Steel Dynamics, Inc. (STLD) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 20, 2023 11:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day and welcome to the Steel Dynamics Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised this call is being recorded today, July 20, 2023 and your participation implies consent to our recording this call. If you do not agree to these terms, please disconnect. At this time, I would like to turn the conference over to David Lipschitz, Director, Investor Relations. Please go ahead.

David Lipschitz

Thank you, Holly. Good morning and welcome to Steel Dynamics second quarter 2023 earnings conference call. As a reminder, today’s call is being recorded and will be available on our website for replay later today.

Leading today’s call are Mark Millett, Chairman and Chief Executive Officer of Steel Dynamics; Theresa Wagler, Executive Vice President and Chief Financial Officer; and Barry Schneider, President and Chief Operating Officer. Other members of our senior leadership team are joining us on the call individually.

Some of today’s statements, which speak only as of this date maybe forward-looking and predictive, specifically preceded by believe, expect, anticipate or words of similar meaning. They are intended to be protected by the Private Securities Litigation Reform Act of 1995 should actual results turn out differently. Such statements involve risks and uncertainties related to integrating or starting out new assets in the aluminum industry, the use of estimates and assumptions in connection with anticipated project returns and our steel metal recycling and fabrication businesses as well as to general business and economic conditions. Examples of these are described in the related press release as well as in our annual filed SEC Form 10-K under the heading Forward-Looking Statements and Risk Factors and on the Internet at www.sec.gov, and if applicable, in any later SEC Form 10-Q. You also find any referenced non-GAAP financial measures reconciled to the most directly comparable GAAP measures in the press release issued yesterday entitled Steel Dynamics Reports Second Quarter 2023 Results.

And now, I am pleased to turn the call over to Mark.

Mark Millett

Thank you, David and good morning everybody. Thank you for being with us on our second quarter earnings call. Once again, our teams achieved a solid financial and operational quarter. Highlights included continued safety improvement, 81% of our facilities were incident free through the quarter, our cash from operations of $808 million and EBITDA generation of $1.2 billion. We also received improved investment-grade credit ratings, providing further third-party confirmation of the strength of our business model.