Key TakeawaysSteel Dynamics gave current quarter guidance that was above estimates as it sees profitability 'meaningfully stronger' than the previous quarter.The steel maker said the gains were driven by its flat rolled steel operations.Steel Dynamics added that because of its confidence in the business, the company repurchased 1.4% of its stock so far in the quarter. Steel Dynamics (STLD) shares soared to a record high after the steel maker reported much better-than-expected guidance on booming demand. Th ...

FORT WAYNE, Ind., March 15, 2024 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided first quarter 2024 earnings guidance in the range of $3.51 to $3.55 per diluted share. Comparatively, the company's sequential fourth quarter 2023 earnings were $2.61 per diluted share and prior year first quarter earnings were $3.70 per diluted share. First quarter 2024 profitability from the company's steel operations are expected to be meaningfully stronger than sequential fourth quarter results, based ...

Steel Dynamics (STLD) closed the most recent trading day at $131.34, moving +1.09% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.12% for the day. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.54%.Shares of the steel producer and metals recycler witnessed a gain of 4.93% over the previous month, trailing the performance of the Basic Materials sector with its gain of 5.41% and outperforming the S&P 500's gain of 2.06%.Investors will ...

Steel Dynamics (STLD) closed the most recent trading day at $129.96, moving +1.14% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.51% for the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq gained 0.58%.Shares of the steel producer and metals recycler have appreciated by 6.93% over the course of the past month, outperforming the Basic Materials sector's gain of 4.25% and the S&P 500's gain of 2.94%.Analysts and investors alike will be kee ...

Company Performance - Steel Dynamics (STLD) closed at $133.82, reflecting a +1% change from the previous day, outperforming the S&P 500's gain of 0.52% [1] - The company's shares increased by 9.78% over the past month, surpassing the Basic Materials sector's decline of 0.45% and the S&P 500's increase of 3.85% [1] - Upcoming earnings per share (EPS) are projected at $3.48, indicating a 13.22% decrease year-over-year, with quarterly revenue expected to be $4.61 billion, down 5.89% from the previous year [1][2] Annual Forecast - Zacks Consensus Estimates predict earnings of $11.70 per share and revenue of $17.95 billion for the year, reflecting changes of -21.74% and -4.51% respectively compared to the previous year [2] Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Steel Dynamics are crucial, as positive revisions indicate confidence in the company's performance [2] - The Zacks Rank system, which rates stocks from 1 (Strong Buy) to 5 (Strong Sell), shows Steel Dynamics with a Zacks Rank of 2 (Buy) [3] - The Forward P/E ratio for Steel Dynamics is 11.33, which is a premium compared to the industry's average Forward P/E of 10.84 [3] Industry Context - The Steel - Producers industry is part of the Basic Materials sector, currently holding a Zacks Industry Rank of 169, placing it in the bottom 33% of over 250 industries [3]

Production Capacity and Operations - Steel Dynamics, Inc. has an estimated steelmaking and steel coating capacity of approximately 16 million tons and actual metals recycling volumes as of December 31, 2023[22]. - The Southwest-Sinton Flat Roll Division has an annual steel production capacity of approximately 3.0 million tons, with new coating lines expected to begin operating in early 2024[29]. - The company has an annual production capacity of approximately 9.4 million tons of flat roll steel and an additional 2.0 million tons of processing capacity[70]. - The company has a flat roll galvanizing capability of 4.8 million tons and painting capability of 1.5 million tons[70]. - The company announced a $2.7 billion project to construct a 650,000 metric ton recycled aluminum flat rolled products mill, expected to begin commissioning in mid-2025[36]. - The new aluminum mill's product mix is projected to be approximately 45% can stock, 35% automotive, and 20% common alloy and industrial use[36]. Financial Performance - Total net sales for 2023 were $18,795,316, a decrease of 15.5% from $22,260,774 in 2022[306]. - Gross profit for 2023 was $4,045,883, down 33.9% from $6,117,831 in 2022[306]. - Net income attributable to Steel Dynamics, Inc. for 2023 was $2,450,882, a decline of 36.7% compared to $3,862,674 in 2022[306]. - Basic earnings per share for 2023 were $14.72, down from $21.06 in 2022, representing a decrease of 30.8%[306]. - The company reported a comprehensive income of $2,450,414 for 2023, down from $3,865,654 in 2022, a decrease of 36.6%[307]. - Net income for 2023 was $2,467,332, a decrease of 36.4% compared to $3,879,492 in 2022[313]. - Net cash provided by operating activities decreased to $3,519,928 in 2023 from $4,460,403 in 2022, reflecting a decline of 21.1%[313]. - Total current assets decreased to $6,787,826 in 2023 from $7,638,018 in 2022, a decline of 11.2%[306]. - Total assets increased to $14,908,420 in 2023, up from $14,159,984 in 2022, reflecting a growth of 5.3%[306]. - Total liabilities remained relatively stable at $6,068,893 in 2023 compared to $6,064,179 in 2022[306]. - Retained earnings increased to $13,545,590 in 2023 from $11,375,765 in 2022, an increase of 19.2%[311]. - Dividends declared per share increased to $1.70 in 2023 from $1.36 in 2022, a rise of 25%[306]. Market and Sales Dynamics - Over 70% of the company's steel and steel fabrication sales are considered value-added, contributing to higher volume and profitability[26]. - In 2023, the company's own steel-consuming businesses purchased 1.8 million tons of steel from its steel mills, representing 14% of total steel shipments[33]. - Steel operations accounted for 67% of consolidated net sales in 2023, with a slight decrease from 72% in 2021[69]. - Exported sales represented 8% of steel segment net sales in 2023, up from 4% in 2021[69]. - Sheet steel operations represented 68%, 77%, and 73% of steel operations net sales in 2023, 2022, and 2021, respectively, with 9.2 million tons produced in 2023[76]. - The company shipped 7,459,023 tons of sheet steel products from Butler, Columbus, and Sinton in 2023, up from 6,772,162 tons in 2022[77]. - Metals recycling operations accounted for 12% of consolidated net sales in 2023, with export sales representing 18% of metals recycling segment net sales[88]. Environmental and Regulatory Compliance - The company aims for a 35% reduction in its steel mills' Scope 1 GHG emissions through a joint venture producing biocarbon, with operations planned to begin in late 2024[41]. - The company is committed to reducing its environmental footprint and has set GHG emission reduction goals for 2025, 2030, and 2050, which may increase operational costs[139]. - Compliance with environmental regulations may result in increased capital requirements and operational costs, impacting the company's financial condition[141]. - Environmental compliance costs may increase due to evolving regulations, potentially impacting operational costs[113]. Workforce and Management - The total team size was approximately 12,600 full-time members as of December 31, 2023[53]. - The overall team retention rate was approximately 80% in 2023, with U.S.-based teams retention at 89%[58]. - The leadership team emphasizes decentralized operational decision-making and performance-based incentive compensation aligned with profitability and operational performance[42]. - The performance-based compensation framework aligns employee interests with long-term growth and shareholder value[56]. Risks and Challenges - The company is significantly impacted by fluctuations in demand from cyclical industries such as construction, automotive, and manufacturing, which may lead to reduced sales and profitability[125]. - Increased competition from foreign steel producers, particularly from countries like China and Vietnam, may exert downward pressure on U.S. steel prices[128]. - The availability and prices of raw materials, especially ferrous scrap, are subject to market volatility, which can constrain operating levels and profit margins[133]. - Economic downturns and reduced consumer confidence may lead to decreased demand for the company's products, affecting overall financial performance[126]. - The company faces risks associated with the creditworthiness of its customers and suppliers, which could impact sales and increase exposure to losses[126]. - Global economic factors, including trade policies and political actions, may disrupt the company's supply chain and adversely affect its business operations[124]. - The company is exposed to cybersecurity threats that may compromise sensitive data and disrupt operations, potentially leading to financial losses[156]. Debt and Financial Management - As of December 31, 2023, total outstanding debt is $3,052,042, with a weighted-average interest rate of 3.2% for fixed-rate debt and 7.2% for variable-rate debt[271]. - The company has a cumulative unrealized loss of $6.8 million associated with financial contracts, primarily set to settle in 2024[274]. - Fixed-rate debt maturing in 2024 amounts to $400,901 with an average interest rate of 2.8%[271]. - The average interest rate for variable-rate debt maturing in 2024 is 7.2%[271]. - The fair value of total debt is reported at $2,776,826[271]. - The company has a risk strategy to protect profit margins through base metal financial contracts[274]. - The company is required to maintain certain financial covenants under its senior unsecured credit facility, which could limit its operational flexibility[171].

Steel Dynamics, Inc. (STLD) has announced that its board of directors approved a first-quarter cash dividend of 46 cents per common share, representing an 8% increase over the company's 2023 quarterly rate. The dividend is payable to shareholders of record at the close of business as of Mar 31, 2024, on or around Apr 14, 2024.The company has continuously increased its cash dividend in line with its structural growth strategies, resulting in a robust cash dividend growth profile. STLD believes that this deci ...

FORT WAYNE, Ind., Feb. 26, 2024 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced that the company's board of directors declared a first quarter cash dividend of $0.46 per common share, or 8% increase over the company's 2023 quarterly rate. The dividend is payable to shareholders of record at the close of business on March 31, 2024 and is payable on or about April 14, 2024. "We are pleased that our board of directors took this action, based on our confidence in the current and anticipat ...

The most recent trading session ended with Steel Dynamics (STLD) standing at $127.01, reflecting a +1.79% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.04%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.28%.Heading into today, shares of the steel producer and metals recycler had gained 7.66% over the past month, outpacing the Basic Materials sector's gain of 1.21% and the S&P 500's gain of 5.01% i ...

Core Viewpoint - Steel Dynamics reported a decline in Q4 2023 earnings per share and net sales, but exceeded sales estimates, indicating mixed performance in the latest earnings report [2][3]. Financial Performance - Q4 2023 earnings were $2.61 per share, down from $3.61 year-over-year, and slightly below the Zacks Consensus Estimate of $2.63 [2]. - Net sales decreased approximately 12.3% year-over-year to around $4.23 billion, surpassing the Zacks Consensus Estimate of $4.11 billion [2]. - Steel operations net sales were $2.91 billion, down about 0.8% year-over-year, with steel shipments of approximately 3.06 million tons, a modest increase from 2.99 million tons a year ago [3]. - The average external product selling price for steel was $1,090 per ton, down from $1,124 per ton year-over-year, but above the estimate of $1,001 per ton [3]. - Operating income for steel operations was $365 million, reflecting a 24% sequential decline due to lower shipments and metal spread compression [3]. Segment Highlights - Metal recycling operations reported net sales of $488 million, up around 5.3% year-over-year, with ferrous shipments stable at around 1.36 million gross tons [4]. - Steel fabrication operations saw sales of approximately $520.6 million, down 52.2% year-over-year, with shipments falling to 150,002 tons from 208,956 tons a year ago [4]. Financial Position - The company ended the quarter with cash and cash equivalents of about $1.4 billion, a decrease of around 14% year-over-year, while long-term debt was approximately $2.61 billion, down 13.3% [5]. - Steel Dynamics repurchased $1.5 billion of its common stock in 2023, representing 8% of its outstanding shares [5]. Outlook - The company is enhancing operations with a new electric arc furnace flat-rolled steel mill in Texas and has completed construction of four additional value-added flat rolled steel coating lines, expected to increase capacity by 1.1 million tons annually [6]. - Current market dynamics are anticipated to support higher demand across its operating platforms in 2024 [6]. - Estimates for the stock have trended upward, with a consensus estimate shift of 17.17%, indicating positive sentiment [7][8]. - Steel Dynamics holds a Zacks Rank 2 (Buy), suggesting expectations for above-average returns in the coming months [9].