Nucor(US:NUE)2026-02-25 21:13Financial Performance - Nucor reported consolidated net earnings of $1.74 billion, or $7.52 per diluted share, in 2025, a decrease from $2.03 billion, or $8.46 per diluted share, in 2024[220]. - Net earnings for 2025 were $1.74 billion, or $7.52 per diluted share, down from $2.03 billion, or $8.46 per diluted share in 2024, representing a decrease of 14.3%[242]. - Gross margins decreased to $3.85 billion (12%) in 2025 from $4.10 billion (13%) in 2024[227]. - Profit sharing costs decreased to $256 million in 2025 from $298 million in 2024 due to decreased profitability[229]. Sales and Revenue - Total net sales to external customers increased by 6% from $30.73 billion in 2024 to $32.49 billion in 2025, with an average sales price per ton decreasing by 2% from $1,241 to $1,221[223]. - Steel mills segment net sales increased by 7% to $20.00 billion in 2025, driven by a 7% increase in outside steel shipments[224]. - Steel products segment net sales increased by 2% to $10.33 billion in 2025, with a 9% increase in volumes offset by a 6% decrease in average sales price per ton[225]. - Raw materials segment net sales increased by 13% to $2.16 billion in 2025, primarily due to increased average sales price and volumes at DJJ's brokerage operations[226]. Operational Efficiency - Operating rates at Nucor's steel mills increased to 83% in 2025 from 76% in 2024, reflecting modest domestic steel demand growth[204]. - Total accounts receivable turned approximately every five weeks, and inventories turned approximately every ten weeks in both 2025 and 2024[250]. - Steel mills and steel products segments had utilization rates of 82% and 61% respectively in Q4 2025[260]. Capital Expenditures and Investments - Capital expenditures increased to $3.42 billion in 2025 from $3.17 billion in 2024, driven by ongoing construction projects[256]. - Capital expenditures are projected to decrease to approximately $2.5 billion in 2026[268]. - Nucor's investment practice focuses on highly liquid securities with short maturities, minimizing the impact of interest rate changes on investment securities[261]. Liquidity and Financial Position - Cash and cash equivalents and short-term investments decreased to $2.70 billion as of December 31, 2025, from $4.14 billion as of December 31, 2024[244]. - The current ratio improved to 2.9 at year-end 2025 compared to 2.5 at year-end 2024, reflecting a stronger liquidity position[249]. - Total contractual obligations as of December 31, 2025, amounted to $16.5 billion, with long-term debt comprising $6.9 billion[265]. Shareholder Returns - Nucor returned approximately $1.2 billion to stockholders in 2025 through dividends and share repurchases, maintaining a commitment to return a minimum of 40% of net earnings[253]. - Nucor paid aggregate dividends of $2.20 per share in 2025, an increase from $2.16 per share in 2024[264]. - Nucor returned approximately $1.22 billion to stockholders in 2025 through dividends and share repurchases[264]. Risk Management - The company is exposed to commodity price risk, particularly for scrap, steel, and natural gas, and aims to negotiate favorable prices to maintain gross margins[286]. - Nucor's exposure to foreign currency risk is primarily through operations in Canada, Europe, and Mexico[263]. - A hypothetical 10% change in natural gas prices could negatively impact pre-tax earnings by $7 million, while a 25% change could result in a $17 million impact[288]. - The company continuously monitors market risks and develops strategies to manage them effectively[284]. Debt and Interest - As of December 31, 2025, Nucor's funded debt to total capital ratio was 24.4%[259]. - Interest expense decreased to $170 million in 2025 from $228 million in 2024, while interest income decreased to $111 million from $258 million[235]. - Approximately 24% of Nucor's long-term debt consisted of variable-rate instruments as of December 31, 2025[261]. - Nucor's long-term debt composition includes 24% variable-rate instruments and 76% fixed-rate instruments as of December 31, 2025[285].