Steel Dynamics Issues Q1 2025 Earnings Guidance Below Expectations

Steel Dynamics (STLD) has projected its Q1 earnings per share to be between $1.36 and $1.40, falling short of analyst expectations of $1.47 and significantly lower than $3.67 from the same quarter last year. This marks the fourth consecutive quarter of lower guidance, although the company anticipates improved profitability from steel operations due to increased shipments despite some metal margin compression. The metals recycling segment is expected to perform better, while steel fabrication earnings may decline due to seasonal factors. Demand remains robust in sectors such as energy and non-residential construction. Additionally, the company has increased its cash dividend by nine percent and authorized $1.5 billion for share repurchases, reflecting confidence in its financial outlook. Investors remain optimistic about the new facility in Sinton, Texas, which is expected to enhance production capacity and competitiveness.