Steel Dynamics Provides Fourth Quarter 2024 Earnings Guidance
Steel Dynamics (STLD) has provided Q4 2024 earnings guidance of $1.26 to $1.30 per diluted share, significantly lower than Q3 2024's $2.05 and Q4 2023's $2.61. The decline is attributed to lower steel operations profitability due to reduced pricing, seasonal lower shipments, and an unplanned outage at Butler Flat Roll Division reducing volume by 50,000 tons.
While flat rolled steel prices have stabilized with steady seasonal demand, metals recycling operations are expected to outperform Q3. Steel fabrication operations anticipate lower earnings due to seasonal shipment decline and a <5% drop in pricing. The company has repurchased $250 million of common stock in Q4 through December 10, 2024, representing over 1% of shares.
Steel Dynamics (STLD) ha fornito una guida sugli utili per il quarto trimestre 2024 di $1,26 a $1,30 per azione diluita, significativamente inferiore ai $2,05 del terzo trimestre 2024 e ai $2,61 del quarto trimestre 2023. Il calo è attribuito a una diminuzione della redditività delle operazioni in acciaio a causa di una riduzione dei prezzi, spedizioni stagionali più basse e un'interruzione imprevista nel Butler Flat Roll Division che ha ridotto il volume di 50.000 tonnellate.
Sebbene i prezzi dell'acciaio laminato a freddo si siano stabilizzati con una domanda stagionale costante, le operazioni di riciclo dei metalli si prevede che supereranno il terzo trimestre. Le operazioni di fabbricazione dell'acciaio anticipano utili inferiori a causa della diminuzione stagionale delle spedizioni e di un calo dei prezzi inferiore al 5%. L'azienda ha riacquistato $250 milioni di azioni ordinarie nel quarto trimestre fino al 10 dicembre 2024, rappresentando oltre l'1% delle azioni.
Steel Dynamics (STLD) ha proporcionado una guía de ganancias para el cuarto trimestre de 2024 de $1.26 a $1.30 por acción diluida, significativamente inferior a los $2.05 del tercer trimestre de 2024 y los $2.61 del cuarto trimestre de 2023. La disminución se atribuye a una menor rentabilidad de las operaciones de acero debido a la reducción de precios, un menor volumen de envíos por temporada y una interrupción no planificada en la División Butler Flat Roll que redujo el volumen en 50,000 toneladas.
Aunque los precios del acero laminado a caliente se han estabilizado con una demanda estacional constante, se espera que las operaciones de reciclaje de metales superen al tercer trimestre. Las operaciones de fabricación de acero anticipan menores ganancias debido a una disminución estacional en los envíos y una caída de precios de menos del 5%. La compañía ha recomprado $250 millones de acciones comunes en el cuarto trimestre hasta el 10 de diciembre de 2024, representando más del 1% de las acciones.
Steel Dynamics (STLD)는 2024년 4분기 희망 수익 전망을 $1.26에서 $1.30으로 제시하며, 이는 2024년 3분기의 $2.05와 2023년 4분기의 $2.61보다 크게 낮은 수치입니다. 이 감소는 가격 하락, 계절적인 출하 감소, 그리고 Butler Flat Roll Division에서의 계획되지 않은 고장으로 인해 50,000톤의 물량이 줄어든 것에 기인합니다.
평면철강 가격은 계절적인 수요로 안정세를 보이고 있으나, 금속 재활용 운영은 3분기를 초과하는 실적을 낼 것으로 예상됩니다. 강철 가공 작업은 계절적 출하 감소와 5% 미만의 가격 하락으로 인해 이익이 낮아질 것으로 예상됩니다. 회사는 2024년 12월 10일까지의 4분기 동안 $250백만의 보통주를 재매입했으며, 이는 전체 주식의 1% 이상을 차지합니다.
Steel Dynamics (STLD) a fourni des prévisions de bénéfices pour le quatrième trimestre 2024 de 1,26 à 1,30 $ par action diluée, ce qui est considérablement inférieur aux 2,05 $ du troisième trimestre 2024 et aux 2,61 $ du quatrième trimestre 2023. La baisse est attribuée à une rentabilité réduite des opérations sidérurgiques en raison de la baisse des prix, d'expéditions saisonnières plus faibles et d'une panne imprévue au sein de la division Butler Flat Roll, ce qui a réduit le volume de 50 000 tonnes.
Bien que les prix de l'acier laminé aient été stabilisés par une demande saisonnière constante, les opérations de recyclage des métaux devraient dépasser celles du troisième trimestre. Les opérations de fabrication d'acier prévoient des bénéfices inférieurs à cause de la baisse saisonnière des expéditions et d'une baisse des prix inférieure à 5 %. L'entreprise a racheté 250 millions $ d'actions ordinaires au quatrième trimestre jusqu'au 10 décembre 2024, représentant plus de 1 % des actions.
Steel Dynamics (STLD) hat für das vierte Quartal 2024 eine Gewinnprognose von 1,26 bis 1,30 $ je verwässerter Aktie abgegeben, was deutlich niedriger ist als die 2,05 $ im dritten Quartal 2024 und die 2,61 $ im vierten Quartal 2023. Der Rückgang wird auf die verringerte Rentabilität der Stahlproduktion aufgrund sinkender Preise, saisonal geringeren Versandmengen und einen ungeplanten Ausfall in der Butler Flat Roll Division zurückgeführt, wodurch das Volumen um 50.000 Tonnen reduziert wurde.
Obwohl die Preise für warmgewalzte Stahlprodukte sich mit stabiler saisonaler Nachfrage stabilisiert haben, wird bei den Metallrecycling-Operationen ein besseres Ergebnis als im dritten Quartal erwartet. Die Stahlbearbeitungsoperations erwarten niedrigere Gewinne aufgrund des saisonalen Rückgangs der Lieferungen und einem Preisrückgang von unter 5%. Das Unternehmen hat bis zum 10. Dezember 2024 im vierten Quartal 250 Millionen $ an Stammaktien zurückgekauft, was mehr als 1 % der Aktien entspricht.
- Strong metals recycling operations performance expected in Q4
- Steady order backlog extending into H1 2025
- $250 million share repurchase program executed in Q4
- Stable customer order activity and positive 2025 business outlook
- Q4 earnings guidance of $1.26-$1.30 represents 51% YoY decline
- Unplanned outage at Butler Division reducing volume by 50,000 tons
- Lower steel operations profitability expected in Q4
- Decline in steel fabrication pricing and seasonal shipment reduction
Insights
The Q4 earnings guidance of
The steel market dynamics present a mixed picture. While current pricing pressures and seasonal factors are impacting Q4 performance, underlying demand fundamentals remain solid across key consuming sectors. The positive customer outlook for 2025, coupled with expected catalysts from declining interest rates and infrastructure spending, suggests a potential market improvement. The stable order backlog in fabrication operations indicates sustained demand despite current headwinds. The anticipated benefits from onshoring trends could provide additional support for both flat-rolled and long product segments. These forward-looking indicators, combined with management's confidence as evidenced by the share repurchase program, suggest the current weakness may be temporary rather than structural.
Fourth quarter 2024 profitability from the company's steel operations is expected to be meaningfully lower than sequential third quarter results, based on lower average realized pricing, seasonally lower shipments, and an unplanned outage at the Company's Butler Flat Roll Division further reducing volume by an estimated 50,000 tons. Flat rolled steel prices have stabilized, and underlying steel demand remains seasonally steady for the primary steel consuming sectors, as evidenced through solid customer order activity. Customers have been positive concerning the business outlook for 2025.
Fourth quarter 2024 earnings from the company's metals recycling operations are expected to be significantly more than sequential third quarter results, based on steady ferrous volume and flat average realized pricing.
Fourth quarter 2024 earnings from the company's steel fabrication operations are expected to be lower than sequential third quarter results, based on seasonally lower shipments and less than a five percent decline in average realized pricing. The order backlog is steady, extending deep into the first half 2025 at attractive pricing levels. Current order activity is steady with expectations for improved volumes in 2025, as interest rates decline and the support from the
Based on continued confidence in the company's earnings outlook and cash flow generation, the company repurchased
The company plans to release its fourth quarter 2024 earnings after the markets close on Wednesday, January 22, 2025, and will hold a conference call the following day at 11:00 a.m. Eastern Standard Time to review the company's results.
About Steel Dynamics, Inc.
Steel Dynamics is one of the largest domestic steel producers and metals recyclers in
Forward-Looking Statements
This report contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, and recycled metals market places, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel, together with increased scrap prices; (3) pandemics, epidemics, widespread illness or other health issues; (4) the cyclical nature of the steel industry and the industries we serve; (5) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes and supplies, and our potential inability to pass higher costs on to our customers; (6) cost and availability of electricity, natural gas, oil, and other energy resources are subject to volatile market conditions; (7) increased environmental, greenhouse gas emissions and sustainability considerations from our customers or related regulations; (8) compliance with and changes in environmental and remediation requirements; (9) significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials; (10) availability of an adequate source of supply of scrap for our metals recycling operations; (11) cybersecurity threats and risks to the security of our sensitive data and information technology; (12) the implementation of our growth strategy; (13) litigation and legal compliance; (14) unexpected equipment downtime or shutdowns; (15) governmental agencies may refuse to grant or renew some of our licenses and permits; (16) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (17) the impacts of impairment charges.
More specifically, we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our Quarterly Reports on Form 10-Q, or in other reports which we file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under "Investors – SEC Filings."
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SOURCE Steel Dynamics, Inc.
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