Financial Data and Key Metrics Changes - Nucor generated EBITDA of approximately $1.3 billion and earned $2.6 per diluted share in the second quarter, representing a significant improvement over the first quarter results driven by higher average selling prices in the steel mill segment [6][16] - Year-to-date adjusted earnings were $782 million or $3.37 per share, with second quarter results including pre-operating and startup costs of approximately $136 million or $0.45 per share [16][17] - Total capital return to shareholders for the first half of the year reached $758 million, with $329 million returned in the second quarter through dividends and buybacks [6][21] Business Line Data and Key Metrics Changes - The steel mills segment generated pre-tax earnings of $843 million, more than triple that of the prior quarter, driven by higher average selling prices, particularly in sheet and plate operations [17][19] - The steel products segment saw pre-tax earnings of $392 million, a 28% increase over the prior quarter, with stable realized pricing and higher volumes contributing to the best earnings quarter since 2024 [11][19] - The raw materials segment realized pre-tax earnings of approximately $57 million for the quarter, an increase of approximately 95% over the first quarter [20] Market Data and Key Metrics Changes - The steel mills backlog at the end of the second quarter was up nearly 30% compared to the same time last year, indicating solid and steady booking rates [17] - The sheet backlog at the end of the second quarter was 15% higher than the same time last year, reflecting strong demand [18] - Nucor's bar shipments were 13% higher in the first half of the year, while plate shipments to the bridge market hit a record in the second quarter, rising 35% for 2025 [24] Company Strategy and Development Direction - Nucor is focused on executing its growth strategy and creating value for shareholders, customers, and communities while maintaining a strong safety record [5][10] - The company is well-positioned to support growth in steel-intensive projects and promote reshoring of vital manufacturing, leveraging its diverse capabilities in the North American steel market [15][27] - Nucor anticipates domestic steel demand will be higher in 2025 compared to 2024, with confidence in capturing a healthy share of that demand [26] Management's Comments on Operating Environment and Future Outlook - Management described the pricing environment as broadly stable, with expectations of modest margin compression in the steel mill segment despite resilient backlogs and stable demand [18][26] - The company is optimistic about the impact of recent trade policies and tariffs, which are expected to curb unfairly traded imports and protect national security [12][14] - Management highlighted strong demand drivers in technology, infrastructure, energy, and data centers, which are expected to continue driving demand for steel and steel products [22][24][25] Other Important Information - Nucor's credit ratings are the highest among North American steel producers, with a total debt to capital ratio of approximately 24% and cash of approximately $2.5 billion [21] - The company is on track to deploy approximately $3 billion in capital expenditures for the year, with significant progress on several important capital projects [7][10] Q&A Session Summary Question: Can you break down the margin compression in the steel products segment? - Management indicated that the margin compression is not due to weak demand drivers but rather a lag effect from orders taken in late Q4 and early Q1, with recent price increases announced [29][33] Question: What are the biggest opportunities to displace imports in the second half of the year? - Management noted that opportunities exist across various product lines, with an 85% utilization rate across the steel mill segment and a focus on meeting demand where it exists [37][39] Question: Can you speak to the pre-operating startup costs and outlook for new assets? - Management expects pre-operating startup costs to be in the range of $140 million to $150 million per quarter for the back half of the year, with significant contributions to EBITDA anticipated as new assets ramp up [48][49] Question: What is driving the expected margin compression in the steel mills segment? - Management highlighted the impact of tariffs on raw materials and a lag effect in pricing as key drivers of the expected margin compression [56][105] Question: Have you seen any tariff-led costs in Q2? - Management confirmed that there were no tariff-led costs observed in Q2 [71] Question: What is the outlook for working capital in H2? - Management indicated that a large working capital build in H1 set up a constructive pivot for free cash flow in the second half of the year [79][80]

Financial Data and Key Metrics Changes - Nucor generated EBITDA of approximately $1.3 billion and earned $2.6 per diluted share in Q2 2025, representing a significant improvement over Q1 results driven by higher average selling prices in the steel mill segment and stable pricing with higher volumes in the steel products segment [5][14] - Year-to-date adjusted earnings were $782 million or $3.37 per share, with Q2 results including pre-operating and startup costs of approximately $136 million or $0.45 per share [14][15] - Total capital return to shareholders for the first half of the year reached $758 million, with $329 million returned in Q2 alone [5][19] Business Line Data and Key Metrics Changes - The steel mills segment generated pre-tax earnings of $843 million, more than triple that of the prior quarter, driven by higher average selling prices, particularly in sheet and plate operations [15][17] - The steel products segment achieved pre-tax earnings of $392 million, a 28% increase over the prior quarter, supported by stable pricing and higher volumes [9][17] - The raw materials segment realized pre-tax earnings of approximately $57 million, an increase of about 95% over Q1 [18] Market Data and Key Metrics Changes - Nucor's steel mills backlog at the end of Q2 was up nearly 30% compared to the same time last year, indicating strong demand [15][16] - The pricing environment for HRC has remained stable, with spot prices within a 5% band around $900 per ton for the past 16 weeks [16] - Bar shipments were 13% higher in the first half of the year, while plate shipments to the bridge market rose 35% for 2025 [21][22] Company Strategy and Development Direction - Nucor is focused on executing its growth strategy and creating value for shareholders, customers, and communities while maintaining a strong safety record [4][5] - The company is expanding its capabilities with new projects, including a rebar micro mill in Lexington, North Carolina, and a melt shop in Kingman, Arizona, which are expected to ramp up production in the coming quarters [7][8][44] - Nucor supports the administration's actions to strengthen tariffs and trade laws to protect domestic steel producers from unfair imports [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for steel driven by technology and advanced manufacturing projects, infrastructure spending, energy sector growth, and data center construction [20][21][22][24] - The outlook for Q3 indicates nominally lower consolidated earnings compared to Q2, with expectations of modest margin compression in the steel mill segment [25][26] - Management highlighted the importance of maintaining a strong balance sheet and investment-grade credit profile, with a total debt to capital ratio of approximately 24% [19] Other Important Information - Nucor's capital expenditures for the quarter totaled $954 million, with plans to deploy approximately $3 billion in CapEx for the year [5] - The company has a diverse raw material supply chain, allowing it to optimize costs and adapt to changing market conditions [12][13] Q&A Session Summary Question: Can you break down the margin compression in steel products? - Management indicated that margin compression is not due to weak demand but rather a lag effect from orders taken in late Q4 and early Q1, with recent price increases announced [28][31][34] Question: What are the biggest opportunities to displace imports? - Management noted that opportunities exist across various product lines, with utilization rates around 85% and a focus on meeting demand without stockpiling [35][37] Question: Can you discuss the ramp-up of the Lexington and Kingman facilities? - Management expressed excitement about the ramp-up of these facilities, with expectations for positive contributions to EBITDA in Q3 and Q4 [43][44][47] Question: What is driving the expected margin compression in the steel mills segment? - Management cited the impact of tariffs on raw materials and a lag effect in pricing as key drivers of the expected margin compression [55][56] Question: Have you seen any tariff-led costs in Q2? - Management confirmed that there were no tariff-led costs impacting Q2 results [69] Question: What is the outlook for working capital in H2? - Management indicated that a significant build in working capital in H1 is expected to pivot positively in H2, leading to improved free cash flow [78]

Core Insights - Nucor Corporation (NUE) reported earnings of $2.60 per share for Q2 2025, a decrease from $2.68 in the same quarter last year, and missed the Zacks Consensus Estimate of $2.62 [1][8] - The company achieved net sales of $8,456 million, reflecting a year-over-year increase of approximately 4.7%, surpassing the Zacks Consensus Estimate of $8,405.1 million [1][8] Nucor's Operating Figures - Total sales tons to outside customers for steel mills in Q2 were 5,044,000 tons, up 9% year over year, but below the estimate of 5,359,000 tons [2] - Overall operating rates at Nucor's steel mills increased to 85% in Q2 2025 from 80% in Q1 2025 and 75% in Q2 2024 [2] Segment Highlights - The steel mill segment saw an increase in earnings compared to the previous quarter, primarily due to higher average selling prices at Nucor's sheet and plate mills [3] - The steel products segment also experienced an earnings increase from Q1, driven by stable average selling prices and higher volumes [3] - The raw materials segment's earnings rose sequentially, supported by scrap processing operations [4] Financial Position - Cash and cash equivalents at the end of the quarter were $1,946 million, down approximately 57.4% year over year [5] - Long-term debt increased to $6,692 million, up 18.5% year over year [5] - Nucor repurchased around 1.8 million shares of its common stock during the quarter [5] Outlook - The company anticipates Q3 2025 earnings to be slightly lower than Q2 due to expected declines in the steel mills unit and stable earnings in the steel products and raw materials segments [6] - Despite strong backlogs and a consistent demand outlook, Nucor expects margin compression in Q3 compared to Q2 [6] Price Performance - Nucor's shares have decreased by 9.3% over the past year, in contrast to a 21.7% decline in the industry [7]

Financial Performance - Q2 2025 EBITDA was approximately $13 billion[10], compared to $15 billion in the previous period[10] - Net earnings for Q2 2025 were $603 million[10], down from $845 million[10] - Earnings per diluted share (EPS) were $260 in Q2 2025[10], compared to $346 in the previous period[10] - Capital expenditures in Q2 2025 reached $954 million[10], reaffirming the full-year estimate of approximately $3 billion[10] - Share repurchases in Q2 2025 amounted to $200 million, representing 18 million shares[10] - The company returned 55% of Q2 2025 net earnings to shareholders and 100% of year-to-date earnings[10] Operational Highlights and Market Conditions - Steel mills achieved EBITDA positivity at Brandenburg and record sheet shipments[10] - Steel product shipments and margins increased in Q2 2025, with a stable backlog[10] - Strong mill backlogs were maintained at approximately 37 million tons at the end of Q2 2025, a 30% year-over-year increase[10] - Steel imports decreased by approximately 9% year-to-date through June compared to the same period in 2024[10]

Group 1 - Nucor's shares have underperformed over the past year, losing 9% of their value [1] - The anticipated benefits of President Trump's tariff policies for domestic steelmakers have not materialized [1] Group 2 - The article reflects a contrarian investment approach based on macro views and stock-specific turnaround stories [1]

Company Performance - Nucor reported quarterly earnings of $2.6 per share, missing the Zacks Consensus Estimate of $2.62 per share, and down from $2.68 per share a year ago, representing an earnings surprise of -0.76% [1] - The company posted revenues of $8.46 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.61% and up from $8.08 billion year-over-year [2] - Over the last four quarters, Nucor has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Nucor shares have increased approximately 25% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.6% [3] - The current consensus EPS estimate for the upcoming quarter is $2.56 on revenues of $7.97 billion, and for the current fiscal year, it is $8.21 on revenues of $31.82 billion [7] Industry Outlook - The Steel - Producers industry, to which Nucor belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Nucor's stock may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

[Q2 2025 Earnings Report](index=1&type=section&id=Nucor%20Reports%20Results%20for%20the%20Second%20Quarter%20of%202025) [Financial Highlights](index=1&type=section&id=Second%20Quarter%20of%202025%20Highlights) Nucor reported Q2 2025 net earnings of $603 million, showing strong sequential growth but a slight year-over-year decline Quarterly Earnings Comparison | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Earnings (attributable to Nucor) | $603M | $156M | $645M | | Diluted EPS | $2.60 | $0.67 | $2.68 | First Half Earnings Comparison | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Earnings (attributable to Nucor) | $759M | $1.49B | | Diluted EPS | $3.26 | $6.14 | - Management is encouraged by **resilient demand**, a healthy order backlog, and favorable policies promoting American manufacturing[4](index=4&type=chunk) [Operational and Financial Review](index=1&type=section&id=Operational%20and%20Financial%20Review) Consolidated net sales rose 8% sequentially to $8.46 billion, driven by the steel mills segment and improved operating rates [Segment Performance](index=1&type=section&id=Selected%20Segment%20Data) The steel mills segment drove earnings growth, while all segments showed sequential improvement compared to Q1 2025 Earnings Before Income Taxes by Segment (in millions) | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Steel mills | $843 | $645 | $1,074 | $1,748 | | Steel products | $392 | $442 | $680 | $953 | | Raw materials | $57 | $39 | $86 | $49 | - The earnings increase for the steel mills segment in Q2 2025 versus Q1 2025 was primarily due to **higher average selling prices**[20](index=20&type=chunk) [Financial and Operational Metrics](index=1&type=section&id=Financial%20Review) Net sales increased to $8.46 billion, with higher sales prices, stable shipments, and improved steel mill operating rates Q2 2025 Key Metrics vs. Prior Periods | Metric | Q2 2025 | Change vs. Q1 2025 | Change vs. Q2 2024 | | :--- | :--- | :--- | :--- | | Net Sales | $8.46B | +8% | +5% | | Avg. Sales Price/Ton | - | +8% | -3% | | Outside Shipments | 6,820,000 tons | Comparable | +8% | - Overall operating rates at the company's steel mills increased to **85% in Q2 2025**, up from 80% in Q1 2025 and 75% in Q2 2024[14](index=14&type=chunk) - The average scrap and scrap substitute cost per gross ton used in Q2 2025 was **$403**, a 2% increase compared to Q1 2025[11](index=11&type=chunk) [Financial Strength](index=2&type=section&id=Financial%20Strength) Nucor ended the quarter with a strong balance sheet, ample liquidity, and the strongest credit ratings in its sector - At the end of Q2 2025, Nucor had **$2.48 billion in cash**, cash equivalents, and short-term investments[15](index=15&type=chunk) - The company's **$2.25 billion revolving credit facility remains undrawn** and does not expire until March 2030[15](index=15&type=chunk) - Nucor maintains strong credit ratings of **A- from S&P, A- from Fitch, and Baa1 from Moody's**[15](index=15&type=chunk) [Shareholder Returns and Outlook](index=3&type=section&id=Commitment%20to%20Returning%20Capital%20to%20Stockholders) The company continued share repurchases and dividend payments, but anticipates slightly lower earnings in Q3 2025 - During Q2 2025, Nucor repurchased approximately **1.8 million shares** of its common stock at an average price of $111.89 per share[18](index=18&type=chunk) - The Board of Directors declared a cash dividend of **$0.55 per share**, marking the 209th consecutive quarterly cash dividend[19](index=19&type=chunk) - Nucor expects **earnings in Q3 2025 to be nominally lower** than Q2 2025, due to decreased earnings in the steel mills segment[21](index=21&type=chunk) [Company Information and Disclosures](index=3&type=section&id=About%20Nucor) Nucor is North America's largest recycler and a major steel producer, utilizing non-GAAP measures and noting forward-looking risks - Nucor manufactures a wide range of steel products with facilities in the United States, Canada, and Mexico[23](index=23&type=chunk)[25](index=25&type=chunk) - The company uses the non-GAAP financial measure **EBITDA** to provide additional insight for evaluating performance[26](index=26&type=chunk)[28](index=28&type=chunk) - The report includes forward-looking statements subject to risks like **competitive pressure, trade policies, and raw material costs**[29](index=29&type=chunk)[32](index=32&type=chunk) [Financial Statements and Supplemental Data](index=6&type=section&id=Financial%20Statements%20and%20Supplemental%20Data) This section provides detailed unaudited financial statements and supplemental data for the second quarter and first half of 2025 [Tonnage Data](index=6&type=section&id=Tonnage%20Data) Total steel mill shipments rose 10% year-over-year, driven by strong growth in structural and plate steel categories Tonnage Data Highlights - Q2 2025 vs Q2 2024 (in thousands) | Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Steel Mills Total Shipments** | **6,474** | **5,867** | **10%** | | Sheet | 3,057 | 2,869 | 7% | | Bars | 2,148 | 2,005 | 7% | | Structural | 635 | 512 | 24% | | Plate | 606 | 448 | 35% | | **Sales Tons to Outside Customers** | **6,820** | **6,289** | **8%** | [Condensed Consolidated Statements of Earnings](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20(Unaudited)) Net sales for Q2 2025 were $8.46 billion, yielding net earnings of $603 million, or $2.60 per diluted share Statement of Earnings Summary - Q2 2025 vs Q2 2024 (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net sales | $8,456 | $8,077 | | Earnings before income taxes | $899 | $898 | | Net earnings attributable to Nucor | $603 | $645 | | Diluted EPS | $2.60 | $2.68 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Total assets grew to $34.22 billion as of July 5, 2025, with total Nucor stockholders' equity at $20.39 billion Balance Sheet Summary (in millions) | Line Item | July 5, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | Total current assets | $11,719 | $12,475 | | Total assets | $34,217 | $33,940 | | Total current liabilities | $4,146 | $4,977 | | Total liabilities | $12,725 | $12,523 | | Total Nucor stockholders' equity | $20,389 | $20,294 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Net cash from operations for H1 2025 was $1.10 billion, a decrease from $1.95 billion in the prior-year period Cash Flow Summary - H1 2025 vs H1 2024 (in millions) | Line Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $1,096 | $1,945 | | Cash used in investing activities | $(1,723) | $(1,601) | | Cash used in financing activities | $(996) | $(2,087) | | Decrease in cash and cash equivalents | $(1,612) | $(1,748) | | Cash and cash equivalents - end of period | $1,946 | $4,639 | [Non-GAAP Reconciliation: EBITDA](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation%20of%20EBITDA%20(Unaudited)) EBITDA for Q2 2025 was $1.30 billion, a slight increase from Q2 2024, while H1 2025 EBITDA decreased year-over-year Reconciliation of Net Earnings to EBITDA (in millions) | Period | Net earnings before noncontrolling interests | EBITDA | | :--- | :--- | :--- | | Q2 2025 | $706 | $1,295 | | Q2 2024 | $712 | $1,242 | | H1 2025 | $932 | $1,991 | | H1 2024 | $1,671 | $2,745 |

Financial Performance - Nucor Corporation reported consolidated net earnings of $603 million, or $2.60 per diluted share, for Q2 2025, compared to $156 million, or $0.67 per diluted share, in Q1 2025, and $645 million, or $2.68 per diluted share, in Q2 2024 [1][8] - For the first six months of 2025, consolidated net earnings were $759 million, or $3.26 per diluted share, down from $1.49 billion, or $6.14 per diluted share, in the same period of 2024 [2] Segment Performance - Earnings before income taxes for the steel mills segment were $843 million in Q2 2025, up from $645 million in Q2 2024, while the steel products segment earned $392 million, down from $442 million [4] - The raw materials segment reported earnings of $57 million in Q2 2025, compared to $39 million in Q2 2024 [4] Sales and Shipments - Consolidated net sales increased by 8% to $8.46 billion in Q2 2025 from $7.83 billion in Q1 2025, and by 5% from $8.08 billion in Q2 2024 [5] - Approximately 6,820,000 tons were shipped to outside customers in Q2 2025, an 8% increase compared to Q2 2024 [5][6] Cost and Pricing - The average sales price per ton in Q2 2025 increased by 8% compared to Q1 2025 but decreased by 3% compared to Q2 2024 [5] - The average scrap and scrap substitute cost per gross ton used in Q2 2025 was $403, a 2% increase from $394 in Q1 2025 [7] Operational Efficiency - Overall operating rates at Nucor's steel mills increased to 85% in Q2 2025, up from 80% in Q1 2025 and 75% in Q2 2024 [11] - The company set a safety record in the first half of 2025 while achieving sequential earnings growth across all reporting segments [3] Financial Strength - Nucor had $2.48 billion in cash and cash equivalents at the end of Q2 2025, with a $2.25 billion revolving credit facility remaining undrawn [12] - The company maintains strong credit ratings in the North American steel sector [12] Shareholder Returns - During Q2 2025, Nucor repurchased approximately 1.8 million shares at an average price of $111.89 per share, with $606 million remaining authorized for future repurchases [13] - A cash dividend of $0.55 per share was declared, marking the 209th consecutive quarterly cash dividend [14] Future Outlook - Earnings in Q3 2025 are expected to be nominally lower than in Q2 2025, primarily due to anticipated margin compression in the steel mills segment [16]

Market Overview - The S&P 500 index has experienced significant volatility in 2025, peaking in February and briefly entering correction territory in April, but has since achieved a record high [1][2] - Current trading levels for the S&P 500 are over 25 times earnings, with U.S. stocks representing 65% of global stocks, indicating historically high valuations [2] Investment Strategy - Tom Gardner, CEO of The Motley Fool, suggests that investors can still outperform the market by focusing on areas that are currently overlooked [3][5] - Emphasis is placed on seeking dividend-paying, defensive, and value stocks as a more cautious investment approach in the current high valuation environment [5][6] Stock Recommendations - **Enterprise Products Partners (EPD)**: A leading midstream energy company with over 50,000 miles of pipeline, offering a 6.9% dividend yield. The company has a strong track record of increasing dividends for 26 consecutive years and is expected to generate steady cash flows due to long-term contracts with inflation escalation clauses [9][11] - **Brookfield Infrastructure (BIPC/BIP)**: This company focuses on defensive assets such as utilities and railroads, with 85% of its funds from operations being contracted or regulated. It has achieved a 15% CAGR in funds from operations per unit over the past 15 years and targets over 10% FFO growth and 5% to 9% annual dividend growth [12][13] - **Nucor (NUE)**: The largest steel producer in North America, known for its cost-efficient electric arc furnaces and vertical integration. Nucor has increased its dividend for 52 consecutive years and is currently trading 30% below its all-time highs, presenting a potential value opportunity [14][17]

Core Viewpoint - The U.S. Department of Commerce has preliminarily determined that Oman is circumventing anti-dumping and countervailing duties on similar products from China by using hot-rolled steel produced in China to manufacture circular welded carbon steel pipes (CWP) [1][3]. Group 1: Investigation and Findings - The investigation began on November 19, 2024, focusing on circumvention activities across Oman, with Al Jazeera Steel Products Company SAOG identified as the mandatory respondent [3]. - The average anti-dumping duty rate for Chinese CWP is 85.55%, while the countervailing duty rate is as high as 198.49% [3]. - The U.S. has intensified scrutiny on imported steel products, particularly those processed through third countries to evade tariffs [3][4]. Group 2: Market Impact - In 2024, the U.S. imported approximately 50,000 tons of CWP from Oman, accounting for 2.5% of total imports, with Chinese hot-rolled steel remaining competitive in the global market due to price advantages [4]. - The preliminary ruling may lead to the imposition of tariffs on Omani CWP similar to those on Chinese products, potentially exceeding 200%, which would significantly raise export costs for Oman and affect its competitiveness in the U.S. market [5]. - U.S. domestic steel producers like Nucor and Steel Dynamics may benefit from this situation as their market share could increase [5]. Group 3: Broader Context - The global steel market is currently facing an oversupply situation, with low-priced steel from China entering the U.S. market through third countries, leading to ongoing trade disputes [5]. - Similar circumvention issues have been observed in global trade, with countries like Vietnam and Thailand also facing investigations by the U.S. [4].