01—Abstract
Summary
Summary of the 10-Q filed May 14, 2025. Cited figures are marked; the original filing is the authoritative source.
Nucor Corporation's first-quarter 2025 Form 10-Q (quarter ended April 5, 2025) reports a sharp earnings decline.
Net sales were $7.83 billiona, down from $8.14 billion a year earlier, and net earnings attributable to Nucor stockholders fell to $156 million, or $0.67 per diluted share, versus $845 million, or $3.46 per diluted share, in the first quarter of 2024. Management attributes the decline mainly to the steel mills segment, where average selling prices and metal margins fell across all product groups and conversion costs rose, largely due to energy costs. Pre-operating and start-up costs for new facilities were about $170 million, and the company recorded $29 million of losses and impairments of assets.
Cash flow and liquidity remained solid. Cash provided by operating activities was $364 millionb, while capital expenditures were $859 million. Management estimates 2025 capital expenditures at approximately $3.00 billion, versus $3.17 billion in 2024.
In March 2025 Nucor issued $500 millionc of 4.650% notes due 2030 and $500 million of 5.100% notes due 2035, with net proceeds of $997 million, intended partly to redeem $1.00 billion of 2025 notes. Cash and short-term investments totaled $4.06 billion at quarter-end, and the revolving credit facility was increased to $2.25 billion with no borrowings outstanding. The company repurchased $300 million of stock during the quarter and paid a $0.55 per share quarterly dividend.
Management's outlook expects second-quarter 2025 earnings to increase compared with the first quarter, with the largest expected improvement in the steel mills segment, driven by higher average selling prices at the sheet and plate mills. The steel products and raw materials segments are also expected to increase earnings.
02—Key points
Key Highlights
- Net sales of $7.83 billion, down from $8.14 billion in the first quarter of 2024.
- Net earnings attributable to Nucor stockholders of $156 million ($0.67 per diluted share), versus $845 million ($3.46 per diluted share) a year earlier.
- Steel mills segment earnings before income taxes fell to $231 million from $1.10 billion, driven by lower selling prices and metal margins and higher energy-related conversion costs.
- Gross margin fell to $605 million (8%) from $1.52 billion (19%), with pre-operating and start-up costs of about $170 million.
- Cash provided by operating activities was $364 million; capital expenditures were $859 million, and 2025 capex is estimated at about $3.00 billion.
- Issued $1.00 billion of senior notes in March 2025 (2030 and 2035 maturities), largely to redeem 2025 notes; liquidity of $4.06 billion in cash and short-term investments.
- Management expects second-quarter 2025 earnings to rise from the first quarter, led by the steel mills segment.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed May 14, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $7.83B$8.08B | −3.1% |
| Cost of Revenue | $7.22B$6.88B | +5.0% |
| Gross Profit | $605.00M$1.19B | −49.3% |
| SG&A Expenses | $281.00M$294.00M | −4.4% |
| Interest Expense | $51.00M$67.00M | −23.9% |
| Net Income | $156.00M$645.00M | −75.8% |
| EPS (Basic) | $0.67$2.68 | −75.0% |
| EPS (Diluted) | $0.67$2.68 | −75.0% |
| Shares Outstanding (Basic) | 232.70M239.60M | −2.9% |
| Shares Outstanding (Diluted) | 232.90M240.00M | −3.0% |
05—Questions
Frequently Asked Questions
Why did Nucor's earnings decline so significantly in the first quarter of 2025?
The filing attributes the decline primarily to the steel mills segment, where average selling prices and metal margins decreased across all product groups, and conversion costs increased, largely due to higher energy costs. Steel products earnings also fell on lower average selling prices, while raw materials earnings rose on higher profitability at DRI facilities.
How strong is Nucor's liquidity position?
At April 5, 2025, cash, cash equivalents and short-term investments totaled $4.06 billion. The amended revolving credit facility, increased to $2.25 billion and extended to March 2030, had no borrowings outstanding, and the funded debt to total capital ratio was 27.2%, versus a 60% covenant limit.
What is management's outlook for the second quarter of 2025?
Management expects earnings in the second quarter of 2025 to increase compared with the first quarter, with increases across all three segments. The largest expected increase is in steel mills, primarily from higher average selling prices at the sheet and plate mills, while steel products is expected to benefit from increased volumes.
How is Nucor using its capital and returning cash to shareholders?
Capital expenditures were $859 million in the first quarter, mainly for the sheet mill under construction in West Virginia and expansion of Nucor Towers & Structures, with 2025 capex estimated at about $3.00 billion. Nucor repurchased $300 million of common stock and paid $129 million in cash dividends, and about $806 million remained available under its share repurchase authorization.
What debt activity occurred during the quarter?
In March 2025, Nucor issued $500 million of 4.650% notes due 2030 and $500 million of 5.100% notes due 2035, with net proceeds of $997 million. The company plans to use these proceeds, along with cash on hand if necessary, to redeem $500 million of 2.000% notes due 2025 and $500 million of 3.950% notes due 2025.
06—Continue