Overview of Q4 2024 performance and year-to-date trends:
- Revenue: $1,996,149,000; YoY change: -9.6%; QoQ change: -3.96%.
- Gross Profit: $323,062,000; Gross Margin: 16.18%; YoY change: -24.0%; QoQ change: -5.09%.
- Operating Income: $155,932,000; Operating Margin: 7.81%; YoY change: -35.95%; QoQ change: -9.56%.
- Net Income: $103,931,000; Net Margin: 5.21%; YoY change: -43.57%; QoQ change: -12.98%.
- EPS (Diluted): $0.90; YoY EPS change: -42.41%; QoQ change: -11.65%.
- Core EBITDA: $227.1 million; Core EBITDA Margin: 11.4%; YoY decline: -31%; Q/Q decline driven by lower margins over scrap and weaker metal margins in NA steel.
- Segment performance: North American Steel Group adjusted EBITDA $210.9 million; margin 13.5% (vs. 14.7% in 3Q24); Europe Steel Group adjusted EBITDA loss of $3.6 million (improved from a $4.2 million loss in 3Q24); Emerging Businesses Group adjusted EBITDA $42.5 million (up 11.2% sequentially; margin improved 140 bps).
- Backlog and demand: volumes were stable YoY/ QoQ on a shipping-days-adjusted basis; backlog value moderated due to lower rebar pricing.
- Capital structure and liquidity: Cash and cash equivalents $857.9 million; total liquidity ~$1.7 billion; net debt to EBITDA 0.3x; net debt to capitalization 6%; tax rate 22.3% for Q4 and 23.6% for the full year.
- Capital allocation and guidance: 2025 projected capex $630–$680 million (majority for Steel West Virginia; sustaining capex ~ $250 million); roughly $200 million of West Virginia spend deferred from 2024; anticipated commissioning in late calendar 2025; 2024 shareholder returns: ~$261.8 million (dividends + buybacks); ~$403.8 million remaining buyback authorization.
- Outlook and strategic plan: management reiterated a multi-year strategic program called Transform, Advance and Grow (TAG) targeting sustained margin uplift, enhanced capital efficiency, and growth through organic and selective inorganic opportunities. Near-term guidance anticipates a softer first quarter 2025 with a rebound in the second half as construction fundamentals reaccelerate, aided by a CO2 credit in Europe expected to contribute $35–$40 million in Q1 2025.