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 at 12.7 million tons.

• Fourth quarter 2024 net income was $207 million on $3.9 billion revenue, with adjusted EBITDA of $372 million, reflecting sequential and year-over-year declines.

• Repurchased $1.2 billion in shares in 2024 (6% of outstanding shares); $194 million remains authorized.

• Maintained record-low injury and lost time rates, with safety performance below industry averages.

• After-tax return on invested capital averaged 23% over the past three years.

Financial highlights

• Adjusted EBITDA for 2024 was $2.5 billion; annual EPS was $9.84, down from $14.64 in 2023.

• Operating income for 2024 was $1.9 billion; Q4 operating income was $238 million, down sequentially due to lower steel pricing and seasonal volume.

• Free cash flow for 2024 was $626 million; adjusted free cash flow $1.86 billion.

• Sinton Texas Flat Roll Steel Division incurred $182 million in operating losses for 2024, improved from $241 million in 2023.

• Dividend per share increased to $1.84 for 2024.

Outlook and guidance

• Expect higher volumes in Q1 2025 and increased consumption across platforms, supported by public funding, reduced imports, and robust construction activity.

• Aluminum operations expected to be EBITDA positive in the second half of 2025, with commercial shipments before mid-year 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.

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

• Expectation of declining unfairly traded steel imports in 2025, with stabilized prices and strong order activity.