Steel Product Producers

SDI anticipates improved Q1 profits on better shipments

Written by David Schollaert

March 18, 2025

Steel Dynamics Inc. expects profits to improve in the first quarter due to increased shipments amid metal margin compression, according to earnings guidance released on Tuesday.

The Fort Wayne, Ind.-based steelmaker and metals recycler expects Q1’25 earnings guidance in the range of $1.36 and $1.40 per diluted share. That’s flat sequentially, but significantly lower than the $3.67 per share from the year-ago quarter.

SDI expects energy, non-residential construction, and automotive to continue to drive demand. Second-quarter earnings should also see improved profitability as “recent spot price improvements” should be realized in the coming months.

Meanwhile, earnings from the company’s steel fabrication operation are expected to see lower earnings due to seasonally lower shipments and a slight decline in pricing. But the company predicted better times for its fabrication business this year, due to strong order activity and backlogs extending into Q3’25.

SDI’s flat-rolled mill in Sinton, Texas, was again a bright spot for the company, operating at over 90% capacity, and aiming for profitability in Q2’25.

For scrap, quarterly earnings are projected to improve vs. last quarter due to higher pricing and stable volumes. Shipments are expected to begin mid-2025 at its recycled slab center in San Luis Potosí, Mexico. In non-ferrous, SDI is progressing with the commissioning of its aluminum flat-rolled products mill in Columbus, Miss. Its first aluminum ingot was cast in January in addition to completing the start-up of the ingot scalper.

“Construction is close to complete on the hot line and No. 1 cold rolling mill,” SDI said.

SDI said automotive and can coiling lines remain on schedule. SDI expects to ship the product later this year.

The company will release its full Q1’25 earnings report on April 22.

David Schollaert

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

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