Nucor's Earnings and Revenues Beat Estimates in Q1, Down Y/Y

Core Viewpoint - Nucor Corporation reported a significant decline in earnings for the first quarter of 2025, with earnings per share dropping to 67 cents from $3.46 in the same quarter last year, although it surpassed the Zacks Consensus Estimate of 68 cents [1]. Financial Performance - Net sales for Nucor in the first quarter were $7,830 million, a decrease of approximately 4% year over year, but exceeded the Zacks Consensus Estimate of $7,215.4 million [2]. - The average sales price per ton fell by 12% compared to the prior-year quarter and decreased by 2% sequentially [3]. - Total sales tons to outside customers for steel mills increased by 12% year over year, reaching 5,226,000 tons, surpassing the estimate of 4,609,000 tons [2]. Segment Performance - Earnings from the steel mills unit increased sequentially due to higher volumes, while earnings in the steel products segment declined due to lower average selling prices [4]. - The raw materials segment experienced lower earnings compared to the fourth quarter of 2024, attributed to reduced margins in scrap processing operations and direct reduced iron facilities [4]. Financial Position - At the end of the reported quarter, Nucor had cash and cash equivalents and short-term investments totaling $4.06 billion [5]. - The company amended its revolving credit facility to increase borrowing capacity to $2.25 billion from $1.75 billion and extended the maturity date to March 11, 2030, with the facility remaining undrawn [5]. Outlook - Nucor anticipates an increase in earnings for the second quarter of 2025 across all segments, with the steel mills unit expected to see the largest increase due to higher average selling prices at its sheet and plate mills [6]. Stock Performance - Nucor's shares have declined by 30.8% over the past year, compared to a 35.7% decline in the Zacks Steel Producers industry [7].