Steel Dynamics Reports $217 Million Q1 Profit on Record Shipments

 Steel Dynamics

Recycled-content steel leader eyes aluminum rollout by mid-2025

Steel Dynamics Inc. (SDI) reported $217 million in Q1 2025 net income, supported by record steel shipments and a solid performance from its metals recycling and fabrication divisions. While net income was up 4.8% from Q4 2024, it declined nearly 63% year-over-year. Total net sales reached $4.4 billion.

“Record shipments and improving demand supported our Q1 results,” said SDI CEO Mark D. Millett.

Recycling Division Surges

SDI’s Metals Recycling unit—anchored by OmniSource Corp.—generated $25.7 million in operating income, up 54% from the previous quarter and 10% higher year-on-year.

“Our return on invested capital over three years is 20%,” said Millett. “That speaks volumes to our disciplined growth strategy.”

Strong Demand, But Margin Pressures

Steel demand from nonresidential construction, automotive, energy, and industrial sectors rebounded in Q1, pushing shipments to 3.5 million tons. However, average steel selling prices dropped $13/ton to $998, while scrap input costs rose $16/ton to $386, pressuring margins.

The company’s Sinton, Texas mill operated at an 86% utilization rate, occasionally surpassing 90%.

“Steel pricing firmed in Q1,” said Millett. “We remain optimistic for 2025, but trade policy uncertainty is a wildcard.”

Aluminum Expansion on Track

SDI is progressing with its Aluminum Dynamics project in Columbus, Mississippi, and its satellite recycled slab center in San Luis Potosí, Mexico. First aluminum ingots were cast in January and March 2025, respectively.

The firm expects to begin commercial shipments of flat-rolled aluminum coils by mid-2025.

“Many of our flat-rolled steel clients also use aluminum,” said Millett. “This expansion is a strategic fit.”

SDI aims to supply high-recycled content aluminum to the automotive, beverage can, packaging, construction, and industrial sectors.

Long-Term Outlook

SDI remains bullish on domestic steel consumption, supported by onshoring, infrastructure investment, and lower-carbon US-made steel. The company’s integrated approach aligns with growing demand for sustainable, traceable materials.