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    Nucor Corp (NUE)

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    Business Description

    Nucor Corporation is a leading manufacturer of steel and steel products, primarily operating in North America. The company is organized into three main segments: steel mills, steel products, and raw materials, with the steel mills segment being the largest contributor to sales . Nucor is recognized as North America's largest recycler, utilizing scrap steel as the primary raw material for its steel production . The company has developed specialized product lines such as AEOSTM high-strength steel beams, ECONIQTM net zero carbon steel, and ElcyonTM sustainable heavy gauge steel plate, catering to markets like construction, automotive, and wind energy .

    1. Steel Mills - Produces carbon and alloy steel in various forms such as sheet, bars, structural, and plate, and involves steel trading and rebar distribution businesses.
    2. Steel Products - Offers a wide range of products including steel joists and girders, steel deck, fabricated concrete reinforcing steel, cold finished steel, precision castings, metal building systems, insulated metal panels, and utility structures.
    3. Raw Materials - Involves the processing and brokerage of ferrous and nonferrous metals, as well as the production of direct reduced iron (DRI) used in steel mills.

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    Leon J. TopalianChair, President, and Chief Executive OfficerJanuary 2020Leon J. Topalian has served as Chair of the Board of Directors since September 2022 and as President and CEO since January 2020. He joined Nucor in 1996 as a project engineer and has held various leadership positions, including President and COO from September 2019 to December 2019 .
    Stephen D. LaxtonChief Financial Officer, Treasurer, and Executive Vice PresidentMarch 2022Stephen D. Laxton serves as CFO, Treasurer, and EVP at Nucor. He began his career at Nucor in 2003 as General Manager of Business Development and was promoted to Vice President in 2014. Before joining Nucor, he worked for Cinergy Corp. and held financial roles with Ashland, Inc., North American Stainless, and National City Bank .
    David A. SumoskiChief Operating OfficerJanuary 2021David A. Sumoski was appointed COO in January 2021. He began his career with Nucor in 1995 as an electrical supervisor and later served as Maintenance Manager. He was named Vice President in 2010 and has held various leadership roles, including Executive Vice President from 2014 to 2020 .
    Allen C. BehrExecutive Vice President of Plate and Structural ProductsMay 2020Allen C. Behr began his career with Nucor in 1996 as a Design Engineer. He has held various positions, including Engineering Manager, General Manager, and President of the Vulcraft/Verco group. He was named Executive Vice President in May 2020 .
    Brad FordExecutive Vice President of Fabricated Construction ProductsMay 2023Brad Ford serves as EVP of Fabricated Construction Products. He began his career at The David J. Joseph Company in 2001 and held various roles before joining Nucor as General Manager in 2020. He was promoted to Vice President in 2022 and most recently served as Vice President and General Manager of Nucor Steel Decatur, LLC .
    Noah HannersExecutive Vice President of Raw MaterialsJanuary 2023Noah Hanners serves as EVP of Raw Materials. He began his career with Nucor in 2011 as a Melt Shop Engineer and held roles as Shift Supervisor and Melt Shop Manager. He was promoted to Vice President in 2019 and served as Vice President and General Manager of The David J. Joseph Company from 2019 to 2022 .
    John HollatzExecutive Vice President of Bar, Engineered Bar, and Rebar FabricationMay 2022John Hollatz serves as EVP of Bar, Engineered Bar, and Rebar Fabrication Products. He began his career at Nucor in 1999 as a Design Engineer and has held various positions, including General Manager and President of the Vulcraft/Verco group. He was promoted to Vice President and General Manager in 2016 .
    Douglas J. JellisonExecutive Vice President of StrategyJanuary 2021Douglas J. Jellison serves as EVP of Strategy. He began his career at Nucor in 1990 as a Materials Manager and has held various positions, including controller and business development roles. He was promoted to Vice President in 2004 and has served as General Manager and President of several Nucor subsidiaries .
    Gregory J. MurphyExecutive Vice President of Business Services and General CounselJanuary 2021Gregory J. Murphy serves as EVP of Business Services and General Counsel. He began his career at Nucor in 2015 as Vice President and General Counsel. In 2020, he assumed additional responsibilities and was named General Counsel and Vice President of Legal, Environmental, and Public Affairs .
    Daniel R. NeedhamExecutive Vice President of CommercialMay 2022Daniel R. Needham serves as EVP of Commercial. He began his career with Nucor in 2000 as Controller and has held various roles, including General Manager and Vice President. He was promoted to Vice President and General Manager in 2019 and served as EVP of Bar, Engineered Bar, and Rebar Fabrication Products from 2021 to 2022 .
    K. Rex QueryExecutive Vice President of Sheet Products and Talent ResourcesJanuary 2021K. Rex Query serves as EVP of Sheet Products and Talent Resources. He began his career at Nucor in 1990 as a financial analyst and has held various roles, including Controller and General Manager. He was elected Vice President in 2002 and served as President of Nucor's Vulcraft/Verco group before his current role .

    Questions to Ask Management

    1. Given your planned capital expenditures of around $3 billion annually over the next few years, how confident are you that these heavy investments will generate the expected returns, especially considering potential market softness and uncertainties in demand across your key segments?
    2. With additional capacities coming online from projects like West Virginia, Lexington, and Kingman, how do you plan to prevent potential oversupply in the market, and are you considering optimizing your existing footprint or idling older capacity if demand doesn't materialize as expected?
    3. You've indicated that the impact of government initiatives like the IIJA and IRA on your order books has been less than anticipated so far; how does this affect your strategic planning, especially with potential policy changes after the upcoming election, and what measures are you taking to adjust to these uncertainties?
    4. Given the surge in imported high-emissions steel and the intense competition in coated products, particularly in lighter gauge markets, how confident are you in the success of your trade cases, and what is your strategy to enhance competitiveness in these segments if trade relief is delayed or insufficient?
    5. Regarding your investments in decarbonization efforts, nuclear energy with NuScale and Helion, and carbon capture projects, can you provide specific timelines and expected financial outcomes for these initiatives, and how do you address shareholder concerns about the uncertain returns and long-term payback periods associated with these emerging technologies?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateMay 11, 2023
    End Date/DurationNo expiration date
    Total additional amount$4.00 billion
    Remaining authorization amount$1.42 billion
    DetailsDiscretionary program to return capital to shareholders and manage capital structure

    Auditor

    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP1989 PresentCurrent auditor

    Latest news

    Recent developments and announcements about NUE.

    Financial Reporting

      Earnings Call

      ·
      7 days ago

      Nucor Corporation (NUE) recently released its fourth-quarter and full-year 2024 earnings call transcript, providing key insights into its financial performance, forward guidance, and strategic initiatives. Below is a summary of the key points:

      Financial Performance

      • Q4 2024 Results: Nucor reported net earnings of $287 million, or $1.22 per share, exceeding the midpoint of its guidance by $0.62. This was driven by stronger-than-expected operating performance and favorable corporate, administrative, and tax impacts.
      • Full-Year 2024 Results: The company achieved net earnings of approximately $2 billion, or $8.46 per share, and generated $4.4 billion in EBITDA. Nucor returned over $2.7 billion to shareholders through dividends and share repurchases.

      Forward Guidance

      • Q1 2025 Outlook: Nucor expects operating results for its steel mills and steel products segments to be generally in line with Q4 2024. However, net earnings may be slightly lower due to the absence of discrete tax benefits seen in Q4.
      • 2025 Projections: The company anticipates modest growth in steel demand in the first half of 2025, with stronger momentum in the second half. Key drivers include resilient consumer confidence, low unemployment, and pro-growth policies under the new administration.

      Strategic Initiatives

      • Capital Investments: Nucor is executing a $16 billion capital campaign, with $3 billion allocated for 2025. Major projects include the West Virginia sheet mill, which is on track for completion by the end of 2026, and new facilities in Alabama, Indiana, and Utah for its towers and structures business.
      • Growth in Downstream Businesses: The company expects double-digit growth in its overhead doors, racking, and insulated metal panels platforms in 2025, with a projected EBITDA of over $450 million.
      • M&A and Market Positioning: Nucor remains open to mergers and acquisitions that align with its strategic goals but emphasizes disciplined capital allocation. The company is also focused on expanding its presence in high-growth regions like the Midwest and Northeast through its West Virginia mill.

      Market Conditions and Analyst Questions

      • Demand and Pricing: Analysts inquired about pricing trends in downstream products like joist and deck, as well as the impact of tariffs on Nucor's operations. Management highlighted stable demand fundamentals and the potential for broad sweeping tariffs to level the playing field in the U.S. steel market.
      • Raw Materials: Fair scrap pricing has increased slightly in early 2025, but the realized transfer price for DRI is trending lower, which may impact the raw materials segment's contribution.
      • Plate Market: Nucor remains optimistic about plate demand in 2025, driven by military and infrastructure spending, and highlighted the strong performance of its Brandenburg facility.

      Key Analyst Questions and Management Responses

      • Inventory Levels: Management expressed optimism about economic drivers like reshoring and deregulation, which are expected to sustain demand and improve performance.
      • Shareholder Returns: Nucor reiterated its commitment to returning at least 40% of annual net earnings to shareholders through dividends and buybacks, with flexibility to exceed this threshold based on liquidity.

      Conclusion

      Nucor is well-positioned for 2025, with a strong balance sheet, strategic investments, and a focus on high-margin, value-added products. The company remains optimistic about demand growth, supported by favorable market conditions and government policies.

      Sources: , , , , ,

      Earnings Report

      ·
      Jan 27, 2025, 10:53 PM

      Nucor Corporation (NUE) has released its earnings results for the fourth quarter and full year 2024. Below are the key highlights:

      Fourth Quarter 2024 Results

      • Net Sales: $7.08 billion, a 5% decrease from Q3 2024 and an 8% decrease from Q4 2023.
      • Net Earnings: $287 million, or $1.22 per diluted share, compared to $785 million, or $3.16 per diluted share, in Q4 2023.
      • EBITDA: $751 million, down from $1.36 billion in Q4 2023.
      • Average Sales Price per Ton: Decreased 3% from Q3 2024 and 10% from Q4 2023.
      • Tons Shipped to Outside Customers: Approximately 6.06 million tons, a 2% increase from Q4 2023 but a 2% decrease from Q3 2024.

      Full Year 2024 Results

      • Net Sales: $30.73 billion, an 11% decrease from $34.71 billion in 2023.
      • Net Earnings: $2.03 billion, or $8.46 per diluted share, compared to $4.53 billion, or $18.00 per diluted share, in 2023.
      • EBITDA: $4.37 billion, down from $7.41 billion in 2023.
      • Tons Shipped to Outside Customers: 24.77 million tons, a 2% decrease from 2023.
      • Average Scrap and Scrap Substitute Cost per Gross Ton: $394, a 6% decrease from $421 in 2023.

      Segment Performance

      • Steel Mills: Earnings before taxes decreased by 45% from Q3 2024 and 71% from Q4 2023 due to lower average selling prices and volumes.
      • Steel Products: Earnings decreased by 50% from Q4 2023, primarily due to lower pricing and volumes.
      • Raw Materials: Earnings improved significantly, with a pre-tax gain of $57 million in Q4 2024 compared to a loss of $66 million in Q3 2024.

      Capital Allocation and Shareholder Returns

      • Dividends: Declared a cash dividend of $0.55 per share, marking the 207th consecutive quarterly dividend.
      • Share Repurchases: Repurchased approximately 2.1 million shares in Q4 2024 at an average price of $149.81 per share. For the full year, 13.1 million shares were repurchased at an average price of $168.75 per share.
      • Total Returns to Shareholders: Approximately $2.74 billion in 2024 through dividends and share repurchases.

      Outlook for Q1 2025

      • Steel Mills and Steel Products Segments: Expected to perform similarly to Q4 2024.
      • Raw Materials Segment: Anticipated to see a decrease in earnings due to lower direct reduced iron (DRI) pricing.
      • Overall Net Earnings: May decline due to higher corporate, administrative, and tax expenses.

      Additional Notes

      • Nucor continues to maintain strong financial health with $4.14 billion in cash and short-term investments and an undrawn $1.75 billion revolving credit facility.
      • The company is advancing its growth strategy with significant capital investments, including a $3 billion CAPEX plan for 2025.

      For further details, Nucor will host an earnings call on January 28, 2025, at 10:00 a.m. ET.