Steel Dynamics, Inc. · NASDAQ:STLD
Steel Dynamics — Q1 2025 Earnings Presentation
28 slides from Steel Dynamics's earnings presentation, Apr 23, 2025
Slide 1: First Quarter 2025 Investor Presentation
23 April 2025 2022 Investor Call Presentation Investor First Quarter 2025 Presentation Health and Health and Safety Entrepreneurial Culture Entrepreneurial Culture Customer Commitment Customer Commitment Strategic Growth z Strategic Sustainable Growth Innovation Innovation Financial Strength Financi
Slide 2: Forward-looking statements and Non-GAAP financial measures
Forward-looking statements and Non-GAAP financial measures Forward-Looking Statements may limit our flexibility; and (18) the impacts of impairment charges. This presentation contains some predictive statements about future events, More specifically, we refer you to our more detailed explanation of
Slide 3: Safety is our number one value
Safety is our number one value Total Recordable Injury Rate1 Industry Recordable Injury Rate1 By Platform Steel Steel Metals Fabrication Recycling 4.7 2.3 4.1 1.7 1.4 1.4 1.4 2.1 1.8 1.5 0.9 2021 2022 2023 2024 2025TTM Steel Dynamics Industry² Lost Time Injury Rate1 0.63 0.30 0.32 0.30 0.31 2021 202
Slide 4: First quarter 2025 performance metrics
First quarter 2025 performance metrics Key highlights Strong revenue of $4.4 billion $4.4 billion Revenue Net Income of $217 million $217 million Net income Cash flow from operations of $153 million, reduced by $165 million $153 million by companywide profit sharing Cash flow from operations Adjuste
Slide 5: First quarter 2025 financial performance higher than fourth quarter 2024
First quarter 2025 financial performance higher than fourth quarter 2024 Strong results in a lower steel price environment reflect execution on our long-term strategy, and our differentiated circular business model % Sequential % Prior Year Dollars in millions, except per share data Q1 2025 Q4 2024
Slide 6: First quarter 2025 operating performance
First quarter 2025 operating performance Record steel shipments offset declining steel metal margins improving sequential profitability % Sequential % Prior Year Quarterly Segment Highlights Q1 2025 Q4 2024 Q1 2024 Change Change Steel Average External Sales Price per ton $ 998 $1,011 $1,201 (1%) (17
Slide 7: Differentiated circular business model results in higher through cycle utilization
Differentiated circular business model results in higher through cycle utilization We achieve consistently higher through-cycle steel utilization, driven by our low-cost, circularly connected business model, and diversified value-added product portfolio and supply-chain solutions 2025 91% 92% 91% 89
Slide 8: Differentiated business model, proven cash generation
Differentiated business model, proven cash generation More Than Tripled Average Annual Adjusted Free Cash Flow¹ since the acquisition of our Columbus Flat Roll Division (dollars in millions) 5-year average: $3.0 billion¹ $4,808 $4,509 Columbus $2,968 Heartland Transformation 5-year average: $540 mil
Slide 9: Capital allocation framework
Capital allocation framework, committed to growth, shareholder returns, and investment grade ratings Strong cash flow Best-In-Class Significant Strategic generating business Strong Balance Sheet Performance Opportunity model ◼ Strong free cash flow ◼ Capital investments largely ◼ Broad access to low
Slide 10: Strong liquidity and credit metrics
Strong liquidity and credit metrics Raised $1 billion in Q1’25 to further our long-term strategy and provide a strong capital foundation Strong Liquidity Staggered debt maturity profile2 (dollars in millions) – As of March 31, 2025 (dollars in millions) $600 $600 $600 $500 $400 $400 $400 $400 $350 2
Slide 11: Strategic high-return growth, driving increasing sustainable value
Strategic high-return growth, driving increasing sustainable value Investing to deliver our next phase of transformational growth ▪ Ramping operations on our new state-of-the art Sinton, Texas flat roll steel mill ― $1.9 billion greenfield investment, started production Q1 2022 ― 3.0-million-ton “Ne
Slide 12: New Lower-Carbon Recycled Aluminum Flat Roll Mill Investments
New Lower-Carbon Recycled Aluminum Flat Roll Mill Investments Revolutionizing North American aluminum flat rolled industry with SDI’s differentiated, low-cost, sustainable, efficient, customer-centric approach 650,000 Tonnes Estimated Production Columbus, MS Planned Product Mix Levering our Competit
Slide 13: We are an industry leader in sustainability, committed to decarbonization
We are an industry leader in sustainability, committed to decarbonization From our founding over 30 years ago, we have been intentional in managing our resources sustainably for the benefit of our teams, communities, and the environment We generate significantly less GHG Our steel mills require less
Slide 14: We are an industry leader in sustainability, committed to decarbonization
We are an industry leader in sustainability, committed to decarbonization We set Global Steel Climate Council (GSCC) certified, science-based GHG emissions targets for 2030 and 2050 and have renewable electrical energy goals Our steel mills' GHG emissions intensity targets are aligned with the Paris
Slide 15: We are a leading North American steel producer with a differentiated model
We are a leading North American steel producer with a differentiated and proven business model Consistent best-in-class performance Differentiated business model delivering strong profitability and cash flow Smart growth — Gaining market share and growing with customers 100% of steel produced with e
Slide 16: Appendix
Appendix Health and Safety Entrepreneurial Culture Customer Commitment z Strategic Sustainable Growth Innovation Financial Strength Differentiated, Sustainable, Metals Growth Company 23 April 2025 16
Slide 17: Transformational flat roll steel growth: New Texas steel mill & 4 value-added coating lines
Transformational flat roll steel growth ꟷ New Texas steel mill & 4 valued-added coating lines Represents transformative strategic growth with “next generation” steelmaking capabilities Transformational Strategic Growth • Expands our annual steel production capacity to almost 14 million tons (over 25
Slide 18: Competitively advantaged location
Competitively advantaged location Estimated 27 million tons in Targeted Regional Markets Location Benefits Western U.S. Southern U.S. Mexico • Customer-centric logistics, providing shorter 4 Million Tons 7 Million Tons 16 Million Tons lead times and working capital savings 45%-50% Imported • Central
Slide 19: Steel Operations at a glance – Flat Roll Steel Group
Steel Operations at a glance – Flat Roll Steel Group We are one of the largest domestic steel producers, with approx. 16 million tons of steel shipping capability. We have one of the most diversified product and end-market portfolios in the domestic steel industry Flat Roll Steel Group: 11.4M Tons A
Slide 20: Steel Operations at a glance – Long Products Steel Group
Steel Operations at a glance – Long Products Steel Group Long Products Steel Group: 4.6M Tons Annual Shipping Capacity Columbia City, IN Pittsboro, IN Roanoke, VA Huntington, WV Greenfield EAF Steel Mill Acquired/Expanded EAF Acquired/Expanded EAF Acquired/Expanded EAF • 2.2M Tons Steel Mill Steel M
Slide 21: Operating efficiently and sustainably
Operating efficiently and sustainably We are a steel industry leader in sustainability, operating exclusively with EAF technology, a circular manufacturing model, and innovative teams creating solutions to increase efficiencies, reduce raw material usage, reuse secondary materials, and promote mater
Slide 22: Innovation is key to lowering emissions – Renewable Biocarbon Investment
Innovation is key to lowering emissions – Renewable Biocarbon Investment Our biocarbon investment represents a significant step forward on our path to achieve our decarbonization targets, and our continued commitment to reduce our environmental footprint. • Plan to construct and operate a biocarbon
Slide 23: Financial strength in diverse market environments
Financial strength in diverse market environments Revenue (dollars in billions) Adjusted Operating Income1 (dollars in millions) Record Record High High $5,092 $22.3 $4,301 $18.4 $18.8 $17.5 $3,151 $9.6 $1,943 $867 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Net Income (dollars in millions) Ad
Slide 24: Annual steel operations results
Annual steel operations results Steel Operations Shipments (millions of tons) Operating Income (dollars in millions) Record Record High High 12.2 12.8 12.7 11.2 10.7 $4,376 3.6 3.2 Sinton started in 3.7 2022 3.1 3.7 9.2 9.5 $3,108 8.4 7.6 7.5 $1,896 $1,587 $1,249 2020 2021 2022 2023 2024 2020 2021 2
Slide 25: Annual metals recycling results
Annual metals recycling results Ferrous Shipments1 (millions of gross tons) Operating Income1 (dollars in millions) Record High 5.8 5.9 $195 5.4 5.3 4.6 62% of 2023 and 2024 ferrous scrap volume was sold to $129 Steel Dynamics’ own steel mills $77 $67 $45 2020 2021 2022 2023 2024 2020 2021 2022 2023
Slide 26: Annual steel fabrication results
Annual steel fabrication results Shipments (thousands of tons) Operating Income (dollars in millions) Record Record High High 856 789 $2,425 666 663 607 $1,593 $667 $121 $365 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Differentiated, Sustainable, Metals Growth Company 23 April 2025 26
Slide 27: Adjusted EBITDA, free cash flow, adjusted free cash flow and adjusted operating income reconciliations
Adjusted EBITDA, free cash flow, adjusted free cash flow and adjusted operating income reconciliations Dollars in millions 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025TTM Net Income (Loss) $266 $142 $164 $92 ($145) $360 $806 $1,256 $678 $571 $3,247 $3,879 $2,467 $1,550
Slide 28: Quarterly adjusted EBITDA reconciliation
Quarterly adjusted EBITDA reconciliation Dollars in millions Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Net Income $588 $432 $321 $210 $218 Income Taxes 178 133 87 34 63 Net Interest Expense(Income) (14) (8) (8) (3) 2 Depreciation 106 108 112 116 125 Amortization 8 8 8 8 7 EBITDA $865 $673 $519 $364 $4