STEEL DYNAMICS INC Q1 FY2025 earnings call

• Steel teams achieved record steel shipments of 3.5 million tons and adjusted EBITDA of $448 million. Four new value-add flat-rolled steel coating lines are ramping up, with 50%-55% utilization in Q1 and expectation of full earnings benefit later in 2025. - Sinton team ran at around 86% of capacity in Q1, achieving positive EBITDA with expectation of steep profitability acceleration. - Aluminum Dynamics cast first aluminum ingots in January and March, with construction in commissioning phase and expectation to ship commercial coils in June 2025. - Metals recycling operations improved modestly with higher ferrous metal spreads, and Omnisource and NanoWell teams are increasing separation technologies. - Steel fabrication had strong order entry in March, with backlog extending into Q4 2025

Steel Operations: First quarter operating income was $230 million, with record steel shipments of 3.5 million tons. Hot band shipments were 1,093,000 tons, cold rolled shipments 116,000 tons, and coated shipments were 1,403,000 tons. Metals Recycling: Operating income was $26 million, improving modestly as volumes in ferrous metal spreads increased. Steel Fabrication: First quarter operating income was $117 million, lower than sequential fourth quarter results due to realized pricing decline and seasonal shipment decrease. Aluminum Operations: Successfully cast first aluminum ingots in January and March, with construction nearing completion and expectation to ship commercial quality coils in June, expecting to contribute to earnings in the second half of 2025

• Aluminum platform expected to achieve positive EBITDA in the second half of 2025, with rolling mill operation at approximately 30% for the full second half of 2025, 50% in 2026, and 75% in 2026 with an exit rate of 85% in 2026. - Sinton expected to have a material positive shift in financial contribution this year. - Continued focus on balanced cash allocation strategy with shareholder distributions including dividend profile and share repurchase program

• Uncertainties related to integrating or starting up new assets. - Dynamics of the aluminum industry. - Use of estimates and assumptions in connection with anticipated project returns in steel, metals recycling, and fabrication businesses. - General business and economic conditions. - Impact of trade tariffs and trade determinations

Q: Can you talk about how exposed Steel Dynamics is to importing raw materials?

A: Mark Millett discussed that scrap is unaffected, some impact from pig iron tariffs if remains, and slab aluminum from Mexico has incremental impact this year but generally well positioned relative to peers Q: What changed at Sinton from prior guidance to be profitable in Q1?

A: Theresa Wagler mentioned Sinton was more exposed to spot pricing, and price appreciation in March was captured, Barry Schneider added team maturing and higher line utilization rates allowed capturing market quicker Q: Does the strong Q1 shipment figure and order activity in fabrication indicate volumes will improve year-on-year?

A: Theresa Wagler and Barry Schneider stated expectations of higher volumes year over year, with robust demand in various markets like construction, HVAC, appliance, automotive, pipe and tube Q: Can you provide more color on the $19 million in unrealized gain losses in noncash adjustments?

A: Theresa Wagler explained it relates to unrealized hedging loss in first quarter due to sharp moves in non-ferrous pricing, generally netting out over time Q: Concerning aluminum mill economics with current tariffs, are they better, same, or worse than original plan?

A: Mark Millett stated economics remain in place with exception of slab from Mexico being incremental this year, and tariff regimen likely not in place much longer than through 2025