Nucor's Q2 2025: Key Contradictions Unveiled on Steel Margins, Production, and Tariff Impacts

Steel Mills Margin Expectations, Brandenburg Production and Utilization, Tariff and Import Impact, Inventory Levels and Demand Expectations, and Steel Mill Segment Margin Expectations are the key contradictions discussed in Nucor's latest 2025Q2 earnings call.



Strong Financial Performance and Earnings:
- Nucor generated EBITDA of approximately $1.3 billion and earned $2.60 per diluted share in Q2 2025, representing a significant improvement over Q1 2025.
- This was driven by higher average selling prices in steel mills and stable realized pricing and higher volumes in the Steel Products segment.

Capital Expenditure and Growth Projects:
- Capital expenditures for Q2 2025 totaled $954 million, with plans to deploy approximately $3 billion in CapEx for the year.
- The company's growth and capital expenditure plans are focused on completing several important projects, such as the rebar micro mill in Lexington, North Carolina, and the Kingman, Arizona melt shop, which are expected to ramp up production.

Steel Products Segment Growth:
- The Steel Products segment generated pretax earnings of $392 million in Q2 2025, up 28% over the adjusted results of the previous quarter.
- The growth was due to stable realized pricing and higher volumes, leading to the best earnings quarter for this segment since Q2 2024.

Impact of Trade and Tariff Policies:
- Nucor expressed support for the administration's actions to strengthen the Section 232 program and expand the review of steel derivative products, citing the need to curb unfairly traded imports.
- The company anticipates that the administration's vigorous enforcement of trade laws will result in a sustained reduction of imports into the U.S. market.