Steel Dynamics: Tariff-Driven Boom Gains Momentum In Q2

Steel Dynamics, Inc. has surged 80% over the past year, driven by U.S. steel tariffs and robust pricing momentum.

STLD’s aluminum plant ramp-up should drive a free cash flow inflection, with profitability expected next year as production scales. Strong cost control and a stellar balance sheet underpin a secure dividend and active share buybacks, with leverage at 1.2x.

I maintain a Hold rating on STLD stock, seeing fair valuation at 12x 2027 EPS and preferring to add on pullbacks to $200-$210.

Shares of Steel Dynamics, Inc. ( STLD ) have been a stellar performer over the past year, gaining about 80%. The steelmaker has benefited from U.S. tariffs on steel imports, greatly protecting the competitive positioning of U.S. producers, while easing tariffs on non-steel products.