We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Steel Dynamics Announces Completion of $1 Billion Notes Offering
Read MoreHide Full Article
Steel Dynamics, Inc. (STLD - Free Report) recently stated that it concluded the sale of $600 million total principal amount of 5.25% Notes due 2035 and $400 million total principal amount of 5.75% Notes due 2055. The net proceeds from the Notes will be utilized for general corporate purposes, including the redemption of the company's $400 million 2.4% Senior Notes due in June 2025. This transaction advances Steel Dynamics' long-term strategy of providing a solid capital foundation to support its personnel, customers, shareholders and future growth.
Steel Dynamics, which is among the prominent players in the steel space along with Nucor Corporation (NUE - Free Report) , United States Steel Corporation (X - Free Report) and ArcelorMittal S.A. (MT - Free Report) , remains committed to preserving its investment-grade credit ratings, which will provide lower-cost and longer-term capital, strengthening its financial position and allowing for value creation opportunities.
Steel Dynamics, on its fourth-quarter call, said that it believes that the market conditions are in place to support rising demand across its operational platforms in 2025. Steel pricing has stabilized, and customer optimism is strong across its steel operations as demand remains steady. Furthermore, the company believes that demand for steel products manufactured in the United States with reduced carbon emissions will support future domestic steel prices. The continued onshoring of manufacturing businesses, combined with the expectation of significant fixed asset investment from public funding related to the United States Infrastructure, Inflation Reduction Act and Department of Energy programs, will help the domestic steel industry compete.
Nucor sees first-quarter 2025 earnings in the steel mills and steel products segments to be comparable to the fourth quarter of 2024. Earnings in the raw materials segment are predicted to decline sequentially in the first quarter. NUE expects higher corporate, administrative and tax impacts in the first quarter of 2025 than in the fourth quarter of 2024, potentially resulting in lower net earnings overall.
U.S. Steel predicts first-quarter 2025 adjusted EBITDA in the band of $100-$150 million. Flat-Rolled segment results are projected to decline, mainly due to logistics constraints in the mining sector. X expects an improvement in the Mini Mill segment on the back of higher shipments from the BR2 mill. In Europe, the company expects results to modestly improve amid continued pressures from challenging pricing and demand conditions. For the Tubular segment, results are expected to be largely consistent with the fourth quarter.
On its fourth-quarter earnings call, ArcelorMittal said that it expects that world ex-China apparent steel consumption (ASC) will increase 2.5% to 3.5% in 2025 from 2024 levels, supporting steel export growth. Although near-term demand is expected to remain subdued due to the low inventory environment, particularly in Europe, MT remains optimistic that restocking activity will, over time, supplement real demand improvement.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Steel Dynamics Announces Completion of $1 Billion Notes Offering
Steel Dynamics, Inc. (STLD - Free Report) recently stated that it concluded the sale of $600 million total principal amount of 5.25% Notes due 2035 and $400 million total principal amount of 5.75% Notes due 2055. The net proceeds from the Notes will be utilized for general corporate purposes, including the redemption of the company's $400 million 2.4% Senior Notes due in June 2025. This transaction advances Steel Dynamics' long-term strategy of providing a solid capital foundation to support its personnel, customers, shareholders and future growth.
Steel Dynamics, which is among the prominent players in the steel space along with Nucor Corporation (NUE - Free Report) , United States Steel Corporation (X - Free Report) and ArcelorMittal S.A. (MT - Free Report) , remains committed to preserving its investment-grade credit ratings, which will provide lower-cost and longer-term capital, strengthening its financial position and allowing for value creation opportunities.
Steel Dynamics, on its fourth-quarter call, said that it believes that the market conditions are in place to support rising demand across its operational platforms in 2025. Steel pricing has stabilized, and customer optimism is strong across its steel operations as demand remains steady. Furthermore, the company believes that demand for steel products manufactured in the United States with reduced carbon emissions will support future domestic steel prices. The continued onshoring of manufacturing businesses, combined with the expectation of significant fixed asset investment from public funding related to the United States Infrastructure, Inflation Reduction Act and Department of Energy programs, will help the domestic steel industry compete.
Nucor sees first-quarter 2025 earnings in the steel mills and steel products segments to be comparable to the fourth quarter of 2024. Earnings in the raw materials segment are predicted to decline sequentially in the first quarter. NUE expects higher corporate, administrative and tax impacts in the first quarter of 2025 than in the fourth quarter of 2024, potentially resulting in lower net earnings overall.
U.S. Steel predicts first-quarter 2025 adjusted EBITDA in the band of $100-$150 million. Flat-Rolled segment results are projected to decline, mainly due to logistics constraints in the mining sector. X expects an improvement in the Mini Mill segment on the back of higher shipments from the BR2 mill. In Europe, the company expects results to modestly improve amid continued pressures from challenging pricing and demand conditions. For the Tubular segment, results are expected to be largely consistent with the fourth quarter.
On its fourth-quarter earnings call, ArcelorMittal said that it expects that world ex-China apparent steel consumption (ASC) will increase 2.5% to 3.5% in 2025 from 2024 levels, supporting steel export growth. Although near-term demand is expected to remain subdued due to the low inventory environment, particularly in Europe, MT remains optimistic that restocking activity will, over time, supplement real demand improvement.