AI Takeaway
Steel Dynamics (STLD) reported FY2025 revenue of $18.2B (+3.6% YoY), but profitability declined sharply with net income falling 22.9% to $1.19B as rising costs compressed gross margin by ~280 basis points to 13.2%.
Revenue
$18.18B
++3.63% YoY
EPS (Basic)
$8.02
-18.91% YoY
Gross Margin
13.2%
-2.82% YoY
Operating Income
$1.48B
-24.04% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Revenue grew 3.6% YoY to $18.18B in FY2025, but cost of revenue surged 7.1% to $15.78B, outpacing revenue growth and compressing gross profit by 14.6% to $2.39B. This indicates significant input cost inflation or unfavorable product mix that eroded the benefit of higher top-line sales.
Source: Source: 10-K Income Statement
Operating income fell 24.0% YoY to $1.48B, with operating margin contracting approximately 300 basis points to 8.1%. SG&A expenses also rose 15.2% to $765M, adding further pressure on operating profitability beyond just cost of goods sold.
Source: Source: 10-K Income Statement
Total assets grew 9.9% to $16.42B, but long-term debt increased 30.3% to $4.21B, suggesting the company funded growth or capital projects through debt. Total liabilities rose 25.0% to $7.49B while stockholders' equity remained nearly flat at $8.96B (+0.3%).
Source: Source: 10-K Balance Sheet
2 more insights available
Upgrade to unlockCost of revenue grew 7.1% while revenue grew only 3.6%, causing gross margin to contract from 16.0% to 13.2%. If steel scrap prices or other raw material costs remain elevated, STLD's profitability could face continued pressure without corresponding price increases in finished steel products.
Source: Source: 10-K Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.82 versus the $1.72 analyst consensus — a +5.5% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $18.18B | $17.54B | +3.63% |
Cost of Revenue | $15.78B | $14.74B | +7.10% |
Gross Profit | $2.39B | $2.8B | -14.64% |
Operating Income | $1.48B | $1.94B | -24.04% |
Net Income | $1.19B | $1.54B | -22.87% |
EPS (Basic) | $8.02 | $9.89 | -18.91% |
EPS (Diluted) | $7.99 | $9.84 | -18.80% |
SG&A Expense | $765.31M | $664.12M | +15.24% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $16.42B | $14.94B | +9.94% |
Current Assets | $6.48B | $5.43B | +19.38% |
Total Liabilities | $7.49B | $5.99B | +25.03% |
Current Liabilities | $2.12B | $2.15B | -1.32% |
Stockholders' Equity | $8.96B | $8.93B | +0.26% |
Cash & Equivalents | $769.88M | $589.46M | +30.61% |
Long-Term Debt | $4.21B | $3.23B | +30.34% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.45B | $1.84B | -21.41% |
Investing Cash Flow | $-974.96M | $-1.3B | +25.20% |
Financing Cash Flow | $-294.31M | $-1.35B | +78.24% |
Share Buybacks | $900.87M | $1.21B | -25.68% |
D&A | $551.39M | $478.91M | +15.14% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 13.2% | 16.0% | -2.82% |
Operating Margin | 8.1% | 11.1% | -2.96% |
Net Margin | 6.5% | — | — |
ROE | 13.2% | — | — |
ROA | 7.2% | — | — |
Current Ratio | $3.055 | — | — |
Debt to Equity | $0.836 | — | — |
Other companies in Steel
STLD reported FY2025 revenue of $18.18B, up 3.6% YoY, but net income fell 22.9% to $1.19B as cost of revenue surged 7.1%. Gross margin contracted to 13.2% from 16.0%, and diluted EPS declined to $7.99 from $9.84 in the prior year.
The primary driver was cost inflation: cost of revenue grew 7.1% while revenue grew only 3.6%, compressing gross profit by 14.6% to $2.39B. SG&A expenses also rose 15.2% to $765M, further pressuring operating income which fell 24.0% to $1.48B.
STLD maintains strong liquidity with a current ratio of 3.06 and cash of $770M, but long-term debt rose 30.3% to $4.21B, increasing leverage. The debt-to-equity ratio stands at 0.84, and operating cash flow declined 21.4% to $1.45B, warranting attention to the company's ability to service its growing debt load.
Yes, STLD repurchased $901M in shares during FY2025, though this was down 25.7% from $1.21B in the prior year, reflecting a pullback in buyback activity as operating cash flow declined. Share repurchases helped partially offset the EPS impact of lower net income.
The key risks include continued margin compression from elevated input costs (gross margin already fell ~280 bps to 13.2%), a 30.3% increase in long-term debt to $4.21B that raises leverage concerns, and declining operating cash flow of $1.45B (-21.4%) that could limit financial flexibility for capital investment and shareholder returns.