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Steel Dynamics Secures Complete Ownership of New Process Steel

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Key Takeaways

  • Steel Dynamics acquired the remaining 55% of New Process Steel to take full ownership.
  • The move expands STLD's value-added manufacturing capabilities.
  • New Process Steel's role as a major flat-rolled customer makes the integration synergistic.

Steel Dynamics, Inc. (STLD - Free Report) announced that it has completed the acquisition of the remaining 55% ownership interest in New Process Steel, bringing its total stake to 100%. The transaction follows the company’s earlier purchase of a 45% minority interest in 2022. The full buyout is intended to strengthen Steel Dynamics’ value-added manufacturing capabilities while deepening its long-standing commercial relationship with New Process Steel. 

Steel Dynamics highlighted New Process Steel as a highly respected metals solutions and distribution company with a strong operational footprint across the United States and Mexico. The company noted that New Process Steel has established a reputation for quality manufacturing, supply-chain reliability and long-standing customer partnerships, qualities that Steel Dynamics views as integral to its own strategic expansion into value-added steel processing. 

Steel Dynamics emphasized that acquiring full ownership will enhance its exposure to differentiated and higher-margin opportunities within the value-added manufacturing space. The transaction aligns with its broader strategy of expanding manufacturing capabilities that complement its flat-rolled steel operations. Management highlighted that New Process Steel has been one of Steel Dynamics’ largest flat-rolled customers, making the integration both commercially and operationally synergistic. 

Shares of STLD are up 17.1% over the past year compared with its industry’s rise of 17.2% 

Zacks Investment ResearchImage Source: Zacks Investment Research

STLD Zacks Rank & Key Picks

STLD currently carries a Zacks Rank of #3 (Hold). 

Some better-ranked stocks in the Basic Materials space are Equinox Gold Corp. (EQX - Free Report) , Fortuna Mining Corp. (FSM - Free Report)  and Harmony Gold Mining Company Limited (HMY - Free Report) . EQX, FSM and HMY carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) here.

The Zacks Consensus Estimate for EQX’s current fiscal-year earnings is pegged at 52 cents per share, indicating a 160% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average surprise of 87%. 

The Zacks Consensus Estimate for FSM’s current fiscal-year earnings stands at 83 cents per share, implying an 80.4% year-over-year increase. FSM’s shares have surged 118.5% in the past year. 

The Zacks Consensus Estimate for HMY’s 2026 earnings is pegged at $2.68 per share, indicating a rise of 111% from the year-ago level. HMY’s shares have gained 118.7% in the past year. 


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