Steel Dynamics (STLD) Issues Q2 Guidance

Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided third quarter 2024 earnings guidance in the range of $1.94 to $1.98 per diluted share. Comparatively, the company's sequential second quarter 2024 earnings were $2.72 per diluted share, and prior year third quarter earnings were $3.47 per diluted share.

Third quarter 2024 profitability from the company's steel operations is expected to be meaningfully lower than sequential second quarter results, based on lower average realized pricing within the flat rolled operations as generally 80 percent of this business is contractually based and tied to lagging pricing indices. Flat rolled steel prices stabilized in the third quarter 2024 and have improved. Underlying steel demand remains steady.

Third quarter 2024 earnings from the company's metals recycling operations are expected to be comparable to second quarter sequential results, based on steady volumes offsetting marginally lower realized pricing.

Third quarter 2024 earnings from the company's steel fabrication operations are expected to be moderately lower than sequential second quarter results, based on an anticipated slight decline in average realized pricing. The order backlog is steady, extending into the first quarter 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 U.S. infrastructure program and onshoring are expected to positively impact demand for not only steel joist and deck products, but also for flat rolled and long product steels.

Based on continued confidence in the company's earnings outlook and cash flow generation, the company repurchased $307 million, or two percent, of its common stock during the third quarter through September 11, 2024.

The company plans to release its third quarter 2024 earnings after the markets close on Wednesday, October 16, 2024, and will hold a conference call the following day at 11:00 a.m. Eastern Daylight Time to review the company's results.

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