Steel Dynamics, Inc. STLD has issued earnings guidance for the second quarter of 2025 in the $2.00 to $2.04 per share range. The company's first-quarter 2025 earnings were $1.44 per share, while second-quarter 2024 earnings were $2.72.
Profitability from the company's steel operations is forecast to be much higher than in the first quarter, as metal spreads widened across the platform, with average realized steel pricing rising faster than scrap raw material costs. Long product steel shipments increased sequentially in the quarter, but flat rolled volumes fell slightly due mostly to an inventory overhang from coated flat rolled steel imports. The energy, non-residential building, automotive and industrial sectors continue to drive demand. Steel division’s pretax earnings were lowered by about $32 million in the second quarter of 2025 because of a noncash write-off of consumable assets.
Earnings from the company's metals recycling operations are forecast to remain stable sequentially in the second quarter, with higher shipments offsetting lower realized pricing.
Earnings from the company's steel fabrication operations are projected to be lower in the second quarter than in the previous quarter, owing to consistent shipments along with metal spread compression as steel raw material costs rose and the average realized sales price fell slightly. The pace of order activity grew in the quarter, and the order backlog strengthened, stretching into 2025 with attractive related pricing. The commercial, data center, manufacturing, warehouse and healthcare sectors were the primary drivers of demand.
The aluminum team is continuing to successfully commission the company's Columbus, MS, aluminum flat rolled products mill and San Luis Potosi satellite recycled slab facility. In January, the team successfully cast its first aluminum ingot in Mississippi, and in March, it did the same in Mexico. The company continues to expect to begin shipping material in mid-2025.
Shares of Steel Dynamics have lost 0.4% over the past year compared with a 31.8% decline of its industry.
Image Source: Zacks Investment ResearchSTLD’s Rank & Key Picks
STLD currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Centrus Energy Corp. LEU and Avino Silver & Gold Mines Ltd. ASM.
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 157.7% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Centrus Energy's current-year earnings is pegged at 71 cents. LEU, carrying a Zacks Rank #1, surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with an average earnings surprise of 272.7%. The company's shares have rallied 333.9% in the past year.
Avino Silver, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 104.1%, on average. ASM's shares have rallied 271.5% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Steel Dynamics, Inc. (STLD): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Avino Silver (ASM): Free Stock Analysis Report Centrus Energy Corp. (LEU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
