Steel Dynamics beats quarterly profit estimates on declining scrap raw material costs

Reuters
Oct 21
<a href="https://laohu8.com/S/STLD">Steel Dynamics</a> beats quarterly profit estimates on declining scrap raw material costs

Oct 20 (Reuters) - Steel Dynamics STLD.O on Monday posted third-quarter profit and revenue above Wall Street estimates, as a decline in the costs of scrap raw material outpaced average pricing at its steelmaking operations.

While steel spot and contract pricing momentum from President Donald Trump's tariffs on steel imports is yet to pick up, the U.S. steelmaker benefited from the fall in scrap pricing.

Scrap raw material is an essential feedstock for Steel Dynamics' exclusively electric-arc furnace steel-producing mills.

"We expect to benefit from stronger demand across our platforms, including aluminum flat rolled products, as we move into 2026," CEO Mark Millett said.

The firm views a reduction in unfairly traded imports as a significant tailwind for its operations and market positioning, while expecting the broader market dynamics to positively influence performance across its operating platforms, he added.

"We have seen some order hesitancy from flat rolled steel customers due to domestic trade actions, despite numerous encouraging demand drivers."

The Fort Wayne, Indiana-based company's third-quarter adjusted profit of $2.74 per share exceeded analysts' average estimate of $2.64, according to data compiled by LSEG.

Revenue for the quarter ended September 30 rose 11.2% to $4.83 billion from a year ago, beating Wall Street expectations of $4.8 billion.

(Reporting by Aatreyee Dasgupta and Anshuman Tripathy in Bengaluru; Editing by Shreya Biswas)

((Aatreyee.Dasgupta@thomsonreuters.com;))

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