Steel Dynamics, Inc. stock research
FY2025 Q1
Steel Dynamics (STLD) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased compared to the prior quarter, while gross profit also rose, but cost of revenue grew at a faster rate, causing gross margin to weaken slightly. Versus the same quarter last year, revenue was lower and gross profit declined substantially, resulting in a significantly weakened gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased compared to the prior quarter, while gross profit also rose, but cost of revenue grew at a faster rate, causing gross margin to weaken slightly. Versus the same quarter last year, revenue was lower and gross profit declined substantially, resulting in a significantly weakened gross margin.
- The relationship between revenue and cost of revenue drove the margin change. In the current quarter, cost of revenue consumed a larger share of revenue compared to the prior quarter, and an even larger share compared to the same quarter last year.
- Compared to the immediately preceding quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter one year earlier, gross margin was substantially lower, with both revenue and gross profit declining.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
11.1%
Gross profit
$486.5M
Revenue
$4.4B
Cost of revenue
$3.9B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
-9.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $4.6B | $774.8M | $3.9B | 16.7% |
| Sep 30, 2024 | $4.3B | $605.2M | $3.7B | 13.9% |
| Dec 31, 2024 | $3.9B | $441.7M | $3.4B | 11.4% |
| Mar 31, 2025 | $4.4B | $486.5M | $3.9B | 11.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-0.3 pts
Year-over-year change
Mar 31, 2024
-9.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the margin change. In the current quarter, cost of revenue consumed a larger share of revenue compared to the prior quarter, and an even larger share compared to the same quarter last year.
Compared to the immediately preceding quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter one year earlier, gross margin was substantially lower, with both revenue and gross profit declining.
Monitor the trend in cost of revenue relative to revenue, as its faster growth in the current quarter contributed to margin compression.