Steel Dynamics sees Q4 adjusted EPS $4.10-$4.14, consensus $3.84

The company also expects to realize a benefit of approximately $17M, or 10c per diluted share, related to state and federal prior year return to provision reconciliations. Q4 profitability from the company’s steel operations is expected to be significantly lower than sequential third quarter results, based on seasonally lower shipments and metal spread compression, particularly within the flat roll operations. Believes flat roll steel prices have bottomed and expects them to increase into 2023 as underlying steel demand and corresponding order activity remain intact from the automotive, non-residential construction, industrial, and energy sectors with some weakness in the residential sector. Q4 earnings from the company’s metals recycling operations are expected to moderately improve compared to sequential third quarter results, based on increased volume more than offsetting lower average price realization. Q4 earnings from the company’s steel fabrication operations are expected to be strong and remain steady with third quarter results, expanding metal spreads more than offsetting slightly lower seasonal volumes. The non-residential construction sector remains steady as evidenced by customer order activity supporting a continuing historically strong order backlog, which the company anticipates will continue through 2023.