By Nate Wolf

Steel Dynamics was the second-best performer in the S&P 500 Tuesday after the company issued a solid outlook for the current quarter.

The Fort Wayne, Ind.-based steelmaker expects third-quarter earnings of $2.60 to $2.64 a share, up from $2.01 in the second quarter and $2.05 the year prior. Management anticipates higher profitability from its steel operations, and earnings growth in its metals recycling segments and downstream steel fabrication segments.

Steel Dynamics stock rose 6.5% to $140.07 on Tuesday. Shares have now jumped 23% this year.

The forecast wasn't exactly a shock to Wall Street -- analysts polled by FactSet had anticipated earnings to come in even higher, at $2.74 a share -- but investors may have taken it as a sign of solid demand in an uncertain trade environment.

Shares of U.S. steelmakers jumped in May when President Donald Trump announced he would raise the tariff rate on imported steel to 50% from 25%. Should that tariff stick, domestic producers would have greater pricing power, which should support their profitability, as Barron's reported last month . But demand needs to hold up, too.

Steel Dynamics said the energy, automotive, non-residential construction, and industrial sectors "continue to lead demand" for its steel operations.

On the fabrication side, "the accelerated announcements for meaningful domestic manufacturing investment and onshoring, coupled with the U.S. infrastructure program are expected to positively impact demand" for various steel products, the company said.

Other domestic steel stocks were mixed Tuesday. Nucor was up 1.3%, Cleveland-Cliffs was down 2.6%, and Commercial Metals was up 0.3%.

Write to Nate Wolf at nate.wolf@barrons.com

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September 16, 2025 13:26 ET (17:26 GMT)

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