Nucor Corporation reported a significant decline in financial performance for the first quarter of 2025, with net earnings attributable to stockholders falling to $156 million, or $0.67 per diluted share, compared to $845 million, or $3.46 per diluted share, in the same period of 2024. This represents a decrease of approximately 81% year-over-year. The company's total net sales also decreased by 4%, from $8.14 billion in the first quarter of 2024 to $7.83 billion in the first quarter of 2025. The decline in profitability was primarily attributed to decreased average selling prices and metal margins across all product groups within the steel mills segment, alongside increased conversion costs driven by higher energy expenses.
In terms of operational metrics, Nucor's total tons shipped to external customers increased by 10% to approximately 6.83 million tons in the first quarter of 2025, despite the overall decline in sales revenue. The steel mills segment reported a 5% decrease in net sales, while the steel products segment saw a 4% decline. However, the raw materials segment experienced a 15% increase in net sales, primarily due to improved profitability from direct reduced iron (DRI) facilities. The average selling price per ton decreased by 12%, from $1,307 in the first quarter of 2024 to $1,146 in the first quarter of 2025.
Nucor's strategic developments included the issuance of $1 billion in long-term debt through two series of notes due in 2030 and 2035, which will be used to redeem existing debt and for general corporate purposes. The company also amended its revolving credit facility, increasing its borrowing capacity from $1.75 billion to $2.25 billion, with a maturity date extended to March 2030. Capital expenditures for the first quarter of 2025 totaled $859 million, an increase from $670 million in the prior year, reflecting ongoing investments in new facilities, including a sheet mill in West Virginia.
The company’s operational efficiency was reflected in its average utilization rates, which were approximately 80% for steel mills, 55% for steel products, and 73% for raw materials in the first quarter of 2025. Nucor's employee headcount remained stable, and the company continued to maintain a strong liquidity position with cash and cash equivalents totaling $3.16 billion at the end of the quarter. The effective tax rate for the first quarter was 20.7%, slightly lower than the 21.7% reported in the same quarter of 2024.
Looking ahead, Nucor anticipates an increase in earnings for the second quarter of 2025 across all operating segments, with the steel mills segment expected to see the largest improvement due to higher average selling prices. The company remains focused on managing market risks associated with steel pricing and raw material costs, while also leveraging its strong credit ratings to support future growth initiatives.
About NUCOR CORP
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