Steel Dynamics: A Tough Call As Tariffs Could Change The Long-Term Landscape
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Stephen Simpson20.55K FollowersFollow5ShareSavePlay(9min)CommentsSummarySteel Dynamics stands as the industry's best-run steel company, delivering top-tier profitability and long-term returns.Steel prices have been picking up despite sluggish demand, and high tariffs are leading to lower imports and tighter supply ahead of what should be improving construction demand in 2026.Recent capex cycle completion positions STLD for strong free cash flow, with potential for over $2B in FCF and margin expansion ahead.STLD stock doesn't look like a huge bargain now unless steel prices head significantly higher, and if high tariff barriers prove permanent, that could happen. hdagli/iStock via Getty Images Let’s start off with an important point when it comes to Steel Dynamics (STLD) – this is, at least in my opinion, the best-run steel company in the business, with leading profitability per ton as well as leading long-term return metrics (ROIC, through-cycle free cashThis article was written byStephen Simpson20.55K FollowersFollowStephen Simpson is a freelance financial writer and investor.Spent close to 15 years on the Street (sell-side, buy-side, equities, bonds).Analyst’s Disclosure:I/we have a beneficial long position in the shares of TX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.