• Earnings Per Share (EPS): $1.22 for Q4 2024; $8.46 for the full year 2024.
• EBITDA: $751 million for Q4 2024; nearly $4.4 billion for the full year 2024.
• Net Earnings: $287 million for Q4 2024; approximately $2 billion for the full year 2024.
• Cash Balance: $4.1 billion at year-end 2024.
• Capital Expenditures (CapEx): Approximately $3.2 billion for 2024; estimated $3 billion for 2025.
• Shareholder Returns: Over $2.7 billion returned through share repurchases and dividends in 2024.
• Debt-to-Capital Ratio: About 25% at year-end 2024.
• Debt-to-EBITDA Ratio: 1.6 times at year-end 2024.
• Dividend Increase: Quarterly dividend increased to $0.55 per share.
• Steel Mills Segment Pretax Earnings: $169 million for Q4 2024, a 45% decrease from the prior quarter.
• Steel Products Segment Pretax Earnings: $329 million for Q4 2024, a 5% decrease from the prior quarter.
• Raw Materials Segment Pretax Earnings: Approximately $57 million for Q4 2024, an increase of $40 million from the prior quarter.

• Warning! GuruFocus has detected 7 Warning Signs with WAL.

Release Date: January 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Nucor Corp (NYSE:NUE) reported its safest year in history for 2024, with a decline in injury and illness rates for the seventh consecutive year.
• The company generated strong financial results with $1.22 earnings per share in Q4 and $8.46 for the full year, alongside an EBITDA of $751 million for the quarter.
• Nucor Corp (NYSE:NUE) maintained a robust balance sheet with $4.1 billion in cash at year-end, supporting its growth and shareholder return strategies.
• The company returned over $2.7 billion to shareholders through share repurchases and dividends in 2024, demonstrating a strong commitment to shareholder value.
• Nucor Corp (NYSE:NUE) is optimistic about future growth, with significant investments in new technologies and facilities, including the West Virginia sheet mill and other key projects, aimed at enhancing product offerings and market reach.

Negative Points

• Nucor Corp (NYSE:NUE) faces challenges from unfairly traded imports, which continue to impact the domestic steel industry and erode profitability.
• The company's steel mills segment saw a 45% decrease in pretax earnings in Q4 compared to the previous quarter, due to declines in realized pricing and metal margins.
• Nucor Corp (NYSE:NUE) anticipates elevated pre-operating and start-up costs as it progresses through its growth investments, which could impact short-term financial performance.
• The company expects Q1 2025 net earnings to be slightly lower than Q4 2024 due to non-recurring discrete benefits from corporate, administrative, and tax areas.
• There is uncertainty regarding the impact of potential new tariffs and trade policies, which could affect Nucor Corp (NYSE:NUE)'s operations and market dynamics.

Q & A Highlights

Q: Can you provide more details on your payout ratio and whether you can maintain the same pace of buybacks given high CapEx and a slow start to the year? A: Leon Topalian, CEO, stated that the year is off to a strong start, not a slow one. He emphasized the company's commitment to shareholder returns, noting that Nucor has returned over 60% of earnings to shareholders over the past five years. Stephen Laxton, CFO, added that the 40% payout ratio is a minimum threshold, and they exceeded it last year due to excess liquidity. The pace of buybacks will depend on liquidity and cash needs.

Q: How might tariffs affect Nucor's operations, particularly with imports of slabs at California Steel and operations in Mexico? A: Leon Topalian, CEO, explained that while tariffs could impact operations, Nucor's imports from Mexico are low. The company is confident in its ability to manage any trade impacts. Noah Hanners, EVP of Raw Materials, added that Nucor has flexibility in supplying its mills and is confident in maintaining competitive costs.

Q: Is there room for M&A to strengthen Nucor's position in the US, especially on the EAF side? A: Leon Topalian, CEO, confirmed that Nucor is open to M&A opportunities that fit culturally and technologically. The company is about two-thirds through a $16 billion capital campaign and remains disciplined in capital allocation. Nucor has the liquidity to pursue M&A but will not overpay for assets.

Q: Has pricing for new joist and deck orders bottomed, and are there signs of pricing moving higher later in the year? A: John Hollatz, EVP of Bar, Engineered Bar and Rebar Fabrication Products, stated that while they don't predict market peaks or troughs, the warehouse market remains healthy. Margins have moderated but are still above pre-pandemic levels. The company is optimistic about its downstream businesses and expects stable performance.

Q: What is Nucor's strategy regarding potential M&A, particularly concerning US Steel assets? A: Leon Topalian, CEO, stated that Nucor will consider assets that fit its strategic goals and provide shareholder value. The company remains disciplined in capital allocation and will not overpay for assets. Nucor's sheet strategy focuses on providing a differentiated product mix and expanding in regions with lower market share.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.