Steel Dynamics' Q4 Earnings Surpass Estimates, Sales Miss

Earnings Performance - Steel Dynamics reported Q4 2024 earnings of $1.36 per share, down from $2.61 in the year-ago quarter but beating the Zacks Consensus Estimate of $1.29 [1] - Full-year 2024 earnings were $9.84 per share, declining from $14.64 per share in 2023 [6] Revenue Performance - Q4 2024 net sales decreased 8.5% YoY to $3,872.1 million, missing the Zacks Consensus Estimate of $3,956.4 million [2] - Full-year 2024 net sales were $17.5 billion, down from $18.8 billion in 2023 [6] Segment Performance - Steel operations net sales declined 9.2% YoY to $2,645.9 million, with shipments down to 3.02 million tons from 3.06 million tons [3] - Metals recycling operations net sales increased 9.7% YoY to $482 million, with ferrous shipments up to 1.42 million gross tons from 1.36 million tons [4] - Steel fabrication operations net sales decreased 23.8% YoY to $396.2 million, with shipments down to 145,901 tons from 150,002 tons [5] Financial Position - The company generated $1.8 billion in cash flow from operations in 2024 [7] - STLD spent $1.9 billion on organic growth projects, paid $283 million in cash dividends, and repurchased $1.2 billion of its common stock, representing 6% of total outstanding shares [7] - The company maintained excellent liquidity of $2.2 billion as of Dec 31, 2024 [7] Market Outlook - Steel Dynamics expects rising demand across its operational platforms in 2025, supported by stabilized steel pricing and strong customer optimism [8] - The company anticipates increased demand for US-manufactured steel products with reduced carbon emissions, driven by onshoring of manufacturing businesses and public funding from US infrastructure and energy programs [8] Stock Performance - Steel Dynamics shares gained 5.5% over the past year, outperforming its industry's 23% decline [9] Industry Comparison - Carpenter Technology Corporation (CRS) is expected to report Q2 earnings of $1.58, with a Zacks Rank 2 (Buy) [11] - Hecla Mining Company (HL) is expected to report Q4 earnings of 4 cents, with a Zacks Rank 1 [12] - Ingevity Corporation (NGVT) is expected to report Q4 earnings of 12 cents, with a Zacks Rank 1 [13]