Nucor Reports Results for the First Quarter of 2025

Rhea-AI Summary

Nucor reported Q1 2025 net earnings of $156 million ($0.67 per share), with adjusted earnings of $179 million ($0.77 per share) excluding one-time charges. Net sales reached $7.83 billion, with total shipments of 6.83 million tons.

Key performance metrics include:

• 11% increase in net sales vs Q4 2024
• 80% steel mill operating rate
• $4.06 billion cash and investments on hand
• 2.3 million shares repurchased at $133.17 average price

The company saw solid demand despite market volatility, with steel mill shipments up 14% from previous quarter. Average sales price decreased 2% compared to Q4 2024. Looking ahead, Nucor expects increased earnings in Q2 2025 across all segments, with the steel mills segment leading growth due to higher sheet and plate mill prices.

The quarterly dividend of $0.55 per share marks Nucor's 208th consecutive payout, demonstrating continued financial strength backed by top credit ratings in North American steel sector.

Positive

• Q1 2025 adjusted net earnings of $179M ($0.77 per diluted share)
• Strong balance sheet with $4.06B in cash and cash equivalents
• Increased revolving credit facility from $1.75B to $2.25B with extended maturity to 2030
• Total shipments increased 10% YoY to 6.83M tons
• Operating rates improved to 80% from 74% in Q4 2024
• Highest credit ratings in North American steel sector (A-/A-/Baa1)
• Continued shareholder returns through $0.55 quarterly dividend and 2.3M shares repurchased
• Positive Q2 2025 outlook with expected earnings increase across all segments

Negative

• 81.5% YoY decline in net earnings ($845M to $156M)
• 12% YoY decrease in average sales price per ton
• One-time charges of $29M related to facility closures
• Pre-operating and start-up costs increased to $170M from $125M YoY
• Raw materials segment earnings declined due to lower margins
• Net sales decreased 4% YoY to $7.83B

Insights

Steel Industry Financial Analyst

Nucor's Q1 earnings fell 82% YoY despite volume growth; maintains strong balance sheet and expects Q2 improvement across segments.

Nucor Corporation's Q1 2025 financial results show net earnings of $156 million ($0.67 per share), representing a steep decline from both Q4 2024 ($287 million) and Q1 2024 ($845 million). After excluding one-time charges related to facility closures, adjusted earnings were $179 million ($0.77 per share).

The earnings decline occurred despite operational improvements. Total shipments increased 13% sequentially and 10% year-over-year, while net sales rose 11% from Q4 to $7.83 billion. This disconnect between volume and profitability stems from pricing pressure, as average sales price per ton decreased 2% sequentially and 12% year-over-year.

Operational metrics show mixed performance. Steel mill operating rates improved to 80% from 74% in Q4, though still below the 82% from Q1 2024. The company incurred $170 million in pre-operating costs related to growth projects, which significantly impacted earnings by $0.56 per share.

Despite earnings pressure, Nucor maintains financial strength with $4.06 billion in cash and cash equivalents. The company continues returning capital to shareholders, repurchasing 2.3 million shares at an average price of $133.17 and declaring its 208th consecutive quarterly dividend of $0.55 per share.

Looking ahead, management expects earnings to increase in Q2 2025 across all three operating segments, with the largest improvement anticipated in the steel mills segment due to higher average selling prices at sheet and plate mills.

Steel Industry Strategist

Nucor's segment performance shows divergent trends; steel mills earnings of $231M down 79% YoY despite volume growth.

Analyzing Nucor's segment performance reveals the structural challenges facing the steel industry. The steel mills segment reported earnings of $231 million in Q1 2025, a dramatic 79% decline from $1.102 billion in Q1 2024, despite shipments increasing 10%. This highlights severe margin compression in the core steelmaking business.

The steel products segment generated $288 million in earnings, down 44% from Q1 2024, reflecting downstream pressure. By contrast, the raw materials segment improved to $29 million from $9 million in Q1 2024, benefiting from a 6% reduction in scrap costs.

Product mix analysis shows varied performance: bar shipments increased 20% and plate shipments surged 40% year-over-year, while sheet shipments remained flat. Downstream, tubular products shipments increased 30%, indicating pockets of demand strength.

Nucor has strengthened its financial flexibility by expanding its revolving credit facility from $1.75 billion to $2.25 billion and extending its maturity to March 2030. With industry-leading credit ratings (A-/A-/Baa1), the company maintains financial stability despite earnings pressure.

The sequential improvement in steel mill operating rates (from 74% to 80%) points to operational momentum, though still below the 82% recorded in Q1 2024. Management expects pricing improvements in Q2, particularly in sheet and plate products, suggesting potential stabilization in margins.

First Quarter of 2025 Highlights

• Net earnings attributable to Nucor stockholders of $156 million, or $0.67 per diluted share.
• Adjusted net earnings attributable to Nucor stockholders of $179 million, or $0.77 per diluted share.
• Net sales of $7.83 billion.
• Net earnings before noncontrolling interests of $226 million; EBITDA of $696 million.

CHARLOTTE, N.C., April 28, 2025 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) today announced consolidated net earnings attributable to Nucor stockholders of $156 million, or $0.67 per diluted share, for the first quarter of 2025. Excluding certain one-time charges taken during the quarter, Nucor's first quarter of 2025 adjusted net earnings attributable to Nucor stockholders was $179 million, or $0.77 per diluted share. By comparison, Nucor reported consolidated net earnings attributable to Nucor stockholders of $287 million, or $1.22 per diluted share, for the fourth quarter of 2024 and $845 million, or $3.46 per diluted share, for the first quarter of 2024.

Reflected in the first quarter of 2025 losses and impairments of assets are certain one-time charges totaling $29 million, or $0.10 per diluted share, related to the closure or repurposing of certain facilities.

"Despite recent financial market volatility, Nucor is seeing solid demand for the steel and steel products we manufacture.  Our healthy balance sheet and diverse product portfolio position us well, even in uncertain times," said Leon Topalian, Chair, President and Chief Executive Officer.  "Our investment strategy continues to position Nucor as the premier North American steel producer, creating long-term economic value for our customers and shareholders."

Selected Segment Data
Earnings (loss) before income taxes and noncontrolling interests by segment for the first quarter of 2025 and 2024 were as follows (in millions):

		Three Months (13 Weeks) Ended
		April 5, 2025				March 30, 2024
Steel mills		$	231			$	1,102
Steel products			288				512
Raw materials			29				9
Corporate/eliminations			(263)				(398)
		$	285			$	1,225

Financial Review
Nucor's consolidated net sales were $7.83 billion in the first quarter of 2025, an 11% increase compared to $7.08 billion in the fourth quarter of 2024 and a 4% decrease compared to $8.14 billion in the first quarter of 2024. Average sales price per ton in the first quarter of 2025 decreased 2% compared to the fourth quarter of 2024 and decreased 12% compared to the first quarter of 2024. A total of 6,830,000 tons were shipped to outside customers in the first quarter of 2025, an increase of 13% compared to the fourth quarter of 2024 and an increase of 10% compared to the first quarter of 2024. Total steel mill shipments in the first quarter of 2025 increased 14% compared to the fourth quarter of 2024 and increased 10% compared to the first quarter of 2024. Steel mill shipments to internal customers represented 19% of total steel mill shipments in the first quarter of 2025, compared to 19% in the fourth quarter of 2024 and 21% in the first quarter of 2024. Downstream steel product shipments to outside customers in the first quarter of 2025 increased 8% from the fourth quarter of 2024 and increased 9% from the first quarter of 2024.

The average scrap and scrap substitute cost per gross ton used in the first quarter of 2025 was $394, a 3% increase compared to $381 in the fourth quarter of 2024 and a 6% decrease compared to $421 in the first quarter of 2024.

Pre-operating and start-up costs related to the Company's growth projects were approximately $170 million, or $0.56 per diluted share, in the first quarter of 2025, compared with approximately $164 million, or $0.53 per diluted share, in the fourth quarter of 2024 and approximately $125 million, or $0.39 per diluted share, in the first quarter of 2024.

Overall operating rates at the Company's steel mills were 80% in the first quarter of 2025, compared to 74% in the fourth quarter of 2024 and 82% in the first quarter of 2024.

Financial Strength
At the end of the first quarter of 2025, we had $4.06 billion in cash and cash equivalents and short-term investments on hand. On March 11, 2025, the Company amended and restated its revolving credit facility to increase the borrowing capacity from $1.75 billion to $2.25 billion and to extend its maturity date to March 11, 2030. The facility remains undrawn. Nucor continues to have the strongest credit ratings in the North American steel sector (A-/A-/Baa1) with stable outlooks at Standard & Poor's and Fitch Ratings and a positive outlook at Moody's.

Commitment to Returning Capital to Stockholders
During the first quarter of 2025, Nucor repurchased approximately 2.3 million shares of its common stock at an average price of $133.17 per share. As of April 5, 2025, Nucor had approximately $806 million remaining authorized and available for repurchases under its share repurchase program. This share repurchase authorization is discretionary and has no scheduled expiration date.

On February 18, 2025, Nucor's Board of Directors declared a cash dividend of $0.55 per share. This cash dividend is payable on May 12, 2025 to stockholders of record as of March 31, 2025 and is Nucor's 208^th consecutive quarterly cash dividend.

First Quarter of 2025 Analysis
Steel mills segment earnings in the first quarter of 2025 increased from the fourth quarter of 2024, primarily due to increased volumes. Earnings in the steel products segment decreased in the first quarter of 2025 as compared to the fourth quarter of 2024 due to lower average selling prices. Earnings in the raw materials segment decreased in the first quarter of 2025 as compared to the fourth quarter of 2024 due to lower margins at our scrap processing operations and direct reduced iron facilities.

Second Quarter of 2025 Outlook
We expect earnings in the second quarter of 2025 to increase compared to the first quarter of 2025. Earnings in the second quarter of 2025 are expected to increase across all three of our operating segments, with the largest increase in the steel mills segment. The expected increase in the steel mills segment earnings is primarily due to higher average selling prices at our sheet and plate mills. Earnings in the steel products segment are expected to increase in the second quarter of 2025 as compared to the first quarter of 2025 due to increased volumes. The raw materials segment is expected to have increased earnings in the second quarter of 2025.

Earnings Conference Call
An earnings call is scheduled for April 29, 2025 at 10:00 a.m. Eastern Time to review Nucor's first quarter of 2025 financial results and provide a business update. The call can be accessed via webcast from the Investor Relations section of Nucor's website (nucor.com/investors). A presentation with supplemental information to accompany the call has been posted to Nucor's Investor Relations website. A playback of the webcast will be posted to the same site within one day of the live event. 

About Nucor
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; wire and wire mesh; and utility structures. Nucor, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

Non-GAAP Financial Measures
The Company uses certain non-GAAP (Generally Accepted Accounting Principles) financial measures in this news release, including EBITDA, adjusted net earnings attributable to Nucor stockholders and adjusted net earnings per diluted share. Generally, a non-GAAP financial measure is a numerical measure of a company's performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable financial measure calculated and presented in accordance with GAAP.

We define EBITDA as net earnings before noncontrolling interests, adding back the following items: interest (income) expense, net; provision for income taxes; losses and impairments of assets; depreciation; and amortization. We define adjusted net earnings attributable to Nucor stockholders as net earnings attributable to Nucor stockholders adding back losses and impairments of assets, net of tax. We define adjusted net earnings per diluted share as net earnings per diluted share adding back the per diluted share impact of losses and impairments of assets, net of tax. Please note that other companies might define their non-GAAP financial measures differently than we do.

Management presents the non-GAAP financial measures of EBITDA, adjusted net earnings attributable to Nucor stockholders and adjusted net earnings per diluted share in this news release because it considers them to be important supplemental measures of performance. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors evaluating the Company's financial and operational performance by providing a consistent basis of comparison across periods.

Forward-Looking Statements
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties which we expect will or may occur in the future and may impact our business, financial condition and results of operations. The words "anticipate," "believe," "expect," "intend," "project," "may," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company's best judgment based on current information, and, although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this news release. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to general market conditions, and in particular, prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (8) uncertainties and volatility surrounding the global economy, including excess world capacity for steel production, inflation and interest rate changes; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; (14) our ability to integrate businesses we acquire; and (15) the impact of any pandemic or public health situation. These and other factors are discussed in Nucor's regulatory filings with the United States Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of Nucor's Annual Report on Form 10-K for the year ended December 31, 2024. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them, except as may be required by applicable law.

 

Tonnage Data
(In thousands)
		Three Months (13 Weeks) Ended
		April 5, 2025				March 30, 2024				Percent Change
Steel mills total shipments:
Sheet			2,981				2,974				-
Bars			2,290				1,912				20	%
Structural			577				550				5	%
Plate			577				412				40	%
Other			38				42				-10	%
			6,463				5,890				10	%
Sales tons to outside customers:
Steel mills			5,226				4,676				12	%
Joist and deck			182				180				1	%
Rebar fabrication products			247				238				4	%
Tubular products			270				208				30	%
Building systems			48				55				-13	%
Other steel products			301				284				6	%
Raw materials			556				583				-5	%
			6,830				6,224				10	%

 

Condensed Consolidated Statements of Earnings (Unaudited) (In millions, except per share data)
		Three Months (13 Weeks) Ended
		April 5, 2025				March 30, 2024
Net sales		$	7,830			$	8,137
Costs, expenses and other:
Cost of products sold			7,225				6,614
Marketing, administrative and other expenses			281				345
Equity in earnings of unconsolidated affiliates			(4)				(9)
Losses and impairments of assets			29				-
Interest expense (income), net			14				(38)
			7,545				6,912
Earnings before income taxes and noncontrolling interests			285				1,225
Provision for income taxes			59				266
Net earnings before noncontrolling interests			226				959
Earnings attributable to noncontrolling interests			70				114
Net earnings attributable to Nucor stockholders		$	156			$	845
Net earnings per share:
Basic		$	0.67			$	3.46
Diluted		$	0.67			$	3.46
Average shares outstanding:
Basic			232.7				243.1
Diluted			232.9				243.5

 

Condensed Consolidated Balance Sheets (Unaudited) (In millions)
		April 5, 2025				Dec. 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	3,156			$	3,558
Short-term investments			905				581
Accounts receivable, net			2,965				2,675
Inventories, net			5,256				5,106
Other current assets			478				555
Total current assets			12,760				12,475
Property, plant and equipment, net			13,759				13,243
Goodwill			4,287				4,288
Other intangible assets, net			3,069				3,134
Other assets			824				800
Total assets		$	34,699			$	33,940
LIABILITIES
Current liabilities:
Short-term debt		$	160			$	225
Current portion of long-term debt and finance lease obligations			1,031				1,042
Accounts payable			2,272				1,832
Salaries, wages and related accruals			574				903
Accrued expenses and other current liabilities			1,022				975
Total current liabilities			5,059				4,977
Long-term debt and finance lease obligations due after one year			6,689				5,683
Deferred credits and other liabilities			1,836				1,863
Total liabilities			13,584				12,523
Commitments and contingencies
EQUITY
Nucor stockholders' equity:
Common stock			152				152
Additional paid-in capital			2,245				2,223
Retained earnings			30,300				30,271
Accumulated other comprehensive loss,    net of income taxes			(198)				(208)
Treasury stock			(12,430)				(12,144)
Total Nucor stockholders' equity			20,069				20,294
Noncontrolling interests			1,046				1,123
Total equity			21,115				21,417
Total liabilities and equity		$	34,699			$	33,940

 

Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions)
		Three Months (13 Weeks) Ended
		April 5, 2025				March 30, 2024
Operating activities:
Net earnings before noncontrolling interests		$	226			$	959
Adjustments:
Depreciation			303				257
Amortization			65				59
Impairment of assets			12				-
Stock-based compensation			26				21
Deferred income taxes			(31)				(40)
Distributions from affiliates			6				7
Equity in (earnings) losses of unconsolidated affiliates			(4)				(9)
Changes in assets and liabilities (exclusive of acquisitions and dispositions):
Accounts receivable			(291)				(208)
Inventories			(150)				(14)
Accounts payable			378				(392)
Federal income taxes			72				248
Salaries, wages and related accruals			(308)				(596)
Other operating activities			60				168
Cash provided by operating activities			364				460
Investing activities:
Capital expenditures			(859)				(670)
Investment in and advances to affiliates			-				-
Disposition of plant and equipment			3				4
Acquisitions (net of cash acquired)			(1)				1
Purchases of investments			(452)				(647)
Proceeds from the sale of investments			127				422
Other investing activities			2				-
Cash used in investing activities			(1,180)				(890)
Financing activities:
Net change in short-term debt			(65)				11
Proceeds from issuance of long-term debt, net of discount			997				-
Bond issuance costs			(9)				-
Repayment of long-term debt			(4)				(3)
Proceeds from exercise of stock options			-				3
Payment of tax withholdings on certain stock-based compensation			-				(3)
Distributions to noncontrolling interests			(172)				(265)
Cash dividends			(129)				(134)
Acquisition of treasury stock			(300)				(1,001)
Proceeds from government grants			75				-
Other financing activities			21				(4)
Cash provided by (used in) financing activities			414				(1,396)
Effect of exchange rate changes on cash			-				(3)
Decrease in cash and cash equivalents			(402)				(1,829)
Cash and cash equivalents - beginning of year			3,558				6,387
Cash and cash equivalents - end of three months		$	3,156			$	4,558
Non-cash investing activity:
Change in accrued plant and equipment purchases		$	62			$	(11)

 

Non-GAAP Financial Measures
Reconciliation of EBITDA (Unaudited)
(In millions)
		Three Months (13 Weeks) Ended
		April 5, 2025				March 30, 2024
Net earnings before noncontrolling interests		$	226			$	959
Depreciation			303				257
Amortization			65				59
Losses and impairments of assets			29				-
Interest (income) expense, net			14				(38)
Provision for income taxes			59				266
EBITDA		$	696			$	1,503
Reconciliation of adjusted net earnings attributable to Nucor stockholders (Unaudited) (In millions, except per share data)
		Three Months (13 Weeks) Ended April 5, 2025
						Diluted EPS
Net earnings attributable to Nucor stockholders		$	156			$	0.67
Losses and impairments of assets, net of tax			23				0.10
Adjusted net earnings attributable to Nucor stockholders		$	179			$	0.77

 

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SOURCE Nucor Corporation

FAQ

What were Nucor's (NUE) Q1 2025 earnings per share?

Nucor reported Q1 2025 earnings of $0.67 per diluted share, or $0.77 per diluted share when adjusted for one-time charges. This represents a decrease from $3.46 per share in Q1 2024.

How much cash did Nucor (NUE) return to shareholders in Q1 2025?

In Q1 2025, Nucor repurchased 2.3 million shares at an average price of $133.17 per share and declared a quarterly cash dividend of $0.55 per share, marking their 208th consecutive quarterly dividend.

What is Nucor's (NUE) outlook for Q2 2025?

Nucor expects earnings to increase in Q2 2025 across all three operating segments, with the largest increase in the steel mills segment due to higher average selling prices at sheet and plate mills.

How much steel did Nucor (NUE) ship in Q1 2025?

Nucor shipped 6.83 million tons to outside customers in Q1 2025, a 10% increase from Q1 2024. Total steel mill shipments increased by 14% compared to Q4 2024.

What is Nucor's (NUE) current financial strength and credit rating?

As of Q1 2025, Nucor had $4.06 billion in cash and cash equivalents, with the strongest credit ratings in North American steel sector (A-/A-/Baa1) and a $2.25 billion undrawn credit facility.