Nucor Corporation Q4 FY2025 earnings call

• Safety: In 2025, Nucor achieved the lowest injury and illness rate in its history, marking the eighth consecutive year of improvement. The final 2 months of 2025 were the safest ever recorded.
• Management Changes: Steve Laxton was promoted to President and Chief Operating Officer effective January 1; Dave Sumoski will retire in June after 30 years at Nucor.
• Financial Performance: Adjusted earnings were $1.73 per share in the fourth quarter and $7.71 per share for the full year. EBITDA totaled $918 million in the quarter and approximately $4.2 billion for the year. Reinvested $3.4 billion in 2025, returned $1.2 billion to shareholders, and ended the year with $2.7 billion in cash.
• Projects: Major projects completed in 2025 include a rebar micro-mill in Lexington, North Carolina, a new melt shop in Kingman, Arizona, a Nucor Towers & Structures facility in Alabama, and galvanizing and prepaint lines in Crawfordsville. In 2026, projects include completing the West Virginia sheet mill, starting a galvanizing line at Berkeley County mill, and starting a utility pole production facility in Indiana.
• Trade Policy: Section 232 tariffs and trade case determinations helped reduce foreign import share of the U.S. finished steel market. Expect imports to remain low in 2026, and the USMCA review offers opportunities to drive steel demand.

Steel Mills Segment: In the fourth quarter, the steel mills segment generated $516 million of pretax earnings, down roughly 35% from the prior quarter. Shipment volumes declined 8% due to seasonal effects, fewer shipping days, and outages. While average realized pricing improved in bar and structural groups, it declined in sheet and plate groups. Steel Products Segment: Pretax earnings were $230 million, down from $319 million in the third quarter. Volumes declined sequentially across the portfolio, with rebar fabrication accounting for roughly half the quarter-over-quarter volume decline. Raw Materials Segment: Pretax earnings were approximately $24 million compared to $43 million in the prior quarter, primarily due to 2 scheduled outages at DRI facilities.

• 2026 CapEx is estimated at approximately $2.5 billion, with growth-oriented investments representing roughly 2/3 of spending. The West Virginia sheet mill is the largest single use of capital.
• First quarter expected higher consolidated earnings with improved results across segments. Domestic steel demand expected slightly up relative to 2025. Steel mill shipments expected to increase approximately 5% compared to 2025.

• Trade policy uncertainties, including potential changes in tariff rates or outcomes of USMCA negotiations.
• Dependence on interest rate-sensitive markets like automotive and residential construction, which have shown little improvement.
• Impact of unplanned outages on segment performance.

Q: Lawson Winder asks about CapEx and 2027, including West Virginia CapEx and non-expansionary CapEx.

A: Leon Topalian thanks Dave Sumoski and Steve Laxton, discusses safety and CapEx, with Steve Laxton noting maintenance capital around $800 million.

Q: Timna Tanners asks about EBITDA relative to 2022 Investor Day projections.

A: Leon Topalian references Investor Day, Steve Laxton clarifies mid-cycle guidance and West Virginia ramp-up.

Q: William Peterson asks about trade policy and expansionary CapEx.

A: Leon Topalian discusses support for trade policies to reduce illegal imports, Steve Laxton mentions maintenance capital.

Q: Philip Gibbs asks about West Virginia capabilities and 2027 CapEx.

A: Leon Topalian and Noah Hanners discuss West Virginia's new products and capabilities, Steve Laxton notes small carryover CapEx from 2026 to 2027.

Q: Katja Jancic asks about M&A and growth CapEx.

A: Leon Topalian talks about M&A focusing on steel-centric adjacencies in megatrends like data centers and energy.

Q: Andrew Jones asks about pricing and CapEx.

A: Leon Topalian discusses pricing tied to demand and economic strength, Steve Laxton explains CapEx timing between 2025 and 2026.

Q: Tristan Gresser asks about EBITDA from completed projects and plate/rebar markets.

A: Steve Laxton notes $500 million EBITDA contribution from completed projects, Brad Ford and Randy Spicer discuss plate market strength and Lexington rebar mill ramp-up