NASDAQ$STLD

Steel Dynamics Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Steel Dynamics reported a strong first quarter performance driven by all operating platforms.

Steel Dynamics reported strong Q1 2023 results with net sales of $4.9 billion and net income of $637 million, or $3.70 per diluted share. Excluding the impact from the company’s newly started Sinton Texas Flat Roll Steel Mill, adjusted net income was $691 million, or $4.01 per diluted share.

  • First quarter operating income from steel operations was $345 million, almost double fourth quarter sequential results, due to record shipments more than offsetting metal spread compression.
  • Operating income from metals recycling platform increased over threefold compared to sequential results.
  • Steel fabrication operations achieved historically very strong operating income of $551 million.
  • The company generated cash flow from operations of $734 million.

Headline financials

Total Revenue

$4.89B

Previous: $5.57B-12.1%
EPS (adj)

$4.01

Previous: $6.02-33.4%
Steel ASP

$1.08K

Previous: $1.56K-30.8%
Ferrous Shipments

3.3M

Previous: 474+696102.5%
Capital Expenditures

-$226M

Previous: -$159M-42.0%
Free Cash Flow

$418M

Previous: $948M-55.9%
Net Income

$644M

Previous: $1.11B-41.8%
Operating Income

$835M

Previous: $1.49B-44.1%
Gross Profit

$1.06B

Previous: $1.78B-40.8%
Cash & Equivalents

$1.6B

Previous: $1.19B+34.9%
Total Assets

$14.2B

Previous: $13.1B+8.9%
Stock-Based Comp

$16.1M

Previous: $16.5M-2.7%

Revenue & EPS history

Steel Dynamics · Revenue · Quarterly

$4.89B

Q1 2023-12.1%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Steel Dynamics · $4.98B total across 3 segments · Q1 2023

  • Steel Operations
    $3.53B+194.3%
  • Steel Fabrication
    $934M+100.0%
  • Metals Recycling
    $517M+977.1%

Forward guidance

Market conditions are in place for domestic steel consumption to be solid. 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.

Tailwinds

  • Order entry activity continues to be strong across all of our businesses.
  • The automotive, non-residential construction, and energy sectors will remain solid steel consumers this year.
  • Steel fabrication operations order backlog remains elevated with strong forward pricing levels.
  • Robust order activity and broad customer optimism supports strong overall demand dynamics for the construction industry.
  • Existing and recently announced expansion initiatives, are firm drivers for our continued growth in the coming years.

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 2023

Historical avgQ1 2023

+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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