Steel Mills

SDI earnings slip in Q2 as trade volatility hits customer orders
Written by Ethan Bernard
July 21, 2025
Steel Dynamics Inc.
Second quarter ended June 30 | 2025 | 2024 | % Change |
---|---|---|---|
Net sales | $4,565.1 | $4,632.6 | -1.5% |
Net earnings (loss) | $298.7 | $428.0 | -30.2% |
Per diluted share | $2.01 | $2.72 | -26.1% |
Six months ended June 30 | |||
Net sales | $8,934.3 | $9,326.6 | -4.2% |
Net earnings (loss) | $515.9 | $1,012.0 | -49% |
Per diluted share | $3.44 | $6.39 | -46.2% |
Steel Dynamics Inc. (SDI) posted lower profits in the second quarter of 2025 year over year as the volatile trade situation impacted customer orders.
The Fort Wayne, Ill.-based steelmaker reported net income attributable to SDI stockholders of $298.7 million in Q2’25, down 30% from $428 million a year earlier. Net sales fell ~2% to nearly $4.57 billion.
Trade policy hit
Though steel pricing stabilized at higher levels in Q2’25, Chairman and CEO Mark Millett underlined the impact of trade policy on the economic environment.
“The uncertainty regarding trade policy continues to cause hesitancy in customer order patterns across our businesses,” he said in a statement on Monday.
This comes despite healthy underlying demand factors, Millett noted. These include “manufacturing onshoring, infrastructure program funding, and increased regionalization of supply chains in the US.”
He pointed out that this customer hesitancy, “combined with an inventory overhang of coated flat-rolled steel, resulted in lower steel and steel fabrication shipments in the second quarter 2025.”
The company shipped 3.3 million short tons in Q2’25, up 5% from a year earlier but down 4% from the previous quarter.
However, Millett believes that as individual country trade agreements are negotiated, and trade policy is generally stabilized in the coming months, “strong pent-up demand for our products will result.”
“Coupled with our expansion in value-added steel and now aluminum flat-rolled products, we are firmly positioned for continued growth and long-term value creation,” Millett said.
Sinton
The company noted its Sinton, Texas, Flat Roll Division achieved higher sequential earnings in Q2. This came despite operating at a lower production rate, “due primarily to a supplier limitation.”
For over 65 days, SDI’s supplier limited full access to oxygen, a critical component for production, at Sinton. This limited volume by an estimated ~55,000 tons in the quarter. The company says its oxygen access has been restored.
The company expects “significantly higher profitability” in the second half of 2025 from initiatives focused on value-added product quality and cost efficiency.
Outlook
Millett is bullish on SDI’s long-term outlook.
“We remain confident that market factors are in place to support strong domestic steel and aluminum product consumption in the coming years,” he said.
He believes this will happen as policymakers mitigate “uncertainty concerning trade and tax policies and the interest rate environment improves.”
Millett added that the US International Trade Commission’s preliminary determination on coated products could provide a “tailwind” for SDI as it would result in fewer “unfairly traded imports.”
Recall that the US Commerce Department released preliminary anti-dumping duties in April.
Additionally, Millett praised SDI’s aluminum team on the commissioning of the company’s Columbus, Miss., aluminum flat-rolled products mill, along with the San Luis Potosi, Mexico,
satellite recycled slab center.
“Last month, we successfully produced and sold our first aluminum coils, and we expect volume to steadily increase over the coming months,” Millett said. “We anticipate exiting 2025 at a utilization rate of between 40%-50%, and 2026 at an exit rate of 75%, as product certifications occur.”

Ethan Bernard
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