Nucor projects lower Q1 earnings amid facility closures

Published 20/03/2025, 21:54
Nucor projects lower Q1 earnings amid facility closures

CHARLOTTE, N.C. - Nucor Corporation (NYSE: NUE), a leading steel and steel products manufacturer with a market capitalization of $29.84B and a "GOOD" InvestingPro Financial Health score, has provided its earnings guidance for the first quarter ending April 5, 2025. According to InvestingPro’s Fair Value analysis, the stock currently appears undervalued. The company anticipates earnings to range between $0.45 and $0.55 per diluted share, which includes one-time charges of about $16 million or $0.05 per diluted share due to the closure of two facilities in its steel products segment.

Adjusted for these one-time charges, Nucor’s first quarter adjusted earnings per diluted share are expected to be between $0.50 and $0.60. These figures mark a decrease from the $1.22 per diluted share reported in the fourth quarter of 2024 and a significant drop from the $3.46 per diluted share earned in the first quarter of the previous year.

The company’s steel mills segment is projected to perform similarly to the last quarter, while the steel products segment is likely to see a decline in earnings due to lower average selling prices. Additionally, the raw materials segment is anticipated to experience reduced earnings compared to the fourth quarter of 2024, primarily attributed to lower margins at the company’s direct reduced iron (DRI) facilities. Nucor also forecasts increased corporate, administrative, and tax impacts for the first quarter of 2025.

In the current quarter, Nucor has repurchased approximately 2.3 million shares at an average price of $133.17 and has returned around $428 million to shareholders through share repurchases and dividend payments. The company maintains a solid 1.68% dividend yield and has remarkably maintained dividend payments for 53 consecutive years, demonstrating strong commitment to shareholder returns. InvestingPro analysis reveals 12 additional key insights about Nucor’s financial strength and market position.

The company plans to release its first-quarter earnings after market close on April 28, 2025, and will conduct a conference call the following morning to discuss the results.

Nucor and its affiliates operate in the United States, Canada, and Mexico, producing a wide range of steel products. The company is also North America’s largest recycler.

This news is based on a press release statement from Nucor Corporation and includes forward-looking statements subject to risks and uncertainties. The company’s actual results may differ materially from these projections due to various factors outlined in their regulatory filings. For a comprehensive analysis of Nucor’s financial position, including detailed metrics and expert insights, access the full Pro Research Report available on InvestingPro, covering over 1,400 top US stocks.

In other recent news, Nucor Corporation reported impressive financial results for the fourth quarter of 2024, exceeding analysts’ expectations. The company posted earnings per share of $1.22, significantly surpassing the projected $0.77, and reported revenue of $7.08 billion against a forecast of $6.81 billion. This strong performance reflects Nucor’s robust position as North America’s leading steel producer. Additionally, Nucor announced executive changes, with Gregory J. Murphy set to retire in 2025 and Benjamin M. Pickett and Douglas R. Wilner assuming key roles in the executive team.

In a related development, President Donald Trump announced a 25% tariff on steel and aluminum imports from Canada, which is expected to benefit domestic producers like Nucor by reducing foreign competition. This tariff increase aligns with Trump’s previous trade policies and has led to a positive market response, with steel stocks, including Nucor, experiencing gains. Furthermore, Nucor plans significant capital investments through 2027, focusing on enhancing its manufacturing capabilities and infrastructure.

These recent developments underscore Nucor’s strategic growth initiatives and the potential impact of trade policies on the steel industry. As the market continues to react to these changes, investors remain attentive to the evolving trade dynamics and their implications for domestic steel producers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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