STEEL DYNAMICS INC

Steel Dynamics, Inc. is a leading industrial metals solutions company operating a circular manufacturing model that produces high-quality, lower-carbon-emission products using recycled scrap as the primary input. The company is one of the largest domestic steel producers and metals recyclers in North America based on estimated steelmaking and steel coating capacity of approximately 16 million tons and actual metals recycling volumes as of December 31, 2025 ¹. The company also has aluminum operations, further diversifying its product offerings to supply aluminum flat rolled products with higher recycled content to the countercyclical, sustainable beverage can industry, as well as the automotive and industrial sectors.

The company differentiates itself through an overarching culture of excellence driven by an extensive, performance-based incentive compensation philosophy. More than 60% of a production team member's total potential compensation is 'at risk' and tied to quality production and cost-effectiveness metrics, while more than 85% of the senior leadership team's total potential compensation is 'at risk' and linked to companywide financial metrics including return on equity, growth, cash generation, and return on invested capital ². The company has one of the most diversified, high-margin product portfolios in the domestic steel industry, with approximately 70% of its steel and steel fabrication sales considered value-added ³. The steel fabrication operations maintain approximately one-third of the total domestic steel joist and deck market for bookings, representing approximately 2.1 million tons, 1.7 million tons, and 1.8 million tons during 2025, 2024, and 2023, respectively ⁴.

The company's primary sources of revenue are currently derived from the manufacture and sale of steel products, the processing and sale of recycled ferrous and nonferrous metals, and the fabrication and sale of steel joist and deck products. The company operates a circular manufacturing model where its metals recycling platform is the largest supplier of recycled ferrous scrap to its steel operations and the largest supplier of recycled aluminum scrap to its aluminum operations. In 2025, the company's own steel consuming businesses purchased 1.8 million tons of steel from its steel mills, representing 13% of total 2025 steel shipments ⁵. The company's steel fabrication operations recognize revenues over time based on completed fabricated tons to date as a percentage of total tons required for each contract, while other segments recognize revenue at the point in time control transfers to the customer.

The steel operations segment consists of electric arc furnace steel mills that produce steel from ferrous scrap and scrap substitutes, using continuous casting and automated rolling mills, along with numerous steel coating, processing, and warehouse operations. This segment accounted for 72%, 69%, and 67% of consolidated net sales during 2025, 2024, and 2023, respectively ⁶. In 2025, the company had approximately 9.4 million tons of annual flat roll steel production capacity, 2.0 million tons of flat roll steel processing capacity through The Techs and Heartland Flat Roll Division, annual flat roll galvanizing capability of 5.5 million tons, painting capability of 2.0 million tons, and long products divisions with approximately 4.6 million tons of annual steel production capacity ⁷. The sheet steel operations represented 64%, 72%, and 68% of steel operations net sales in 2025, 2024, and 2023, respectively ⁸. The company produced 10.0 million tons of sheet steel in 2025, 9.5 million tons in 2024, and 9.2 million tons in 2023 ⁹.

The metals recycling operations segment includes both ferrous and nonferrous scrap metal processing, transportation, marketing, brokerage, and scrap management services, and accounted for 11% of consolidated net sales during 2025, 2024, and 2023 ¹⁰. The steel fabrication operations segment consists of seven strategically located New Millennium Building Systems plants serving the non-residential construction industry throughout the United States, and accounted for 8%, 10%, and 15% of consolidated net sales during 2025, 2024, and 2023, respectively ¹¹. The aluminum operations segment consists of a 650,000-metric-ton recycled aluminum flat rolled products mill in Columbus, Mississippi; two 150,000-metric-ton satellite recycled aluminum slab centers, one in Central Mexico and one under construction in the Southwest U.S.; and an ancillary recycled aluminum deox-rod facility ¹². Aluminum operations accounted for 2% of consolidated net sales in 2025, and 1% in each of 2024 and 2023 ¹³. Once the recycled aluminum flat rolled products mill reaches full production, the company anticipates its aluminum operations product mix will consist of approximately 45% can sheet, 35% automotive, and 20% common alloy and industrial applications ¹⁴.

During 2025, the company achieved record steel shipments of 13.7 million tons ¹⁵. The company completed the acquisition of the remaining 55% equity interest in New Process Steel, L.P. on December 1, 2025, for cash consideration of $228.9 million, increasing its ownership from 45% to 100% ¹⁶. The company's board of directors authorized a share repurchase program of up to $1.5 billion of common stock in February 2025 ¹⁷. During 2025, the company repurchased $900.9 million of its common stock ¹⁸. The company increased its quarterly cash dividend by 9% to $0.50 per share in the first quarter of 2025, from $0.46 per share for each quarter in 2024, resulting in declared cash dividends of $294.1 million during 2025 ¹⁹. The company issued $600.0 million of 5.250% notes due 2035 and $400.0 million of 5.750% notes due 2055 in March 2025, and $650.0 million of 4.000% notes due 2028 and an additional $150.0 million of 5.250% notes due 2035 in November 2025 ²⁰. The biocarbon production facility located in Columbus, Mississippi began operations in the second half of 2025 ²¹.

Consolidated net sales were $18.2 billion during 2025, with cash flow from operations of $1.4 billion ²². Consolidated operating income for 2025 decreased $467.1 million, or 24%, to $1.5 billion, compared to $1.9 billion in 2024 ²³. Net income attributable to Steel Dynamics, Inc. for 2025 decreased $351.5 million, or 23%, to $1.2 billion, compared to 2024 ²⁴. Diluted earnings per share attributable to Steel Dynamics, Inc. was $7.99 for 2025, compared to $9.84 for 2024 ²⁵.

The company's steel fabrication operations order backlog maintained solid levels and extended through the first half of 2026, supported by stable and historically strong pricing, with demand largely driven by the commercial, data center, manufacturing, warehouse, and healthcare sectors ²⁶.

The company's growth strategy includes the continued ramp-up of its recycled aluminum flat rolled products mill in Columbus, Mississippi, which during the second half of 2025 produced finished products for the industrial and beverage can markets, achieved product certifications across multiple customers, and successfully produced and qualified aluminum hot rolled coils for automotive applications ²⁷. The flat rolled products mill shipped 15,000 metric tons of finished product during the second half of 2025 ²⁸. The company has developed its real estate to allow customers to co-locate on-site, with one customer already in the construction process and others expected to co-locate at the rolling mill site in Columbus ²⁹. The company also has a satellite recycled aluminum slab center under construction in the Southwest U.S., and various value-added finishing lines that are still being commissioned, including two CASH (Continuous Annealing Solutions Heat Treating) lines, a can end and tab coating line, and downstream processing and packaging lines ³⁰.

The company's biocarbon production facility located in Columbus, Mississippi uses high-temperature pyrolysis to convert sustainably sourced biomass to high-purity biocarbon, which the company plans to use as a renewable replacement for anthracite in its steelmaking operations, potentially resulting in as much as a 35% reduction in the company's steel mills' Scope 1 GHG absolute emissions ³¹. The facility began operations in the second half of 2025 ³².

The company's steel mill production utilization was 86% of estimated annual steelmaking capability in 2025 ³³. The company's vertically connected businesses support higher through-cycle steel production, and during weaker steel demand environments, the company can source steel needs internally from its steel consuming businesses ³⁴.

During 2025, the company invested $948.0 million in property, plant and equipment, primarily within its aluminum operations and steel operations segments, compared with $1.9 billion invested during 2024 ³⁵. The company's liquidity of $2.2 billion and anticipated future operating cash flow generation is sufficient to provide for its planned 2026 capital requirements ³⁶. As of December 31, 2025, the company had $801.0 million remaining available to purchase under the February 2025 share repurchase program ³⁷.

The company faces risks from global steelmaking overcapacity that currently exceeds global consumption of steel products, which adversely affects United States and global steel prices ³⁸. Excessive imports of steel and steel products into the United States may exert downward pressure on United States steel and steel products prices ³⁹. The company also faces risks from volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes and supplies, and its potential inability to pass higher costs on to its customers ⁴⁰.

The company's aluminum operations depend on a core group of significant customers, with most having one or more sizable sales agreements with the company ⁴¹. If one or more of these customers experienced prolonged adverse demand, depressed business activity, or financial distress, the aluminum operations' financial condition, results of operations, and cash flows may be adversely affected ⁴².

The company faces material risk from global steelmaking overcapacity that currently exceeds global consumption of steel products, which adversely affects United States and global steel prices, and excessive imports of steel into the United States may exert downward pressure on domestic steel prices ⁴³. The company's financial results are substantially dependent on overall economic conditions in the United States and globally, and the metals industries have historically been vulnerable to significant declines in consumption and product pricing during economic downturns ⁴⁴. The company is exposed to volatility and major fluctuations in prices and availability of scrap metal, which is the principal raw material for its EAF steel operations, and its inability to pass higher costs on to customers may reduce profit margins ⁴⁵. The company's aluminum operations depend on a core group of significant customers, and if one or more of these customers experienced prolonged adverse demand or financial distress, the aluminum operations' financial condition and results of operations may be adversely affected ⁴⁶. The company faces risks associated with the implementation of its growth strategy, including the risk of a newly constructed facility being completed over budget or not on time, or having delays or difficulties with its start-up, ramp-up, or qualification of products ⁴⁷.

Management's message emphasizes the company's unique entrepreneurial culture and business model that create operational and financial advantages and support the responsible use of resources across diverse economic environments. The consistent execution of the company's six strategic pillars—Health & Safety, Entrepreneurial Culture, Customer Commitment, Strategic Sustainable Growth, Innovation, and Financial Strength—drives long-term success and sustainability. Management highlights that during 2025 the company achieved record steel shipments of 13.7 million tons, with underlying domestic steel demand stable as imports declined from elevated levels experienced during the first half of the year and as the Sinton Flat Roll Division's year-over-year operating performance improved ⁴⁸. The metals recycling operations segment achieved notable improvement in operating income in 2025 compared to 2024 on higher ferrous metals volumes and higher ferrous and nonferrous pricing ⁴⁹. The steel fabrication operations experienced historically strong, yet moderating product pricing compared to 2024, with stabilization in selling values realized in the fourth quarter of 2025 ⁵⁰. The aluminum operations segment achieved successful production and qualifications of industrial, beverage can, and automotive quality flat rolled aluminum products, with shipments commencing in the late second half of 2025 ⁵¹.