NASDAQ$STLD

Steel Dynamics Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported record first quarter results driven by strong steel demand and higher prices.

Steel Dynamics reported record first quarter 2021 results, with net sales of $3.5 billion and net income of $431 million, or $2.03 per diluted share. The company's performance was driven by strong steel demand and higher flat roll steel selling values.

  • Achieved record quarterly net sales, operating income, and adjusted EBITDA.
  • Operating income from steel operations was a record $641 million.
  • Metals recycling operations nearly doubled their earnings sequentially.
  • Steel fabrication operations achieved record quarterly shipments and a record order backlog.

Headline financials

Total Revenue

$3.54B

Previous: $2.58B+37.6%
EPS (adj)

$2.10

Previous: $0.88+138.6%
Steel ASP

$1.04K

Previous: $774.00+34.5%
Ferrous Shipments

372

Previous: 1+37100.0%
Capital Expenditures

-$310M

Previous: -$218M-42.4%
Free Cash Flow

$129M

Previous: -$26.7M+582.8%
Net Income

$439M

Previous: $191M+129.9%
Operating Income

$594M

Previous: $274M+117.1%
Gross Profit

$800M

Previous: $415M+92.7%
Cash & Equivalents

$1.25B

Previous: $1.24B+0.8%
Total Assets

$10.1B

Previous: $8.34B+21.4%
Stock-Based Comp

$17M

Previous: $17.8M-4.5%

Revenue & EPS history

Steel Dynamics · Revenue · Quarterly

$3.54B

Q1 2021+37.6%vs Q1 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Steel Dynamics · $705M total across 3 segments · Q1 2021

  • Steel Operations
    $641M-75.3%
  • Metals Recycling
    $54M-97.9%
  • Steel Fabrication
    $10M-99.6%

Forward guidance

The company believes that market conditions are in place to benefit the domestic steel industry in 2021 and beyond, and that their second quarter 2021 earnings will be even higher than their record first quarter 2021 results.

Tailwinds

  • Strong steel demand coupled with extremely low customer steel inventory.
  • Order entry continues to be robust across our businesses.
  • U.S. trade policies and existing steel trade cases will continue to moderate steel imports.
  • Strategic growth initiatives provide firm drivers for further growth.
  • Construction of the Sinton Texas Flat Roll Steel Mill is progressing well.

Headwinds

  • Global economies are still recovering from the shock of COVID-19.
  • Automotive sector has experienced the electronic chip shortage.
  • Significantly higher steel input costs.
  • Timing of matching a six-month backlog to more current higher-priced steel inputs.
  • Global economies are still recovering from the shock of COVID-19.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.4%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+4.7%

Avg return

30 days after

56%

40 / 72 earnings

Positive

+16.7%

Q2 2014

Best reaction

-12.1%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-4.3%+8.3%+8.9%
Q1 2026+0.2%+2.2%+9.0%
Q3 2025+5.1%+4.6%+4.7%
Q2 2025-0.8%-1.6%+2.5%
Q1 2025+4.3%+9.0%+6.8%
Q4 2024-0.4%+3.4%+6.4%
Q3 2024+5.1%+3.9%+8.5%
Q2 2024-2.7%-3.7%-12.1%
Q1 2024-5.4%-2.4%-2.7%
Q4 2023+1.0%+0.5%+8.1%
Q3 2023-7.1%-7.5%+3.9%
Q2 2023-6.0%-6.2%-3.2%
Q1 2023+3.7%+1.4%-9.7%
Q4 2022+12.4%+10.2%+9.7%
Q3 2022+4.8%+17.8%+23.1%
Q2 2022+6.2%+5.1%+22.8%
Q1 2022+1.4%-2.9%-17.5%
Q4 2021+3.2%+4.7%+18.5%
Q3 2021+2.6%+2.6%+1.7%
Q2 2021-1.3%-1.3%+15.6%
Q1 2021-2.7%+0.8%+20.8%
Q4 2020-5.4%-11.4%+13.3%
Q3 2020-4.5%-2.4%+6.7%
Q2 2020+0.9%+3.8%+12.5%
Q1 2020-5.3%+0.3%+4.9%
Q4 2019-0.9%-4.9%-7.0%
Q3 2019-4.6%-4.9%+5.8%
Q2 2019+2.0%+3.6%-11.6%
Q1 2019-3.4%-7.0%-14.5%
Q4 2018+1.5%+3.3%+12.5%
Q3 2018+2.6%+3.1%-1.4%
Q2 2018+4.6%+2.2%-3.6%
Q1 2018+1.7%-1.3%+9.8%
Q4 2017-0.1%+2.3%+3.7%
Q3 2017+4.5%+7.4%+1.9%
Q2 2017+3.3%+2.8%-6.1%
Q1 2017+6.9%+12.1%+4.7%
Q4 2016-4.6%+2.1%+0.1%
Q3 2016+9.6%+7.4%+37.7%
Q2 2016-3.6%-5.3%-8.8%
Q1 2016+0.4%
Q4 2015+4.5%
Q3 2015-5.8%
Q2 2015+1.1%
Q1 2015+4.1%
Q4 2014-4.2%
Q3 2014+4.0%
Q2 2014+16.7%
Q1 2014-4.6%
Q4 2013-0.6%
Q3 2013+3.9%
Q2 2013-0.1%
Q1 2013-1.4%
Q4 2012+1.2%
Q3 2012+4.5%
Q2 2012+0.6%
Q1 2012+2.2%
Q4 2011+2.0%
Q4 2010+2.0%
Q3 2011-4.2%
Q2 2011-12.1%
Q1 2011-2.0%
Q3 2010+1.4%
Q2 2010+2.5%
Q1 2010+1.4%
Q4 2007-3.8%
Q4 2009-3.8%
Q3 2009+1.1%
Q3 2008+1.1%
Q2 2009-2.8%
Q4 2008-2.8%
Q2 2008-2.8%

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