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Nucor Corp. (NUE)
NYSE:NUE
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Nucor (NUE) AI Stock Analysis

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NUE

Nucor

(NYSE:NUE)

Rating:75Outperform
Price Target:
$163.00
▲(8.43% Upside)
Nucor's overall stock score reflects a stable financial position and positive technical indicators. The strong earnings call performance and strategic initiatives support future growth, but challenges like margin compression and valuation concerns slightly offset these strengths.
Positive Factors
Financial Performance
The steel operations' earnings of $843m beat the consensus estimate of $806m and MSe of $720m.
Growth Strategy
Nucor continues to execute on its multi-year growth pipeline that should over time support higher through-cycle profitability and free cash flow.
Market Position
Nucor is a best-in-class steel producer with a diversified product and end market mix, and the company is currently executing on its multi-year organic growth plans.
Negative Factors
Earnings Outlook
Nucor expects earnings to be nominally lower sequentially, driven primarily by expected decline in steel mills segment earnings on margin compression.
Operating Cash Flow
Operating cash flow missed expectations due to higher working capital build.
Start-up Costs
Elevated start-up costs will remain a ~$140m per quarter drag on earnings in the near term.

Nucor (NUE) vs. SPDR S&P 500 ETF (SPY)

Nucor Business Overview & Revenue Model

Company DescriptionNucor Corporation manufactures and sells steel and steel products. The company's Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling products; and bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and special bar quality products. It also engages in the steel trading and rebar distribution businesses. This segment sells its products to steel service centers, fabricators, and manufacturers in the United States, Canada, and Mexico. Its Steel Products segment offers hollow structural section steel tubing products, electrical conduits, steel racking, steel joists and joist girders, steel decks, fabricated concrete reinforcing steel products, cold finished steel products, steel fasteners, metal building systems, insulated metal panels, steel grating and expanded metal products, and wire and wire mesh products primarily for use in nonresidential construction applications. This segment also engages in the piling distribution business. The company's Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal, as well as engages in the natural gas drilling operations. This segment sells its ferrous scrap to electric arc furnace steel mills and foundries for manufacturing process; and nonferrous scrap metal to aluminum can producers, secondary aluminum smelters, steel mills and other processors, and consumers of various nonferrous metals. It serves agriculture, automotive, construction, energy and transmission, oil and gas, heavy equipment, infrastructure, and transportation industries through its in-house sales force; and internal distribution and trading companies. Nucor Corporation was incorporated in 1958 and is based in Charlotte, North Carolina.
How the Company Makes MoneyNucor generates revenue primarily through the sale of steel and steel-related products, with key revenue streams coming from its various product lines such as structural steel, sheet steel, and merchant bar products. The company operates numerous steel mills and manufacturing facilities across the United States, which enables it to produce a diverse range of products tailored to different industries, including construction, automotive, and energy. Additionally, Nucor benefits from strategic partnerships and long-term contracts with major customers, providing a stable demand for its products. The company also capitalizes on its sustainability initiatives, as increasing demand for eco-friendly steel products can lead to premium pricing. Overall, Nucor's revenue model is supported by its operational efficiency, technological advancements, and strong market presence.

Nucor Key Performance Indicators (KPIs)

Any
Any
Earnings Before Tax by Segment
Earnings Before Tax by Segment
Highlights profitability across different business segments, indicating which areas are driving earnings and where there might be challenges or opportunities for growth.
Chart InsightsNucor's Steel Mills segment experienced a significant decline in earnings before tax since its peak in 2021, reflecting potential challenges in market demand or pricing pressures. Meanwhile, the Steel Products segment shows a more gradual decline, indicating resilience despite broader industry pressures. The Raw Materials segment has been volatile, with recent improvements suggesting strategic adjustments. Corporate and Eliminations continue to weigh on overall performance, highlighting ongoing cost management challenges. Investors should monitor how Nucor navigates these pressures and any strategic shifts to stabilize earnings.
Data provided by:Main Street Data

Nucor Earnings Call Summary

Earnings Call Date:Jul 28, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 27, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial results, robust safety performance, and strategic growth in various segments. However, challenges such as tariff impacts and expected margin compression in the steel mills segment were noted.
Q2-2025 Updates
Positive Updates
Record Safety Performance
Nucor set an all-time safety record for the first half of the year, achieving the safest start in the company's history.
Strong Financial Results
Nucor generated EBITDA of approximately $1.3 billion and earned $2.60 per diluted share, a significant improvement over the first quarter's results.
Record Shipments and Production
Brandenburg plate mill shipments reached a record, and Gallatin sheet mill set a new monthly shipping record during the quarter.
Robust Steel Products Segment
The Steel Products segment achieved pretax earnings of $392 million, a 28% increase over the previous quarter, with a 45% contribution to Nucor's total pretax segment earnings.
Strategic Capital Projects
Significant progress on capital projects, including new mills and galvanizing operations, which are on schedule to commence operations in the coming years.
Negative Updates
Margin Compression in Steel Mills Segment
Expected modest margin compression in the steel mills segment for the third quarter despite resilient backlogs and stable demand.
Tariff and Trade Challenges
Concerns about the impact of tariffs on Brazilian imports and the need for strong enforcement of trade laws to ensure a level playing field.
Pre-operating and Start-up Costs
Second quarter included pre-operating and start-up costs of approximately $136 million, impacting overall profitability.
Company Guidance
During Nucor's second quarter 2025 earnings call, the company reported robust financial performance, with an EBITDA of approximately $1.3 billion and earnings of $2.60 per diluted share, showcasing a significant improvement from the first quarter. The Steel Products segment was a key driver, contributing 45% of Nucor's total pretax segment earnings with EBITDA margins of around 16%. The company also highlighted its commitment to capital allocation, returning $329 million to shareholders in the quarter through dividends and buybacks, and maintaining a strong balance sheet with a total debt to capital ratio of about 24%. Nucor is progressing on several strategic initiatives, including ramping up production at its Brandenburg plate mill and advancing major capital projects like the new rebar micro mill in Lexington and the West Virginia sheet mill. The company remains optimistic about future growth, supported by strong demand across various sectors and favorable trade policies. However, Nucor anticipates nominally lower consolidated earnings in the third quarter due to modest margin compression in the steel mills segment, despite stable demand and resilient backlogs.

Nucor Financial Statement Overview

Summary
Nucor's financial performance is stable with a strong balance sheet and consistent revenue growth. However, declining profit margins and negative free cash flow highlight challenges in maintaining profitability and cash flow stability.
Income Statement
75
Positive
Nucor's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 1.25%, but margins have compressed compared to previous years. The gross profit margin has decreased to 10.43% from 13.35% in 2024, and the net profit margin has also declined to 4.21% from 6.60%. This indicates some pressure on profitability, although the company remains profitable. The EBIT and EBITDA margins have also decreased, reflecting challenges in maintaining operational efficiency.
Balance Sheet
80
Positive
Nucor's balance sheet remains strong with a manageable debt-to-equity ratio of 0.34, indicating prudent leverage. The return on equity (ROE) has decreased to 6.38% in the TTM period, down from 9.99% in 2024, suggesting a decline in profitability relative to shareholders' equity. However, the equity ratio remains healthy, reflecting a solid capital structure.
Cash Flow
65
Positive
The cash flow statement reveals some concerns, particularly with the free cash flow, which has turned negative in the TTM period. The free cash flow growth rate is significantly negative at -173.74%, indicating cash flow challenges. The operating cash flow to net income ratio is strong at 0.94, suggesting good cash generation relative to net income, but the negative free cash flow is a potential risk.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue30.81B30.73B34.71B41.51B36.48B20.14B
Gross Profit3.21B4.10B7.82B12.50B11.03B2.23B
EBITDA3.62B4.49B7.69B11.57B10.23B1.79B
Net Income1.30B2.03B4.52B7.61B6.83B721.47M
Balance Sheet
Total Assets34.22B33.94B35.34B32.48B25.82B20.13B
Cash, Cash Equivalents and Short-Term Investments2.48B4.14B7.13B4.86B2.62B3.05B
Total Debt6.88B6.95B6.84B6.69B5.68B5.34B
Total Liabilities12.72B12.52B13.22B12.91B11.22B8.89B
Stockholders Equity20.39B20.29B20.94B18.41B14.02B10.79B
Cash Flow
Free Cash Flow-385.00M806.00M4.90B8.12B4.61B1.15B
Operating Cash Flow3.13B3.98B7.11B10.07B6.23B2.70B
Investing Cash Flow-3.86B-3.73B-2.50B-5.70B-2.87B-1.76B
Financing Cash Flow-1.97B-3.06B-2.59B-2.51B-3.60B285.85M

Nucor Technical Analysis

Technical Analysis Sentiment
Positive
Last Price150.33
Price Trends
50DMA
139.24
Positive
100DMA
126.84
Positive
200DMA
128.97
Positive
Market Momentum
MACD
2.80
Negative
RSI
64.11
Neutral
STOCH
78.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NUE, the sentiment is Positive. The current price of 150.33 is above the 20-day moving average (MA) of 143.06, above the 50-day MA of 139.24, and above the 200-day MA of 128.97, indicating a bullish trend. The MACD of 2.80 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 78.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NUE.

Nucor Risk Analysis

Nucor disclosed 17 risk factors in its most recent earnings report. Nucor reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Nucor Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$33.96B27.006.28%1.46%-5.78%-60.07%
74
Outperform
$15.53B21.499.93%1.59%-3.91%-30.31%
74
Outperform
$19.39B19.4411.57%1.46%-5.51%-45.07%
72
Outperform
$6.44B186.980.88%1.26%-5.64%-93.26%
69
Neutral
$27.60B10.314.72%1.45%-4.51%
64
Neutral
$16.16B45.120.92%2.46%-7.63%-63.14%
61
Neutral
$10.31B6.180.76%2.94%3.30%-36.34%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NUE
Nucor
150.33
4.79
3.29%
MT
ArcelorMittal
32.87
9.88
42.98%
CMC
Commercial Metals Company
57.01
4.91
9.42%
PKX
POSCO
53.52
-9.14
-14.59%
RS
Reliance Steel
295.19
21.22
7.75%
STLD
Steel Dynamics
132.70
16.49
14.19%

Nucor Corporate Events

Stock BuybackDividendsFinancial Disclosures
Nucor Reports Strong Q2 2025 Financial Results
Positive
Jul 28, 2025

On July 28, 2025, Nucor Corporation reported its financial results for the second quarter of 2025, highlighting net earnings of $603 million and net sales of $8.46 billion. The company experienced sequential earnings growth across all segments, driven by higher selling prices and increased shipments. Nucor’s strong financial position is supported by a cash reserve of $2.48 billion and an undrawn $2.25 billion credit facility. The company repurchased 1.8 million shares and declared a cash dividend, reflecting its commitment to returning capital to shareholders. Nucor’s performance is buoyed by resilient demand, a healthy order backlog, and favorable tax and trade policies.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025