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Nucor Corporation Reports Q1 2025 Financial Results

On April 28, 2025, Nucor Corporation (NYSE: NUE) announced its financial results for the first quarter of 2025. The company reported consolidated net earnings attributable to Nucor stockholders amounting to $156 million, translating to $0.67 per diluted share. In addition, adjusted net earnings for the quarter stood at $179 million, or $0.77 per diluted share, once certain one-time charges were excluded. This marks a notable decrease compared to $287 million or $1.22 per diluted share that was reported in the fourth quarter of 2024. Even more contrasting was the $845 million, or $3.46 per diluted share, from the first quarter of 2024.

Among the reasons for this shift was a series of one-time charges totaling $29 million, or $0.10 per diluted share, which were linked to either the closure or repurposing of certain facilities. Despite experiencing recent financial market volatility, Nucor is observing robust demand for the steel and steel products it manufactures. According to Leon Topalian, Chair, President, and CEO of Nucor, the company’s solid balance sheet and diverse portfolio intentionally position it to thrive, even amidst uncertain economic conditions. He asserted, "Our investment strategy continues to position Nucor as the premier North American steel producer, generating long-term economic value for both our customers and shareholders."

Segment Performance Overview

The company's steel mills segment earnings in the first quarter of 2025 increased compared to the fourth quarter of the previous year, primarily due to enhanced volumes. Conversely, earnings from the steel products segment experienced a decline due to lower average selling prices. Additionally, the raw materials segment also faced a drop in earnings, attributed mainly to diminished margins at scrap processing operations and direct reduced iron facilities.

For the first quarter of 2025, Nucor's consolidated net sales totaled $7.83 billion. This represents an increase of 11% compared to the $7.08 billion recorded in the fourth quarter of 2024 but a 4% decrease from $8.14 billion in the first quarter of 2024. The average sales price per ton witnessed a 2% decrease compared to the fourth quarter of 2024 and a 12% drop when compared to the previous year.

A total of 6.83 million tons were shipped to outside customers during the first quarter of 2025. This indicates a 13% increase relative to the fourth quarter of 2024 and a 10% rise compared to first quarter 2024. An encouraging trend was noted in the steel mill shipments, which also increased by 14% compared to the prior quarter and 10% year-over-year.

Financial Strength and Capital Allocation

By the end of Q1 2025, Nucor had $4.06 billion in cash, cash equivalents, and short-term investments. Recently, on March 11, 2025, Nucor amended and restated its revolving credit facility—enhancing its borrowing capacity from $1.75 billion to $2.25 billion and extending the maturity to March 11, 2030. The facility remains undrawn.

It's also notable that Nucor maintains the highest credit ratings in the North American steel sector, boasting ratings of A-/A-/Baa1 with stable outlooks from Standard & Poor's and Fitch Ratings, and a positive outlook at Moody's.

Commitment to Stockholders

In line with its strong financial position, Nucor repurchased around 2.3 million shares of its common stock, at an average price of $133.17 per share, during the first quarter of 2025. As of April 5, 2025, approximately $806 million remains available for further share repurchases under its existing program. Notably, a cash dividend of $0.55 per share was declared on February 18, 2025, which is set to be paid on May 12, 2025.

Looking Ahead

As for the second quarter of 2025, Nucor is optimistic about its earnings, expecting an overall increase across all operational segments. The steel mills segment is projected to see the most significant growth primarily due to the anticipated increase in average selling prices at sheet and plate mills. In tandem, the steel products segment is also expected to benefit from increased volumes.

Nucor's conference call to review these results is scheduled for April 29, 2025, at 10:00 A.M. Eastern Time. It can be accessed via the Investor Relations section of Nucor’s website.

Overall, while Nucor faced challenges in the first quarter of 2025, its proactive measures and strategic investments position it favorably for continued success in the volatile market framework.