0000950170-25-107646
SEC filingNet earnings decreased to $603M in Q2 2025, with steel mills segment driving improved metal margins offsetting steel products pressure.
In the second quarter of 2025, Nucor reported net earnings attributable to stockholders of $603 million ($2.60 per diluted share), a decrease from $645 million ($2.68 per diluted share) in the second quarter of 2024. Net sales increased 5% to $8.46 billion, driven by an 8% increase in total tons shipped to 6.82 million tons, partially offset by a 3% decline in average selling price per ton to $1,240. Gross profit rose to $1.22 billion (14% margin) from $1.19 billion (15% margin) in the prior year, as higher metal margins in the steel mills segment offset margin compression in steel products. The raw materials gross margin also improved, while pre-operating and start-up costs remained elevated at $136 million.
Earnings before income taxes and noncontrolling interests were nearly flat at $899 million compared to $898 million in Q2 2024. Marketing, administrative, and other expenses were comparable, though nonrecurring losses and impairments of assets totaled $11 million in the quarter (vs. $14 million in Q2 2024). The effective tax rate increased to 21.5% from 20.7%.
Steel Mills: Segment earnings increased to $843 million from $645 million in Q2 2024, driven by improved metal margins (selling price minus scrap cost) and a 9% rise in external tons shipped. Average selling price per ton decreased 1% to $1,041, but scrap costs increased only 2% to $403 per gross ton, expanding margins. Operating margin improved to 16.0% from 13.3%.
Steel Products: Earnings declined to $392 million from $442 million, despite a 6% increase in shipping volumes. Average selling price per ton fell 7% to $2,331, with broad-based decreases across most product lines, particularly joist and deck. Operating margin contracted to 14.8% from 16.3%.
Raw Materials: Earnings rose to $57 million from $39 million, benefiting from improved performance at the DRI facilities and, to a lesser extent, scrap processing. The segment's operating margin increased to 10.4% from 7.6%.
Capacity utilization for the first six months of 2025 averaged 82% (steel mills), 61% (steel products), and 73% (raw materials), compared to 79%/59%/75% in the prior year period.
Management expects third-quarter 2025 earnings to be nominally lower than the second quarter, driven by margin compression in the steel mills segment, while steel products and raw materials earnings are expected to remain similar. The company noted resilient backlogs and stable demand across key end markets. Capital expenditures for 2025 are estimated at $3.0 billion, with major projects including the West Virginia sheet mill, NTS expansion, and South Carolina galvanizing line. Nucor maintains a strong liquidity position with $2.48 billion in cash and short-term investments, and a current ratio of 2.8.
As of July 5, 2025, Nucor held $1.946B in cash and cash equivalents and $537M in short-term investments, totaling $2.483B in liquid assets. Total debt stood at $6.881B (including $157M short-term debt, $32M current portion of long-term debt, and $6.692B long-term debt). Shareholders' equity was $20.389B, with a debt-to-equity ratio of 33.7%. Inventory increased to $5.462B from $5.106B at year-end 2024, reflecting a 7.0% rise. Contract liabilities (deferred revenue) were $225M, up from $200M at December 31, 2024.
No specific purchase commitments or contractual obligations were disclosed in the Notes to Financial Statements for this interim period. The filing references commitments and contingencies in the balance sheet but provides no further detail on off-balance-sheet arrangements or long-term supply agreements.
Nucor repurchased $507M of its common stock (4.0M shares) in the first six months of 2025, leaving $606M remaining under the $4.00B authorization approved May 11, 2023. Dividends declared were $0.55 per share in Q2 2025 ($0.54 in Q2 2024), totaling $255M for the six months. In March 2025, Nucor issued $1.0B in notes (4.650% due 2030 and 5.100% due 2035), netting $997M, and used proceeds to redeem $1.007B of maturing notes. Capital expenditures were $1.786B for the six months, up 18.4% from $1.508B in the prior-year period, driven by steel mills ($1.161B) and steel products ($310M).
Segment results for Q2 2025: Steel Mills generated $5.253B in external sales (up 8.1% YoY) and segment earnings of $843M (16.0% margin). Steel Products had $2.657B in external sales (down 1.7% YoY) and segment earnings of $392M (14.8% margin). Raw Materials contributed $546M in external sales (up 5.8% YoY) and segment earnings of $57M (10.4% margin). Corporate/eliminations reduced total earnings by $393M, resulting in consolidated earnings before income taxes and noncontrolling interests of $899M. No geographic breakdown was provided beyond the segment structure.
Nucor's cash flow from operations (CFO) for the first half of fiscal 2025 was $1,096 million, down 43.7% from $1,945 million in the same period last year. The decline was primarily driven by a 44.2% drop in net earnings (from $1,671 million to $932 million) and significant working capital outflows. Accounts receivable and inventories consumed $706 million and $352 million, respectively, while accounts payable provided a modest $375 million boost. Depreciation and amortization increased to $734 million ($606+128) from $648 million, partially offsetting the earnings decline.
Capital expenditures rose 23.3% to $1,813 million, reflecting continued investment in growth projects. As a result, free cash flow (CFO minus capex) was deeply negative at -$717 million, compared to positive $474 million in the prior year. The company funded this gap through debt issuance ($997 million) and existing cash. Shareholder returns included $500 million in share repurchases and $258 million in dividends, totaling $758 million.
Notable items included an impairment of assets ($20 million), a reduction in deferred income taxes ($17 million), and a $135 million inflow from federal income taxes. The non-cash investing activity note shows a $27 million decrease in accrued plant and equipment purchases, indicating lower capital commitments at period-end.