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Dec 31, 2020

Steel Dynamics Q4 2020 Earnings Report

Steel Dynamics reported strong fourth quarter and annual results driven by strong demand and tight supply dynamics.

Key Takeaways

Steel Dynamics reported Q4 2020 net sales of $2.6 billion and net income of $188 million, or $0.89 per diluted share. Excluding certain items, adjusted net income was $205 million, or $0.97 per diluted share. The company's steel operations saw operating income more than double sequentially, while metals recycling operations increased 75 percent. Steel fabrication operations reported operating income of $25 million.

Fourth quarter net sales were $2.6 billion with net income of $188 million, or $0.89 per diluted share.

Adjusted fourth quarter net income was $205 million, or $0.97 per diluted share.

Steel operations' income more than doubled due to metal spread expansion.

The company ended the year with strong liquidity of over $2.5 billion.

Total Revenue
$2.6B
Previous year: $2.37B
+9.7%
EPS
$0.97
Previous year: $0.62
+56.5%
Steel Ops ASP
$814
Previous year: $764
+6.5%
Gross Profit
$442M
Previous year: $316M
+39.8%
Cash and Equivalents
$2.5B
Previous year: $2.8B
-10.7%
Free Cash Flow
-$205M
Previous year: $251M
-181.8%
Total Assets
$9.27B
Previous year: $8.28B
+12.0%

Steel Dynamics

Steel Dynamics

Steel Dynamics Revenue by Segment

Forward Guidance

The company is optimistic regarding the North American steel market dynamics and believes steel consumption will experience growth in 2021.

Positive Outlook

  • Strong steel demand environment.
  • Automotive sector has experienced the strongest recovery.
  • Construction sector remains resilient.
  • Customers are positive concerning the business outlook for 2021.
  • U.S. trade agreements and existing steel trade cases will continue to moderate steel imports.

Revenue & Expenses

Visualization of income flow from segment revenue to net income