Steel Dynamics, Inc. (NASDAQ/GS: STLD) has provided its third quarter 2024 earnings guidance, with an expected range of $1.94 to $1.98 per diluted share. This represents a significant decrease from the company's sequential second quarter 2024 earnings of $2.72 per diluted share and a substantial drop from the prior year third quarter earnings of $3.47 per diluted share.
The company expects third quarter 2024 profitability from its steel operations to be notably lower than the sequential second quarter results. This is primarily due to lower average realized pricing within the flat rolled operations, which are contractually based and tied to lagging pricing indices. However, flat rolled steel prices stabilized in the third quarter and have since improved, while underlying steel demand remains steady.
Earnings from the company's metals recycling operations in the third quarter of 2024 are anticipated to be comparable to the sequential second quarter results, with steady volumes offsetting marginally lower realized pricing.
Steel fabrication operations are expected to experience moderately lower earnings in the third quarter of 2024 compared to the sequential second quarter results, driven by an anticipated slight decline in average realized pricing. However, the company notes that the order backlog remains steady, extending into the first quarter of 2025 at attractive pricing levels, and current order activity is steady with expectations for improved volumes in 2025.
Despite the anticipated decrease in earnings, the company remains confident in its outlook and cash flow generation. Notably, Steel Dynamics repurchased $307 million, or two percent, of its common stock during the third quarter through September 11, 2024.
Steel Dynamics 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 results.
Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in North America, with facilities located throughout the United States and in Mexico. The company produces a wide range of steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections, and steel joists and deck. Additionally, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap. Following these announcements, the company's shares moved 2.9%, and are now trading at a price of $114.22. For more information, read the company's full 8-K submission here.
