0001193125-25-276207
SEC filingNucor's Q3 2025 net earnings rose to $607M ($2.63/diluted share) on higher steel mill margins and volumes, despite year-to-date earnings decline.
Nucor reported net earnings attributable to Nucor stockholders of $607 million ($2.63 per diluted share) for the third quarter of 2025, a significant increase from $250 million ($1.05 per diluted share) in the third quarter of 2024. Total net sales rose 14% to $8.52 billion, driven by a 9% increase in total tons shipped (to approximately 6.77 million tons) and a 5% increase in average sales price per ton (from $1,201 to $1,258). Gross margins improved to $1.19 billion (14% of sales) from $758 million (10% of sales) in the prior-year quarter, primarily due to higher metal margins in the steel mills segment. The average scrap and scrap substitute cost per gross ton in the steel mills segment increased 3% to $391, but was more than offset by higher selling prices and volumes.
For the first nine months of 2025, net earnings attributable to Nucor stockholders decreased to $1.37 billion ($5.88 per diluted share) from $1.74 billion ($7.22 per diluted share) in the same period of 2024. Net sales increased 5% to $24.81 billion, but average selling prices declined 4% to $1,215 per ton. Gross margins fell to $3.02 billion (12% of sales) from $3.48 billion (15% of sales), driven by lower average selling prices and higher conversion costs in the steel mills segment, as well as decreased profitability in the steel products segment.
Steel Mills: Operating income surged to $793 million in Q3 2025 from $309 million in Q3 2024, reflecting an 8% increase in outside steel shipments and a 7% increase in average selling price per ton (from $967 to $1,038). For the nine-month period, operating income decreased to $1.87 billion from $2.06 billion, as lower average selling prices and margin compression (particularly in Q1 2025) offset a 10% increase in volumes.
Steel Products: Operating income was essentially flat at $319 million in Q3 2025 versus $314 million in Q3 2024, but the prior year included $40 million of losses and impairments. Excluding that charge, earnings decreased due to lower results in the joist and deck business, and to a lesser extent, metal buildings and rebar fabrication. Net sales increased 12% on a 17% increase in shipping volumes, partially offset by a 4% decline in average selling price.
Raw Materials: Operating income improved to $43 million in Q3 2025 from a loss of $66 million in Q3 2024, aided by the absence of an $83 million impairment charge recorded in the prior year and improved profitability in scrap brokerage and processing operations. Net sales increased 18% due to higher average selling prices and increased tons shipped.
Management expects earnings in the fourth quarter of 2025 to be lower than the third quarter of 2025. In the steel mills segment, the anticipated decrease is primarily due to lower overall volumes and lower average selling prices in sheet mills. The steel products segment is expected to see lower volumes, while the raw materials segment faces lower realized pricing and planned outages at DRI facilities. Nucor maintains a strong liquidity position with $2.75 billion in cash and short-term investments and the highest credit ratings of any North American steel producer. Capital expenditures for 2025 are estimated at approximately $3.30 billion, with major projects including the sheet mill in West Virginia, expansion of Nucor Towers & Structures, and a galvanizing line in South Carolina.
Nucor's operating cash flow (CFO) of $2.4B fell short of net earnings ($1.6B) by a margin due to significant working capital outflows. Accounts receivable consumed $614M and inventories $295M, while accounts payable provided $296M. Depreciation of $910M and amortization of $191M were non-cash add-backs. The CFO decline of 25% YoY reflects reduced profitability and adverse working capital.
Capital expenditures of $2.6B exceeded CFO, leading to negative free cash flow. This aggressive investment in property, plant, and equipment signals expansion but strains liquidity.
Despite negative FCF, Nucor returned $1.0B to shareholders through $0.6B in share repurchases and $0.4B in dividends. This reliance on debt or cash reserves may be unsustainable if CFO doesn't improve.
No one-time items noted; however, the large inventory build ($295M) and AR increase suggest slower cash conversion.