01—Abstract
Summary
Summary of the 10-K filed February 27, 2025. Cited figures are marked; the original filing is the authoritative source.
Nucor Corporation, a Delaware corporation incorporated in 1958, manufactures steel and steel products and is North America's largest recycler, using scrap steel as its primary raw material.
It reports in three segments: steel mills (61% of 2024 external sales), steel products, and raw materials. In 2024, consolidated net sales fell 11% to $30.73 billiona from $34.71 billion, and net earnings attributable to Nucor stockholders fell to $2.03 billion, or $8.46 per diluted share, from $4.53 billion, or $18.00 per diluted share, in 2023. The steel products segment was the primary driver of the earnings decline, as average selling prices and volumes moderated from 2022 highs, particularly in joists and deck.
Average sales price per ton fell 10%, and total tons shipped to outside customers fell 2%. Gross margin declined to $4.10 billionb (13%) from $7.82 billion (23%), and pre-operating and start-up costs for new facilities rose to approximately $594 million from $400 million. Cash flow from operations was $3.98 billion in 2024 versus $7.11 billion in 2023, while capital expenditures rose to $3.17 billion.
Cash, cash equivalents and short-term investments totaled $4.14 billionc at year-end, down from $7.13 billion. Nucor repurchased $2.22 billion of stock and paid $522 million in cash dividends. The company reported a debt-to-capital ratio of approximately 25% and holds A-/A-/Baa1 credit ratings.
Management expects 2025 capital expenditures of approximately $3.0 billiond and moderating share repurchases. The filing also notes that a Section 232 25% tariff on steel imports is scheduled to take effect March 12, 2025, and that the Mason County, West Virginia sheet mill's estimated construction cost has risen to approximately $4 billion.
02—Key points
Key Highlights
- Net earnings fell to $2.03 billion ($8.46 per diluted share) in 2024 from $4.53 billion ($18.00 per diluted share) in 2023, with declines across all three segments.
- Net sales decreased 11% to $30.73 billion, driven by a 10% drop in average sales price per ton to $1,241 and a 2% decline in tons shipped.
- Steel products segment earnings before taxes fell to $1.60 billion from $3.44 billion, the largest driver of the earnings decline, led by joist and deck businesses.
- Operating cash flow dropped to $3.98 billion from $7.11 billion, while capital expenditures rose to $3.17 billion from $2.21 billion.
- Nucor returned approximately $2.73 billion to stockholders through base dividends and share repurchases in 2024 and announced a quarterly dividend of $0.55 per share.
- The Mason County, West Virginia sheet mill's estimated cost increased to approximately $4 billion, with the company expecting a net cash outlay of about $3.65 billion, and the mill is expected to be completed by the end of 2026.
- A Section 232 25% tariff on steel imports from all sources, without country or product exemptions, is scheduled to take effect March 12, 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 27, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $30.73B$34.71B | −11.5% |
| Cost of Revenue | $26.63B$26.90B | −1.0% |
| Gross Profit | $4.10B$7.82B | −47.5% |
| SG&A Expenses | $1.12B$1.58B | −29.1% |
| Interest Expense | $228.00M$246.00M | −7.3% |
| Net Income | $2.03B$4.53B | −55.2% |
| EPS (Basic) | $8.47$18.05 | −53.1% |
| EPS (Diluted) | $8.46$18.00 | −53.0% |
| Shares Outstanding (Basic) | 238.30M249.80M | −4.6% |
| Shares Outstanding (Diluted) | 238.50M250.40M | −4.8% |
05—Questions
Frequently Asked Questions
How did Nucor's profitability change in 2024?
Net earnings attributable to Nucor stockholders were $2.03 billion, or $8.46 per diluted share, compared with $4.53 billion, or $18.00 per diluted share, in 2023. Gross margin fell to $4.10 billion (13% of sales) from $7.82 billion (23%). The filing attributes the decline mainly to lower average selling prices in the steel products and steel mills segments, along with higher pre-operating and start-up costs of about $594 million.
What is driving the weakness in the steel products segment?
The steel products segment's average selling price per ton fell 12% and volumes fell 10%. The filing says the largest decreases were in the joist and deck businesses, as selling prices and volumes continued to moderate from the historically high levels reached in 2022. Segment earnings before taxes fell to $1.60 billion from $3.44 billion.
How is Nucor funding its growth and shareholder returns?
Nucor reported $3.98 billion in operating cash flow and $4.14 billion in cash, cash equivalents and short-term investments at year-end. It has a $1.75 billion undrawn revolving credit facility maturing November 5, 2026. The company repurchased $2.22 billion of stock in 2024 and intends to return at least 40% of net income to stockholders. For 2025, it expects capital expenditures of approximately $3.0 billion and more moderate share repurchases.
What trade and tariff developments does the filing highlight?
The filing describes an executive order issued February 10, 2025, reimposing Section 232 25% tariffs on steel imports from all sources, ending country and product exemptions, and extending tariffs to fabricated steel products. The order is scheduled to take effect March 12, 2025. The filing also notes 128 antidumping and countervailing duty orders on core steel product lines and a new trade case on corrosion-resistant flat-rolled steel products, with final determinations expected later in 2025.
What are the company's major growth projects?
Key projects include the sheet mill in Mason County, West Virginia, expected to produce about 3,000,000 tons annually and to be completed by the end of 2026, a rebar micro mill in Lexington, North Carolina with about 430,000 tons of capacity, and the plate mill in Brandenburg, Kentucky, which the filing says is capable of producing about 1,200,000 tons per year. The company also completed the Rytec acquisition for $565 million in July 2024 and is expanding its Nucor Towers & Structures locations.
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