Steel Dynamics Gives Weak Q4 Outlook, But Says Business Remains Solid

Key Takeaways

• Steel Dynamics warned that lower prices and shipments and an unplanned outage at a factory will affect current-quarter earnings.
• Visible Alpha’s analysts expected $1.60, but the steelmaker expects a profit between $1.26 and $1.30 for its fourth quarter.
• The company stated that prices had stabilized, and the demand was still strong.

Steel Dynamics (STLD), in part due to an issue with its plant, provided lower-than expected guidance for the current third quarter. Shares of the steelmaker have recently risen as it gave a more positive outlook about the market. 

The company stated that they expect fourth-quarter earnings (EPS) to range between $1.26 and $1.30. Visible Alpha surveyed analysts who were expecting $1.60.

Steel Dynamics explained that per-share profitability would be "meaningfully lower" than the $2.05 produced in the third quarter because of "lower average realized pricing, seasonally lower shipments, and an unplanned outage at the Company's Butler Flat Roll Division further reducing volume by an estimated 50,000 tons.”

Steel Dynamics Says 'Demand Remains Seasonally Steady'

Still, the company noted that flat rolled steel prices have stabilized, and based on solid customer order activity, "demand remains seasonally steady for the primary steel consuming sectors." It added that its customers have been positive about the 2025 business outlook. 

Steel Dynamics said that because of its confidence in its earnings and cash flow generation ahead, it has repurchased $250 million, or just more than one percent, of its common stock during the fourth quarter through Dec. 10.

Steel Dynamics shares, scheduled to report its earnings on January 22, have risen by about 4% in the past year.

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