NASDAQ$STLD

Steel Dynamics Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong performance driven by diversified business model, with strength in steel fabrication offsetting lower earnings in flat rolled steel businesses.

Steel Dynamics reported strong Q3 2022 results with net sales of $5.7 billion and net income of $914 million, or $5.03 per diluted share. Excluding the impact from the company’s newly started Sinton Texas Flat Roll Steel Mill, adjusted net income was $992 million, or $5.46 per diluted share. The company achieved record quarterly steel shipments of 3.2 million tons.

  • Achieved record quarterly steel shipments of 3.2 million tons.
  • Consolidated operating income was $1.2 billion.
  • Adjusted EBITDA reached $1.3 billion.
  • Record cash flow from operations of $1.5 billion was achieved.

Headline financials

Total Revenue

$5.65B

Previous: $5.09B+11.1%
EPS (adj)

$5.46

Previous: $4.96+10.1%
Steel ASP

$1.38K

Previous: $1.55K-10.9%
Ferrous Shipments

3.2M

Previous: 489+654296.7%
Capital Expenditures

-$241M

Previous: -$215M-12.4%
Free Cash Flow

$677M

Previous: $786M-13.8%
Net Income

$918M

Previous: $1B-8.2%
Operating Income

$1.22B

Previous: $1.32B-7.7%
Gross Profit

$1.46B

Previous: $1.6B-8.5%
Cash & Equivalents

$1.42B

Previous: $1.1B+29.6%
Total Assets

$14B

Previous: $11.5B+21.8%
Stock-Based Comp

$12.1M

Previous: $9.92M+21.9%

Revenue & EPS history

Steel Dynamics · Revenue · Quarterly

$5.65B

Q3 2022+11.1%vs Q3 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Steel Dynamics · $668M total across 2 segments · Q3 2022

  • Steel Operations
    $658M-53.0%
  • Metals Recycling
    $10M-78.7%

Forward guidance

Customer order entry activity continues to be healthy across our businesses, with expectations for seasonally moderated volume for our steel and metals recycling operations in the coming months. The Sinton team has been running at a rate of 65 percent during October and achieving rates of over 80 percent for several single day periods, supporting our expectations to achieve a run rate of at least 80 percent for the full year 2023.

Tailwinds

  • Customer order entry activity continues to be healthy across our businesses.
  • Order activity and backlogs remain solid despite weaker flat rolled steel pricing.
  • North American steel consumption will remain steady.
  • Demand for lower-carbon, U.S. produced steel products coupled with lower imports will support steel pricing.
  • Steel fabrication operations order backlog also remains historically high based on volume and forward pricing levels.

Headwinds

  • Expectations for seasonally moderated volume for our steel and metals recycling operations in the coming months.
  • Weaker flat rolled steel pricing.
  • Ferrous scrap pricing indices have decreased each month beginning in May and continued through October 2022, resulting in significantly lower earnings from our metals recycling operations.
  • Third quarter operating income for the company’s steel operations was 41 percent lower than sequential second quarter results, due to metal spread compression within the company’s flat rolled steel operations, as lower average flat rolled steel pricing more than offset higher flat rolled steel shipments.
  • Operations continue to ramp up at our Sinton Flat Roll Steel Division.

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 Q3 2022

Historical avgQ3 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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