Steel Dynamics Stock Jumps On Q3 Earnings: Highlights From The Report

Steel Dynamics Inc STLD shares are trading higher in Wednesday’s after-hours session on the heels of the company’s third-quarter financial results. Here’s a rundown of the print.

• Q3 Revenue: $4.34 billion, versus estimates of $4.177 billion

• Q3 EPS: $2.05, versus estimates of $1.97

Steel Dynamics said it shipped 3.2 million tons of steel during the third quarter and generated cash flow from operations of $760 million. The company ended the quarter with $3.1 billion in liquidity.

“Underlying steel demand continued to be stable in the third quarter. However, earnings declined sequentially, based on lower average realized steel pricing, primarily within the flat rolled operations as generally 80 percent of this business is contractually based and tied to lagging pricing indices,” said Mark Millett, co-founder, chairman and CEO of Steel Dynamics.

“Steady steel demand, coupled with continued low customer inventory and stabilized scrap prices, resulted in stabilization and improvement in flat-rolled steel prices during the later part of the third quarter. Our long product steel operations realized a slight improvement in metal spread as scrap pricing declined more than average realized pricing.”  

See Also: Discover Reports Better-Than-Expected Q3 Results, Higher Delinquency Rates YOY: Details

What’s Next: Steel Dynamics said it’s “constructive” regarding the outlook for the 2025 metals market. The company expects steel prices to recover into 2025.

“We believe current trade actions could also reduce volumes of unfairly traded steel imports into the United States, especially for coated flat-rolled steel, which could have a significant positive impact for us,” the company said.

Steel Dynamics noted it expects to realize additional earnings power in 2025 from the four new flat-rolled steel coating lines that began operating earlier this year. The company also plans to start operating its new aluminum flat-rolled mill in mid-2025.

Management will hold a conference call to discuss these results with investors and analysts Thursday morning at 11 a.m. ET.

STLD Price Action: Steel Dynamics shares were up 2.43% in after-hours, trading at $133.02 at the time of publication, according to Benzinga Pro.

Photo: BildWerk from Shutterstock.