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Nucor Projects Q1 Earnings to Decline on Lower Selling Prices
NUENucor(NUE) ZACKS·2025-03-21 15:05

Earnings Guidance - Nucor Corporation (NUE) expects first-quarter 2025 earnings to be in the range of 45-55 cents per share, with adjusted earnings forecasted between 50 and 60 cents per share [1] - The company reported earnings of 1.22pershareinthepriorquarterand1.22 per share in the prior quarter and 3.46 per share for the first quarter of 2024 [1] Non-Adjusted Earnings Factors - The non-adjusted earnings guidance includes one-time non-cash charges of approximately 16million,or5centspershare,fortheclosureoftwofacilitiesinthesteelproductssegment[2]−Highercorporate,administrative,andtaximpactsareexpectedinthefirstquarterof2025comparedtothepriorquarter[2]ProfitabilityDeclineReasons−Theprimaryreasonforthepredicteddeclineinprofitabilityisweakersellingprices,particularlyinthesteelproductssegment,whichisprojectedtoseelowerearningsduetoreducedaveragesellingprices[3]−Profitabilityinthesteelmillssegmentisexpectedtobeinlinewiththefourthquarterof2024,whileearningsintherawmaterialssegmentarepredictedtodeclineduetolowermarginsatDRIfacilities[3]ShareholderReturns−Duringthefirstquartertodate,Nucorrepurchasedapproximately2.3millionsharesatanaveragepriceof16 million, or 5 cents per share, for the closure of two facilities in the steel products segment [2] - Higher corporate, administrative, and tax impacts are expected in the first quarter of 2025 compared to the prior quarter [2] Profitability Decline Reasons - The primary reason for the predicted decline in profitability is weaker selling prices, particularly in the steel products segment, which is projected to see lower earnings due to reduced average selling prices [3] - Profitability in the steel mills segment is expected to be in line with the fourth quarter of 2024, while earnings in the raw materials segment are predicted to decline due to lower margins at DRI facilities [3] Shareholder Returns - During the first quarter to date, Nucor repurchased approximately 2.3 million shares at an average price of 133.17 per share [4] - The company has returned about $428 million to shareholders through share repurchases and dividend payments so far in the quarter [4] Stock Performance - Shares of Nucor have lost 34.1% in a year, compared to the industry's decline of 19.3% [4]