Steel Dynamics(STLD)2025-01-23 14:56Financial Performance - Q4 2024 net sales were $3.9 billion with net income of $207 million, or $1.36 per diluted share, compared to Q3 2024 net income of $318 million and Q4 2023 net income of $424 million[2] - Annual 2024 net sales were $17.5 billion, operating income was $1.9 billion, and net income was $1.5 billion, or $9.84 per diluted share, compared to 2023 net income of $2.5 billion[10] - Net sales for Q4 2024 decreased to $3.87 billion, down 8.5% from $4.23 billion in Q4 2023[23] - Gross profit for Q4 2024 dropped to $441.7 million, a 39.6% decline from $730.9 million in Q4 2023[23] - Net income for Q4 2024 fell to $209.9 million, a 50.8% decrease from $427.0 million in Q4 2023[23] - Basic earnings per share for Q4 2024 decreased to $1.36, a 48.3% decline from $2.63 in Q4 2023[23] - Consolidated Net Sales for 2024 were $17,540,390, down from $18,795,316 in 2023[29] - Adjusted EBITDA for 2024 was $2,493,758, a decrease from $3,662,975 in 2023[29] Steel Operations - Annual 2024 steel shipments reached 12.7 million tons, with steel operations achieving operating income of $1.6 billion and steel fabrication operations achieving operating income of $667 million[5] - Q4 2024 steel operations operating income was $165 million, a 46% sequential decline due to lower shipments and metal spread compression, with an unplanned outage reducing volume by 50,000 tons[6] - External Net Sales for Steel in Q4 2024 were $2,645,994, a decrease from $2,915,325 in Q4 2023[29] - Operating Income for Steel in Q4 2024 was $164,989, compared to $364,829 in Q4 2023[29] - Average external sales price for Steel in Q4 2024 was $1,011 per ton, down from $1,090 in Q4 2023[29] - Flat Roll shipments in 2024 totaled 7,702,731 tons, up from 7,459,023 tons in 2023[29] - Total Shipments for 2024 were 12,660,487 tons, slightly down from 12,821,753 tons in 2023[29] - Ferrous shipments in 2024 were 5,850,544 gross tons, up from 5,792,484 gross tons in 2023[29] Metals Recycling Operations - Q4 2024 metals recycling operations operating income was $23 million, a $13 million increase from Q3 2024, driven by metal spread improvement and cost efficiencies[8] - Nonferrous shipments in 2024 were 965,491 thousand pounds, compared to 970,445 thousand pounds in 2023[29] Steel Fabrication Operations - Q4 2024 steel fabrication operations operating income was $142 million, with a strong order backlog extending into H1 2025 at attractive pricing levels[9] - Steel Fabrication shipments in 2024 were 607,407 tons, down from 662,539 tons in 2023[29] Cash Flow and Investments - Annual 2024 cash flow from operations was $1.8 billion, with $1.9 billion invested in organic growth, $283 million in dividends, and $1.2 billion in share repurchases, representing 6% of outstanding shares[12] - Cash and equivalents decreased to $589.5 million at the end of 2024, down 57.9% from $1.40 billion at the end of 2023[25] - Net cash provided by operating activities for Q4 2024 was $346.9 million, a 59.9% decrease from $864.6 million in Q4 2023[27] - Purchases of property, plant and equipment totaled $1.87 billion for the full year 2024, a 12.7% increase from $1.66 billion in 2023[27] - Dividends declared per share increased to $0.46 in Q4 2024, up 8.2% from $0.425 in Q4 2023[23] Future Outlook and Strategic Initiatives - The company expects increased demand in 2025 due to stabilized steel pricing, lower-carbon emission steel demand, and reduced unfairly traded steel imports, particularly for coated flat rolled steel[13] - Four new flat rolled steel coating lines began operations in H1 2024, with full run-rate earnings potential expected in 2025, contributing to over 65% of steel revenues from higher-margin products[14] - The aluminum team successfully cast the first industrial and beverage can ingots on January 12, 2025, with commercial production expected by mid-2025, targeting the sustainable beverage can and packaging industry[15] Balance Sheet and Liabilities - Total assets remained stable at $14.94 billion at the end of 2024, compared to $14.91 billion at the end of 2023[25] - Total current liabilities decreased to $2.15 billion at the end of 2024, down 7.8% from $2.33 billion at the end of 2023[25]