Steel Dynamics (SDI), a major U.S.-based steel producer, has provided an optimistic earnings guidance for the first quarter of 2025, expecting earnings in the range of $1.36 to $1.40 per diluted share. This is consistent with its earnings for the fourth quarter of 2024, which stood at $1.36 per diluted share, but significantly lower than the $3.67 per diluted share reported in the first quarter of 2024.
The company is projecting stronger steel operations in the first quarter, driven by increased shipments, which are expected to more than offset metal margin compression. This compression comes as contractual steel pricing lags behind recent improvements in spot prices, with the effects of the price gains expected to be realized in the coming months.
SDI also anticipates higher performance in its metals recycling operations, with stronger realized pricing and stable volumes for both ferrous and nonferrous materials. However, the company expects its steel fabrication operations to experience a slight decline compared to the fourth quarter, due to seasonally lower shipments and a less than five percent decrease in realized pricing.
Overall, Steel Dynamics is optimistic about Q1 2025, with expectations for stronger steel operations and improvements in its metals recycling business.
VietnamSteel by Hoa Sen Group
