NASDAQ$STLD

Steel Dynamics Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record results driven by diversified, value-added, circular manufacturing model.

Steel Dynamics reported record second quarter 2022 net sales of $6.2 billion and record net income of $1.2 billion, or $6.44 per diluted share. Excluding certain items, adjusted net income was $1.3 billion, or $6.73 per diluted share. The company achieved record quarterly steel shipments of 3.1 million tons.

  • Achieved record quarterly operating and financial performance, including record sales, operating income, cash flow from operations.
  • Second quarter 2022 operating income was $1.6 billion, with adjusted EBITDA of $1.7 billion.
  • Steel fabrication operations achieved record results, with earnings of $599 million, based on significantly higher realized selling values and a continued strong construction demand environment.
  • Generated record cash flow from operations of $1.0 billion during the quarter.

Headline financials

Total Revenue

$6.21B

Previous: $4.47B+39.1%
EPS (adj)

$6.73

Previous: $3.40+97.9%
Steel ASP

$1.54K

Previous: $1.29K+19.1%
Ferrous Shipments

0.07

Previous: 81-99.9%
Capital Expenditures

-$164M

Previous: -$277M+40.8%
Free Cash Flow

$1.05B

Previous: $435M+141.5%
Net Income

$1.21B

Previous: $712M+70.5%
Operating Income

$1.62B

Previous: $956M+69.3%
Gross Profit

$1.88B

Previous: $1.2B+57.0%
Cash & Equivalents

$1.01B

Previous: $1.11B-9.6%
Total Assets

$13.7B

Previous: $10.7B+28.3%
Stock-Based Comp

$11.1M

Previous: $9.81M+12.9%

Revenue & EPS history

Steel Dynamics · Revenue · Quarterly

$6.21B

Q2 2022+39.1%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Steel Dynamics · $1.76B total across 3 segments · Q2 2022

  • Steel Operations
    $1.1B
  • Steel Fabrication
    $599M
  • Metals Recycling
    $58M

Forward guidance

Customer order entry activity continues to be healthy across all of our businesses. Operations continue to ramp up at our Sinton Flat Roll Steel Mill.

Tailwinds

  • Steel order activity remains solid from the automotive, construction, and industrial sectors, with energy continuing to improve.
  • Steel fabrication operations order backlog remains at near-record volumes and forward pricing levels.
  • Continued healthy order activity and broad customer optimism, supports strong overall demand dynamics for the construction industry.
  • Operations continue to ramp up at our Sinton Flat Roll Steel Mill, and the team has already achieved run rates of 80 percent through the hot side.
  • The team expects to realize meaningful improvement for the remainder of the year.

Headwinds

  • Conflicting with the more pessimistic emotion in the marketplace.
  • Despite softening flat roll steel pricing.
  • They have been challenged with unexpected power and equipment issues that have impacted their operating time in July.
  • Unexpected power and equipment issues
  • Softening flat roll steel pricing

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 Q2 2022

Historical avgQ2 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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