NASDAQ$STLD

Steel Dynamics Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Steel Dynamics reported a strong second quarter performance driven by higher realized pricing from steel operations and strong cash flow.

Steel Dynamics reported strong second quarter 2023 results with net sales of $5.1 billion and net income of $812 million, or $4.81 per diluted share. The company's performance was driven by significantly higher realized pricing from steel operations and strong cash flow from operations of $808 million.

  • Operating income for the second quarter 2023 was $1.1 billion, with EBITDA of $1.2 billion.
  • Steel operations' income more than doubled sequentially to $706 million due to metal spread expansion.
  • Steel order activity remains solid from the automotive, construction, industrial, and energy sectors.
  • The company generated cash flow from operations of $808 million and repurchased $380 million of its outstanding common stock.

Headline financials

Total Revenue

$5.08B

Previous: $6.21B-18.2%
EPS (adj)

$4.81

Previous: $6.73-28.5%
Steel ASP

$1.26K

Previous: $1.54K-18.3%
Ferrous Shipments

1.5M

Previous: 0.07+2142857042.9%
Fabrication Shipments

3.2M

No prior period
Capital Expenditures

-$358M

Previous: -$164M-118.3%
Free Cash Flow

$454M

Previous: $1.05B-56.8%
Net Income

$812M

Previous: $1.21B-33.1%
Operating Income

$1.06B

Previous: $1.62B-34.3%
Gross Profit

$1.31B

Previous: $1.88B-30.6%
Cash & Equivalents

$1.48B

Previous: $1.01B+46.5%
Total Assets

$14.6B

Previous: $13.7B+6.1%
Stock-Based Comp

$11.7M

Previous: $11.1M+5.5%

Revenue & EPS history

Steel Dynamics · Revenue · Quarterly

$5.08B

Q2 2023-18.2%vs Q2 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Steel Dynamics · $1.21B total across 3 segments · Q2 2023

  • Steel Operations
    $706M-35.8%
  • Steel Fabrication
    $462M-22.9%
  • Metals Recycling
    $40M-31.0%

Forward guidance

Steel Dynamics anticipates solid domestic steel consumption, driven by onshoring, infrastructure, and Inflation Reduction Act programs. The company is progressing on its aluminum flat rolled products mill and expects continued growth.

Tailwinds

  • Market conditions are in place for solid domestic steel consumption.
  • Order entry activity continues to be strong across all businesses.
  • North American steel consumption is expected to increase.
  • Demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing.
  • Onshoring of manufacturing businesses and public funding related to infrastructure and energy programs will competitively position the domestic steel industry.

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 2023

Historical avgQ2 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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