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Jun 30, 2022
Steel Dynamics Q2 2022 Earnings Report
Reported record results driven by diversified, value-added, circular manufacturing model.
Key Takeaways
Steel Dynamics reported record second quarter 2022 net sales of $6.2 billion and record net income of $1.2 billion, or $6.44 per diluted share. Excluding certain items, adjusted net income was $1.3 billion, or $6.73 per diluted share. The company achieved record quarterly steel shipments of 3.1 million tons.
Achieved record quarterly operating and financial performance, including record sales, operating income, cash flow from operations.
Second quarter 2022 operating income was $1.6 billion, with adjusted EBITDA of $1.7 billion.
Steel fabrication operations achieved record results, with earnings of $599 million, based on significantly higher realized selling values and a continued strong construction demand environment.
Generated record cash flow from operations of $1.0 billion during the quarter.
Revenue by Segment
Forward Guidance
Customer order entry activity continues to be healthy across all of our businesses. Operations continue to ramp up at our Sinton Flat Roll Steel Mill.
Positive Outlook
- Steel order activity remains solid from the automotive, construction, and industrial sectors, with energy continuing to improve.
- Steel fabrication operations order backlog remains at near-record volumes and forward pricing levels.
- Continued healthy order activity and broad customer optimism, supports strong overall demand dynamics for the construction industry.
- Operations continue to ramp up at our Sinton Flat Roll Steel Mill, and the team has already achieved run rates of 80 percent through the hot side.
- The team expects to realize meaningful improvement for the remainder of the year.
Challenges Ahead
- Conflicting with the more pessimistic emotion in the marketplace.
- Despite softening flat roll steel pricing.
- They have been challenged with unexpected power and equipment issues that have impacted their operating time in July.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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