Nucor's Earnings and Revenues Surpass Estimates in Q4, Down Y/Y

Core Viewpoint - Nucor Corporation reported a significant decline in earnings for the fourth quarter of 2024, primarily due to lower prices and volumes in its steel segments, despite exceeding consensus estimates for both earnings and net sales [1][2][6]. Financial Performance - Earnings per share for Q4 2024 were $1.22, down from$3.16 in the same quarter last year, but above the Zacks Consensus Estimate of 64 cents [1]. - Net sales for Q4 2024 were $7,076 million, a decrease of approximately 8.2$6,598 million [2]. - For the full year 2024, Nucor reported net earnings of $2.03 billion or$8.46 per share, compared to $4.52 billion or$18 per share in 2023 [6]. Operational Metrics - Total sales tons to outside customers for steel mills in Q4 2024 were 4,580,000 tons, an increase of 4% year over year, exceeding the estimate 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 recovery 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 revolving credit facility of$1.75 billion set to expire in November 2026 [5]. Future Outlook - The company 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]. - Increased corporate, administrative, and tax impacts are projected for Q1 2025, which may lead to lower net earnings overall [7]. Stock Performance - Nucor's shares have decreased by 31% over the past year, compared to a 24.4% decline in the industry [8].