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Mar 31, 2023
Steel Dynamics Q1 2023 Earnings Report
Steel Dynamics reported a strong first quarter performance driven by all operating platforms.
Key Takeaways
Steel Dynamics reported strong Q1 2023 results with net sales of $4.9 billion and net income of $637 million, or $3.70 per diluted share. Excluding the impact from the company’s newly started Sinton Texas Flat Roll Steel Mill, adjusted net income was $691 million, or $4.01 per diluted share.
First quarter operating income from steel operations was $345 million, almost double fourth quarter sequential results, due to record shipments more than offsetting metal spread compression.
Operating income from metals recycling platform increased over threefold compared to sequential results.
Steel fabrication operations achieved historically very strong operating income of $551 million.
The company generated cash flow from operations of $734 million.
Revenue by Segment
Forward Guidance
Market conditions are in place for domestic steel consumption to be solid. North American steel consumption will increase in 2023, and that demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing.
Positive Outlook
- Order entry activity continues to be strong across all of our businesses.
- The automotive, non-residential construction, and energy sectors will remain solid steel consumers this year.
- Steel fabrication operations order backlog remains elevated with strong forward pricing levels.
- Robust order activity and broad customer optimism supports strong overall demand dynamics for the construction industry.
- Existing and recently announced expansion initiatives, are firm drivers for our continued growth in the coming years.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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