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Sep 30, 2023

Steel Dynamics Q3 2023 Earnings Report

Reported solid third quarter performance with strong cash generation and record liquidity.

Key Takeaways

Steel Dynamics reported Q3 2023 net sales of $4.6 billion and net income of $577 million, or $3.47 per diluted share. The company's operating income was $734 million, with adjusted EBITDA of $876 million. Cash flow from operations was $1.1 billion, and the company achieved record liquidity of $3.7 billion.

Net sales reached $4.6 billion with a net income of $577 million, translating to $3.47 per diluted share.

Operating income was $734 million, and adjusted EBITDA stood at $876 million.

Cash flow from operations reached $1.1 billion, contributing to a record liquidity of $3.7 billion.

Steel shipments remained consistent, excluding the impact of an unplanned outage which resulted in lost volume of approximately 90,000 tons.

Total Revenue
$4.59B
Previous year: $5.65B
-18.8%
EPS
$3.47
Previous year: $5.46
-36.4%
Steel Ops ASP
$1.19K
Previous year: $1.38K
-13.8%
Ferrous Metal Shipments
405%
Previous year: 3,200,000%
-100.0%
Gross Profit
$952M
Previous year: $1.46B
-35.0%
Cash and Equivalents
$3.7B
Previous year: $1.42B
+160.5%
Free Cash Flow
$555M
Previous year: $1.25B
-55.7%
Total Assets
$14.9B
Previous year: $14B
+6.3%

Steel Dynamics

Steel Dynamics

Forward Guidance

Based on domestic steel fundamentals, the company is constructive regarding North American steel market dynamics. Customer order entry activity continues to be solid across steel operations, as demand continues to be steady and customer inventories remain at low historical levels.

Positive Outlook

  • North American steel consumption will increase in the coming years.
  • Demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing.
  • The continued onshoring of manufacturing businesses will benefit the domestic steel industry.
  • Significant fixed asset investment to be derived from public funding will competitively position the domestic steel industry.
  • The team continues to make great progress on our aluminum flat rolled products mill and related investments.

Challenges Ahead

  • No specific negatives were mentioned in the outlook.