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Dec 31, 2022

Steel Dynamics Q4 2022 Earnings Report

Reported fourth quarter and record annual 2022 results.

Key Takeaways

Steel Dynamics reported fourth quarter 2022 net sales of $4.8 billion and net income of $635 million, or $3.61 per diluted share. Excluding certain items, the company’s fourth quarter adjusted net income was $769 million, or $4.37 per diluted share.

Achieved record net sales of $22.3 billion, operating income of $5.1 billion, and adjusted EBITDA of $5.5 billion in 2022.

Steel operations achieved record 2022 annual shipments of 12.2 million tons and its second highest annual operating income of $3.1 billion.

Steel fabrication business achieved record annual shipments of 856,000 tons and record 2022 operating income of $2.4 billion.

Company ended the year with record liquidity of $3.4 billion.

Total Revenue
$4.83B
Previous year: $5.31B
-9.1%
EPS
$4.37
Previous year: $5.78
-24.4%
Steel Ops ASP
$1.12K
Previous year: $1.66K
-32.4%
Ferrous Metal Shipments
414%
Previous year: 490%
-15.5%
Gross Profit
$988M
Previous year: $1.76B
-43.9%
Cash and Equivalents
$3.4B
Previous year: $2.4B
+41.7%
Free Cash Flow
$799M
Previous year: $519M
+53.9%
Total Assets
$14.2B
Previous year: $12.5B
+13.0%

Steel Dynamics

Steel Dynamics

Steel Dynamics Revenue by Segment

Forward Guidance

Steel Dynamics is in a position of strength as we enter 2023. We are ramping up operations at our new state-of-the-art electric arc furnace flat rolled steel mill located in Texas. We believe 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

  • Customer order entry activity continues to be healthy across our businesses.
  • Steel pricing has firmed, and our order activity and backlogs remain solid.
  • North American steel consumption will increase in 2023.
  • Demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing.
  • Steel fabrication operation’s order backlog also remains historically strong based on volume and forward pricing levels reaching past the first half of 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income