Steel Dynamics, Inc. provided fourth quarter 2024 earnings guidance in the range of $1.26 to $1.30 per diluted share. Comparatively, the company’s sequential third quarter 2024 earnings were $2.05 per diluted share, and prior year fourth quarter earnings were $2.61 per diluted share.
Fourth quarter 2024 profitability from the company’s steel operations is expected to be meaningfully lower than sequential third quarter results, based on lower average realized pricing, seasonally lower shipments, and an unplanned outage at the company’s Butler Flat Roll Division further reducing volume by an estimated 50,000 tons. Flat rolled steel prices have stabilized, and underlying steel demand remains seasonally steady for the primary steel consuming sectors, as evidenced through solid customer order activity. Customers have been positive concerning the business outlook for 2025.
Fourth quarter 2024 earnings from the company’s metals recycling operations are expected to be significantly more than sequential third quarter results, based on steady ferrous volume and flat average realized pricing.
Fourth quarter 2024 earnings from the company’s steel fabrication operations are expected to be lower than sequential third quarter results, based on seasonally lower shipments and less than a five percent decline in average realized pricing. The order backlog is steady, extending deep into the first half 2025 at attractive pricing levels. Current order activity is steady with expectations for improved volumes in 2025, as interest rates decline and the support from the U.S. infrastructure program and onshoring are expected to positively impact demand for not only steel joist and deck products, but also for flat rolled and long product steel.
Based on continued confidence in the company’s earnings outlook and cash flow generation, the company repurchased $250 million, or just over one percent, of its common stock during the fourth quarter through December 10, 2024.
Published February 2025
