Steel Dynamics, Inc. (STLD) Bundle
A Brief History of Steel Dynamics, Inc.
Company Overview
Steel Dynamics, Inc. (NASDAQ: STLD) is one of the largest domestic steel producers and metals recyclers in North America. The company operates multiple facilities across the United States and Mexico, producing a variety of steel products including hot roll, cold roll, and coated sheet steel, as well as structural steel beams and shapes.
Financial Performance in 2024
As of September 30, 2024, Steel Dynamics reported third-quarter net sales of $4.34 billion, a decrease from $4.59 billion in the same quarter of 2023. The operating income for the third quarter was $395 million, down from $734 million year-over-year. The net income for the same period was $321 million, compared to $580 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $4.34 billion | $4.59 billion | -5.4% |
| Operating Income | $395 million | $734 million | -46.1% |
| Net Income | $321 million | $580 million | -44.7% |
Year-to-Date Performance
For the nine months ending September 30, 2024, Steel Dynamics reported net sales of $13.67 billion, a decrease from $14.56 billion in the same period of 2023. The net income for this period was $1.34 billion, down from $2.04 billion in 2023.
| Financial Metrics | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|
| Net Sales | $13.67 billion | $14.56 billion | -6.1% |
| Net Income | $1.34 billion | $2.04 billion | -34.3% |
Stock Performance
As of the end of September 2024, Steel Dynamics' stock price has experienced fluctuations due to market conditions. The diluted earnings per share (EPS) for Q3 2024 was $2.05, down from $3.47 in Q3 2023. The average selling price for steel decreased to $1,059 per ton in Q3 2024, compared to $1,191 in Q3 2023.
| Stock Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Diluted EPS | $2.05 | $3.47 |
| Average Selling Price (Per Ton) | $1,059 | $1,191 |
Operational Insights
In the third quarter of 2024, Steel Dynamics produced a total of 3.18 million tons of steel, with external shipments reaching 2.75 million tons. The company’s metals recycling segment reported ferrous shipments of 1.46 million gross tons.
| Operational Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Steel Shipments (Tons) | 3.18 million | 3.15 million |
| External Shipments (Tons) | 2.75 million | 2.68 million |
| Ferrous Shipments (Gross Tons) | 1.46 million | 1.44 million |
Future Outlook
Steel Dynamics anticipates a recovery in steel pricing, driven by improved domestic demand and lower interest rates, alongside ongoing investments in infrastructure and manufacturing. The company remains focused on enhancing its production capabilities and expanding its product offerings.
As of September 30, 2024, Steel Dynamics reported strong liquidity of $3.1 billion, with cash flow from operations reaching $760 million for the third quarter alone. The company has also committed to returning value to shareholders through dividends and stock repurchases, totaling $381 million year-to-date.
A Who Owns Steel Dynamics, Inc. (STLD)
Major Shareholders
As of 2024, the ownership structure of Steel Dynamics, Inc. (STLD) is characterized by a mix of institutional and retail investors. The largest shareholders include:
- BlackRock, Inc. - 8.5% of shares outstanding
- The Vanguard Group, Inc. - 7.7% of shares outstanding
- State Street Corporation - 5.2% of shares outstanding
- Invesco Ltd. - 3.5% of shares outstanding
- Wellington Management Group LLP - 3.0% of shares outstanding
| Shareholder | Percentage of Shares | Type of Investor |
|---|---|---|
| BlackRock, Inc. | 8.5% | Institutional Investor |
| The Vanguard Group, Inc. | 7.7% | Institutional Investor |
| State Street Corporation | 5.2% | Institutional Investor |
| Invesco Ltd. | 3.5% | Institutional Investor |
| Wellington Management Group LLP | 3.0% | Institutional Investor |
Insider Ownership
Insider ownership at Steel Dynamics, Inc. is notable, with key executives holding significant stakes in the company:
- Mark D. Millett (CEO) - 1.2 million shares (approximately 0.8%)
- Other Executives - Combined ownership of 0.6% of shares outstanding
Stock Performance and Market Capitalization
As of late September 2024, Steel Dynamics, Inc. had a market capitalization of approximately $11.5 billion. The stock performance in 2024 has shown fluctuations, with the following key metrics:
- Current Share Price: $70.00
- 52-Week High: $85.00
- 52-Week Low: $55.00
- Year-to-Date Return: -10%
Recent Financial Highlights
For the third quarter of 2024, Steel Dynamics reported:
- Net Sales: $4.34 billion
- Net Income: $320.89 million
- Adjusted EBITDA: $557.10 million
- Cash Flow from Operations: $759.85 million
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Sales | $4.34 billion | $4.59 billion |
| Net Income | $320.89 million | $579.78 million |
| Adjusted EBITDA | $557.10 million | $876.11 million |
| Cash Flow from Operations | $759.85 million | $1.11 billion |
Steel Dynamics, Inc. (STLD) Mission Statement
Overview of Mission Statement
Steel Dynamics, Inc. (STLD) is committed to delivering sustainable and innovative steel solutions while ensuring operational excellence and value creation for its stakeholders. The company aims to lead the steel industry through superior customer service, quality products, and a focus on safety and environmental stewardship.
Financial Performance
As of the third quarter of 2024, Steel Dynamics reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year to Date 2024 | Year to Date 2023 |
|---|---|---|---|---|
| Net Sales | $4.34 billion | $4.59 billion | $13.67 billion | $14.56 billion |
| Operating Income | $395 million | $734 million | $1.71 billion | $2.63 billion |
| Net Income | $321 million | $580 million | $1.34 billion | $2.04 billion |
| Adjusted EBITDA | $557 million | $876 million | $2.12 billion | $3.00 billion |
| Basic EPS | $2.06 | $3.49 | $8.50 | $12.04 |
Operational Highlights
In the third quarter of 2024, Steel Dynamics achieved the following operational metrics:
| Operational Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Shipments (Tons) | 3.18 million | 3.15 million |
| Steel Fabrication Operating Income | $166 million | $330 million |
| Metals Recycling Operating Income | $12 million | $19 million |
| Average External Steel Sales Price (Per Ton) | $1,059 | $1,191 |
| Average Ferrous Scrap Cost (Per Ton Melted) | $367 | $405 |
Capital Allocation and Shareholder Returns
In 2024, Steel Dynamics has executed substantial capital allocation strategies, including:
- Capital Investments: $1.4 billion
- Cash Dividends Paid: $212 million
- Share Repurchases: $917 million
Liquidity Position
As of September 30, 2024, Steel Dynamics maintained a strong liquidity position with:
| Liquidity Metric | Amount |
|---|---|
| Cash and Equivalents | $1.02 billion |
| Short-term Investments | $645 million |
| Total Liquidity | $3.1 billion |
Market Outlook
Steel Dynamics anticipates a recovery in steel pricing, driven by:
- Lower domestic interest rates
- Onshoring of manufacturing
- Public funding related to infrastructure investments
- Reduction in unfairly traded steel imports
The company is also progressing with its aluminum flat rolled products mill, expected to begin operations mid-2025, aligning with its growth strategy and market diversification efforts.
How Steel Dynamics, Inc. (STLD) Works
Company Overview
Steel Dynamics, Inc. (STLD) is a leading steel producer and metals recycler in North America, with operations across the United States and Mexico. The company manufactures a wide range of steel products, including hot roll, cold roll, coated sheet steel, structural steel beams, and specialty steel sections. Additionally, it engages in metals recycling, processing ferrous and nonferrous scrap.
Financial Performance
As of the third quarter of 2024, Steel Dynamics reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD Q3 2024 | YTD Q3 2023 |
|---|---|---|---|---|
| Net Sales | $4.34 billion | $4.59 billion | $13.67 billion | $14.56 billion |
| Operating Income | $395 million | $734 million | $1.71 billion | $2.63 billion |
| Net Income | $321 million | $580 million | $1.34 billion | $2.04 billion |
| Diluted EPS | $2.05 | $3.47 | $8.46 | $11.98 |
| Cash Flow from Operations | $760 million | $1.11 billion | $1.50 billion | $2.66 billion |
| Adjusted EBITDA | $557 million | $876 million | $2.12 billion | $3.00 billion |
Operational Segments
Steel Dynamics operates through several segments, each contributing to its overall revenue:
| Segment | Q3 2024 Sales | Q3 2023 Sales | YTD 2024 Sales | YTD 2023 Sales |
|---|---|---|---|---|
| Steel | $2.92 billion | $3.19 billion | $9.42 billion | $9.73 billion |
| Steel Fabrication | $447 million | $630 million | $1.37 billion | $2.28 billion |
| Metals Recycling | $566 million | $521 million | $1.72 billion | $1.70 billion |
| Other | $412 million | $249 million | $1.16 billion | $862 million |
Production and Shipments
In the third quarter of 2024, Steel Dynamics reported the following production and shipment figures:
| Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Shipments (Tons) | 3.18 million | 3.15 million |
| External Shipments (Tons) | 2.75 million | 2.68 million |
| Steel Mill Production (Tons) | 2.79 million | 2.78 million |
Cost Structure
Steel Dynamics has a highly variable cost structure, which impacts its profitability:
| Cost Type | Q3 2024 | Q2 2024 |
|---|---|---|
| Average External Selling Price (Per Ton) | $1,059 | $1,138 |
| Average Ferrous Scrap Cost (Per Ton Melted) | $367 | $388 |
Capital Investments and Shareholder Returns
In 2024, Steel Dynamics made significant capital investments and returned value to shareholders:
| Metric | Amount |
|---|---|
| Capital Investments | $1.41 billion |
| Dividends Paid | $212 million |
| Share Repurchases | $917 million |
Outlook
Steel Dynamics anticipates improved market conditions moving into 2025, driven by:
- Expected recovery in steel pricing.
- Continued onshoring of manufacturing businesses.
- Significant investments from public funding related to infrastructure projects.
The company is also expanding its operations with new aluminum flat rolled products, expected to begin in mid-2025, which aims to diversify its product offerings and enhance sustainability.
How Steel Dynamics, Inc. (STLD) Makes Money
Revenue Streams
Steel Dynamics, Inc. generates revenue primarily through the following segments:
- Steel Production
- Steel Fabrication
- Metals Recycling
- Aluminum Operations
Financial Performance Overview
As of September 30, 2024, Steel Dynamics reported net sales of $4.34 billion for the third quarter, down from $4.59 billion in the same quarter of the previous year. Year-to-date net sales for 2024 reached $13.67 billion, compared to $14.56 billion in 2023.
Operating income for the third quarter of 2024 was $395 million, a decrease from $734 million in the prior year. For the first nine months of 2024, operating income totaled $1.71 billion, down from $2.63 billion in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $4.34 billion | $4.59 billion | $13.67 billion | $14.56 billion |
| Operating Income | $395 million | $734 million | $1.71 billion | $2.63 billion |
| Net Income | $321 million | $580 million | $1.34 billion | $2.04 billion |
| Adjusted EBITDA | $557 million | $876 million | $2.12 billion | $3.00 billion |
Segment Performance
The company's segments contributed to its overall financial performance as follows:
- Steel Segment: Generated external net sales of $2.92 billion in Q3 2024, compared to $3.19 billion in Q3 2023.
- Steel Fabrication: Reported sales of $447 million in Q3 2024, down from $630 million in Q3 2023.
- Metals Recycling: Achieved external sales of $566 million in Q3 2024, up from $521 million in Q3 2023.
- Aluminum Operations: This segment is emerging, with production set to begin in mid-2025, targeting the beverage can and packaging industries.
| Segment Performance | Q3 2024 Sales | Q3 2023 Sales |
|---|---|---|
| Steel | $2.92 billion | $3.19 billion |
| Steel Fabrication | $447 million | $630 million |
| Metals Recycling | $566 million | $521 million |
Cost Structure
Steel Dynamics’ costs of goods sold for Q3 2024 were $3.74 billion, leading to a gross profit of $605 million. The average external selling price for steel in Q3 2024 was $1,059 per ton, down from $1,191 per ton in Q3 2023. The average ferrous scrap cost per ton melted was $367, down from $405.
Cash Flow and Investments
In the first nine months of 2024, Steel Dynamics generated cash flow from operations of $1.50 billion. The company invested $1.41 billion in capital expenditures and returned $381 million to shareholders through dividends and share repurchases.
| Cash Flow Metrics | YTD 2024 |
|---|---|
| Cash Flow from Operations | $1.50 billion |
| Capital Investments | $1.41 billion |
| Dividends Paid | $212 million |
| Share Repurchases | $917 million |
Future Outlook
Steel Dynamics anticipates a recovery in steel pricing due to expected lower domestic interest rates and ongoing demand from infrastructure investments. The company is well-positioned to leverage its differentiated business model and maintain strong liquidity, reported at $3.1 billion as of September 30, 2024.
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