Steel Dynamics Earnings Matched, Revenue Fell Short of Estimates

SEATTLE (Scrap Monster): Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced second quarter 2023 financial results. The company reported second quarter 2023 net sales of $5.1 billion and net income of $812 million, or $4.81 per diluted share.

Comparatively, the company’s sequential first quarter 2023 net income was $637 million, or $3.70 per diluted share, and prior year second quarter net income was $1.2 billion, or $6.44 per diluted share.

“The team executed well and delivered a strong second quarter performance across our operating platforms,” said Mark D. Millett, Chairman and Chief Executive Officer. “Our second quarter 2023 operating income was $1.1 billion, with EBITDA of $1.2 billion. The sequential improvement in earnings was driven by significantly higher realized pricing from our steel operations. We also achieved strong cash flow from operations of $808 million and strong liquidity of $3.5 billion, while at the same time continuing to invest in our growth and providing strong shareholder distributions. In recognition of our growth, strong balance sheet profile and consistent free cash flow generation capability, we received upgrades to our investment grade credit designations from two credit rating agencies.

“Second quarter 2023 operating income from our steel operations was $706 million, more than double our first quarter sequential results, due to significant metal spread expansion across the platform as realized selling values more than offset moderately higher scrap costs. Steel order activity remains solid from the automotive, construction, industrial, and energy sectors. Recent positive data from the steel service center sector points to continued low customer inventory levels, which we believe has abated destocking and will support steel pricing.”

Courtesy: www.steeldynamics.com