SDI posts strong Q4 profit despite outages and contract price lags

Steel Dynamics Inc. reported higher Q4 profits despite lower contract prices for flat-rolled steel and more outages than usual in the quarter.

The Fort Wayne, Ind.-based steel and aluminum maker said it expected even better times ahead thanks to less import competition, continued improvement in prices, and steady demand.

The company also highlighted significant progress at its new flat-rolled aluminum mill in Columbus, Miss., and at the recycled slab center in San Luis Potosi, Mexico. SMU sister publication Aluminum Market Update (AMU) has details on aluminum-related developments here.

“We anticipate that improving market conditions, including increased trade stability and a more favorable interest rate environment, will support solid domestic demand for steel and aluminum products,” SDI Chairman and CEO Mark Millett said in a statement released with earnings data on Monday.

By the numbers

All told, SDI posted fourth-quarter 2025 net income of $266.0 million, up 28% from $207.3 million in the fourth quarter of 2024 on net sales that rose 14% to $4.14 billion in the same comparison.

Company executives noted that fourth-quarter results on the sheet side had been weighed down by low steel prices in the third quarter, which flowed into contract prices in the fourth quarter. Higher fourth-quarter prices are flowing through to contract prices in Q1, which have seen spot prices continue to rise.

Recall that hot-rolled (HR) coil prices fell to as low as $785 per short ton (st) in the third quarter, according to SMU’s interactive pricing tool. They closed Q4 at $910/st on average and stood at $945/st when this article was published.

On the volume side, SDI shipped 3.30 million tons of steel in Q4’25, up from 3.02 million in Q4’24. For the year, SDI posted record annual steel shipments of nearly 13.8 million tons.

With imports down, coated shines

Volume and price gains have occurred against a backdrop of “stable demand and lower imports,” notably of coated flat-rolled steel. In particular, a successful trade petition against imports of coated material from 10 countries has played a key role in keeping SDI’s coating and painting lines “operating full,” company President and Chief Operating Officer Barry Schneider said.

“We have an excess of a million tons that have already been removed from the market that had been coming in,” Schneider said. That result: The company is “excited” not only about the potential for its four relatively new value-added lines but also for New Process Steel, which SDI fully acquired in December.

SDI located the four new coating lines at its steel mill in Sinton, Texas, and at its flat-rolled processing plant in Terre Haute, Ind.

As for demand, nonresidential construction should benefit from manufacturing projects, continued reshoring, and US infrastructure spending. In energy, while oil and gas are “steady,” solar is “very strong.” SDI has, in addition, seen gains from automakers not only in the US but also in Europe and Asia. They are seeking steel associated with lower carbon emissions, Schneider said.

SDI is an EAF producer and so has lower carbon emissions than integrated producers.

Outage update

Record annual shipments came despite outages in the fourth quarter costing 140,000 to 150,000 tons of flat-rolled steel production, SDI said.

SDI operates flat-rolled steel mills in Butler, Ind., Columbus, Miss., and Sinton, Texas. “It just coincided that the three big flat-rolled mills had outages in the fourth quarter,” Schneider said.

The company does not plan to take any maintenance outages in the first quarter. “We’re looking more towards the second quarter,” he said.

Schneider also noted that a fire at a high-voltage transformer at Sinton did not have an outsized impact on operations. The incident did, however, garner headlines in the local press.

“The damage was limited to the transformer itself, and operations resumed shortly after the plant was safe – which was within 12 hours or so of the incident,” Schneider said. “We don’t expect any ongoing concerns. … It was unfortunate. But onward and upward with Sinton.

The company resumed operations quickly because it had spare equipment on hand. “It’s very difficult to get transformers in this world,” Schneider noted.