Nucor Corporation (NUE) delivered mixed results in the first quarter of 2025, reflecting the impact of softer steel pricing offset by resilient operational performance and growing shipment volumes. Net sales came in at $7.83 billion, rising 11% sequentially but dipping 4% year-over-year. Despite the top-line recovery from the prior quarter, GAAP net earnings fell to $156 million or $0.67 per diluted share, a steep decline from $845 million a year ago. Adjusted for one-time charges, net earnings stood at $179 million, or $0.77 per share. EBITDA for the quarter totaled $696 million, underscoring ongoing profitability despite margin compression.

The pricing environment weighed heavily on results, with the average sales price per ton dropping 2% sequentially and 12% year-over-year. However, this was partially offset by a surge in volumes—tons shipped to outside customers rose 13% from Q4 and 10% versus the prior year, while steel mill shipments jumped 14% quarter-over-quarter. Steel mill operating rates improved to 80%, up from 74% in Q4 but slightly below the 82% level seen in Q1 2024.

Segment performance was uneven. The Steel Mills segment posted $231 million in earnings before tax, a significant drop of 79% year-over-year, yet an improvement from Q4 thanks to stronger volumes. The Steel Products segment earned $288 million, down 44% from Q1 2024, with lower average selling prices offsetting volume gains. The Raw Materials segment reported $29 million, a more than 3x increase from the prior year, though down sequentially due to weaker margins at scrap and DRI facilities.

Nucor continued to invest aggressively in growth, with $170 million in pre-operating and start-up costs—up from both Q4 and the prior year—as the company ramps up new assets such as the Brandenburg plate mill and various bar mills. Total capital expenditures reached $859 million during the quarter.

From a capital return standpoint, Nucor repurchased 2.3 million shares for $300 million at an average price of $133.17, while also distributing $129 million in dividends—marking the 208th consecutive quarterly payout. The company ended the quarter with a robust liquidity position, holding $4.06 billion in cash and short-term investments and an undrawn $2.25 billion revolving credit facility.

CEO Leon Topalian highlighted strong demand resilience despite macroeconomic volatility and reaffirmed confidence in Nucor’s long-term positioning. Management expects improved profitability across all segments in Q2 2025, led by the Steel Mills, where higher average selling prices for sheet and plate products are anticipated. The Steel Products and Raw Materials segments are also projected to benefit from increased volumes and margin recovery.

Looking ahead, Nucor remains optimistic, banking on improved steel demand, better pricing, and ramping production from recent investments to drive earnings growth through the rest of 2025.