Steel Dynamics Inc. shares decline following fourth quarter results

Steel Dynamics Inc. (NASDAQ: STLD) shares declined during Monday’s trading session following the release of the company’s fourth quarter and full-year 2025 financial results. As of 12:45 p.m. EST, the stock was trading at $176.97, representing an intraday decrease of 2.40% from the previous close of $181.32. The stock opened the session at $184.40 and reached an intraday high of $185.56 before retreating.

Market Capitalization

Based on the current share price and outstanding share count, the market capitalization of Steel Dynamics Inc. is approximately $25.73 billion.

Latest Quarterly Results

For the fourth quarter ended December 31, 2025, Steel Dynamics reported consolidated net sales of $4.41 billion, a 14% increase compared to $3.87 billion in the fourth quarter of 2024. Net income for the period totaled $325 million, or $1.83 per diluted share, compared to $207 million, or $1.36 per diluted share, in the prior-year period.

Segment highlights for the fourth quarter are as follows:

• Steel Operations: Operating income for this segment was impacted by lower average realized selling values and reduced volumes. Planned maintenance outages at flat-rolled steel mills decreased production by approximately 145,000 tons.
• Metals Recycling Operations: Performance in this segment reflected lower seasonal shipments and declining ferrous and non-ferrous pricing as domestic steel industry demand softened during the winter months.
• Steel Fabrication Operations: This segment recorded lower sequential shipments. However, the company reported that the order backlog for steel joists and deck products extends into the second quarter of 2026.
• Aluminum Operations: The company continued the commissioning of its aluminum flat-rolled products mill in Mississippi, receiving initial product qualifications from beverage can and automotive consumers.

Financial Trends

Full-Year Results Context

For the full year 2025, Steel Dynamics recorded total revenue of $17.63 billion. Annual net income totaled approximately $1.8 billion, a contraction from the $2.5 billion reported in 2024. The company achieved record annual steel shipments of 13.7 million tons in 2025, a directional increase in volume despite a decline in overall realized pricing.

Business & Operations Update

The company finalized the acquisition of the remaining 55% equity interest in New Process Steel, L.P. on December 1, 2025. This transaction establishes full ownership of the flat-roll steel customer. Additionally, the company is progressing with its sustainable aluminum flat-rolled products mill, aimed at diversifying into the beverage can and automotive sectors.

M&A or Strategic Moves

On January 5, 2026, Steel Dynamics confirmed the submission of a non-binding indicative offer to acquire BlueScope Steel Ltd. for a reported $8.8 billion. The company also completed an $800 million notes offering in late 2025 to redeem existing 2026 debt and fund general corporate purposes.

Equity Analyst Commentary

Analysts and industry experts noted that while quarterly earnings of $1.83 per share exceeded consensus estimates of $1.72, revenue of $4.41 billion fell short of the $4.53 billion estimate. Nasdaq research reports highlight that the stock has gained approximately 7% year-to-date, outperforming the broader S&P 500 index.

Guidance & Outlook

Management indicated that market conditions are expected to improve in 2026. Key factors to watch include the potential impact of declining interest rates on construction demand and the continued support from U.S. infrastructure programs. The company expects these factors to bolster demand for flat-rolled and long-product steel.

Performance Summary

Steel Dynamics stock is currently trading lower at $176.97. The company reported a 14% year-over-year increase in fourth-quarter revenue to $4.41 billion, though net income declined sequentially. Segment results were characterized by record shipments but offset by lower realized steel prices and seasonal maintenance impacts.