Steel Dynamics, Inc. stock research
FY2024 Q4
Steel Dynamics (STLD) Gross Margin — Quarter Ended Dec 31, 2024
Revenue declined and cost of revenue fell more slowly, resulting in a lower gross profit and a weakened gross margin. Compared with both the prior quarter and the same quarter last year, all profitability metrics deteriorated.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue declined and cost of revenue fell more slowly, resulting in a lower gross profit and a weakened gross margin. Compared with both the prior quarter and the same quarter last year, all profitability metrics deteriorated.
- Gross profit decreased by a larger proportion than revenue, indicating that cost of revenue did not decline proportionally. The gross margin compression was driven entirely by the relationship between revenue and cost of revenue.
- Compared with the immediately preceding quarter, revenue was lower, cost of revenue was lower, gross profit was lower, and gross margin weakened. Versus the same quarter one year earlier, revenue was lower, cost of revenue was slightly lower, gross profit was sharply lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
11.4%
Gross profit
$441.7M
Revenue
$3.9B
Cost of revenue
$3.4B
Quarter-over-quarter change
-2.5 pts
Year-over-year change
-5.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2024 | $4.7B | $980.8M | $3.7B | 20.9% |
| Jun 30, 2024 | $4.6B | $774.8M | $3.9B | 16.7% |
| Sep 30, 2024 | $4.3B | $605.2M | $3.7B | 13.9% |
| Dec 31, 2024 | $3.9B | $441.7M | $3.4B | 11.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-2.5 pts
Year-over-year change
Dec 31, 2023
-5.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit decreased by a larger proportion than revenue, indicating that cost of revenue did not decline proportionally. The gross margin compression was driven entirely by the relationship between revenue and cost of revenue.
Compared with the immediately preceding quarter, revenue was lower, cost of revenue was lower, gross profit was lower, and gross margin weakened. Versus the same quarter one year earlier, revenue was lower, cost of revenue was slightly lower, gross profit was sharply lower, and gross margin weakened.
Monitor the trajectory of cost of revenue relative to revenue, as the lag in cost reduction directly compressed gross margin.