Steel Dynamics Q4 Earnings Call Highlights

Steel Dynamics Reinforces Outlook: Higher Highs Coming

Steel Dynamics NASDAQ: STLD executives highlighted record steel shipments, steady cash generation, and progress ramping its new aluminum flat-rolled operations during the company’s fourth-quarter and full-year 2025 earnings call on January 26, 2026. Management also reiterated its view that recent major organic investments are nearing completion and should drive a meaningful step-up in through-cycle cash flow and earnings power.

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Full-year and fourth-quarter results

Chief Financial Officer Theresa Wagler said Steel Dynamics generated 2025 operating income of $1.5 billion and net income of $1.2 billion, or $7.99 per diluted share. For the fourth quarter, the company reported net income of $266 million, or $1.82 per diluted share, on revenue of $4.4 billion and operating income of $310 million.

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Wagler said fourth-quarter results declined sequentially, driven by lower realized steel pricing and lower volumes. She also noted the quarter benefited by about $15 million from a lower effective tax rate tied to state adjustments and certain reserve-related items.

For the full year, Steel Dynamics reported cash flow from operations of $1.4 billion and adjusted EBITDA of $2.2 billion, while Chairman and CEO Mark Millett emphasized a “challenging market environment” and credited the company’s diversification and “circular manufacturing business model” for its performance.

Steel operations: record shipments, planned outages, and market commentary

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Millett said Steel Dynamics achieved record annual steel shipments of 13.7 million tons. Wagler added that full-year operating income from steel operations was $1.4 billion, down from $1.6 billion in the prior year, as record shipments were “more than offset by compressed flat-rolled steel metal margins.”

In the fourth quarter, steel operations posted operating income of $322 million, which Wagler attributed to seasonally lower shipments and planned maintenance outages at the company’s three flat-rolled steel mills. President and COO Barry Schneider said the outages included “additional delays” that inhibited production by about 140,000 to 150,000 tons. He said no major maintenance outages were planned for the first quarter, with planning “more towards the second quarter.”

Wagler provided detailed fourth-quarter flat-rolled shipment volumes for modeling purposes:

Hot-rolled: 942,000 tons
Cold-rolled: 122,000 tons
Coated products: 1,395,000 tons

Schneider said domestic steel industry utilization was estimated at 77% in 2025, while Steel Dynamics ran at 86%, which he attributed to value-added product diversification, supply chain solutions, and volume support from internal manufacturing businesses.

On demand signals, Schneider said flat-rolled steel prices had “recently improved,” supported by stable demand and lower imports, with lead times extending and customers remaining optimistic. He also said long-product markets were a highlight in 2025 and that the company expected another solid year, citing strength in structural steel and railroad rail. Management noted that 2026 North American automotive production estimates were expected to be similar to 2025, while dealer inventories remained below historical norms and fell further in December.

Metals recycling and fabrication: mixed year, improving fourth-quarter margins

Wagler said full-year operating income from metals recycling was $97 million, nearly 30% higher than 2024, driven by improved pricing and volume as well as operating efficiencies. On a sequential basis, fourth-quarter operating income declined about $13 million due to lower pricing and seasonally lower shipments.

Steel fabrication generated $407 million of operating income in 2025, down year over year as average realized pricing and volume declined, according to Wagler. However, she said fabrication margins “moderately expanded” in the fourth quarter as operating income came in at $91 million, and she characterized demand for joists and deck as solid with strong order activity. Schneider said the backlog extended through the first half of 2026, and he cited customer sentiment, moderating interest rates, manufacturing onshoring, and infrastructure spending as supportive factors.

Aluminum Dynamics ramp: EBITDA-positive December and accelerated certification

Management devoted significant time to Aluminum Dynamics, Steel Dynamics’ new aluminum flat-rolled investment. Millett said the business has already produced and shipped finished flat-rolled products for industrial and beverage can markets, as well as aluminum “hot band” for the automotive sector. Wagler said the aluminum team was EBITDA positive in December, supported by 10,000 metric tons of shipments and improving costs, despite ongoing construction and equipment commissioning.

In response to analyst questions, management said it expects the aluminum rolling mill to exit 2026 at a rate approaching 90% capacity. Millett said earlier-than-anticipated customer certifications and the nature of the aluminum process—described as having more redundancy than a thin-slab steel mill—contributed to increased confidence in the ramp. Executives said the company is not yet prepared to quantify fourth-quarter 2026 profitability, though they noted that current market factors could be favorable versus through-cycle assumptions.

Millett reiterated through-cycle expectations of $650 million to $700 million of EBITDA for the aluminum mill, plus $40 million to $50 million for the “Omni” platform. He also said accelerated certifications may allow the product mix to shift toward higher margins in 2026, with optimization now expected sometime in 2027, earlier than a prior expectation of 2028. Millett outlined commissioning milestones, including three of four casthouses commissioned, hot and cold mill commissioning progress, and plans for a second tandem cold mill and the first of two C.A.S.H. lines to be operating before the end of the first quarter of 2026.

Capital allocation, balance sheet, and working capital

Wagler said Steel Dynamics ended 2025 with liquidity of more than $2.2 billion. She noted that the company issued $800 million of investment-grade unsecured notes in November 2025—$650 million of 4% notes due 2028 and $150 million of 5.25% notes due 2035—with proceeds used to redeem $400 million of notes due 2026 and for general corporate purposes.

The company invested $948 million in capital spending during 2025 and expects $600 million of capital investments in 2026, with some aluminum-related spending shifting from the fourth quarter into the first quarter due to timing. Wagler also said a structural working capital build tied to the aluminum investments reduced 2025 operating cash flow by about $450 million (and $155 million in the fourth quarter), though she said most of the aluminum working capital build was captured in 2025 and that additional fluctuations in 2026 should not be material.

On shareholder returns, Wagler said the company repurchased $900 million of stock in 2025 (over 4% of shares outstanding), including $240 million in the fourth quarter, with $801 million remaining under authorization as of December 31. Management reiterated a capital allocation framework that combines growth investment, a base dividend, and variable share repurchases while maintaining investment-grade credit metrics. In response to a question about leverage capacity, management said it intends to remain under 2x net leverage on a through-cycle basis.

About Steel Dynamics NASDAQ: STLD

Steel Dynamics, Inc is a U.S.-based, diversified steel producer and metals recycler that operates an integrated network of mini-mills, finishing lines and fabrication facilities. Founded in 1993 and headquartered in Fort Wayne, Indiana, the company manufactures a broad range of steel products and provides downstream processing, coating and fabrication services to industrial customers. Its operations combine steelmaking using electric-arc furnaces with extensive metals recycling capabilities, allowing Steel Dynamics to convert scrap ferrous and nonferrous materials into finished steel products.

The company's product portfolio includes flat-rolled steel (coiled and sheet products), structural steel and fabricated components, along with coated and painted steel used in consumer, industrial and construction applications.

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