Steel Dynamics Provides Q2 2024 Earnings Forecast

FORT WAYNE, Indiana., June 17, 2024 /PRNewswire/ — Steel Dynamics, Inc. (NASDAQ/GS: STLD) today provided range-based second-quarter 2024 earnings guidance $2.64 Down $2.68 on a diluted share. For comparison, the company’s next earnings for the first quarter of 2024 were $3.67 per diluted share, and the profit for the second quarter last year amounted to $4.81 on a diluted share.

The profitability of the company’s steel business in the second quarter of 2024 is expected to be significantly lower than the subsequent first quarter performance, based on lower realized prices offsetting steady supplies. The underlying domestic demand for steel remains unchanged, although fluctuations in steel purchases result from weakening scrap prices. The automotive, non-residential construction, energy and industrial sectors continue to lead in demand.

The company’s second-quarter 2024 metal recycling business earnings are expected to be higher than subsequent first-quarter results, based on higher volumes of both ferrous and non-ferrous materials.

The company’s steelmaking business earnings in the second quarter of 2024 are expected to be in line with subsequent quarterly results in the first quarter, based on increased deliveries offsetting gradually lower realized prices. The non-residential construction sector remains robust, further evidenced by joist and steel deck order volumes extending into the fourth quarter of 2024 amid historically high product prices. In addition, continued production onshoring combined with solidity US infrastructure program and industrial investment will support strong demand in the coming years.

Based on continued confidence in the company’s earnings prospects and cash flow generation, the company completed the repurchase $247 millionor 1.1 percent of common stock in the second quarter ending June 10, 2024.

The company plans to release second quarter 2024 results after the close of markets on Wednesday, July 17, 2024, and will host a conference call the following day at 11:00 a.m. EST to discuss the company’s results.

About Steel Dynamics, Inc.
Steel Dynamics is one of the nation’s largest steel producers and metal recyclers in North Americabased on estimated annual steel production and metal recycling capacity, with facilities located throughout the site United Statesand Mexico. Steel Dynamics produces steel products including hot-rolled, cold-rolled and coated steel sheets, structural steel beams and sections, rails, specialty bar grade structural steel, cold finished steel, commercial bar products, specialty steel sections, and ceiling beams and steel deck. Additionally, the company produces liquid pig iron and processes and sells ferrous and non-ferrous scrap.

Forward-looking statements
This report contains certain forward-looking statements regarding future events, including statements regarding conditions in the domestic or global economy, conditions in the steel, aluminum and recycled metals markets, Steel Dynamics’ revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we typically precede or accompany with typical conditional words such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project” or “expect” or the words “may” , “will” or “should” are intended to be phrased as “forward-looking”, subject to a number of risks and uncertainties, under the safe harbor protections under the Private Securities Litigation Reform Act of 1995. Statements relate only to the state as of that date and are based on information and assumptions that we believe to be reasonable as of that date regarding our business and the environment in which it operates. Such predictions are not guarantees of future performance and we undertake no obligation to update or revise such statements. Some factors that could cause such forward-looking statements to prove different than anticipated include: (1) domestic and global economic factors; (2) global steel overcapacity and steel imports coupled with rising scrap prices; (3) pandemics, epidemics, common diseases or other health problems; (4) the cyclical nature of the steel industry and the industries we serve; (5) volatility and wide fluctuations in prices and availability of scrap, scrap substitutes and supplies and our potential inability to pass on higher costs to our customers; (6) the cost and availability of electricity, natural gas, crude 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 and changes in environmental and remediation requirements; (9) significant price and other competition from other steel and aluminum producers, scrap processors and alternative materials processors; (10) the availability of an adequate source of scrap supply for our metals recycling operations; (11) cybersecurity risks and threats to our sensitive data and information technology; (12) implementing our development strategy; (13) litigation and legal compliance; (14) unexpected equipment downtime or shutdown; (15) government agencies may refuse to grant or renew certain 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 impact of impairment losses.

In particular, we refer you to our more detailed explanation of these and other factors and risks that could cause such forecasts to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward Contracts – Viewing Statements and risk factors in our quarterly reports on Form 10-Q or in other reports we file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission’s website at www.sec.gov and on our website at www.steeldynamics.com under the “Investors – SEC Filings” tab.

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SOURCE Steel Dynamics, Inc.