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Nucor Corporation Reports Fourth Quarter 2024 Results

Nucor Corporation (NYSE: NUE) announced its financial results for the fourth quarter and full year of 2024, showcasing significant strides despite a challenging market environment. The company reported consolidated net earnings of $287 million, or $1.22 per diluted share, for Q4 2024, marking an increase from $250 million, or $1.05 per diluted share, in Q3 2024. In comparison, Nucor's earnings for the same quarter in 2023 were $785 million, yielding $3.16 per share.

In a broader perspective, for the entire year of 2024, Nucor's consolidated net earnings reached $2.03 billion, which translates to $8.46 per diluted share. This performance represents a notable decrease from the previous year's $4.53 billion earnings, highlighting the reflections of a fluctuating steel market.

Company Highlights

Leon Topalian, Nucor’s Chair and CEO, expressed gratitude towards the workforce for achieving the safest operational year in Nucor's history, during a busy period filled with construction activities aimed at nurturing the company’s growth strategy. Notably, Topalian mentioned, “While steel demand softened throughout 2024, market conditions are starting to improve and should gain momentum as we progress into 2025.” He emphasized that the U.S. economy is beginning to experience several steel-intensive megatrends, which Nucor is well poised to respond to.

The company noted its net sales for Q4 2024 totaled $7.08 billion, showing a decrease from $7.44 billion in Q3 2024 and $7.71 billion in Q4 2023. Total shipments to external customers were also down, reaching approximately 6,058,000 tons, which is a 2% decline from both the prior quarter and the same quarter from the previous year.

Earnings by Segment

Earnings in various segments revealed the financial pressure faced during this quarter. The steel mills segment noted earnings of $169 million, a stark drop compared to $588 million in Q4 2023. Conversely, the steel products segment reported $329 million in earnings, down from $656 million in the corresponding quarter last year. The raw materials segment showed a slight positive of $57 million, rebounding from a loss in the previous year.

Financial Review and Future Outlook

Looking ahead, Nucor projects earnings in the steel mills and products segments to remain comparable in Q1 2025 as seen in Q4 2024. However, the raw materials segment may face reductions, awaiting impact from the anticipated higher operation and administrative costs. Topalian reassured stakeholders with a knowledgeable outlook for 2025, suggesting fluctuations in earnings may not hinder the steady growth forecasted for Nucor.

In terms of financial stability, Nucor's end-of-year figures presented a favorable front, boasting $4.14 billion in cash and equivalents alongside an undrawn revolving credit facility amounting to $1.75 billion.

Commitment to Shareholders

Reflecting its commitment to returning capital to shareholders, Nucor publicly declared its cash dividend of $0.55 per share, marking the 207th consecutive quarterly cash dividend. In addition, during Q4 2024 alone, the company repurchased approximately 2.1 million shares of its own stock, seeking to uphold investor confidence.

Overall, this report not only underscores Nucor's resilience during a year marked by challenges but also captures the optimistic sentiment surrounding its future growth, laying a firm foundation as the company gears up for an expected recovery in steel demand.