Total Revenue

–7% (decline from $4,694M to $4,369M)

Total revenue decreased by 7% due to lower shipments and pricing challenges in core steel segments, which were not fully offset by the emerging Aluminum Operations revenue; this continues a trend seen in previous periods where lower product pricing eroded sales. " "

Steel Operations Revenue

–13% (decline from $3,514M to $3,067M)

Steel Operations revenue fell by 13% as a result of lower realized steel prices and persistent pricing pressures—stemming in part from lagging contract pricing and metal spread compression—which continued trends observed in earlier quarters. " "

Metals Recycling Operations Revenue

–51% (decline from $1,094M to $535M)

Metals Recycling Operations saw a dramatic 51% decline primarily driven by the reclassification of certain entities (moved to the Aluminum Operations segment) and declining nonferrous metal spreads, even as shipment volumes remained relatively steady from prior periods. " "

Steel Fabrication Operations Revenue

–22% (decline from $452M to $352M)

Steel Fabrication revenue dropped 22% due to a continuation of the previous period’s trend of lower average selling prices (a decline of 31% in FY2024) and reduced volumes (down 8%), resulting in significant revenue erosion that carried over into Q1 2025. " "

Aluminum Operations

New Revenue Stream (from $0 to $67M)

Aluminum Operations emerged with $67M in revenue in Q1 2025, marking the beginning of commercial operations as the previously constructed facility transitioned from start-up to production, thereby diversifying the revenue mix. "

Operating Income

–63% (decline from $751M to $275M)

Operating income plunged by 63% due to the compounded effect of lower revenues in steel and fabrication segments, pricing pressures, and cost challenges that significantly squeezed profit margins, continuing a downward trend from previous quarters. " "

Net Income

–63% (decline from $587M to $218M)

Net income fell by 63% as lower operating income, driven by reductions in steel-related segments and increased cost pressures, directly impacted overall profitability just as similar issues were evident in the prior year. " "

Basic Earnings per Share

–60% (decline from $3.68 to $1.45)

EPS declined by about 60% reflecting the significant decrease in net income as well as the impact of changes in share structure, consistent with the overall downward trend in profitability from previous periods. " "

Net Cash Provided by Operating Activities

–80% (decline from $734M to $153M)

Operating cash flow dropped nearly 80% because the decline in net income was compounded by adverse working capital movements (lower improvements in receivables, negative inventory and deferred tax changes), exacerbating the year-over-year reduction seen previously. " "

Long‑term Debt

+44% (increase from $2,612M to $3,777M)

Long‑term debt increased by 44% driven by strategic issuance of senior unsecured notes to fund capital investments, repayment of existing debt, and other corporate purposes—continuing the company’s approach to leverage for growth seen in the previous period’s debt activities. " "

Losses

Q1 2025

$30–35 million "

no current guidance

no current guidance

Steel Business – Volumes

Q1 2025

Seasonally higher volumes expected "

no current guidance

no current guidance

Steel Operations

Q2 2025

no prior guidance

Positive pricing impacts expected from flat‐rolled steel "

no prior guidance

Interest Expense

Q2 2025

no prior guidance

Net interest expense expected to be ~$3 million (likely $40 million a quarter) "

no prior guidance

Capital Expenditures

FY 2025

~$500+ million "

$800 million to $1 billion "

raised

Aluminum Operations – EBITDA

Second half 2025

EBITDA positive in the second half of FY 2025 "

Positive EBITDA expected in the second half of 2025 "

no change

Aluminum Rolling Mill Utilization

FY 2025

Expected to reach 50% utilization by end of FY 2025 " "

Operate at ~30% for the full second half of 2025 "

lowered

Steel Fabrication Margins

FY 2025

Margins expected to remain higher on a mid‐cycle basis "

no current guidance

no current guidance

Steel Fabrication (Outlook)

Second half 2025

no prior guidance

Strength expected with robust activity and projects, with a backlog into Q4 2025 " "

no prior guidance

Volume Expectations

FY 2025 (overall)

no prior guidance

Higher volumes year‐over‐year expected based on orders and macro trends "

no prior guidance

Aluminum Operations – Exit Rate

FY 2026

no prior guidance

Exit rates targeted at 50% and 75% for FY 2026 "

no prior guidance

Demand Momentum & Order Backlog Strength

Consistently noted in Q2, Q3 and Q4 2024 with emphasis on strong order entry, healthy backlogs (extending into early–mid 2025) and support from public funding, onshoring initiatives and favorable market dynamics. " " "

Q1 2025 showed record order entry volumes—the highest in 2 years—with a backlog stretching into Q4 2025, bolstered by robust federal support and improved pricing dynamics. " "

Positive trend: Demand momentum remains robust and is even strengthening as backlogs extend further, signaling accelerating market confidence.

Operational Improvements & Capacity Utilization

In Q2–Q4 2024, the Sinton turnaround and commissioning of new coating lines were discussed amid challenges—including lower utilization (60%–80%), quality/yield issues and maintenance costs—yet efforts were underway to improve operational efficiency. " " "

Q1 2025 highlights significant progress: Sinton achieved 86% utilization (with peaks over 90%) and reached positive EBITDA, while new capacity projects (including advanced aluminum facilities) are progressing well. " " "

Strong upward trend: Operational issues are being resolved with improved capacities and profitability, reflecting effective execution and a sharper focus on efficiency.

Margin Dynamics

In Q2–Q4 2024, discussions centered on stable steel fabrication margins (37%–40% EBITDA) with expansion initiatives offsetting rising input costs, even as pricing pressures such as steel metal spread contraction were noted. " " "

Q1 2025 emphasized that higher production volumes are driving margin expansion; despite continued rising steel input costs, strategic pricing adjustments and increased volume are mitigating pressures. " "

Consistent focus with a slight shift: The company remains committed to margin expansion, now leveraging higher volumes more effectively to counteract input cost pressures.

Capital Allocation & Cash Flow Discipline

Throughout Q2–Q4 2024, the strategy was to maintain disciplined capital allocation through share repurchases, dividend increases, and strong free cash flow generation—with robust liquidity and a commitment to preserving investment‐grade metrics. " " "

Q1 2025 underlined a very strong cash flow from operations and continued disciplined returns via increased dividends and share repurchases, supported by an even higher liquidity position. " " "

Stable and strengthening: Consistent discipline in capital allocation has continued with growing cash flow and liquidity supporting enhanced shareholder returns.

Persistent Trade & Tariff Uncertainties

In Q2–Q4 2024, topics covered included tariffs (Section 232, hot-dip galvanized trade cases), anti-dumping measures and trade dynamics with Mexico, underscoring ongoing uncertainties in global trade. " " "

Q1 2025 featured a more nuanced discussion, including aluminum tariff economics and proactive trade mechanisms that have led to a net upside in customer pricing, though trade uncertainties remain a risk. " " "

Ongoing concern with a slight optimistic tint: Trade uncertainties persist, yet enhanced trade mechanisms and favorable determinations are beginning to offer competitive advantages.

New Capacity Investments & Execution Risks

Across Q2–Q4 2024, progress on new aluminum facilities and additional coating lines was noted amid execution risks like SG&A cost pressures, ramp‐up challenges, and integration uncertainties; sentiment was cautiously optimistic. " " "

Q1 2025 reports continued progress with successful aluminum ingot casts, anticipated commercial shipments by June and further commissioning of coating lines, while acknowledging minor tariff-related execution risks. " " "

Positive execution trend: Investments are on track with managed risks, and improved operational metrics signal growing confidence in new capacity projects.

Emerging Value-Added Product Diversification

In Q2–Q4 2024, there was strong emphasis on evolving the product mix through value-added flat-rolled coating lines and early steps into aluminum production, aiming for higher-margin products and diversified offerings. " " "

Q1 2025 builds on the earlier momentum with accelerated ramp-up of coating lines and expansion into advanced aluminum production, underscoring ongoing commitment to high-margin product diversification. " " "

Consistently positive: The focus on innovative, higher-margin, value-added products remains a core strategic priority, with further advancements noted in the current period.

Declining Emphasis on Large-Scale Organic Growth Initiatives

In Q2 2024, a shift was noted from very large-scale organic growth projects (like the multi-billion-dollar Sinton and aluminum initiatives) toward smaller, more targeted high-return initiatives; Q4 2024 echoed a lack of imminent large-scale organic projects. " "

Q1 2025 reaffirmed this strategic pivot, emphasizing execution and optimization rather than pursuing further large-scale organic capex in the near term, with a focus on shareholder returns. "

Clear strategic pivot: There is a steady move away from large-scale organic growth, refocusing on efficient execution and targeted investments that promise better returns.

Macroeconomic Drivers Impact

Q2–Q4 2024 communications stressed the positive effects of public funding, federal infrastructure spending, and moderating interest rates in lifting fixed asset investments and demand, albeit with some caution regarding higher interest rates. " " " "

Q1 2025 continued to cite strong public funding support and infrastructure investments as key drivers, though with a cautious note on interest rate uncertainties that are expected to ease in the latter half of the year. " " "

Sustained positive influence: Macroeconomic drivers remain strong, with public funding and improved interest rate environments expected to further bolster demand, despite early-year hesitations.