US-based steel producer Steel Dynamics, Inc. (SDI) has announced its financial results for the fourth quarter and the whole year of 2024. The company reported fourth quarter 2024 net sales of $3.9 billion and net income of $207 million. Comparatively, the company’s sequential third quarter 2024 net income was $318 million, and the prior year fourth quarter net income was $424 million.
The company’s steel fabrication operations achieved strong operating income of $142 million in the fourth quarter 2024, below sequential third quarter results, based on seasonally lower shipments and slight metal spread compression, as realized selling values declined modestly. Seasonal order inquiry in the fourth quarter was constructive, and the steel fabrication order backlog extends deep into the first half of 2025 at attractive pricing levels. The company believes that the continued onshoring of manufacturing, coupled with the robust US infrastructure and Inflation Reduction Act programs will drive industrial construction activity, and provide an environment for strong steel joist and deck demand, as well as flat rolled and long product steel demand.
As for full-year, SDI reported a net income of $1.5 billion with net sales of $17.5 billion, compared to a net income of $2.5 billion with net sales of $18.8 billion for 2023. SDI said lower earnings were driven by lower shipments and metal spread contraction within the company’s steel and steel fabrication operations, as lower realized product pricing outpaced lower primary raw material costs.
Looking ahead in 2025, Mark D. Mellett, SDI’s chairman and CEO, said, “We believe the market dynamics are in place to support increased demand across our operating platforms in 2025. Steel pricing has stabilized, and customer optimism continues to be solid across our steel operations, as demand continues to be steady. In addition, we believe demand for lower-carbon emission, US produced steel products will also support future domestic steel pricing. The continued onshoring of manufacturing businesses, combined with the expectation of significant fixed asset investment to be derived from public funding related to the US Infrastructure, Inflation Reduction Act, and Department of Energy programs, will competitively position the domestic steel industry. We believe current trade actions could also reduce volumes of unfairly traded steel imports into the US, especially for coated flat rolled steel, which could have a significant positive impact for us, as we are the largest non-automotive flat rolled steel coater in the US. We believe these broader dynamics will benefit all of our operating platforms, especially our steel and steel fabrication businesses.”
Millett added, “Our four new value-added flat rolled steel coating lines that began operating in the first half of 2024 continue to increase volume. The teams produced prime quality galvanized and painted products on all four lines in record time. We have had limited benefit from these new lines as production ramped but expect to realize the full run-rate earnings potential in 2025. Value-added product investments such as these enhance our differentiated supply-chain capabilities, while also increasing our higher-margin product offerings, which already represent over 65 percent of our steel revenues.”