Earnings
Steel Dynamics ships record tonnage as Cleveland-Cliffs raises its sights for 2027
Higher steel prices drove sharp profit gains at both US producers in the third quarter.
HedgeWeekly News Desk ·
Steel Dynamics reported third-quarter net income of $756 million, or $5.26 a diluted share, after Monday's close, up from $534 million in the second quarter and $404 million a year earlier. Net sales reached $6.5 billion and steel shipments hit a record 3.8 million tons. Per-share earnings landed slightly below the $5.34 to $5.38 range the company had guided to in September.
The steel segment's operating income rose about 43% from the prior quarter to $1.03 billion as the average external selling price climbed $102 to $1,400 a ton while scrap costs edged lower. The company repurchased $276 million of stock in the quarter, and its aluminum business reached break-even on an EBITDA basis.
Cleveland-Cliffs posted net income of $165 million, or 26 cents a share, on revenue of $5.6 billion, after a $134 million loss in the second quarter. Adjusted EBITDA of $612 million beat the $575 million target the company set in July, helped by an average selling price of $1,177 a ton, up from $1,124.
Cliffs guided to fourth-quarter adjusted EBITDA of about $715 million and said it expects 2027 adjusted EBITDA above $4 billion, up from the roughly $3.3 billion it outlined in July. Long-term debt stood at $7.65 billion at the end of September, with liquidity of $3.2 billion.