Steel Dynamics, Inc. (NASDAQ/GS: STLD) has released its second quarter 2024 financial results, reporting steel shipments of 3.2 million tons and net sales of $4.6 billion. The company achieved operating income of $559 million and net income of $428 million, or $2.72 per diluted share. However, compared to the sequential first quarter of 2024, net income saw a decline from $584 million, or $3.67 per diluted share.
The company's cash flow from operations for the quarter was $383 million, and it maintained strong liquidity of $2.7 billion as of June 30, 2024. Notably, Steel Dynamics repurchased $309 million of its common stock, representing 1.5 percent of its outstanding shares.
The performance of the company's different operations varied in the second quarter. Operating income for the steel operations was $442 million, a decrease from the sequential results, primarily due to lower realized selling values offsetting improved earnings from metals recycling and steady earnings from steel fabrication.
In comparison to the sequential first quarter, the second quarter 2024 operating income from the company’s metals recycling operations increased by 42 percent to $32 million, driven by increased demand supporting higher volume and expanded metal spread. Similarly, the steel fabrication operations achieved strong operating income of $181 million in the second quarter 2024, aligned with sequential first quarter results.
For the six months ended June 30, 2024, Steel Dynamics reported net income of $1.0 billion, or $6.39 per diluted share, with net sales of $9.3 billion. This marks a decline from the same period in 2023, where net income was $1.4 billion, or $8.49 per diluted share, with net sales of $10.0 billion. The company's first half 2024 net sales decreased by six percent to $9.3 billion, and operating income declined by 31 percent to $1.3 billion compared to the same period in 2023.
Despite the challenges, the company achieved cash flow from operations of $738 million in the first half of 2024, invested $793 million in capital investments, paid cash dividends of $141 million, and repurchased $607 million of its outstanding common stock, representing three percent of its outstanding shares, while maintaining strong liquidity of $2.7 billion.
Looking ahead, Steel Dynamics remains confident about market conditions for domestic steel consumption in the second half of 2024. The company expects steel pricing to firm and anticipates steady demand from sectors such as automotive, non-residential construction, and industrial segments. Additionally, the company is progressing on its aluminum flat rolled products mill construction, aiming to begin operating the mill in mid-2025.
Steel Dynamics is optimistic about the future, emphasizing its commitment to the health and safety of its teams, families, and communities, while focusing on meeting the current and future needs of its customers. The company's culture and business model continue to positively differentiate its performance within the industry. Today the company's shares have moved -0.9% to a price of $128.89. For the full picture, make sure to review Steel Dynamics's 8-K report.
