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    Steel Dynamics Inc (STLD)

    Board Change

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    Business Description

    Steel Dynamics, Inc. (SDI) is one of the largest and most diversified domestic steel producers and metals recyclers in the United States, with operations organized into four main segments . The company primarily engages in steel production, metals recycling, and steel fabrication, with a focus on value-added products and supply-chain solutions . SDI's product offerings include electric arc furnace (EAF) steel mills, ferrous and nonferrous metal processing, steel joists and deck products, and a developing aluminum operations segment .

    1. Steel Operations - Operates electric arc furnace (EAF) steel mills and various processing and coating operations, contributing significantly to the company's revenue .
    2. Steel Fabrication Operations - Produces steel joists and deck products, emphasizing value-added solutions for construction and industrial applications .
    3. Metals Recycling Operations - Provides ferrous and nonferrous metal processing primarily through OmniSource, supporting sustainable material sourcing .
    4. Aluminum Operations - Developing a recycled aluminum flat rolled products mill and two slab centers, with operations expected to begin in 2025 .

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Mark D. MillettCo-founder, Chairman, and Chief Executive OfficerJanuary 2012Mark D. Millett co-founded Steel Dynamics, Inc. in 1993. He has been the Chairman of the Board since May 2021 and has served as the Chief Executive Officer since January 2012. He has held various positions within the company and was instrumental in the design, construction, and start-up operation of all of the company's steel mills .
    Theresa E. WaglerExecutive Vice President, Chief Financial Officer, and Corporate SecretaryMay 2007Theresa E. Wagler has been with Steel Dynamics since 1998 and has served as Executive Vice President, Chief Financial Officer, and Corporate Secretary since May 2007. She oversees multiple functions including accounting, taxation, and strategic business development .
    Barry T. SchneiderPresident and Chief Operating OfficerMarch 2023Barry T. Schneider was appointed as President and Chief Operating Officer in March 2023. He has been with Steel Dynamics since 1994 and has held various operational and leadership roles, including Senior Vice President of the Flat Roll Steel Group .
    Miguel AlvarezSenior Vice President, Metals RecyclingMarch 2022Miguel Alvarez has been the Senior Vice President, Metals Recycling since March 2022. He is responsible for OmniSource's ferrous and nonferrous metals recycling operations. Before joining Steel Dynamics, he held leadership positions at BlueScope .
    James S. AndersonSenior Vice President, Steel FabricationMarch 2022James S. Anderson has been the Senior Vice President, Steel Fabrication since March 2022. He previously served as Vice President, Steel Fabrication and President of New Millennium Building Systems .
    Chris A. GrahamSenior Vice President, Flat Roll Steel GroupOctober 2023Christopher A. Graham was appointed as Senior Vice President, Flat Roll Steel Group in October 2023. He has held various positions within the company, including Senior Vice President, Long Products Steel Group .
    Richard A. PoinsatteSenior Vice President and TreasurerOctober 2023Richard A. Poinsatte was appointed as Senior Vice President in October 2023 and serves as Treasurer. He joined Steel Dynamics in 2000 and has been responsible for the company's treasury, risk, and legal applications since 2008 .
    Glenn A. PushisSenior Vice President, Special ProjectsFebruary 2019Glenn A. Pushis has been the Senior Vice President, Special Projects since February 2019. He is responsible for the design and construction of the company's new aluminum flat rolled products mill and has been with Steel Dynamics since 1994 .

    Questions to Ask Management

    1. Regarding the Sinton mill, you mentioned experiencing difficulties ramping back up after the outage and expect utilization to increase to around 75% for Q4 2024; can you elaborate on the specific challenges faced during ramp-up and how confident are you in achieving the projected utilization rate?

    2. You included Canada and Mexico in the galvanized trade case due to significant increases in imports; how do you justify this action given existing trade agreements, and are you concerned about potential impact on your relationships and operations in those markets?

    3. With capital investments projected to increase to $700 million to $800 million in 2025 from $500 million to $550 million in Q4 2024, can you explain how these investments will be allocated across projects and how they align with your capital allocation strategy focusing on high-return strategic growth?

    4. Given that 80% of your flat-rolled business is contractually based, do you anticipate any risks to this contractual mix with the further ramp-up of Sinton, and how might this affect your exposure to spot market volatility?

    5. On the biocarbon project expected to start in Q1 2025, since you mentioned you won't have enough product to satisfy all carbon needs at your steel mills, how do you plan to scale this project, and what impact do you expect it to have on your carbon reduction targets and potential product premiums?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateNovember 2023
    End Date/DurationNo expiration date
    Total additional amount$1.5 billion
    Remaining authorization amount$486.4 million (as of September 30, 2024)
    DetailsPurchases based on market price, investment opportunities, cash flows, and economic conditions. Can be modified, suspended, extended, or terminated at any time.

    Debt Maturity Schedule

    YearAmount Due (millions)Debt TypeInterest Rate (%)% of Total Debt
    2024400Senior Notes2.80010.8% = (400M / 3700M) * 100
    2024882Current Maturities of Long-Term DebtN/A23.8% = (882M / 3700M) * 100
    2025400Senior Notes2.40010.8% = (400M / 3700M) * 100
    2034600Senior Unsecured Notes5.37516.2% = (600M / 3700M) * 100

    Auditor

    NameStart DateEnd DateReason for Change
    Ernst & Young LLP1999 PresentCurrent auditor

    Latest news

    Recent developments and announcements about STLD.

    Financial Reporting

      Earnings Report

      ·
      Jan 23, 2025, 3:05 PM

      Steel Dynamics, Inc. has released its fourth quarter and annual 2024 financial results. The company reported fourth quarter 2024 net sales of $3.9 billion and net income of $207 million, or $1.36 per diluted share. This is a decrease from the prior year's fourth quarter net income of $424 million, or $2.61 per diluted share.

      Key Highlights:

      • Steel Operations: Fourth quarter operating income was $165 million, a 46% sequential decline due to lower steel shipments and metal spread compression. The average realized steel selling values declined, and there was an unplanned outage at the Butler Flat Roll Division.
      • Metals Recycling Operations: Operating income increased to $23 million, a $13 million increase from the previous quarter, driven by metal spread improvement and cost efficiencies.
      • Steel Fabrication Operations: Achieved strong operating income of $142 million, although below the previous quarter's results, due to seasonally lower shipments and slight metal spread compression.

      Annual 2024 Performance:

      • Net income was $1.5 billion, or $9.84 per diluted share, with net sales of $17.5 billion, compared to net income of $2.5 billion in 2023.
      • Operating income declined 38% to $1.9 billion compared to 2023, driven by lower shipments and metal spread contraction.

      Outlook for 2025:

      • The company expects positive operating income contributions beginning in the first half of 2025, with increasing contributions throughout the year.
      • Steel Dynamics anticipates a decline in unfairly traded steel imports in 2025, which, coupled with steady North American steel demand, provides a positive commercial environment.

      Significant Trends:

      • The company is optimistic about the demand for lower-carbon emission, U.S. produced steel products, which is expected to support future domestic steel pricing.
      • The continued onshoring of manufacturing and public funding related to U.S. infrastructure programs are expected to benefit the domestic steel industry.

      For more detailed financial metrics and future projections, you can access the full report and conference call details on the company's website.

    Corporate Leadership

      Board Change

      ·
      Nov 7, 2024, 12:00 AM

      James Marcuccilli resigned from the Steel Dynamics, Inc. Board of Directors on November 4, 2024. He also stepped down from his roles on the Audit Committee and Corporate Governance and Nominating Committee. His resignation was not due to any disagreement with the company .