Latest news with #NucorCorp
Yahoo
2 days ago
- Business
- Yahoo
Nucor Corp (NUE) Q2 2025 Earnings Call Highlights: Strong Financial Performance and Strategic ...
EBITDA: Approximately $1.3 billion for the second quarter. Earnings Per Share (EPS): $2.60 per diluted share. Shareholder Returns: $329 million returned through dividends and buybacks in the quarter; $758 million total for the first half of the year. Capital Expenditures: $954 million for the quarter; on track for approximately $3 billion for the year. Steel Mills Segment Pretax Earnings: $843 million, more than triple the prior quarter. Steel Products Segment Pretax Earnings: $392 million, a 28% increase over the previous quarter. Raw Materials Segment Pretax Earnings: Approximately $57 million, a 95% increase over the first quarter. Net Earnings: $603 million for the second quarter. Debt and Cash Position: Total debt to capital ratio of approximately 24%; cash of approximately $2.5 billion. Steel Mills Backlog: Up nearly 30% over the same time last year. Steel Products Backlog: Up approximately 20% from a year ago. Warning! GuruFocus has detected 3 Warning Sign with GPK. Release Date: July 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Nucor Corp (NYSE:NUE) achieved a significant improvement in financial performance with an EBITDA of approximately $1.3 billion and earnings of $2.60 per diluted share, driven by higher average selling prices and stable realized pricing. The company returned $329 million to shareholders through dividends and buybacks in the second quarter, totaling $758 million for the first half of the year. Nucor's Brandenburg plate mill achieved positive EBITDA for the quarter, with shipments reaching record levels, indicating strong operational performance. The Steel Products segment saw a 28% increase in pretax earnings over the previous quarter, with robust demand and healthy backlog levels extending into 2026. Nucor's strategic investments in new facilities, such as the rebar micro mill in Lexington and the Kingman melt shop, are progressing well, with several projects nearing completion, positioning the company for future growth. Negative Points Nucor expects consolidated earnings to be nominally lower in the third quarter due to modest margin compression in the Steel Mills segment. The company faces challenges from unfairly traded imports, particularly in corrosion-resistant and rebar products, necessitating ongoing trade law enforcement. Preoperating and start-up costs remain a concern, with approximately $136 million incurred in the second quarter, impacting overall profitability. The potential impact of tariffs, particularly on Brazilian imports, poses a risk to raw material costs and could affect margins if implemented. Despite strong demand, the pricing environment is described as broadly stable, with some segments experiencing margin compression due to lag effects in pricing realization. Q & A Highlights Q: On Steel Products, you mentioned margin compression. Can you break that down for us? Is it due to higher input costs? How should we think about pricing directionally from the second to the third quarter? A: Leon Topalian, CEO: The nominal adjustment in pricing isn't due to weak demand drivers but rather a lag effect from orders taken in late Q4 or early Q1 now being realized. We've recently announced a price increase, and demand drivers remain robust. John Hollatz, EVP: Margin expansion and contraction are normal with steel price movements. Our downstream businesses have custom-engineered products with value-added solutions, and demand remains solid. Q: Among the steel products, which are running at relatively lower utilization, and what are your best opportunities to displace imports in the second half of the year? A: Leon Topalian, CEO: Our capability set is the most diverse among North American steel producers. We're running roughly 85% utilization rates across the steel mills segment, with more opportunities in sheet, plate, rebar, and long products. Import levels are still too high, and we advocate for strong, fair trade. Q: Could you speak to the preoperating start-up costs and the period-by-period outlook for Lexington and Kingman as they start contributing to EBITDA positively? A: Leon Topalian, CEO: We're excited about the Lexington micro mill and Kingman, Arizona, both geographically well-positioned. Stephen Laxton, CFO: Pre-op start-up costs came down quarter-over-quarter, driven by Brandenburg reaching breakeven. Expect $140 million to $150 million in pre-op costs per quarter for the second half of the year. Q: Can you talk about the margin compression expected in the steel mills segment for the third quarter? A: Leon Topalian, CEO: The potential pressure in flat sheet, particularly due to slabs from Brazil, could impact earnings. We have mitigation strategies, including self-supply through our sheet mills. There's significant upside in other segments like Brandenburg, long products, and beams. Q: Are there any direct tax benefits from the "big beautiful bill" in the back half of the year or for 2026? A: Stephen Laxton, CFO: The bill is forward-facing, with limited immediate benefits. It will have a pronounced effect on R&D spending, allowing us to expense it upfront rather than amortizing over seven years, providing positive net present value benefits. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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San Francisco Chronicle
3 days ago
- Business
- San Francisco Chronicle
Nucor: Q2 Earnings Snapshot
CHARLOTTE, N.C. (AP) — CHARLOTTE, N.C. (AP) — Nucor Corp. (NUE) on Monday reported second-quarter net income of $603 million. The Charlotte, North Carolina-based company said it had net income of $2.60 per share. The results missed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $2.62 per share. The steel company posted revenue of $8.46 billion in the period, exceeding Street forecasts. Four analysts surveyed by Zacks expected $8.41 billion. _____
Yahoo
3 days ago
- Business
- Yahoo
Nucor: Q2 Earnings Snapshot
CHARLOTTE, N.C. (AP) — CHARLOTTE, N.C. (AP) — Nucor Corp. (NUE) on Monday reported second-quarter net income of $603 million. The Charlotte, North Carolina-based company said it had net income of $2.60 per share. The results missed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $2.62 per share. The steel company posted revenue of $8.46 billion in the period, exceeding Street forecasts. Four analysts surveyed by Zacks expected $8.41 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on NUE at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
10-06-2025
- Business
- Miami Herald
US, Mexico near deal to cut steel duties and cap imports
The U.S. and Mexico are closing in on a deal that would remove President Donald Trump's 50% tariffs on steel imports up to a certain volume, according to people familiar with the matter, a revamp of a similar deal between the trade partners during his first term. Trump hasn't been directly involved in the negotiations and would need to sign off on any deal. The talks are being led by Commerce Secretary Howard Lutnick, according to the people, who asked not to be identified as the discussions are private. The people said the agreement hasn't been finalized. Under its current terms, it would allow U.S. buyers to import Mexican steel duty-free as long as they kept total shipments below a level based on historical trade volumes, according to the people. The new cap would be higher than what was allowed under a similar deal during Trump's first term, they said, which was never a fixed figure but designed to "prevent surges." The White House didn't immediately respond to a request for comment. Mexican President Claudia Sheinbaum's office also didn't respond to a request for comment. U.S. steel stocks moved lower in late trading after Bloomberg's report. Cleveland-Cliffs Inc. dropped more than 7%, and Nucor Corp. fell more than 4%. The Mexican peso trimmed losses. At an event on Tuesday, Mexican Economy Minister Marcelo Ebrard said he told U.S. officials in meetings last week that steel tariffs are not justified in Mexico's case because the U.S. sends more steel to Mexico than vice versa. Last Friday, he posted a picture that showed him shaking hands with a smiling Lutnick in Washington. "We are waiting for their response, because on Friday we gave them the details of Mexico's argument and we are right," Ebrard told reporters Tuesday. "So we are going to wait for their response which will probably be this very week." Trump last week announced he would double steel duties to 50% after saying he would approve the purchase of United States Steel Corp. by Japan's Nippon Steel Corp., a move he said would protect the domestic industry and national security. While domestic steelmakers welcome the move, end-users have urged the administration to ease the tariffs. The negotiations come as Sheinbaum seeks an accommodation with Trump over immigration and drug trafficking across their shared border, which the U.S. leader has demanded Mexico halt. Homeland Security Secretary Kristi Noem accused Sheinbaum Tuesday of "encouraging" more anti-deportation protests in Los Angeles, where the U.S. has deployed troops. Sheinbaum has called Noem's claim "absolutely false." The talks also come ahead of a Group of Seven leaders summit in Canada, where the two presidents are likely to meet. U.S. steel imports from Mexico totaled about 3.2 million metric tons last year, accounting for 12% of total shipments of the material according to Commerce Department data. A previous deal the U.S. reached with Mexico in 2019, during Trump's first term, agreed to prevent import volumes that exceeded average levels for the 2015-2017 period. -With assistance from Josh Wingrove and Alex Vasquez. (Updates with market activity in fifth paragraph) Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
03-06-2025
- Business
- Yahoo
Why Nucor Corp. (NUE) Skyrocketed On Monday
We recently published a list of . In this article, we are going to take a look at where Nucor Corp. (NYSE:NUE) stands against other top-performing stocks on Monday. Nucor Corp. rallied by 10.10 percent on Monday to close at $120.40 apiece as investors snapped up shares following President Donald Trump's slapping of a 50-percent tariff on all steel and aluminum imports. On Friday, Trump said the new levies will take effect tomorrow, June 4, hours after accusing China of violating an agreement with the US to mutually reduce levies and trade restrictions for critical minerals. A close-up of a worker inspecting a galvanised sheet steel product in a well-lit warehouse. The US Midwest duty-paid aluminum premium AUPc1 surged by 54 percent or $0.58 per lb to $1,279 per metric ton on Monday, while US hot rolled coil steel increased by 7.4 percent. Following the news, BMO Capital Markets raised its price target for Nucor Corp. (NYSE:NUE) to $145 from $140 previously and assigned the company an 'outperform' rating, an upgrade from the 'market perform' prior. Nucor Corp. (NYSE:NUE) is one of the largest steel companies in the US, and currently the 16th largest producer in the world. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
