Nucor Corporation Reports 2024 Financial Results Amid Market Challenges
Nucor Corporation (NYSE: NUE) has released its financial results for the fourth quarter and full year 2024, showing both resilience and challenges in a softening steel market. For the fourth quarter, Nucor reported consolidated net earnings attributable to Nucor stockholders of $287 million, or $1.22 per diluted share, compared to $250 million or $1.05 per diluted share in the third quarter of 2024. The company also reported a significant decrease in earnings compared to the same period in 2023, where they posted $785 million in net earnings, or $3.16 per diluted share.
For the full year 2024, Nucor achieved consolidated net earnings of $2.03 billion, or $8.46 per diluted share, down from $4.53 billion or $18.00 per diluted share in 2023. Despite the decline in net earnings, Nucor’s strong market position, cost control measures, and diversified business operations have positioned it to capitalize on the anticipated recovery in steel demand in 2025.
Steel Segment Performance and Market Conditions
The company's steel mills segment, a key contributor to its earnings, experienced a notable decline in the fourth quarter of 2024. Earnings for the steel mills dropped due to lower average selling prices and reduced volumes compared to the third quarter of 2024. Similarly, the steel products segment saw decreased earnings, although the impact of non-cash impairment charges from previous quarters made comparison difficult. However, the raw materials segment posted a positive result, with earnings increasing compared to the previous quarter, bolstered by a stronger performance in the market for scrap metal and related products.
Nucor’s fourth quarter consolidated net sales decreased 5% to $7.08 billion, compared with $7.44 billion in the third quarter of 2024. The sales decline is partly attributed to a 3% drop in average sales price per ton and lower steel shipments. Total tons shipped to outside customers in the fourth quarter were approximately 6.06 million net tons, down 2% from the third quarter of 2024 but up 2% from the same period in 2023.
For the full year 2024, Nucor’s consolidated net sales totaled $30.73 billion, reflecting an 11% decline compared to $34.71 billion in 2023. Shipments to outside customers for the year totaled approximately 24.77 million net tons, representing a 2% decline from 2023. The average sales price per ton also dropped by 10% year-over-year, reflecting the overall weakness in steel prices during the year.
Cost of Scrap and Operating Performance
A key input cost for Nucor, scrap metal, saw a slight increase in the fourth quarter. The average scrap and scrap substitute cost per gross ton used in the fourth quarter was $381, a 1% rise compared to the third quarter but a 4% decrease compared to the same period in 2023. For the full year, the cost of scrap was $394 per gross ton, a 6% decrease compared to $421 in 2023, reflecting a softening in raw material prices during the year.
Despite these fluctuations in input costs, Nucor’s operating rates remained relatively stable. The company’s steel mills operated at 74% in the fourth quarter of 2024, on par with the fourth quarter of 2023, and slightly down from 75% in the third quarter of 2024. For the full year 2024, the company operated at 76% capacity, down from 78% in 2023, reflecting lower demand in the steel market.
Investing in Growth and Shareholder Returns
Nucor continues to prioritize growth, even amidst market uncertainty. In the fourth quarter of 2024, Nucor invested approximately $164 million, or $0.53 per diluted share, on its ongoing growth projects. These investments are focused on expanding Nucor’s steel production capabilities, particularly in regions with strong demand prospects. Over the full year, growth-related costs amounted to $594 million, or $1.89 per diluted share, reflecting the company’s continued commitment to scaling its operations for future market recovery.
Nucor also demonstrated a strong commitment to returning value to shareholders. In December 2024, the company declared a quarterly dividend of $0.55 per share, marking its 207th consecutive quarterly dividend payment. Nucor has a long-standing history of increasing its regular dividends for over 50 years. Furthermore, the company repurchased approximately 13.1 million shares of its common stock during 2024, at an average price of $168.75 per share. As of December 31, 2024, Nucor had approximately $1.11 billion remaining in its share repurchase program, underlining its commitment to enhancing shareholder value.
Financial Strength and Outlook for 2025
Despite the challenges faced in 2024, Nucor maintains a strong financial position. The company ended the year with $4.14 billion in cash and cash equivalents, along with a revolving credit facility of $1.75 billion that remains undrawn. Nucor also enjoys the highest credit ratings in the North American steel sector, which provides it with a solid foundation to navigate market fluctuations.
Looking ahead to 2025, Nucor expects the steel market to improve as the year progresses. The company anticipates similar earnings in its steel mills and steel products segments for the first quarter of 2025, while earnings from the raw materials segment may decline slightly. Additionally, corporate and administrative expenses are expected to rise in the first quarter of 2025, which could lead to a decrease in net earnings overall. Nevertheless, Nucor is optimistic that market conditions will recover in the latter half of the year.
