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Steel Dynamics beats Q3 estimates, shares rise

EditorRachael Rajan
Published 10/17/2024, 04:40 AM
© Reuters.
STLD
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FORT WAYNE, Ind. - Steel Dynamics Inc. (NASDAQ:STLD) reported better-than-expected third quarter results, sending shares up 1.65% in after-hours trading on Wednesday.

The steel producer posted adjusted earnings of $2.05 per share, surpassing analyst estimates of $1.97 per share. Revenue came in at $4.3 billion, topping expectations of $4.18 billion.

Net income for the quarter was $318 million, down from $577 million in the same period last year. The company attributed the year-over-year decline to lower average realized steel pricing, primarily in its flat rolled operations.

"The teams achieved a solid third quarter 2024 performance across the platforms, with adjusted EBITDA of $557 million and cash flow from operations of $760 million," said Mark D. Millett, Co-Founder, Chairman, and Chief Executive Officer.

Steel shipments totaled 3.2 million tons in Q3, while the average external product selling price for steel operations decreased $79 sequentially to $1,059 per ton.

Looking ahead, Millett expressed optimism about 2025 market dynamics, citing expectations for steel pricing recovery amid anticipated lower interest rates and continuing onshoring of manufacturing businesses.

The company repurchased $310 million of its common stock during the quarter, representing 1.6% of outstanding shares. Steel Dynamics maintained a strong liquidity position of $3.1 billion as of September 30.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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