Steel Dynamics Q2 results beat estimates on record shipments, steel price gains

Steel Dynamics, Inc.

Steel Dynamics, Inc.

STLD

0.00


Overview

  • U.S. steel and aluminum producer's Q2 revenue rose, beating analyst expectations

  • Adjusted EPS for Q2 beat analyst expectations

  • Company repurchased $200 mln of its common stock in Q2


Outlook

  • Steel Dynamics expects strong domestic steel and aluminum consumption through 2026 and into 2027

  • Company expects aluminum operations volumes and profitability to increase sharply in H2 2026 and full-year 2027

  • Demand for aluminum flat-rolled sheet products remains strong, with the supply deficit growing


Result Drivers

  • STEEL SHIPMENTS AND PRICING - Record steel shipments and higher steel prices, which outpaced scrap cost increases, drove a 30% sequential rise in steel operating income

  • ALUMINUM OPERATIONS RAMP-UP - Aluminum flat rolled sheet shipments increased and startup losses narrowed as commissioning progressed, though the segment remained unprofitable

  • STRONG END-MARKET DEMAND - Demand remained solid across energy, non-residential construction, automotive, industrial, and agricultural sectors, supporting steel shipments and backlog growth


Company press release: ID:nPn5pZwMRa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$6.09 bln

$5.57 bln (8 Analysts)

Q2 EPS

Beat

$3.69

$3.64 (9 Analysts)

Q2 Net Income

$530.79 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the iron & steel peer group is "buy"

  • Wall Street's median 12-month price target for Steel Dynamics Inc is $265.00, about 12.5% above its July 17 closing price of $235.51

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • July 20 - Trump says he signed proclamation to adjust tariffs on aluminum imports

  • July 20 - Russia's Severstal's Q2 profit down 74%

  • July 19 - China's Jingye Steel urges UK to compensate its investment losses


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