On April 28, 2025, Nucor Corp (NUE, Financial) released its 8-K filing detailing its financial performance for the first quarter of 2025. The company reported net earnings attributable to Nucor stockholders of $156 million, or $0.67 per diluted share, falling short of the analyst estimate of $0.74 per share. Adjusted net earnings were $179 million, or $0.77 per diluted share, which slightly exceeded the analyst estimate.
Company Overview
Nucor Corp is a leading manufacturer of steel and steel products, with operations primarily in the United States, Canada, and Mexico. The company's main segments include steel mills, steel products, and raw materials, with the steel mills segment being the largest revenue generator. Nucor utilizes electric arc furnaces (EAFs) to produce steel from scrap steel and substitutes, catering to steel service centers, fabricators, and manufacturers.
Performance and Challenges
Despite a challenging market environment, Nucor's consolidated net sales for Q1 2025 were $7.83 billion, surpassing the previous quarter's $7.08 billion but falling short of the $8.14 billion reported in Q1 2024. The company's performance was impacted by a 2% decrease in average sales price per ton compared to Q4 2024 and a 12% decrease compared to Q1 2024. The steel mills segment saw increased earnings due to higher volumes, while the steel products and raw materials segments faced declines due to lower selling prices and margins.
Financial Achievements
Nucor's financial strength remains robust, with $4.06 billion in cash and cash equivalents and short-term investments at the end of Q1 2025. The company also increased its revolving credit facility to $2.25 billion, extending its maturity to 2030. Nucor's strong credit ratings (A-/A-/Baa1) reflect its stable financial position, crucial for navigating the cyclical steel industry.
Key Financial Metrics
In Q1 2025, Nucor's EBITDA was $696 million, and net earnings before noncontrolling interests were $226 million. The company's operating rates at steel mills improved to 80%, up from 74% in Q4 2024. The average scrap and scrap substitute cost per gross ton was $394, a slight increase from the previous quarter but a decrease from Q1 2024.
“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.
Income Statement Highlights
| Segment | Q1 2025 Earnings (in millions) | Q1 2024 Earnings (in millions) |
|---|---|---|
| Steel Mills | $231 | $1,102 |
| Steel Products | $288 | $512 |
| Raw Materials | $29 | $9 |
| Corporate/Eliminations | $(263) | $(398) |
| Total | $285 | $1,225 |
Analysis and Outlook
Nucor's Q1 2025 performance highlights the challenges of fluctuating market conditions and pricing pressures. However, the company's strategic investments and strong financial position provide a solid foundation for future growth. Looking ahead, Nucor anticipates improved earnings in Q2 2025 across all segments, driven by higher selling prices and increased volumes.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from Nucor Corp for further details.
