Steel Market Update projects increased earnings for SDI in the upcoming quarter.

Steel Dynamics Inc. (SDI) is projecting a stronger outcome in terms of earnings for the second quarter, which it is expected to unveil on Monday, July 21. The steelmaker and metals recycler, headquartered in Fort Wayne, Indiana, foresees earnings in the range of $2.00 to $2.04 per diluted share for the second quarter.

Looking back, SDI recorded earnings of $1.44 per diluted share for the first quarter of 2025 and $2.72 in the same period of the previous year. During the second quarter, SDI repurchased $179 million worth of its common stock by June 11, accounting for 1% of shares outstanding.

The company is optimistic about its steel operations segment for the second quarter compared to the previous quarter. Metal spreads have widened across the platform, leading to increased average realized steel pricing surpassing scrap raw materials costs. Although flat rolled volumes declined due to an inventory backlog from coated flat rolled steel imports, long product steel shipments showed improvement. Demand was primarily driven by the energy sector, non-residential construction, as well as automotive and industrial sectors.

On the other hand, metals recycling operations are likely to remain steady, with stronger shipments counterbalancing lower realized pricing. A noncash write-off of consumable assets led to a $32 million reduction in pretax earnings for the steel segment in the second quarter of 2025.

Regarding steel fabrication operations, SDI is expecting lower earnings in the second quarter than the first. This decline is attributed to the rise in steel raw material costs, a dip in the average realized sales price, and metal spread compression. Nevertheless, the segment saw improved backlogs due to a faster pace and a rise in orders. Demand from the commercial, data center, manufacturing, warehouse, and healthcare sectors prompted growth in this segment.

Looking ahead, SDI envisions improvements in its steel joist and deck products, flat rolled, and long steel products as US reshoring, manufacturing, and infrastructure programs expand.

As we eagerly await SDI’s full earnings report, the company’s strong outlook for the second quarter speaks to its strategic planning, operational efficiency, and market positioning in the steel industry. The upcoming results will reveal the extent of growth and profitability within SDI’s diverse business segments.