Steel Dynamics Inc. (SDI), based in Fort Wayne, Indiana, is projecting earnings per share (EPS) for Q1 2025 in the range of $1.36 to $1.40. This marks a decline of approximately 62% from Q1 2024, when SDI posted an EPS of $3.67. However, SDI’s outlook for the first quarter remains optimistic.
Stronger Steel and Metals Recycling Operations in Q1
SDI expects improved steel operations profitability in Q1 2025 compared to the fourth quarter of 2024. Increased shipments will offset some metal margin compression. SDI also anticipates its metals recycling business will perform better than in the previous quarter. Stronger realized pricing and stable volumes for ferrous and nonferrous materials will contribute to this improvement.
The company continues to see robust demand in industries such as energy, nonresidential construction, automotive, and industrial sectors. These sectors are driving the need for SDI’s recycled-content steel.
Aluminum Progress and Fabrication Update
SDI is also progressing with its new Aluminum Dynamics facility in Columbus, Mississippi. The company successfully cast its first aluminum ingot at the new Mexican facility and started the ingot scalper. Shipments from the facility are expected to begin in mid-2025.
However, SDI anticipates lower earnings from its downstream steel fabrication units in Q1 2025. This is due to seasonal decreases in shipments and a slight drop in pricing. On a positive note, order activity has picked up, and the backlog extends into Q3 2025. This increase is driven by demand from the commercial, data center, manufacturing, warehouse, and healthcare sectors.
Positive Outlook for Steel Industry Demand
SDI remains optimistic about the steel industry, citing the growing pace of domestic manufacturing investment and the U.S. infrastructure program. These developments are expected to boost demand for steel products, including steel joists, deck products, flat-rolled, and long products steel.
SDI will release its Q1 2025 earnings on April 22. The company plans to hold a conference call the next day to discuss the results.
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