Financial Performance - Nucor reported consolidated net earnings of $2.03 billion, or $8.46 per diluted share, in 2024, a decrease from $4.53 billion, or $18.00 per diluted share, in 2023[218]. - Net earnings for 2024 were $2.03 billion, or $8.46 per diluted share, down from $4.53 billion, or $18.00 per diluted share in 2023, representing a 55.3% decrease[236]. - Total net sales to external customers decreased by 11% from $34.71 billion in 2023 to $30.73 billion in 2024, with an average sales price per ton decreasing by 10% from $1,377 to $1,241[221]. Sales and Market Demand - The steel products segment experienced a 21% decrease in net sales from $12.76 billion in 2023 to $10.09 billion in 2024, primarily due to a 12% decrease in average sales price per ton[224]. - Joist sales in the steel products segment fell by 23% from 510,000 tons in 2023 to 391,000 tons in 2024, reflecting a broader decline in construction-related demand[223]. - Total tons shipped to outside customers decreased by 2% from 25,205,000 tons in 2023 to 24,767,000 tons in 2024[221]. - Operating rates at Nucor's steel mills decreased slightly to 76% in 2024 from 78% in 2023, indicating a softening in steel market demand[201]. Cost and Margin Analysis - Gross margins decreased from $7.82 billion (23%) in 2023 to $4.10 billion (13%) in 2024, reflecting the impact of lower selling prices and increased raw material costs[226]. - Gross margins in the steel mills segment decreased significantly due to decreased metal margins, with average scrap costs per gross ton decreasing by 6% from $421 in 2023 to $394 in 2024[37]. - The steel mills segment's net sales decreased by 7% in 2024 compared to 2023, driven by a 7% decrease in average sales price per ton[222]. Investments and Capital Expenditures - Planned capital expenditures for 2025 are approximately $3.0 billion, with significant investments in ongoing projects including a sheet mill in West Virginia and two new manufacturing locations[262]. - Cash used in investing activities increased by $1.24 billion to $3.17 billion in 2024, primarily due to $758 million for acquisitions compared to $71 million in 2023, with $565 million allocated to the acquisition of Rytec[250]. - Pre-operating and start-up costs of new facilities increased to approximately $594 million in 2024 from approximately $400 million in 2023, primarily related to new mills in Kentucky, West Virginia, and Arizona[37]. Shareholder Returns - Nucor returned approximately $2.7 billion to stockholders in 2024 through dividends and share repurchases, maintaining a commitment to return a minimum of 40% of net earnings[246]. - Stock repurchases amounted to $2.22 billion in 2024, up from $1.55 billion in 2023, an increase of $663 million, while cash dividends to stockholders rose slightly to $522 million from $515 million[251]. - Nucor paid aggregate dividends of $2.16 per share in 2024, an increase from $2.04 per share in 2023, and declared a quarterly cash dividend of $0.55 per share for May 2025[257]. Liquidity and Financial Ratios - Cash and cash equivalents decreased to $3.56 billion in 2024 from $6.38 billion in 2023, reflecting a significant reduction in liquidity[242]. - The current ratio declined to 2.5 at year-end 2024 from 3.6 at year-end 2023, impacted by lower cash and cash equivalents and increased current portion of long-term debt[242]. - Total accounts receivable turnover was approximately every five weeks in 2024, consistent with 2023, while inventory turnover improved from approximately every 11 weeks in 2023 to every ten weeks in 2024[243]. Debt and Obligations - Nucor's funded debt to total capital ratio was 24.5% as of December 31, 2024, with a $1.75 billion undrawn revolving credit facility maturing on November 5, 2026[252]. - Total contractual obligations as of December 31, 2024, amounted to $17.25 billion, with long-term debt obligations of $6.73 billion[259]. - Nucor's long-term debt consists of 21% variable-rate instruments and 79% fixed-rate instruments as of December 31, 2024[283]. Risk Management - A hypothetical 10% change in natural gas prices could negatively affect pre-tax earnings by $11 million, while a 25% change could result in a $28 million impact[286]. - The company is exposed to foreign currency risk primarily through operations in Canada, Europe, and Mexico, with insignificant open foreign currency derivative contracts as of December 31, 2024[287]. - Nucor's DRI facilities in Trinidad and Louisiana provide flexibility in managing input costs, particularly when demand for prime scrap increases[284]. Other Financial Metrics - Equity in earnings of unconsolidated affiliates rose to $30 million in 2024 from $13 million in 2023, mainly due to decreased losses at NJSM[228]. - Losses and impairments of assets in 2024 totaled $137 million, including an $83 million impairment charge related to a long-term note receivable[229]. - Interest expense decreased to $228 million in 2024 from $246 million in 2023, while interest income decreased to $258 million from $276 million[230].

Core Viewpoint - Nucor's recent earnings report shows a decline in earnings and revenues year-over-year, but the company has outperformed the S&P 500 in the past month, raising questions about future performance leading up to the next earnings release [1][2]. Financial Performance - Nucor reported earnings of $1.22 per share for Q4 2024, down from $3.16 in the same quarter last year, but exceeded the Zacks Consensus Estimate of 64 cents [2]. - Net sales for Q4 2024 were approximately $7.1 billion, an 8.2% decrease year-over-year, yet surpassed the Zacks Consensus Estimate of around $6.6 billion [2]. - For the full year 2024, Nucor's net earnings were $2.03 billion or $8.46 per share, compared to $4.52 billion or $18 per share in 2023 [6]. Operating Metrics - Total sales tons to outside customers for steel mills in Q4 were 4,580,000 tons, a 4% increase year-over-year, exceeding estimates of 4,202,000 tons [3]. - The overall operating rate for steel mills was 74% in Q4 2024, consistent with Q4 2023 and slightly down from 75% in Q3 2024 [3]. Segment Performance - Earnings from the steel mills unit fell 71% year-over-year due to lower average selling prices and volumes [4]. - The steel products segment saw a 49.8% decline in earnings year-over-year, attributed to lower volumes and average selling prices [4]. - The raw materials segment reported earnings of $57 million, a significant improvement from a loss of $14 million a year ago [4]. Financial Position - At the end of Q4 2024, Nucor had cash and cash equivalents and short-term investments totaling $4.14 billion, with an undrawn $1.75 billion revolving credit facility set to expire in November 2026 [5]. Future Outlook - Nucor anticipates that earnings in the steel mills and steel products segments for Q1 2025 will be comparable to Q4 2024, while earnings in the raw materials segment are expected to decline [7]. - The company expects higher corporate, administrative, and tax impacts in Q1 2025 compared to Q4 2024, which may lead to lower net earnings overall [7]. Industry Comparison - Nucor is part of the Zacks Steel - Producers industry, where Steel Dynamics, a competitor, reported a revenue decline of 8.5% year-over-year in its latest quarter [11]. - Steel Dynamics is expected to post earnings of $1.64 per share for the current quarter, reflecting a 55.3% decrease from the previous year [12].

Core Insights - Nu E Power Corp. is advancing its operations with a focus on developing renewable energy projects, particularly the Hanna Solar Farm, which is a significant investment in clean energy infrastructure [1][4]. Project Overview - The Hanna solar project is designed to have a capacity of 300 MWac/360 MWdc and is located approximately 200 kilometers northeast of Calgary, Alberta [2]. - The project has undergone an initial wildlife assessment and is considered low risk to wildlife, currently in the interconnection process with the Alberta Electric System Operator [2]. - Anticipated to break ground in mid-to-late 2026, the project represents an investment of approximately $400 million and aims to create long-term jobs in Alberta [3]. Environmental Impact - Once operational, the Hanna solar project is expected to generate around 650,000 MWh of electricity annually and provide 280,000 tonnes of carbon offsets each year [3]. Company Background - Nu E Power Corp. is focused on developing, constructing, and operating clean and renewable energy infrastructure across North America, with a goal of developing up to 2 GW of renewable energy projects in Canada by 2030 [4]. - The company has partnered with Low Carbon Canada Solar Limited to facilitate non-dilutive investment [4].

Core Viewpoint - Investors should focus on the quality of businesses rather than short-term events like tariffs, as emotional reactions can lead to stock price fluctuations [1][12]. Group 1: Steel Industry Overview - The steel industry primarily utilizes two production methods: blast furnaces for primary steel and electric arc mini-mills for recycling scrap steel [3][5]. - Blast furnaces are profitable in high-demand environments but incur high operating costs when demand is low, leading to potential losses [4]. - Electric arc mini-mills, used by companies like Nucor and Steel Dynamics, are more flexible and environmentally friendly, allowing for consistent profitability even during low demand periods [5][6]. Group 2: Company Comparisons - Nucor and Steel Dynamics are highlighted as superior investments in the steel sector due to their use of advanced technology and diversified business models [6][8]. - Nucor has a long history of increasing dividends for over 50 years, establishing itself as a Dividend King, while Steel Dynamics has increased dividends for 14 years, demonstrating resilience during challenging market conditions [9][10]. - Steel Dynamics is diversifying further by building an aluminum mill, adding a layer of diversification not offered by Nucor [10]. Group 3: Investment Strategy - Long-term investors should prioritize quality companies like Nucor and Steel Dynamics over those that may experience short-term gains due to market excitement [7][11]. - The emotional reactions of the market can lead to dramatic stock movements, making it essential for investors to maintain a long-term perspective [12][13].

Core Points - Nucor Corporation announced the retirement of Gregory J. Murphy, Executive Vice President of Business Services and General Counsel, effective June 7, 2025, after a 36-year career [1] - Benjamin M. Pickett will be promoted to Executive Vice President of Business Services, and Douglas R. Wilner will be promoted to President of Corporate Legal Affairs and General Counsel, with Mr. Murphy assisting in the transition [2] - Mr. Murphy joined Nucor in 2015 and has held various roles, including Vice President and General Counsel, and has contributed significantly to the company's legal, environmental, and public affairs teams [3][4] Leadership Transition - Mr. Pickett has been with Nucor since 2018, previously serving as Director of Corporate Legal Affairs and General Manager of Public Affairs and Government Relations [4] - Mr. Wilner joined Nucor in 2016 as General Manager of Corporate Legal Affairs and has a background in law from Monsanto Company and private practice [5] - Nucor's Chair, President, and CEO, Leon Topalian, expressed confidence in the new leaders, highlighting their qualifications for their expanded roles [6] Company Overview - Nucor and its affiliates are major manufacturers of steel and steel products, operating in the U.S., Canada, and Mexico [7] - The company produces a wide range of products, including carbon and alloy steel, structural tubing, and various steel components, and is recognized as North America's largest recycler [7]

Group 1 - Nucor Corporation declared a quarterly cash dividend of $0.55 per share, marking its 208th consecutive quarterly cash dividend [1] - The dividend is payable on May 12, 2025, to stockholders of record on March 31, 2025 [1] Group 2 - Nucor and its affiliates are manufacturers of steel and steel products, with operations in the United States, Canada, and Mexico [2] - The range of products includes carbon and alloy steel in various forms, as well as fabricated concrete reinforcing steel and metal building systems [2] - Nucor is recognized as North America's largest recycler, also involved in brokering ferrous and nonferrous metals and processing scrap [2]

Core Viewpoint - Nucor Corporation (NUE) is facing challenges due to declining steel prices and downward revisions in earnings estimates, despite ongoing investments in growth projects and a strong commitment to shareholder returns [2][15][20]. Financial Performance - NUE is currently trading at a forward price/earnings ratio of 17.07X, which is approximately 52.5% higher than the Zacks Steel Producers industry average of 11.19X [1]. - The stock has experienced a 25.8% decline in share price over the past year, underperforming the industry's 19.6% decline and the S&P 500's rise of 23.3% [2]. - The Zacks Consensus Estimate for 2025 earnings has been revised downward to $7.64, indicating a year-over-year decline of about 14.2% [8]. Market Conditions - U.S. steel prices have significantly decreased, with benchmark hot-rolled coil (HRC) prices dropping over 40% from $1,200 per short ton at the start of 2024 [16]. - Factors contributing to the price decline include oversupply, reduced demand from key industries, and economic uncertainties [16][18]. - A slowdown in global automotive production and construction activities has further curtailed steel consumption [18]. Strategic Initiatives - Nucor is investing $6.5 billion in eight major growth projects through 2027, including the largest project at Apple Grove, WV [10]. - The company has made strategic acquisitions, such as Southwest Data Products and Rytec Corporation, to expand its product portfolio and create cross-selling opportunities [11][12]. Shareholder Returns - Nucor ended 2024 with strong liquidity, including cash and cash equivalents of approximately $4.1 billion, and generated cash from operations of around $4 billion [13]. - The company returned about $2.7 billion to shareholders through dividends and share repurchases in the previous year, with a total of around $12 billion returned since 2020 [13]. - NUE offers a dividend yield of 1.6% with a payout ratio of 25%, indicating a sustainable dividend policy [14].

Group 1: Tariff Impact and Stock Performance - President Trump's 25% tariff on imported steel has increased investor interest in domestic steel producers, particularly Nucor (NUE) and United States Steel (X) [1] - Following the implementation of tariffs, United States Steel and Nucor stocks experienced gains of +4% and +6% respectively in February [2] - Despite recent gains, both companies have underperformed compared to the broader market over the past year [2] Group 2: Financial Outlook for United States Steel - United States Steel's total sales are projected to rise by 2% in fiscal 2025 and by an additional 6% in fiscal 2026, reaching $17.07 billion [4] - However, annual earnings for United States Steel are expected to decline by 19% in fiscal 2025 to $1.73 per share, down from $2.14 in 2024 [4] - Earnings estimates for fiscal 2025 and fiscal 2026 have decreased by 26% and 8% respectively over the last 30 days [5] Group 3: Financial Outlook for Nucor - Nucor's total sales are expected to dip by 1% in fiscal 2025 but are projected to rebound with a 6% increase in fiscal 2026, reaching $32.26 billion [6] - Nucor's EPS is forecasted to drop by 14% in fiscal 2025 but is expected to spike by 43% in fiscal 2026 to $10.99 per share [6] - EPS estimates for fiscal 2025 and fiscal 2026 have decreased by 8% and 2% respectively in the last month [6] Group 4: Valuation Comparison - Nucor trades at 17.2X forward earnings, which is closer to the industry average of 12.3X, while United States Steel trades at a premium of 19.4X despite a less favorable earnings outlook [7] - This valuation disparity highlights Nucor's more attractive earnings potential compared to United States Steel [7] Group 5: Investment Ratings - United States Steel has a Zacks Rank 5 (Strong Sell) due to declining earnings estimate revisions, indicating a greater reliance on protective policies [9] - Nucor holds a Zacks Rank 3 (Hold), suggesting that while its earnings potential is compelling, better buying opportunities may still arise [9]

Group 1 - The US steel industry is potentially entering a growth cycle due to the recently announced 25% universal tariffs on steel and aluminum imports [1] - President Trump has also announced reciprocal tariffs, meaning any tariff imposed by another country will be met with a similar tariff from the US [1] Group 2 - The article highlights the implications of these tariffs on the steel industry, suggesting a favorable environment for domestic steel producers [1]

Core Insights - JPMorgan analyst Bill Peterson identifies significant implications for steel stocks beyond political tariff discussions, highlighting potential benefits from higher pricing and changing trade flows [1] Group 1: Key Players and Ratings - Nucor Corp (NUE) is rated Overweight, benefiting from product diversification and prioritizing profitability over volume, which may lead to multiple expansions for the company and the sector [2] - U.S. Steel Corp (X) also holds an Overweight rating, with strong valuation support and potential for share buybacks due to easing capex requirements and expected free cash flow inflection in 2025 [3] - Steel Dynamics Inc (STLD) receives a Neutral rating, with long-term value potential from its aluminum rolling mill project, but faces near-term risks from pricing pressures [4] Group 2: Market Dynamics and Pricing - Recent Section 232 tariffs have led to a rally in steel stocks, with increases of 5% to 17% in anticipation of higher pricing, and the HRC forward curve rising approximately 10% since pre-election levels [5] - Industry participants expect steel prices to range between $850 and $900 per ton, with potential peaks near $1,000 per ton, benefiting stocks with high spot exposure like U.S. Steel and Cleveland-Cliffs Inc (CLF) [5] Group 3: Future Outlook - The near-term outlook for steel stocks is positive, driven by higher prices, favorable demand-supply dynamics, and strategic positioning [6] - However, the long-term outlook remains uncertain due to potential shifts in exemptions and demand-side risks [6]