NASDAQ$STLD

Steel Dynamics Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported fourth quarter and record annual 2022 results.

Steel Dynamics reported fourth quarter 2022 net sales of $4.8 billion and net income of $635 million, or $3.61 per diluted share. Excluding certain items, the company’s fourth quarter adjusted net income was $769 million, or $4.37 per diluted share.

  • Achieved record net sales of $22.3 billion, operating income of $5.1 billion, and adjusted EBITDA of $5.5 billion in 2022.
  • Steel operations achieved record 2022 annual shipments of 12.2 million tons and its second highest annual operating income of $3.1 billion.
  • Steel fabrication business achieved record annual shipments of 856,000 tons and record 2022 operating income of $2.4 billion.
  • Company ended the year with record liquidity of $3.4 billion.

Headline financials

Total Revenue

$4.83B

Previous: $5.31B-9.1%
EPS (adj)

$4.37

Previous: $5.78-24.4%
Steel ASP

$1.12K

Previous: $1.66K-32.4%
Ferrous Shipments

414

Previous: 490-15.5%
Fabrication Shipments

209.0K

No prior period
Capital Expenditures

$344M

Previous: $205M+68.3%
Free Cash Flow

$799M

Previous: $519M+53.9%
Net Income

$635M

Previous: $1.1B-42.3%
Operating Income

$178M

Previous: $1.4B-87.3%
Gross Profit

$988M

Previous: $1.76B-43.9%
Cash & Equivalents

$3.4B

Previous: $2.4B+41.7%
Total Assets

$14.2B

Previous: $12.5B+13.0%
Stock-Based Comp

$19.6M

Previous: $21M-6.6%

Revenue & EPS history

Steel Dynamics · Revenue · Quarterly

$4.83B

Q4 2022-9.1%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Steel Dynamics · $1.14B total across 2 segments · Q4 2022

  • Steel Operations
    $1.12B-19.7%
  • Metals Recycling
    $14M-68.2%

Forward guidance

Steel Dynamics is in a position of strength as we enter 2023. We are ramping up operations at our new state-of-the-art electric arc furnace flat rolled steel mill located in Texas. We believe 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

  • Customer order entry activity continues to be healthy across our businesses.
  • Steel pricing has firmed, and our order activity and backlogs remain solid.
  • North American steel consumption will increase in 2023.
  • Demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing.
  • Steel fabrication operation’s order backlog also remains historically strong based on volume and forward pricing levels reaching past the first half of 2023.

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 Q4 2022

Historical avgQ4 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro