Fri, Feb 28, 1:09 PM (58 days ago)
Steel Dynamics, Inc. (STLD) reported a challenging fiscal year ended December 31, 2024, with consolidated net sales declining 7% to $17,540 million, driven by a decrease in average selling prices amid stable steel demand. Operating income fell 38% to $1,943 million, while net income attributable to the company decreased 37% to $1,537 million, resulting in diluted earnings per share of $9.84. The steel operations segment accounted for 69% of net sales, with shipments of 12.7 million tons, slightly lower than the previous year. The company continues to invest in its aluminum operations, with a new mill expected to commence in mid-2025, aiming to diversify its product offerings. Despite a solid non-residential construction market benefiting the steel fabrication segment, average selling prices dropped 31%, leading to a significant operating income decline of 58%. Risks include global steel overcapacity, fluctuating scrap prices, and competition from alternative materials. The company maintained a strong liquidity position of $2.17 billion and increased its quarterly dividend by 8%. As of December 31, 2024, total debt stood at $3.23 billion, with a debt-to-capitalization ratio of 26.5%. The outlook remains cautious amid economic uncertainties and ongoing market pressures.