1.90 per share. AU currently sports a Zacks Rank #1. 

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This article originally published on Zacks Investment Research (zacks.com).

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