Loading...
•
Sep 30, 2024
Steel Dynamics Q3 2024 Earnings Report
Reported a solid third quarter performance driven by stable steel demand and strong steel fabrication operations, despite lower average realized steel pricing.
Key Takeaways
Steel Dynamics reported Q3 2024 net sales of $4.3 billion and net income of $318 million, or $2.05 per diluted share. The company's performance was supported by stable steel demand and strong results from its steel fabrication operations, while earnings were impacted by lower average realized steel pricing.
Achieved a solid third quarter 2024 performance across the platforms.
Adjusted EBITDA of $557 million and cash flow from operations of $760 million.
Increased liquidity to $3.1 billion, while also investing $621 million in internal ongoing growth initiatives and distributing $381 million to shareholders.
Underlying steel demand continued to be stable in the third quarter.
Steel Dynamics
Steel Dynamics
Steel Dynamics Revenue by Segment
Revenue by Segment
Steel Operations Revenue
CapyFin.comSteel Fabrication Revenue
CapyFin.comMetals Recycling Revenue
CapyFin.com Forward Guidance
Based on domestic steel demand fundamentals, the company is constructive regarding the outlook for 2025 metal market dynamics. They expect steel pricing to recover with an anticipated lower domestic interest rate environment, coupled with continuing onshoring of manufacturing businesses, and the expectation of significant fixed asset investment to be derived from public funding. The company plans to begin operating the aluminum flat rolled mill mid-2025.
Positive Outlook
- Anticipated lower domestic interest rate environment.
- Continuing onshoring of manufacturing businesses.
- Expectation of significant fixed asset investment to be derived from public funding.
- Current trade actions could also reduce volumes of unfairly traded steel imports into the United States.
- The company's four new value-added flat rolled steel coating lines that began operating earlier this year continue to increase production and expect to realize the additional earnings potential in 2025.
Challenges Ahead
- No negative outlook was provided in the earnings report.
Revenue & Expenses
Visualization of income flow from segment revenue to net income