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1. Company Snapshot

1.a. Company Description

Nucor Corporation manufactures and sells steel and steel products.The company's Steel Mills segment produces hot-rolled, cold-rolled, and galvanized sheet steel products; plate steel products; wide-flange beams, beam blanks, and H-piling and sheet piling products; and bar steel products, such as blooms, billets, concrete reinforcing and merchant bars, and special bar quality products.It also engages in the steel trading and rebar distribution businesses.


This segment sells its products to steel service centers, fabricators, and manufacturers in the United States, Canada, and Mexico.Its Steel Products segment offers hollow structural section steel tubing products, electrical conduits, steel racking, steel joists and joist girders, steel decks, fabricated concrete reinforcing steel products, cold finished steel products, steel fasteners, metal building systems, insulated metal panels, steel grating and expanded metal products, and wire and wire mesh products primarily for use in nonresidential construction applications.This segment also engages in the piling distribution business.


The company's Raw Materials segment produces direct reduced iron (DRI); brokers ferrous and nonferrous metals, pig iron, hot briquetted iron, and DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap metal, as well as engages in the natural gas drilling operations.This segment sells its ferrous scrap to electric arc furnace steel mills and foundries for manufacturing process; and nonferrous scrap metal to aluminum can producers, secondary aluminum smelters, steel mills and other processors, and consumers of various nonferrous metals.It serves agriculture, automotive, construction, energy and transmission, oil and gas, heavy equipment, infrastructure, and transportation industries through its in-house sales force; and internal distribution and trading companies.


Nucor Corporation was incorporated in 1958 and is based in Charlotte, North Carolina.

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1.b. Last Insights on NUE

Nucor Corporation's recent performance is driven by strong Q3 earnings, with quarterly earnings of $2.63 per share beating estimates. The company's growth prospects are fueled by secular trends in data center construction, power grid expansion, and reindustrialization. A recent rating upgrade to Strong Buy with a $172 price target cites optimistic market outlook and capital investments in new mills and data center infrastructure. Additionally, Nucor's strong balance sheet enables $985M in shareholder returns year-to-date.

1.c. Company Highlights

2. Nucor's Q4 2025 Earnings: A Strong Finish to a Robust Year

Nucor reported adjusted earnings of $1.73 per share in the fourth quarter, slightly below estimates of $1.91 per share. EBITDA totaled $918 million for the quarter and approximately $4.2 billion for the year. The company's financial performance was robust, with a full-year adjusted earnings per share of $7.71. The results demonstrate Nucor's ability to generate significant cash flows, as evidenced by the $3.4 billion reinvested into the company in 2025, alongside $1.2 billion returned to shareholders through dividends and share buybacks.

Publication Date: Feb -01

📋 Highlights
  • 2025 Financial Performance:: Nucor reported adjusted EPS of $1.73 in Q4 and $7.71 for the full year, with EBITDA reaching $918M (Q4) and $4.2B (annual).
  • Capital Allocation:: The company reinvested $3.4B in 2025, returned $1.2B to shareholders, and ended the year with $2.7B in cash.
  • 2026 Growth Projects:: CapEx of $2.5B is planned, with $950M allocated to non-expansionary projects; the West Virginia sheet mill will drive significant 2027 growth post-2026 completion.
  • Market Demand & Backlogs:: Steel shipments expected to rise 5% in 2026, supported by 40% higher backlogs in the steel group and 15-16% in the products group.
  • Strategic Expansion:: Nucor invested $20B since 2020 in growth projects and acquisitions, targeting adjacencies like data centers (95% market share) and energy, while maintaining 40%+ annual shareholder returns.

Operational Highlights and Outlook

Nucor has made significant strides in strengthening its steel mills segment through 15 major projects since 2019, enhancing capabilities and shifting the product mix toward higher-margin products. The company expects domestic steel demand to be slightly up relative to 2025, with steel mill shipments increasing approximately 5% compared to 2025. For the first quarter of 2026, Nucor expects higher consolidated earnings with improved results across all three operating segments, driven primarily by the steel mills segment due to higher volumes and realized pricing.

Capital Expenditure and Growth Strategy

Nucor's 2026 capital expenditure estimate is approximately $2.5 billion, with growth-oriented investments representing roughly two-thirds of the planned spending. The company's long-term growth strategy involves investing in growth projects, returning capital to shareholders, and maintaining a strong balance sheet. Since 2020, Nucor has invested approximately $20 billion through CapEx and acquisitions, while returning nearly $14 billion of capital to shareholders and improving its credit profile.

Valuation and Pricing

With a P/E Ratio of 23.37 and an EV/EBITDA of 10.85, the market appears to have priced in Nucor's growth prospects. The company's ROIC of 6.74% and ROE of 8.49% indicate a decent return on invested capital. As Nucor continues to invest in growth initiatives and expand its product offerings, the current pricing environment, driven by megatrends like energy infrastructure and data centers, is seen as sustainable by the company's CEO, Leon Topalian.

Segment Performance and Trade Policy

The plate market is strong, with backlogs up 40% from the previous year, driven by demand in energy, line pipe, transmission, wind, and non-residential construction. Nucor supports banning illegally dumped and subsidized imported steel and advocates for a pro-America, pro-U.S. manufacturing trade environment. The company's rebar market is also performing well, with operations in Lexington and Kingman ramping up and expected to be EBITDA-positive by the end of the first quarter.

3. NewsRoom

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Allen Behr Sells 7,500 Shares of Nucor (NYSE:NUE) Stock

Feb -06

Source: defenseworld.net

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Allen Behr Sells 7,568 Shares of Nucor (NYSE:NUE) Stock

Feb -06

Source: defenseworld.net

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CMC vs. NUE: Which US Steel Giant Is the Better Buy Right Now?

Jan -28

Source: zacks.com

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Here Are Wednesday’s Top Wall Street Analyst Research Calls: Applied Materials, Celestica, Circle Internet, Coinbase Global, FormFactor, PayPal, Microchip Technology, and More

Jan -28

Source: 247wallst.com

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Nucor Q4 Earnings Call Highlights

Jan -28

Source: defenseworld.net

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4,349 Shares in Nucor Corporation $NUE Bought by Adamsbrown Wealth Consultants LLC

Jan -28

Source: defenseworld.net

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Nucor Corporation (NUE) Q4 2025 Earnings Call Transcript

Jan -27

Source: seekingalpha.com

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Nucor Corp (NUE) Q4 2025 Earnings Call Highlights: Strong Backlogs and Strategic Growth Amid Challenges

Jan -27

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.70%)

6. Segments

Steel Mills

Expected Growth: 5.0%

The steel industry is expected to grow due to increased infrastructure spending and demand from the automotive and construction sectors. Nucor's Steel Mills segment is well-positioned to benefit from this trend, driven by its diversified product portfolio and efficient production processes, justifying a slightly higher growth rate than the global revenue growth hypothesis.

Raw Materials

Expected Growth: 4.5%

The growth of the Raw Materials segment is closely tied to the steel industry's performance. While the segment benefits from internal demand, its growth is slightly constrained by the volatility of raw material prices. A growth rate slightly below the global revenue growth hypothesis is justified due to the segment's dependence on the steel industry's cyclical nature.

Steel Products

Expected Growth: 5.2%

The Steel Products segment is expected to benefit from the growth in the construction industry, driven by infrastructure spending and demand for steel products. The segment's diversified product portfolio and strong distribution network support its growth prospects, justifying a higher growth rate than the global revenue growth hypothesis.

Corporate/Eliminations

Expected Growth: 4.7%

As Corporate/Eliminations is not a revenue-generating segment, its growth rate is assumed to be in line with the global revenue growth hypothesis. This segment is primarily an accounting adjustment, and its growth rate is not expected to deviate significantly from the overall revenue growth rate.

7. Detailed Products

Steel Beams and Columns

Nucor's steel beams and columns are structural steel products used in construction, including buildings, bridges, and other infrastructure projects.

Steel Plates

Nucor's steel plates are flat steel products used in a variety of applications, including construction, shipbuilding, and energy production.

Rebar and Reinforcing Steel

Nucor's rebar and reinforcing steel products are used to add strength and stability to concrete structures, such as buildings, roads, and bridges.

Sheet Steel

Nucor's sheet steel products are thin, flat steel products used in a variety of applications, including automotive, appliance, and construction.

Electrical Steel

Nucor's electrical steel products are specialized steel products used in the production of electrical equipment, such as transformers and motors.

Bar and Rod

Nucor's bar and rod products are long, thin steel products used in a variety of applications, including construction, manufacturing, and transportation.

Nucor Fasteners

Nucor's fastener products include a range of screws, bolts, and other fastening products used to assemble and connect steel components.

8. Nucor Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Nucor Corporation operates in the steel industry, where substitutes like aluminum, concrete, and wood are available but have different properties and applications. The threat of substitutes is relatively low due to the unique characteristics of steel and its widespread use in construction, automotive, and other industries.

Bargaining Power Of Customers

Nucor's customers include various industries such as construction, automotive, and consumer goods. While some customers may have significant bargaining power due to their large volume purchases, others may have limited negotiating power. Overall, the bargaining power of customers is moderate.

Bargaining Power Of Suppliers

Nucor Corporation has a diverse range of suppliers for raw materials such as scrap metal, iron ore, and coal. The company has a strong supply chain management system, which reduces the bargaining power of suppliers. Additionally, Nucor's large market share and purchasing volume give it a negotiating advantage.

Threat Of New Entrants

The steel industry has high barriers to entry due to significant capital requirements, technological complexity, and environmental regulations. New entrants would need to invest heavily in equipment, research and development, and marketing, making it difficult for them to compete with established players like Nucor.

Intensity Of Rivalry

The steel industry is highly competitive, with several large players competing for market share. Nucor Corporation faces intense rivalry from domestic and international competitors, which can lead to price wars, increased marketing expenses, and reduced profit margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 25.51%
Debt Cost 4.33%
Equity Weight 74.49%
Equity Cost 12.56%
WACC 10.46%
Leverage 34.25%

11. Quality Control: Nucor Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nucor

A-Score: 5.5/10

Value: 6.6

Growth: 5.8

Quality: 4.7

Yield: 4.0

Momentum: 5.5

Volatility: 6.7

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Reliance Steel & Aluminum

A-Score: 5.3/10

Value: 4.7

Growth: 6.1

Quality: 5.6

Yield: 3.0

Momentum: 4.0

Volatility: 8.7

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Steel Dynamics

A-Score: 5.2/10

Value: 3.5

Growth: 7.1

Quality: 5.1

Yield: 2.0

Momentum: 7.0

Volatility: 6.3

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Friedman Industries

A-Score: 5.0/10

Value: 5.8

Growth: 6.3

Quality: 3.5

Yield: 2.0

Momentum: 8.5

Volatility: 3.7

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LyondellBasell

A-Score: 4.6/10

Value: 6.8

Growth: 2.6

Quality: 1.9

Yield: 10.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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CMC

A-Score: 4.2/10

Value: 3.6

Growth: 3.8

Quality: 4.5

Yield: 2.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

192.84$

Current Price

192.84$

Potential

-0.00%

Expected Cash-Flows