NASDAQ$STLD

Steel Dynamics Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported solid third quarter performance with strong cash generation and record liquidity.

Steel Dynamics reported Q3 2023 net sales of $4.6 billion and net income of $577 million, or $3.47 per diluted share. The company's operating income was $734 million, with adjusted EBITDA of $876 million. Cash flow from operations was $1.1 billion, and the company achieved record liquidity of $3.7 billion.

  • Net sales reached $4.6 billion with a net income of $577 million, translating to $3.47 per diluted share.
  • Operating income was $734 million, and adjusted EBITDA stood at $876 million.
  • Cash flow from operations reached $1.1 billion, contributing to a record liquidity of $3.7 billion.
  • Steel shipments remained consistent, excluding the impact of an unplanned outage which resulted in lost volume of approximately 90,000 tons.

Headline financials

Total Revenue

$4.59B

Previous: $5.65B-18.8%
EPS (adj)

$3.47

Previous: $5.46-36.4%
Steel ASP

$1.19K

Previous: $1.38K-13.8%
Ferrous Shipments

405

Previous: 3.2M-100.0%
Capital Expenditures

-$558M

Previous: -$241M-131.5%
Free Cash Flow

$18.8M

Previous: $677M-97.2%
Net Income

$577M

Previous: $918M-37.2%
Operating Income

$734M

Previous: $1.22B-39.9%
Gross Profit

$952M

Previous: $1.46B-35.0%
Cash & Equivalents

$1.77B

Previous: $1.42B+24.3%
Total Assets

$14.9B

Previous: $14B+6.3%
Stock-Based Comp

$12M

Previous: $12.1M-0.4%

Revenue & EPS history

Steel Dynamics · Revenue · Quarterly

$4.59B

Q3 2023-18.8%vs Q3 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

Based on domestic steel fundamentals, the company is constructive regarding North American steel market dynamics. Customer order entry activity continues to be solid across steel operations, as demand continues to be steady and customer inventories remain at low historical levels.

Tailwinds

  • North American steel consumption will increase in the coming years.
  • Demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing.
  • The continued onshoring of manufacturing businesses will benefit the domestic steel industry.
  • Significant fixed asset investment to be derived from public funding will competitively position the domestic steel industry.
  • The team continues to make great progress on our aluminum flat rolled products mill and related investments.

Headwinds

  • No specific negatives were mentioned in the outlook.

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 2023

Historical avgQ3 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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