Steel Dynamics, Inc. STLD logged fourth-quarter 2024 earnings of $1.36 per share, down from $2.61 in the year-ago quarter. It topped the Zacks Consensus Estimate of $1.29.

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Net sales in the fourth quarter were down around 8.5% year over year to $3,872.1 million. It missed the Zacks Consensus Estimate of $3,956.4 million.

STLD’s Segment Highlights

Net sales for steel operations were $2,645.9 million in the reported quarter, down 9.2% year over year. STLD registered total steel shipments of roughly 3.02 million tons in the quarter, down from 3.06 million tons a year ago. This compares to our estimate of 3.1 million tons. STLD's steel operations reported an average external product selling price of $1,011 per ton, down from $1,090 per ton in the year-ago quarter. It surpassed our estimate of $977 per ton.

Net sales of Metal’s recycling operations were $482 million in the quarter under review, reflecting an increase of around 9.7% from the year-ago quarter. STLD registered ferrous shipments of around 1.42 million gross tons in the quarter, up from 1.36 million tons a year ago. The figure missed our estimate of 1.44 million gross tons.

The company's steel fabrication operations raked in sales of around $396.2 million, down 23.8% year over year. Steel Dynamics registered steel fabrication shipments of 145,901 tons in the quarter, down from 150,002 tons a year ago. The figure is below our estimate of 149,782 tons.

STLD’s FY24 Results

Net sales for 2024 were $17.5 billion, down from $18.8 billion for the same period in 2023. Earnings for the full year were $9.84 per share, also declining from $14.64 per share in 2023. 

Steel Dynamics’ Financial Position

In 2024, the company generated a robust cash flow from operations of $1.8 billion. STLD also spent $1.9 billion on organic growth projects, paid $283 million in cash dividends and repurchased $1.2 billion of its outstanding common stock, accounting for 6% of total outstanding shares, all while preserving excellent liquidity of $2.2 billion as of Dec. 31, 2024.

STLD’s Outlook

Steel Dynamics believes that the market conditions are in place to support rising demand across its operational platforms in 2025. Steel pricing has stabilized, and customer optimism is strong across its steel operations as demand remains stable. Furthermore, the company believes that demand for steel products manufactured in the United States with reduced carbon emissions will support future domestic steel prices. The continued onshoring of manufacturing businesses, combined with the expectation of significant fixed asset investment from public funding related to the United States Infrastructure, Inflation Reduction Act and Department of Energy programs, will help the domestic steel industry compete. 

Price Performance

Shares of Steel Dynamics have gained 5.5% over the past year against a 23% decline of its industry.

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STLD’s Zacks Rank & Key Picks

STLD currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth a look in the basic materials space include Carpenter Technology Corporation CRS, Hecla Mining Company HL and Ingevity Corporation NGVT.

CRS is slated to report fiscal second-quarter results on Jan. 30. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $1.58. CRS beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 14.1%. CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hecla Mining is expected to report fourth-quarter results on Feb. 2. The Zacks Consensus Estimate for HL’s fourth-quarter earnings is pegged at 4 cents. HL beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 50%. HL currently carries a Zacks Rank #1.

Ingevity is slated to report fourth-quarter results on Feb. 18, after market close. The consensus estimate for Ingevity’s fourth-quarter earnings is pegged at 12 cents. NGVT, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 95.4%. 

 

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