01—Abstract
Summary
Summary of the 8-K filed December 17, 2024. Cited figures are marked; the original filing is the authoritative source.
Steel Dynamics, Inc. (NASDAQ/GS: STLD) furnished a Regulation FD press release dated December 16, 2024, providing fourth quarter 2024 earnings guidance of $1.26 to $1.30a per diluted share.
The company cites comparison points of $2.05b per diluted share for sequential third quarter 2024 and $2.61 per diluted share for prior year fourth quarter earnings. The information is furnished under Item 7.01 and is not deemed filed for purposes of Section 18 of the Exchange Act. By segment, the company expects fourth quarter steel operations profitability to be meaningfully lower than the third quarter, citing lower average realized pricing, seasonally lower shipments, and an unplanned outage at the Butler Flat Roll Division that is estimated to reduce volume by 50,000 tons.
Metals recycling earnings are expected to be significantly higher than the third quarter on steady ferrous volume and flat realized pricing, while steel fabrication earnings are expected to be lower on seasonally lower shipments and less than a five percent decline in average realized pricing. Management states that flat rolled steel prices have stabilized, the fabrication order backlog is steady and extends deep into the first half of 2025, and customers are positive about the 2025 outlook. The company also reported repurchasing $250 millionc, or just over one percent, of its common stock in the fourth quarter through December 10, 2024.
It plans to release fourth quarter 2024 results after market close on January 22, 2025, followed by a conference call at 11:00 a.m. Eastern Standard Time the next day.
02—Key points
Key Highlights
- Fourth quarter 2024 EPS guidance of $1.26 to $1.30 per diluted share, compared with $2.05 in sequential third quarter 2024 and $2.61 in prior year fourth quarter
- Steel operations earnings expected to be meaningfully lower than third quarter, driven by lower realized pricing, seasonally lower shipments, and an unplanned Butler Flat Roll Division outage reducing volume by an estimated 50,000 tons
- Metals recycling earnings expected to be significantly more than third quarter, on steady ferrous volume and flat average realized pricing
- Steel fabrication earnings expected to be lower than third quarter, with less than a five percent decline in average realized pricing
- Flat rolled steel prices described as stabilized; fabrication order backlog steady and extending deep into the first half of 2025 at attractive pricing
- Company repurchased $250 million, or just over one percent, of common stock in the fourth quarter through December 10, 2024
- Fourth quarter 2024 results to be released after market close on January 22, 2025, with a conference call the following day at 11:00 a.m. Eastern Standard Time
03—Questions
Frequently Asked Questions
What earnings per share does Steel Dynamics expect for the fourth quarter of 2024?
The company guided to fourth quarter 2024 earnings of $1.26 to $1.30 per diluted share.
How does the fourth quarter guidance compare with prior periods?
The filing states that sequential third quarter 2024 earnings were $2.05 per diluted share and prior year fourth quarter earnings were $2.61 per diluted share.
Which segments are driving the expected decline in earnings?
Steel operations are expected to be meaningfully lower than the third quarter due to lower average realized pricing, seasonally lower shipments, and an unplanned outage at the Butler Flat Roll Division. Steel fabrication is also expected to be lower on seasonally lower shipments and a less than five percent decline in average realized pricing.
Is there any offsetting strength in the business?
Metals recycling earnings are expected to be significantly more than the third quarter, based on steady ferrous volume and flat average realized pricing. Management also says customers are positive about the 2025 outlook and that order activity is steady.
When will the company report its full fourth quarter 2024 results?
The company plans to release fourth quarter 2024 earnings after the markets close on Wednesday, January 22, 2025, with a conference call the following day at 11:00 a.m. Eastern Standard Time.
04—Continue