Nucor (NUE -4.59%), the largest and most diversified steel producer in North America, reported earnings on July 28, 2025. Headline results showed GAAP earnings per share of $2.60, slightly above analyst expectations of $2.55 (GAAP). Compared to the previous year, GAAP net earnings were lower. Overall, the quarter showcased notable operational strength and strong financial health, even as profitability saw some pressure compared to the prior year.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $2.60 | $2.55 | $2.68 | (3.0%) |
| Revenue | $8.46 billion | $8.54 billion | $8.08 billion | 4.7% |
| EBITDA | $1.30 billion | $1.24 billion | 4.8% | |
| Net Earnings Attributable to Nucor Stockholders | $603 million | $645 million | (6.5%) | |
| Total Steel Mill Shipments (thousand tons) | 6,474 | 5,867 | 10.3% |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Understanding Nucor’s Business and Growth Drivers
Nucor (NUE -4.59%) is a leading steel producer in North America both by output and range of products. It operates a network of electric arc furnaces, which are facilities that turn scrap metal and raw materials into new steel products. This model gives the company a lower emissions profile compared to traditional blast furnace steelmaking, a growing advantage as buyers and regulators seek out cleaner suppliers.
Nucor’s business focuses on core activities like producing steel sheet, plate, bars, and structural products, as well as downstream fabricated steel products such as joists, decking, and building systems. Its recent strategy centers on expanding production capacity, investing in new mills, and broadening its product portfolio, while maintaining strong financial health. Critical success factors include managing raw material costs, keeping operating expenses under control, and executing large capital projects on time and within budget. Sustainability, supply chain diversity, and steady capital returns to shareholders are also central to its approach.
Key Developments in the Quarter: Financial and Operational Highlights
The period saw gains in several operational metrics. 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%) products. 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 production capacity in active use—reached 85%, a marked increase over the 75% operating rate in the second quarter of 2024.
Operating segments showed varying trends. Steel Mills delivered $843 million in pre-tax segment profit, up from $645 million a year ago. Steel Products, which includes manufactured steel items like joists and rebar, saw a segment profit of $392 million, down from $442 million in Q2 2024. The Raw Materials segment increased to $57 million from $39 million in the second quarter of 2024, helped by improved results from scrap processing operations. Notably, downstream steel product shipments to customers rose 6% year-over-year, with double-digit growth in joist, rebar fabrication, and tubular products, underlining broad-based demand.
Nucor’s cost structure remains a key watchpoint. The average scrap cost per ton edged up to $403, a 2% rise compared to the first quarter of 2025 and a 1.8% rise compared to the second quarter of 2024. Operating costs, particularly for energy and conversion, increased enough to pressure gross margins in Q2 2025. The cost of products sold was up $110 million compared to the second quarter of last year. Management highlighted that start-up costs tied to expansion projects remained elevated, totaling $136 million. 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.
On the balance sheet, the company reported $2.48 billion in cash and short-term investments at quarter-end, with a fully undrawn $2.25 billion revolving credit facility for backup liquidity. Shareholder returns continued with the repurchase of 1.8 million shares and declared a $0.55 per share quarterly dividend -- continuing a track record now at 209 consecutive quarterly payouts. Nucor’s credit ratings remain at the top of the sector, providing flexibility for future investments.
Looking Ahead: Management Outlook and What to Watch For
Looking 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. Steel products and raw materials segments are forecast to hold steady. The company did not provide 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 projects ramp up. Backlogs for several key products sit at historic highs, reflecting continued healthy demand from infrastructure, data centers, and advanced manufacturing end markets.
The quarterly dividend was maintained at $0.55 per share. With ongoing capital spending, order backlogs, and expansion projects in motion, investors should monitor margin trends, raw material cost management, and the progress of new facility construction through the remainder of FY2025.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
