Nucor Q2 2025 slides: Earnings surge on higher steel prices as growth projects near completion

Nucor Corporation (NYSE:NUE) reported a substantial earnings rebound in its second quarter of 2025, with earnings per share jumping to $2.60 from $0.77 in the previous quarter. The steel giant’s July 29 earnings presentation highlighted stronger pricing, stable shipment volumes, and strategic growth projects nearing completion.

Quarterly Performance Highlights

Nucor delivered EBITDA of approximately $1.3 billion in Q2 2025, with net earnings reaching $603 million. The company maintained a strong balance sheet with approximately 24% total debt-to-capitalization ratio and $3.4 billion in liquidity. Management emphasized the company’s safety performance, noting it was the safest first half of any year with a 0.71 incident and injury rate.

As shown in the following consolidated financial results chart, Nucor’s Q2 performance represents a significant improvement over Q1 2025:

The company’s capital allocation strategy remained balanced, with $954 million deployed for capital expenditures in Q2, while returning value to shareholders through $200 million in share repurchases (1.8 million shares) and $129 million in quarterly dividends. These shareholder returns represented 55% of Q2 net earnings and 100% of year-to-date earnings.

Segment Analysis

Nucor’s segment performance showed improvement across all business units. The Steel Mills segment saw a substantial increase in adjusted pre-tax earnings, rising to $843 million in Q2 from $241 million in Q1, driven primarily by higher average selling prices while maintaining stable volumes.

The Steel Products segment also showed improvement, with adjusted pre-tax earnings increasing to $392 million from $307 million in the previous quarter, benefiting from stable average realized prices, lower average costs per ton, and higher volumes. The Raw Materials segment reported earnings before taxes of $57 million, up from $29 million in Q1, helped by lower operating costs.

The following segment results chart illustrates these improvements:

Looking at more detailed segment data, Steel Mills shipments remained relatively stable at 6,474 thousand tons in Q2 compared to 6,463 thousand tons in Q1, while Steel Products shipments increased to 1,141 thousand tons from 1,048 thousand tons:

Nucor has strategically diversified its Steel Products segment over time, which has resulted in more stable earnings and higher margins. The segment now contributes 45% of earnings (LTM basis) compared to just 16% in the 2017-2019 period, with EBITDA margins improving from 9% to 16% over the same timeframe.

Strategic Growth Initiatives

Nucor highlighted several growth projects nearing completion that will enhance its production capabilities and market position:

Key projects include the Lexington, North Carolina rebar micromill (430,000 tons per annum), which conducted its first continuous melt/cast/roll in July and is now ramping up production. The Kingman, Arizona melt shop completed multiple heats in July and will continue ramping up throughout Q3. Other significant projects include the Indiana Coating Complex, Berkeley Galvanizing Line, and two greenfield facilities in Alabama and Indiana.

The company reaffirmed its capital expenditure estimate of approximately $3 billion for fiscal year 2025, with these strategic investments positioned to support long-term growth.

Balance Sheet Strength and Shareholder Returns

Nucor emphasized its commitment to maintaining a strong balance sheet while returning value to shareholders. The company has reduced its share count by 27% since 2017 through consistent share repurchases, while maintaining a conservative debt profile.

Total (EPA:TTEF) debt stood at $6,881 million against cash and cash equivalents of $2,483 million, resulting in net debt of $4,398 million. The company’s total debt to EBITDA ratio was 1.9x, reflecting its financial discipline.

Market Outlook and Q3 Guidance

Nucor identified several key market segments driving demand for its products, including technology and manufacturing, infrastructure, energy, and data centers. The company is particularly optimistic about opportunities in semiconductor manufacturing, with over $450 billion in investments announced under the 2022 CHIPS Act, and is currently supplying eight semiconductor plants under construction.

Recent trade policy developments are also expected to benefit Nucor, with 50% tariffs on all steel imports beginning to curb unfairly traded imports. The company noted that the Department of Commerce has launched new investigations into rebar imports, with final rulings on corrosion-resistant steel expected in August and October.

For Q3 2025, Nucor expects earnings to be "nominally lower" compared to Q2. The Steel Mills segment is projected to see stable volumes and realized pricing but with margin compression. The Steel Products segment is anticipated to experience margin compression offset by higher volumes, while the Raw Materials segment is expected to benefit from slightly lower volumes offset by lower costs.

In after-hours trading following the earnings presentation, Nucor’s stock was up 0.42% to $146.44, suggesting a positive market reaction to the results and outlook. The stock has traded between $97.59 and $170.52 over the past 52 weeks, according to market data.

The company’s Q2 performance represents a significant improvement from Q1 2025, when it reported adjusted earnings per share of $0.77 on revenue of $7.83 billion. The substantial earnings growth in Q2 appears to have fulfilled management’s previous guidance of "meaningful earnings improvement" provided during the Q1 earnings call.

Full presentation:

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