Nucor Posts 5 Percent Revenue Gain in Q2
Key Takeaways
What's particularly noteworthy is Nucor (NUE -0. In contrast, 87%), the largest and most diversified steel ducer in North America, reported earnings on July 28, 2025. Moreover, Headline results showed...
Article Overview
Quick insights and key information
5 min read
Estimated completion
investment
Article classification
July 28, 2025
10:50 PM
The Motley Fool
Original publisher
What's particularly noteworthy is Nucor (NUE -0
In contrast, 87%), the largest and most diversified steel ducer in North America, reported earnings on July 28, 2025
Moreover, Headline results showed GAAP earnings per of $2
Nevertheless, 60, slightly above analyst expectations of $2
Compared to the previous year, GAAP net earnings were lower
Overall, the quarter showcased notable operational strength and strong financial health, even as fitability saw some pressure compared to the prior year
Moreover, MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y ChangeEPS (GAAP)$2. 0%)Revenue$8. 46 billion$8, given current economic conditions
Furthermore, At the same time, 54 billion$8
On the other hand, In contrast, 08 billion4. 7%EBITDA$1
Moreover, 30 billion$1. 24 billion4. 8%Net Earnings Attributable to Nucor Stockholders$603 million$645 million(6, in today's market environment. 5%)Total Steel Mill Shipments (thousand tons)6,4745,86710. 3% Source: Analyst estimates vided by FactSet
Management expectations based on management's guidance, as vided in Q1 2025 earnings report
Moreover, Understanding Nucor’s and Growth DriversNucor (NUE -0 (an important development). 87%) is a leading steel ducer in North America both by output and range of ducts
Market analysis shows operates a network of electric arc furnaces, which are facilities that turn scrap metal and raw materials into new steel ducts, given current economic conditions
This model gives the company a lower emissions file compared to traditional blast furnace steelmaking, a growing advantage as buyers and regulators seek out cleaner suppliers
Nucor’s focuses on core activities ducing steel sheet, plate, bars, and structural ducts, as well as down fabricated steel ducts such as joists, decking, and building systems
This analysis suggests that s recent strategy centers on expanding duction capacity, in new mills, and broadening its duct portfolio, while maintaining strong financial health, given the current landscape
Critical success factors include managing raw material costs, keeping operating expenses under control, and executing large capital jects on time and within budget
Sustainability, supply chain diversity, and steady capital returns to holders are also central to its apach (something worth watching)
Meanwhile, Key Developments in the Quarter: Financial and Operational HighlightsThe period saw gains in several operational metrics, given current economic conditions
Total steel mill shipments increased 10% compared to the second quarter of 2024, driven by higher output in plate (+35%), structural (+24%), sheet (+7%), and bar (+7%) ducts (an important development), given the current landscape
This volume growth helped offset small declines in average selling prices, which dropped 3% compared with the second quarter of 2024
Nucor’s operating rate—the percentage of its duction capacity in active use—reached 85%, a marked increase over the 75% operating rate in the second quarter of 2024 (quite telling)
Furthermore, Meanwhile, Operating segments showed varying trends, given the current landscape
On the other hand, Steel Mills dered $843 million in pre-tax segment fit, up from $645 million a year ago
Steel ducts, which includes manufactured steel items joists and rebar, saw a segment fit of $392 million, down from $442 million in Q2 2024
Market analysis shows Raw Materials segment increased to $57 million from $39 million in the second quarter of 2024, helped by imved results from scrap cessing operations
Notably, down steel duct shipments to customers rose 6% year-over-year, with double-digit growth in joist, rebar fabrication, and tubular ducts, underlining broad-based demand
Nucor’s cost structure remains a key watchpoint
Furthermore, The average scrap cost per ton edged up to $403, a 2% rise compared to the first quarter of 2025 and a 1
Additionally, 8% rise compared to the second quarter of 2024, in today's market environment
Operating costs, particularly for energy and conversion, increased enough to pressure gross margins in Q2 2025
However, The cost of ducts sold was up $110 million compared to the second quarter of last year
Management highlighted that start-up costs tied to expansion jects remained elevated, totaling $136 million (something worth watching)
These expenses reflect the build-out of major new facilities, such as the upcoming sheet mill in West Virginia and bar mills in North Carolina and Arizona, in light of current trends
On the balance sheet, the company reported $2, given the current landscape
On the other hand, 48 billion in cash and short-term investments at quarter-end, with a fully undrawn $2, in today's financial world. 25 billion revolving credit facility for backup liquidity, given the current landscape
Additionally, Holder returns continued with the repurchase of 1
Furthermore, 8 million s and declared a $0
Conversely, 55 per quarterly dividend -- continuing a track record now at 209 consecutive quarterly payouts
Nucor’s credit ratings remain at the top of the sector, viding flexibility for future investments
Looking Ahead: Management Outlook and What to Watch ForLooking forward, management expects earnings in the third quarter of 2025 to be “nominally lower” than the second quarter, citing anticipated margin compression in the steel mills segment
Furthermore, Steel ducts and raw materials segments are forecast to hold steady
This tells us that company did not vide specific forward financial guidance for the full year, but suggested that start-up and operating costs will remain high in the near term as major growth jects ramp up
Backlogs for several key ducts sit at historic highs, reflecting continued healthy demand from infrastructure, data centers, and advanced manufacturing end
The quarterly dividend was maintained at $0
With capital spending, order backlogs, and expansion jects in motion, investors should monitor margin trends, raw material cost management, and the gress of new facility construction through the remainder of FY2025
Revenue and net income presented using U
Generally accepted accounting principles (GAAP) unless otherwise noted (an important development).
Related Articles
More insights from FinancialBooklet