Steel Dynamics, Inc. (NASDAQ: STLD) experienced a noticeable uptick in its stock price on Monday following the release of its fourth-quarter and full-year 2025 financial results. The company disclosed net sales of $4.414 billion for the quarter, representing significant operational scale. Nevertheless, these sales fell short of analyst projections, which had anticipated revenues of $4.575 billion.
During the fourth quarter, Steel Dynamics reported net income attributable to the company of $266 million, equating to $1.82 per diluted share. This reflects an improvement from the prior-year period’s net income of $207 million, or $1.36 per diluted share. Despite the year-over-year earnings gains, the diluted earnings per share figure did not meet the consensus estimate of $1.95.
Adjusted EBITDA for the fourth quarter reached $505.4 million, underpinning the company’s operational earnings capacity. Segment-level operating income demonstrated varied performance: steel operations generated $322 million, steel fabrication contributed $91 million, and metals recycling added $19 million in operating profit. Aluminum operations, however, recorded an operating loss of $47 million during the same period.
A notable contributor to the production profile was the impact of planned maintenance outages, which the company estimated reduced flat-rolled steel production by approximately 140,000 to 150,000 tons during the quarter. These outages likely affected revenue and earnings generation, given the scale of output affected.
Pricing and input costs in the quarter were characterized by an average external steel selling price of $1,107 per ton, while ferrous scrap costs averaged $374 per ton, indicating the ongoing cost dynamics faced by the steel operations.
Full-Year 2025 Financial and Operational Highlights
Steel Dynamics reported total net sales of $18.2 billion for the full year 2025, marking an increase compared with the $17.5 billion reported in 2024. Net income for 2025 stood at $1.2 billion or $7.99 per diluted share, a decrease from the previous year’s net income of $1.5 billion or $9.84 per diluted share. This downward earnings trend was accompanied by a 24% decline in operating income, which settled at $1.5 billion, reflecting pressure on profitability during the year.
Adjusted EBITDA for the year was reported at $2.2 billion. The company achieved record steel shipments, delivering 13.7 million tons of steel, an all-time high for the firm, underscoring robust operational throughput despite challenging market conditions.
From a cash flow perspective, Steel Dynamics generated $273 million of cash flow from operations in the fourth quarter, totaling $1.4 billion for the entire year. As of December 31, 2025, the company's cash and cash equivalents were reported at $769.9 million. Meanwhile, its long-term debt stood at $4.176 billion.
Capital markets activity included a notable debt issuance on November 21, 2025, where Steel Dynamics raised $800 million through unsecured notes. A portion of the proceeds was allocated to redeem $400 million of notes bearing a 5.000% interest rate due in 2026, reflecting proactive debt management strategies.
Management Commentary and Future Outlook
CEO Mark D. Millett commented on ongoing business developments, emphasizing progress within the company's aluminum and biocarbon initiatives. According to Millett, the teams have successfully produced finished aluminum flat-rolled products targeting industrial and beverage can markets, in addition to hot band for automotive use.
While acknowledging that additional work remains, Millett highlighted the momentum gained with these initiatives, including achieving positive EBITDA in December. This production ramp-up bodes well as commissioning and operational scaling continues.
Further growth is expected from the SDI Biocarbon Solutions division, which is progressively refining its operations and expanding output. This initiative supports Steel Dynamics’ strategic objective to offer steel and steel fabrication customers options characterized by significantly lower carbon footprints, signaling a forward-leaning approach to sustainability and supply chain decarbonization.
Addressing broader market conditions, Millett expressed anticipation that improving factors such as enhanced trade stability and a more favorable interest rate environment will underpin solid demand for domestic steel and aluminum products in the coming period, providing a constructive backdrop for business performance.
Stock Performance
Following the earnings release, Steel Dynamics shares traded up 1.26% to $183.60 at the time of reporting on Monday. This price level represents a new 52-week high for the stock, suggesting investor confidence buoyed by the company’s operational achievements and strategic progress.