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Dec 31, 2023

Steel Dynamics Q4 2023 Earnings Report

Steel Dynamics reported fourth quarter 2023 results, with net sales of $4.2 billion and net income of $424 million, or $2.61 per diluted share.

Key Takeaways

Steel Dynamics reported Q4 2023 net sales of $4.2 billion and net income of $424 million, or $2.61 per diluted share. The company's steel operations achieved record annual shipments of 12.8 million tons and historically strong operating income of $1.9 billion. The steel fabrication business achieved its second highest annual earnings with operating income of $1.6 billion.

Steel Dynamics reported fourth quarter 2023 net sales of $4.2 billion.

Net income for Q4 2023 was $424 million, or $2.61 per diluted share.

Steel operations' Q4 operating income was $365 million, a 24% sequential decline.

Steel fabrication operations achieved historically strong Q4 operating income of $250 million.

Total Revenue
$4.23B
Previous year: $4.83B
-12.3%
EPS
$2.61
Previous year: $4.37
-40.3%
Steel Ops ASP
$1.09K
Previous year: $1.12K
-3.0%
Gross Profit
$723M
Previous year: $988M
-26.8%
Cash and Equivalents
$1.58M
Previous year: $3.4B
-100.0%
Free Cash Flow
$350M
Previous year: $799M
-56.2%
Total Assets
$17.9M
Previous year: $14.2B
-99.9%

Steel Dynamics

Steel Dynamics

Steel Dynamics Revenue by Segment

Forward Guidance

Steel Dynamics anticipates increased demand across its operating platforms in 2024, supported by firming steel prices and solid customer order entry activity. The company expects the onshoring of manufacturing businesses and public funding related to infrastructure and energy programs to benefit its steel and steel fabrication businesses.

Positive Outlook

  • Market dynamics are in place to support increased demand across operating platforms in 2024.
  • Steel pricing has firmed.
  • Customer order entry activity continues to be solid across steel operations.
  • Demand continues to be steady and customer inventories remain at historically low levels.
  • The continued onshoring of manufacturing businesses will competitively position the domestic steel industry.

Challenges Ahead

  • No specific negatives were mentioned in the outlook.