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October 27, 2025 • 3 min read
Steel Dynamics, Inc. (STLD), a leading American steel producer and metals recycler, recently released its financial results for the third quarter of 2025. Let's dive into the numbers from their latest 10-Q filing with the SEC to understand the company's performance and the key trends shaping its business.
Overall, Steel Dynamics reported a strong quarter, with total revenue climbing to $4.83 billion, an 11% increase from the $4.34 billion recorded in the same period last year. This top-line growth translated impressively to the bottom line, as net income jumped 26% to $404 million.
The following flow diagram provides a visual breakdown of the company's quarterly income statement, illustrating how revenue is transformed into profit after accounting for various costs and expenses.
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In the diagram, the "Unallocated" figures in revenue and cost of revenue primarily represent inter-segment eliminations. These are sales between Steel Dynamics' own divisions—for instance, the Metals Recycling segment selling scrap to the Steel Operations segment. These internal transactions are removed from the final consolidated numbers to prevent double-counting and accurately reflect sales to external customers.
A closer look at the company's divisions reveals a mixed but ultimately positive picture. The performance was largely driven by exceptional results in its two largest segments.
Steel Operations: As the company's core business, this segment delivered robust growth. Revenue increased 21% to $3.65 billion. More impressively, operating income surged by 65% to $497 million. This segment, which includes the company's numerous flat roll, bar, and structural steel mills, was the primary engine of profitability for the quarter.
Metals Recycling Operations: This division posted a standout performance. While revenue grew a solid 10% to $1.13 billion, its operating income skyrocketed by an incredible 414% to $31.5 million. According to the filing, this massive jump was driven by favorable "metal spreads"—the difference between the selling price of scrap metal and the cost to acquire it—particularly for nonferrous metals like copper.
Not all segments experienced the same tailwinds. The Steel Fabrication division, which produces components like steel joists and decks for the construction industry, faced challenges.
Steel Fabrication Operations: This segment saw its revenue decline 16% to $378 million, with operating income falling 35% to $107 million. The company attributed this to a 12% drop in average selling prices and a 4% decrease in volume as prices in the industry move back toward pre-pandemic levels. Despite this, the filing notes a strong order backlog extending into 2026.
Aluminum Operations: A key area of strategic growth, this new segment is still in its initial phase. It generated $104 million in revenue but posted an operating loss of $56.5 million. These losses are expected and are attributed to start-up and commissioning costs for its new recycled aluminum flat-rolled products mill.
Steel Dynamics' third-quarter results highlight the strength and profitability of its core steel and recycling businesses, which more than compensated for the cyclical downturn in its fabrication unit and the planned investment costs in its new aluminum venture. The dramatic profit increase in metals recycling underscores the company's ability to capitalize on favorable commodity markets. Looking ahead, investors will likely be watching the progress of the aluminum operations' ramp-up and the pricing environment for the non-residential construction market that the fabrication segment serves.
Last updated: October 27, 2025