Steel Dynamics Posts $403M Q1 Profit on $5.2B Sales and Record 3.6M Ton Shipments
Steel Dynamics posted Q1 net income of $403 million ($2.78/share) on net sales of $5.2 billion, with record steel shipments of 3.6 million tons and operating income of $538 million. The company raised its quarterly dividend by 6%, repurchased $115 million of shares and generated $148 million in cash flow despite a $120 million profit-sharing distribution.
1. Q1 Financial Results
Steel Dynamics reported net sales of $5.2 billion and net income of $403 million, or $2.78 per diluted share, in the first quarter. Operating income reached $538 million and adjusted EBITDA was $700 million, reflecting a 73% sequential increase in operating income.
2. Operational Highlights
The company achieved record steel shipments of 3.6 million tons and saw a sequential $86 per ton increase in average external selling price to $1,193. Customer orders rebounded across energy, non-residential construction, automotive and industrial sectors, with fabrication backlog rising over 38% year-over-year.
3. Capital Allocation
Cash flow from operations amounted to $148 million after a $120 million companywide profit-sharing distribution, while liquidity remained at $2.0 billion. The board approved a 6% increase in the quarterly dividend and repurchased $115 million of common stock.
4. Aluminum Platform Ramp-Up
Aluminum flat rolled sheet operations incurred a $65 million operating loss due to normal startup issues, with shipments increasing to 22,500 metric tons. The Columbus, Mississippi mill produced qualified industrial, beverage and automotive products and is expected to contribute positively to Q2 earnings.