Steel Dynamics, Inc. stock research
FY2025 Q2
Steel Dynamics (STLD) Gross Margin — Quarter Ended Jun 30, 2025
In the current quarter, revenue increased while cost of revenue remained stable, leading to a higher gross profit and an improved gross margin compared to the prior quarter. However, relative to the same quarter last year, gross profit was lower even though revenue was comparable, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
In the current quarter, revenue increased while cost of revenue remained stable, leading to a higher gross profit and an improved gross margin compared to the prior quarter. However, relative to the same quarter last year, gross profit was lower even though revenue was comparable, resulting in a weakened gross margin.
- The sequential improvement in gross margin was driven by a rise in revenue without a corresponding increase in cost of revenue, which allowed gross profit to grow at a faster rate than revenue.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13.5%
Gross profit
$618.5M
Revenue
$4.6B
Cost of revenue
$3.9B
Quarter-over-quarter change
+2.4 pts
Year-over-year change
-3.2 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2025 | $4.6B | $618.5M | $3.9B | 13.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+2.4 pts
Year-over-year change
Jun 30, 2024
-3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a rise in revenue without a corresponding increase in cost of revenue, which allowed gross profit to grow at a faster rate than revenue.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor whether cost of revenue remains stable as revenue changes, given its direct impact on gross profit and margin.