Steel Dynamics, Inc. stock research
FY2025 Q4
Steel Dynamics (STLD) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit were lower than the prior quarter, while cost of revenue also decreased but to a lesser extent, causing gross margin to weaken. Compared to the same quarter last year, revenue and gross profit were higher and gross margin improved.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit were lower than the prior quarter, while cost of revenue also decreased but to a lesser extent, causing gross margin to weaken. Compared to the same quarter last year, revenue and gross profit were higher and gross margin improved.
- The most notable observable driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue fell less than revenue, pressuring margin; year-over-year, cost of revenue rose less than revenue, supporting margin expansion.
- Gross margin weakened sequentially from the prior quarter but improved compared to the same quarter a year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.0%
Gross profit
$529.3M
Revenue
$4.4B
Cost of revenue
$3.9B
Quarter-over-quarter change
-3.7 pts
Year-over-year change
+0.6 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $4.4B | $486.5M | $3.9B | 11.1% |
| Jun 30, 2025 | $4.6B | $618.5M | $3.9B | 13.5% |
| Sep 30, 2025 | $4.8B | $757.9M | $4.1B | 15.7% |
| Dec 31, 2025 | $4.4B | $529.3M | $3.9B | 12.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-3.7 pts
Year-over-year change
Dec 31, 2024
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable observable driver is the change in cost of revenue relative to revenue. Sequentially, cost of revenue fell less than revenue, pressuring margin; year-over-year, cost of revenue rose less than revenue, supporting margin expansion.
Gross margin weakened sequentially from the prior quarter but improved compared to the same quarter a year earlier.
Monitor the trend in cost of revenue as a proportion of revenue.