Introduction & Market Context
Nucor Corporation (NYSE:NUE) reported a significant year-over-year earnings decline in its first quarter of 2025, with diluted earnings per share (EPS) falling to $0.67 from $3.46 in the same period last year. The steel giant released its quarterly results during an earnings call on April 29, 2025, led by Chair, President, and CEO Leon Topalian and Executive VP and CFO Steve Laxton.
Despite the earnings pressure, Nucor’s stock has shown resilience, trading at $116.57 as of April 28, 2025, within its 52-week range of $97.59 to $176.59. The company continues to invest heavily in growth initiatives while highlighting strengthened trade policies and improving market conditions as catalysts for future performance.
Quarterly Performance Highlights
Nucor’s Q1 2025 financial results showed a continued downward trend in earnings compared to previous quarters. The company reported EBITDA of $696 million, net earnings of $156 million ($179 million adjusted for impairments), and earnings per diluted share of $0.67 ($0.77 adjusted).
As shown in the following consolidated financial results comparison:
The sequential decline is evident, with Q1 2025 EBITDA of $696 million down from $751 million in Q4 2024 and substantially lower than the $1,503 million reported in Q1 2024. Despite these challenges, Nucor maintained its capital expenditure levels at $859 million for the quarter and returned $429 million to shareholders through dividends and share repurchases.
On the operational front, the company highlighted several achievements, including the safest start to any year in Nucor history with a 0.62 injury and illness rate, increasing shipments at its Brandenburg facility over five consecutive quarters, and the completion of 10 planned outages during Q1.
Segment performance varied across the company’s business units, as detailed in the following breakdown:
The Steel Mills segment generated $231 million in adjusted pre-tax earnings, benefiting from higher average selling prices, increased volumes, and improved earnings per ton compared to Q4 2024. Meanwhile, the Steel Products segment contributed $288 million in adjusted pre-tax earnings but faced lower average selling prices and reduced earnings per ton despite higher volumes. The Raw Materials segment reported $29 million in adjusted pre-tax earnings, experiencing lower margins in scrap processing operations and DRI facilities.
Strategic Initiatives
Despite earnings pressure, Nucor continues to execute its ambitious growth strategy with numerous projects nearing completion. The company is maintaining its projected capital expenditure of approximately $3.0 billion for 2025, with 65% allocated to improved product capabilities and expansion.
The following chart details Nucor’s capital expenditure allocation for 2025:
Several major projects are approaching key milestones in 2025, including:
1. Lexington, NC Rebar Micromill (430K tpa): First melt/cast/roll heat planned for June, with mill ramp-up and initial shipments expected in Q3 2025
2. Kingman, AZ Melt Shop (600K tpa): First heat of bar mill’s new melt shop planned for June, expected to be operational by Q3 2025
3. Indiana Coating Complex: 300K tpa continuous galvanizing line and 250K tpa pre-paint line, with construction expected to complete by the end of 2025
4. Berkeley (LON:BKGH) Galvanizing Line (500K tpa): Construction expected to complete by mid-2026
5. Alabama and Indiana Greenfield sites for Towers & Structures: Production beginning in Q3 2025 and Q1 2026, respectively
The company also announced a third greenfield site in Utah for its Towers & Structures business, further expanding its presence in this growing market segment.
Industry Position & Trade Policy
Nucor highlighted significant developments in trade policy that could strengthen its competitive position. In February 2025, the U.S. reimposed 25% tariffs on steel imports from all sources under strengthened Section 232 measures, which the company expects to increase demand for domestically produced steel.
The company also noted progress in trade cases, with the U.S. Department of Commerce releasing preliminary anti-dumping findings in early April, recommending duties on producers in 10 countries. These measures, combined with the Section 232 tariffs, could provide substantial support for domestic steel producers like Nucor.
As illustrated in the following visual metaphor, Nucor is focusing on key fundamentals amid external challenges:
The company identifies "Growing Backlogs & Order Entry Rates," "Revitalized Steel Trade Policies," "Reshoring, Rebuilding & Repowering," and a "Pro-Business Administration" as core strengths, while acknowledging external challenges including market volatility, trade policy uncertainty, interest rate uncertainty, and geopolitical tensions.
Balance Sheet & Capital Allocation
Nucor maintains a strong financial position with $4.06 billion in cash and cash equivalents as of March 31, 2025. The company’s total debt stands at $7.88 billion, representing a debt-to-EBITDA ratio of 2.2x, or approximately 1.1x on a net debt basis.
The following chart illustrates Nucor’s balance sheet strength and debt maturity profile:
During Q1 2025, Nucor completed a successful $1 billion bond offering with a weighted average coupon of 4.88% and upsized its revolving credit facility by $500 million to $2.25 billion, providing approximately $5 billion in total liquidity. The company also repurchased 2.3 million shares for $300 million and paid $129 million in quarterly dividends, marking its 207th consecutive quarterly payment.
Forward-Looking Statements
Looking ahead, Nucor projects "meaningfully higher" consolidated earnings for Q2 2025 compared to Q1, driven by several factors across its business segments:
For the Steel Mills segment, the company expects higher realized pricing with stable volumes. The Steel Products segment is anticipated to benefit from higher volumes, partially offset by slightly lower realized pricing. In the Raw Materials segment, Nucor forecasts slightly lower volumes and lower prices, offset by lower costs.
The market outlook for the next 3-6 months shows improving conditions across most product categories:
1. Sheet products are expected to benefit from lower imports, the CORE trade case, Section 232 tariffs, and incremental demand
2. Rebar and MBQ shipments and bookings are trending ahead of 2024 levels, supported by ongoing mega projects
3. Plate demand is improving, with robust beam backlog
4. Steel Products are seeing higher backlogs across most fabricated products
While maintaining an optimistic outlook, management acknowledges the need to monitor near-term market uncertainty and the persistent threat of global steel oversupply.
Nucor’s continued investment in growth projects despite current earnings pressure reflects management’s confidence in the company’s long-term strategy and its ability to capitalize on improving market conditions in the coming quarters.
Full presentation:
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