Steel Dynamics Earnings Preview: What to Expect

Based in Fort Wayne, Indiana, Steel Dynamics, Inc. (STLD) specializes in steel production, metals recycling, and steel fabrication. Its operations utilize a circular manufacturing model that transforms recycled scrap into high-quality steel, including flat roll, structural beams, and custom metal products.

With a market capitalization of $20.55 billion, the company is active in sectors such as construction and automotive while expanding into sustainable aluminum production for diverse industrial applications. Steel Dynamics is scheduled to report its third-quarter results on Monday, Oct. 20, after the market closes.

Ahead of the results, Wall Street analysts expect Steel Dynamics to report a profit of $2.66 per share on a diluted basis, up 29.8% year-over-year (YOY) from $2.05 per share in the prior year’s period. The company has successfully surpassed Street’s EPS estimates in three of the last four quarters, while missing on one other occasion.

The bottom line missed in the second quarter was because the company’s operations were impacted by uncertainty surrounding tariffs, which led to increased inventory and a slowdown in steel and steel fabrication shipments during the quarter.

There are concerns regarding the company’s results. Analysts expect its diluted EPS for fiscal 2025 to decline by 9.3% YOY to $8.93, but surge by 43.7% annually to $12.83 in fiscal 2026.

Steel Dynamics’ shares have been underperforming the broader market over the past year. It has gained 11.5% over the past 52 weeks and 22.4% year-to-date (YTD), while the broader S&P 500 Index ($SPX) has increased by 15.6% and 13% over the same periods, respectively.

Comparing with the steel industry ETF, the VanEck Steel ETF (SLX), we see that the stock is closely following the industry’s performance this year. Over the past 52 weeks, the ETF has surged by 3.3%, while it is up 24.3% YTD.

In addition to the tariff uncertainty the company faces, Steel Dynamics has also been concerned about imports from other countries. The company applauded the International Trade Commission’s (ITC) decision, which affirmed that imports of corrosion-resistant steel (CORE) from ten countries had injured the U.S. steel industry. This might potentially lead to the imposition of duties that should benefit U.S. steel producers, such as Steel Dynamics.

Wall Street analysts have been bullish about Steel Dynamics’ prospects. The stock has a consensus rating of “Strong Buy” overall, an upgrade from “Moderate Buy” three months ago. Among the 13 analysts covering the stock, nine have a “Strong Buy” rating, one recommends a “Moderate Buy” rating, and three advise a “Hold.”

The mean price target of $149.92 indicates a 7.4% upside from current levels, while the Street-high price target of $155 implies an 11% upside.

On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com