SDI anticipates stronger sequential earnings

SDI earnings in Q1’25 were $1.44 per diluted share and $2.72 in the year-ago quarter.  

As of June 11, SDI repurchased $179 million, or 1%, of its common stock during the second quarter. 

Segment expectations 

SDI expects its steel operations segment to be more profitable in Q2’25 than in the previous quarter; noting that metal spreads expanded across the platform with average realized steel pricing increasing more than scrap raw materials costs.  

Long product steel shipments improved quarter-on-quarter. Flat rolled volumes decreased, SDI said, mostly due to the inventory “overhang” from coated flat rolled steel imports. Demand was driven mostly by the energy sector, non-residential construction, and automotive and industrial sectors. 

Metals recycling operations will remain flat due to stronger shipments offsetting lower realized pricing.  

Pretax earnings for the steel segment were reduced in Q2’25 by about $32 million for noncash write-off of consumable assets.  

SDI expects lower steel fabrication operations earnings in Q2 compared to Q1. The decrease is the result of steel raw material costs increases, average realized sales price dips, and metal spread compression. The quickened pace and uptick in orders improved backlogs. Commercial, data center, manufacturing, warehouse, and healthcare sectors drove the segment’s demand.  

The company foresees improvement in its steel joist and deck products, flat rolled, and long steel products as US reshoring, manufacturing, and infrastructure programs expand, the company said.