Nucor 2025 Q1 Earnings Misses Targets as Net Income Plummets 76.4%

Nucor(NUE) reported its fiscal 2025 Q1 earnings on May 14th, 2025. Nucor's earnings fell short of expectations, with net income significantly dropping by 76.4% compared to the previous year. The company revised its guidance, anticipating earnings per diluted share to range between $0.45 to $0.55 for the first quarter. Despite this setback, Nucor remains focused on maintaining stability amidst market volatility. The company's strategic investments aim to bolster its position as a leading steel producer in North America, creating sustainable economic value for shareholders and customers.

Revenue
The total revenue of Nucor decreased by 3.8% to $7.83 billion in 2025 Q1, down from $8.14 billion in 2024 Q1.

Earnings/Net Income
Nucor's EPS declined 80.6% to $0.67 in 2025 Q1 from $3.46 in 2024 Q1. Meanwhile, the company's net income declined to $226 million in 2025 Q1, down 76.4% from $959 million reported in 2024 Q1. The decrease in EPS reflects considerable challenges in maintaining profitability.

Price Action
The stock price of Nucor has edged down 1.34% during the latest trading day, has edged up 1.69% during the most recent full trading week, and has climbed 5.27% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing NUE shares following a revenue miss and holding them for 30 days has historically yielded a return of 199.81%, notably surpassing the benchmark return of 87.14%. Despite this impressive performance, the strategy exhibited a maximum drawdown of -43.03% and a Sharpe ratio of 0.62, indicating a significant risk level. With a volatility measure of 39.93%, the strategy underscores the importance of effective risk management in navigating such a volatile investment landscape.

CEO Commentary
Leon Topalian, Chair, President and Chief Executive Officer of Nucor Corporation, expressed that despite the recent financial market volatility, the company is witnessing solid demand for its steel and steel products. He emphasized that Nucor's healthy balance sheet and diverse product portfolio position the company well even in uncertain times. Topalian highlighted that the investment strategy is focused on establishing Nucor as the premier North American steel producer, aiming to create long-term economic value for both customers and shareholders. He acknowledged the challenges posed by lower average selling prices in the steel products segment and margin pressures in the raw materials segment.

Guidance
Nucor expects earnings per diluted share for the first quarter of 2025 to be in the range of $0.45 to $0.55, with adjusted earnings projected between $0.50 and $0.60 after accounting for one-time charges related to facility closures. The company anticipates that steel mills segment earnings will remain stable compared to the previous quarter, while earnings in both the steel products and raw materials segments are expected to decrease due to lower selling prices and reduced margins.

Additional News
Nucor recently faced a cybersecurity incident, leading to a temporary halt in certain production operations. The company swiftly responded by taking affected systems offline and implementing recovery measures, while collaborating with external cybersecurity experts. Federal law enforcement was notified, and Nucor is actively investigating the breach to ensure system security. Despite the disruption, Nucor is focused on resuming normal operations and maintaining vigilance. Additionally, Deutsche Bank AG acquired 46,884 shares of Nucor Co. (NYSE:NUE), demonstrating confidence in the company's future prospects. Nucor also continues to prioritize returning capital to shareholders, with a robust share repurchase program and dividend payouts.