Steel Dynamics (STLD) Q4 2024 earnings summary

Executive summary

• Achieved $17.5B revenue and $1.5B net income for 2024, with $1.8B cash flow from operations, $2.5B adjusted EBITDA, and the second-highest annual steel shipments of 12.7 million tons.

• Fourth quarter 2024 net sales were $3.9B and net income was $207M, both down sequentially and year-over-year.

• Repurchased $1.2B in common stock during 2024, representing 6% of outstanding shares.

• Maintained strong safety performance, with recordable injury rates below industry averages and 60% of locations reporting zero recordable injuries.

• Advanced new steel coating lines and the Aluminum Dynamics project, with first ingot cast and commercial shipments targeted for mid-2025.

Financial highlights

• Full year 2024: Operating income of $1.9B, net income of $1.5B ($9.84 per diluted share), and adjusted EBITDA of $2.5B.

• Q4 2024: Net income of $207M ($1.36 per diluted share), adjusted EBITDA of $372M, and revenues of $3.9B.

• Cash flow from operations was $1.8B for the year, with liquidity at $2.2B at year-end.

• Annual net sales decreased 7% to $17.5B and operating income declined 38% year-over-year.

• Adjusted EPS for 2024 was $9.84, down from $14.64 in 2023.

Outlook and guidance

• Expect higher steel and fabrication volumes in Q1 2025, with increased consumption and volume across platforms for the full year, supported by public funding and reduced imports.

• Aluminum operations expected to be EBITDA positive in the second half of 2025, with commercial shipments before mid-2025 and the rolling mill at 50% run rate by year-end.

• Sinton mill expected to reach profitability in the first half of 2025 as operational reliability and product mix improve.

• Anticipate benefits from U.S. infrastructure and manufacturing onshoring trends.

• Biocarbon facility to reduce Scope 1 emissions by up to 35%, planned start Q2 2025.