Nucor (NUE) Q3 2024 earnings summary

Executive summary

• Q3 2024 net earnings were $249.9 million ($1.05 per diluted share GAAP); adjusted EPS was $1.49, excluding $123 million in non-cash impairment charges.

• EBITDA for Q3 2024 was $869 million, with cash from operations exceeding $1.3 billion and cash on hand at quarter-end of $4.86 billion.

• $2.3 billion was returned to shareholders year-to-date via buybacks and dividends; capital expenditures also totaled $2.3 billion YTD.

• Safety performance improved, with a YTD injury & illness rate of 0.77 versus 0.83 prior year, on track for the safest year in company history.

• Several construction projects and acquisitions are progressing, with integration ongoing.

Financial highlights

• Q3 2024 net sales were $7.44 billion, down 15% year-over-year; gross margin was $757.9 million (10%).

• Steel mills segment Q3 pretax earnings: $309 million, down ~50% sequentially; steel products segment adjusted pretax earnings: $354 million, down ~20% sequentially.

• Raw materials segment adjusted pretax earnings: $17 million, down $22 million from Q2, with a $66 million loss before tax including $83 million impairment.

• Q3 2024 capital expenditures were $0.82 billion; YTD capex at $2.29 billion.

• Year-to-date adjusted earnings: $1.8 billion ($7.66 per share).

Outlook and guidance

• Q4 2024 consolidated net earnings expected to be lower than Q3, mainly due to lower prices and volumes in steel mills and steel products segments.

• Raw materials segment earnings expected to increase in Q4, excluding Q3 impairment charges.

• Full-year 2024 CapEx now expected at ~$3.2 billion, slightly below initial $3.5 billion estimate; 2025 CapEx to remain above historic norms.

• Large capital projects and growth initiatives (Kingman melt shop, Lexington micro mill, utility tower facilities, new galv lines) to come online through 2026.

• Working capital expected to be a source of cash in Q4.