NASDAQ$STLD

Steel Dynamics Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported record quarterly operating and financial performance, driven by diversified business model and strong steel fabrication operations.

Steel Dynamics reported record first quarter 2022 results, with net sales of $5.6 billion and net income of $1.1 billion, or $5.71 per diluted share. The company's performance was driven by its diversified, value-added, circular manufacturing model, with strength in steel fabrication offsetting moderation in flat roll steel.

  • Achieved record quarterly operating and financial performance, including record sales, operating income, and cash flow from operations.
  • First quarter operating income was $1.5 billion, with adjusted EBITDA of $1.6 billion.
  • Steel fabrication operations earnings soared to $467 million, exceeding full-year 2021 record results.
  • Generated record cash flow from operations of $819 million, increased shareholder distributions, and invested in growth.

Headline financials

Total Revenue

$5.57B

Previous: $3.54B+57.1%
EPS (adj)

$6.02

Previous: $2.10+186.7%
Steel ASP

$1.56K

Previous: $1.04K+50.0%
Ferrous Shipments

474

Previous: 372+27.4%
Capital Expenditures

-$159M

Previous: -$310M+48.6%
Free Cash Flow

$948M

Previous: $129M+635.5%
Net Income

$1.11B

Previous: $439M+152.4%
Operating Income

$1.49B

Previous: $594M+151.6%
Gross Profit

$1.78B

Previous: $800M+122.7%
Cash & Equivalents

$1.19B

Previous: $1.25B-4.5%
Total Assets

$13.1B

Previous: $10.1B+28.9%
Stock-Based Comp

$16.5M

Previous: $17M-3.1%

Revenue & EPS history

Steel Dynamics · Revenue · Quarterly

$5.57B

Q1 2022+57.1%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Steel Dynamics · $1.72B total across 3 segments · Q1 2022

  • Steel Operations
    $1.2B+87.2%
  • Steel Fabrication
    $467M+4570.0%
  • Metals Recycling
    $48M-11.1%

Forward guidance

The company anticipates continued strong domestic steel consumption in 2022 and into 2023, with second quarter 2022 consolidated earnings expected to represent another record quarterly performance. Steel prices are expected to remain supported by strong demand, balanced customer inventory levels, and elevated raw material costs.

Tailwinds

  • Market conditions are in place for strong domestic steel consumption this year and into 2023.
  • Order entry activity continues to be robust across all businesses.
  • Steel prices will remain supported by strong demand, balanced customer inventory levels, and elevated raw material costs.
  • Automotive, industrial, and energy sectors will remain solid steel consumers, with construction sector leading demand.
  • Steel fabrication operations order backlog remains at record volume and forward pricing levels.

Headwinds

  • No specific negative factors were mentioned in the provided context.

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 2022

Historical avgQ1 2022

+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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