Steel Dynamics Inc. (NASDAQ:STLD) Surpasses Market Expectations with Strong Q3 Earnings

• Steel Dynamics, Inc. (NASDAQ:STLD) is set to release its quarterly earnings on July 21, 2025, with an estimated EPS of $2.04 and projected revenue of $4.76 billion.
• Despite the revenue increase, a decline in earnings for the quarter ending June 2025 is anticipated.
• Key financial metrics include a P/E ratio of 16.84, a price-to-sales ratio of 1.13, and a debt-to-equity ratio of 0.48.

Steel Dynamics, Inc. (NASDAQ:STLD) is a leading industrial metals solutions company operating in the United States and Mexico. The company is known for its steel production and metal recycling operations. As a key player in the industry, STLD competes with other major steel producers like Nucor Corporation and United States Steel Corporation.

On July 21, 2025, STLD is set to release its quarterly earnings, with Wall Street estimating an earnings per share (EPS) of $2.04 and projected revenue of approximately $4.76 billion. Despite these projections, analysts expect a decline in earnings for the quarter ending June 2025, as highlighted by Zacks. This decline is anticipated even though revenues are expected to increase.

The company's financial metrics provide insight into its market valuation and financial health. STLD has a price-to-earnings (P/E) ratio of 16.84, indicating how the market values its earnings. The price-to-sales ratio is 1.13, showing the amount investors are willing to pay per dollar of sales. Additionally, the enterprise value to sales ratio is 1.31, reflecting the company's total valuation relative to its sales.

STLD's earnings yield stands at 5.94%, offering a perspective on the return on investment from earnings. The debt-to-equity ratio is 0.48, indicating a moderate level of debt compared to equity. The current ratio is 2.74, suggesting the company's strong ability to cover short-term liabilities with its short-term assets. These metrics will be crucial for investors as they assess the company's financial performance and future prospects.

Steel Dynamics (NASDAQ:STLD) shares rose more than 3% today after UBS upgraded the stock from Neutral to Buy, maintaining a $149 price target, as stronger-than-expected tariff protections and operational upside create a favorable setup for the steelmaker.

Following recent U.S. election developments, import protections on steel and aluminum have outpaced expectations, helping to fuel a sharp rally in hot-rolled coil (HRC) prices. Despite this, Steel Dynamics' stock has de-rated alongside broader market weakness amid escalating trade tensions, creating what UBS views as a compelling entry point.

While UBS anticipates a pullback in steel prices later in the year, it believes $800/ton HRC pricing is sustainable, even amid softening demand. This forecast is supported by import parity improvements and a steeper cost curve, both of which have strengthened throughout the year.

Beyond pricing, UBS highlights Steel Dynamics’ organic growth pipeline, including around $1.2 billion in expected EBITDA contributions from its Sinton facility and aluminum operations. This growth, paired with substantial free cash flow potential—estimated at 10–14% yield by 2026–2028 (adjusted for buybacks), underpins a strong capital return profile.

With earnings momentum building into Q2, room for upside if HRC spot prices hold, and a more attractive valuation, UBS sees this as an opportune time to gain exposure to Steel Dynamics' long-term growth and cash generation potential.

Steel Dynamics (NASDAQ:STLD) shares rose more than 3% today after UBS upgraded the stock from Neutral to Buy, maintaining a $149 price target, as stronger-than-expected tariff protections and operational upside create a favorable setup for the steelmaker.

Following recent U.S. election developments, import protections on steel and aluminum have outpaced expectations, helping to fuel a sharp rally in hot-rolled coil (HRC) prices. Despite this, Steel Dynamics' stock has de-rated alongside broader market weakness amid escalating trade tensions, creating what UBS views as a compelling entry point.

While UBS anticipates a pullback in steel prices later in the year, it believes $800/ton HRC pricing is sustainable, even amid softening demand. This forecast is supported by import parity improvements and a steeper cost curve, both of which have strengthened throughout the year.

Beyond pricing, UBS highlights Steel Dynamics’ organic growth pipeline, including around $1.2 billion in expected EBITDA contributions from its Sinton facility and aluminum operations. This growth, paired with substantial free cash flow potential—estimated at 10–14% yield by 2026–2028 (adjusted for buybacks), underpins a strong capital return profile.

With earnings momentum building into Q2, room for upside if HRC spot prices hold, and a more attractive valuation, UBS sees this as an opportune time to gain exposure to Steel Dynamics' long-term growth and cash generation potential.

Steel Dynamics Inc. (NASDAQ:STLD) is a prominent player in the steel industry, known for its innovative steel production and recycling operations. The company competes with other major steel producers like Nucor Corporation and ArcelorMittal. On October 21, 2024, Glenn Pushis, Senior Vice President of Steel Dynamics, sold 5,647 shares at $132.95 each, retaining 158,987 shares post-transaction.

Steel Dynamics recently reported strong third-quarter earnings, with GAAP earnings of $2.05 per share, surpassing the expected $1.97. The company achieved quarterly sales of $4.34 billion, exceeding forecasts of $4.177 billion. Despite a year-over-year decline in net sales, the results reflect the company's ability to outperform market expectations.

Mark D. Millett, Co-Founder, Chairman, and CEO, emphasized the company's robust performance, highlighting an adjusted EBITDA of $557 million and cash flow from operations of $760 million. Steel Dynamics increased its liquidity to $3.1 billion, invested $621 million in growth, and returned $381 million to shareholders through dividends and share repurchases.

The company's three-year after-tax return on invested capital is an impressive 26%, showcasing its commitment to delivering high returns. Analysts have raised their forecasts for Steel Dynamics, indicating confidence in its continued strong performance. Despite challenges from lower average realized steel prices, the company managed to increase steel shipments to around 3.2 million tons.

Currently, STLD is priced at $132.81, experiencing a 2.76% decrease today. The stock has seen a low of $132.63 and a high of $137.01 during the day's trading. Over the past year, STLD reached a high of $151.34 and a low of $98.32, with a market capitalization of approximately $20.49 billion.

• The consensus price target for Steel Dynamics, Inc. (NASDAQ:STLD) has remained stable, indicating a steady analyst view on the company's potential.
• Despite a stable outlook, Steel Dynamics is expected to report a decline in third-quarter earnings due to reduced steel prices.
• Goldman Sachs sets a more cautious price target of $114 for STLD, reflecting concerns over anticipated earnings decline and current pricing pressures.

Steel Dynamics, Inc. (NASDAQ:STLD) is a key player in the U.S. steel production and metal recycling industry. The company operates through three main segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. These segments serve diverse markets such as construction, automotive, and manufacturing, making Steel Dynamics a versatile entity in the industry.

The consensus price target for STLD has shown stability over the past year. Last month, the average price target was $138, slightly lower than the last quarter's $139.17. A year ago, it was $135.18. This consistency suggests that analysts have a steady view of the company's potential, with minor adjustments reflecting market conditions or company performance updates.

Despite this stable outlook, Steel Dynamics is expected to report a decline in its third-quarter earnings. This anticipated downturn is primarily due to reduced steel prices, as highlighted by Zacks. However, the company maintains a robust backlog extending into 2025, indicating ongoing demand for its products.

Goldman Sachs has set a price target of $114 for STLD, reflecting their analysis and expectations for the company's stock performance amid current pricing pressures. This target suggests a more cautious view compared to the consensus, possibly due to the anticipated earnings decline.

Since its last earnings report, STLD has experienced an 8.6% decline, drawing attention from investors and analysts. The market is closely watching how Steel Dynamics will navigate these challenges and what strategic moves it might make to regain investor confidence, as highlighted by Zacks.

• The consensus price target for Steel Dynamics, Inc. (NASDAQ:STLD) has remained stable, indicating a steady analyst view on the company's potential.
• Despite a stable outlook, Steel Dynamics is expected to report a decline in third-quarter earnings due to reduced steel prices.
• Goldman Sachs sets a more cautious price target of $114 for STLD, reflecting concerns over anticipated earnings decline and current pricing pressures.

Steel Dynamics, Inc. (NASDAQ:STLD) is a key player in the U.S. steel production and metal recycling industry. The company operates through three main segments: Steel Operations, Metals Recycling Operations, and Steel Fabrication Operations. These segments serve diverse markets such as construction, automotive, and manufacturing, making Steel Dynamics a versatile entity in the industry.

The consensus price target for STLD has shown stability over the past year. Last month, the average price target was $138, slightly lower than the last quarter's $139.17. A year ago, it was $135.18. This consistency suggests that analysts have a steady view of the company's potential, with minor adjustments reflecting market conditions or company performance updates.

Despite this stable outlook, Steel Dynamics is expected to report a decline in its third-quarter earnings. This anticipated downturn is primarily due to reduced steel prices, as highlighted by Zacks. However, the company maintains a robust backlog extending into 2025, indicating ongoing demand for its products.

Goldman Sachs has set a price target of $114 for STLD, reflecting their analysis and expectations for the company's stock performance amid current pricing pressures. This target suggests a more cautious view compared to the consensus, possibly due to the anticipated earnings decline.

Since its last earnings report, STLD has experienced an 8.6% decline, drawing attention from investors and analysts. The market is closely watching how Steel Dynamics will navigate these challenges and what strategic moves it might make to regain investor confidence, as highlighted by Zacks.