Zacks Research Expects Reduced Earnings for Steel Dynamics

Key Points

• Zacks Research has lowered its Q3 2025 earnings estimate for Steel Dynamics from $2.74 to $2.63 per share, reflecting a negative outlook for the steel producer.
• Steel Dynamics reported Q2 2025 earnings of $2.01 EPS, missing the consensus estimate of $2.05, alongside a revenue decline of 1.5% year-over-year.
• The company recently announced a quarterly dividend of $0.50 per share, representing an annual yield of 1.6% and a payout ratio of 29.15%.

Steel Dynamics, Inc. (NASDAQ:STLD - Free Report) - Stock analysts at Zacks Research lowered their Q3 2025 earnings estimates for Steel Dynamics in a research report issued on Thursday, August 14th. Zacks Research analyst Team now forecasts that the basic materials company will post earnings per share of $2.63 for the quarter, down from their previous forecast of $2.74. The consensus estimate for Steel Dynamics' current full-year earnings is $9.01 per share. Zacks Research also issued estimates for Steel Dynamics' Q4 2025 earnings at $2.42 EPS, Q2 2026 earnings at $3.01 EPS, Q4 2026 earnings at $2.31 EPS, FY2026 earnings at $11.43 EPS, Q1 2027 earnings at $2.31 EPS and FY2027 earnings at $14.09 EPS.

Steel Dynamics (NASDAQ:STLD - Get Free Report) last posted its quarterly earnings data on Monday, July 21st. The basic materials company reported $2.01 EPS for the quarter, missing the consensus estimate of $2.05 by ($0.04). Steel Dynamics had a net margin of 6.07% and a return on equity of 11.88%. The business had revenue of $4.57 billion during the quarter, compared to analysts' expectations of $4.82 billion. During the same period in the previous year, the business posted $2.72 EPS. The company's revenue for the quarter was down 1.5% compared to the same quarter last year.

A number of other research analysts also recently issued reports on the stock. JPMorgan Chase & Co. lifted their price target on shares of Steel Dynamics from $138.00 to $150.00 and gave the stock a "neutral" rating in a research note on Monday, July 14th. Wells Fargo & Company began coverage on shares of Steel Dynamics in a research note on Wednesday. They issued an "overweight" rating and a $143.00 price target for the company. Wall Street Zen downgraded shares of Steel Dynamics from a "hold" rating to a "sell" rating in a research note on Friday, April 25th. Finally, Morgan Stanley raised their price objective on shares of Steel Dynamics from $140.00 to $145.00 and gave the stock an "overweight" rating in a report on Friday, June 20th. One investment analyst has rated the stock with a sell rating, three have assigned a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $148.70.

Steel Dynamics Trading Down 1.4%

NASDAQ STLD opened at $127.48 on Friday. The firm has a 50 day simple moving average of $129.77 and a 200-day simple moving average of $128.24. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.34 and a current ratio of 3.13. Steel Dynamics has a one year low of $103.17 and a one year high of $155.56. The firm has a market cap of $18.77 billion, a price-to-earnings ratio of 18.58, a PEG ratio of 1.05 and a beta of 1.38.

Steel Dynamics Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Tuesday, September 30th will be given a dividend of $0.50 per share. This represents a $2.00 annualized dividend and a dividend yield of 1.6%. Steel Dynamics's payout ratio is currently 29.15%.

Insiders Place Their Bets

In other Steel Dynamics news, SVP Miguel Alvarez sold 7,495 shares of the business's stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $135.26, for a total transaction of $1,013,773.70. Following the sale, the senior vice president directly owned 125,319 shares in the company, valued at approximately $16,950,647.94. The trade was a 5.64% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Christopher A. Graham sold 12,000 shares of the business's stock in a transaction on Wednesday, July 30th. The stock was sold at an average price of $126.71, for a total transaction of $1,520,520.00. Following the sale, the senior vice president owned 66,738 shares in the company, valued at $8,456,371.98. The trade was a 15.24% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 20,749 shares of company stock worth $2,702,468. Corporate insiders own 6.30% of the company's stock.

Institutional Investors Weigh In On Steel Dynamics

Institutional investors and hedge funds have recently made changes to their positions in the business. Norges Bank acquired a new position in Steel Dynamics in the 2nd quarter valued at about $339,769,000. Victory Capital Management Inc. raised its stake in Steel Dynamics by 433.1% in the 1st quarter. Victory Capital Management Inc. now owns 1,816,525 shares of the basic materials company's stock valued at $227,211,000 after purchasing an additional 1,475,767 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in shares of Steel Dynamics by 25.5% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 7,066,300 shares of the basic materials company's stock valued at $883,854,000 after acquiring an additional 1,437,897 shares during the last quarter. Robeco Institutional Asset Management B.V. increased its stake in shares of Steel Dynamics by 531.0% during the 1st quarter. Robeco Institutional Asset Management B.V. now owns 1,191,669 shares of the basic materials company's stock valued at $149,054,000 after acquiring an additional 1,002,813 shares during the last quarter. Finally, Capital Research Global Investors increased its stake in shares of Steel Dynamics by 29.4% during the 4th quarter. Capital Research Global Investors now owns 3,592,670 shares of the basic materials company's stock valued at $409,816,000 after acquiring an additional 815,629 shares during the last quarter. 82.41% of the stock is currently owned by hedge funds and other institutional investors.

Steel Dynamics Company Profile

Steel Dynamics, Inc, together with its subsidiaries, operates as a steel producer and metal recycler in the United States. The Steel Operations segment offers hot rolled, cold rolled, and coated steel products; parallel flange beams and channel sections, flat bars, large unequal leg angles, and reinforcing steel bars, as well as standard strength carbon, intermediate alloy hardness, and premium grade rail products; engineered special-bar-quality products, merchant-bar-quality products, and other engineered round steel bars; channels, angles, flats, merchant rounds, and reinforcing steel bars; and specialty shapes and light structural steel products.

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