NUCOR CORP

Nucor Corporation manufactures steel and steel products, and also produces and procures ferrous and non-ferrous materials primarily for use in its steel manufacturing business. Most of the Company's operating facilities and customers are located in North America. Nucor is North America's largest recycler, using scrap steel as the primary raw material in producing steel and steel products. In 2025, the Company recycled approximately 20 million gross tons of scrap steel ¹. The markets for Nucor's products are largely tied to end-use markets such as nonresidential construction, durable goods and capital spending that are affected by changes in general economic conditions.

Nucor is a leading domestic provider for most of the products it supplies, and in many cases (e.g., structural steel, merchant bar steel, steel joist and deck, pre-engineered metal buildings, steel piling, cold finish bar steel, steel electrical conduit pipe and insulated metal panels), it is the leading supplier. The Company competes in a variety of steel and metal markets that are highly competitive with many domestic and foreign firms participating, and it primarily competes on price and service. In the steel mills segment, Nucor's EAF steel mills face competition from domestic integrated steel producers, other domestic EAF steel mills, steel imports and alternative materials. In 2025, imports of finished carbon and alloy steel products decreased 17.4% from 2024, supplying approximately 18% of U.S. demand in 2025 ². China still produced more than one billion net tons of steel, accounting for approximately 53% of all steel produced globally ³. China exported a record 131 million net tons in 2025 ⁴. There are currently 142 AD/CVD orders in place on core steel product lines made by Nucor ⁵.

Nucor generates revenue through the manufacture and sale of steel and steel products across three segments: steel mills, steel products, and raw materials. The steel mills segment is Nucor's largest segment, representing 62% of the Company's sales to external customers in the year ended December 31, 2025 ⁶. The Company markets products from the steel mills and steel products segments mainly through in-house sales forces, and also utilizes internal distribution and trading companies to market products abroad. The steel mills segment sells its products primarily to steel service centers, fabricators and manufacturers located throughout the United States, Canada and Mexico. The steel products segment primarily serves the nonresidential construction and infrastructure markets, and its door technologies businesses also serve the garage door repair and replacement market. The raw materials segment produces direct reduced iron (DRI) and, through The David J. Joseph Company and its affiliates (DJJ), brokers ferrous and non-ferrous metals, pig iron, hot briquetted iron and DRI; supplies ferro-alloys; and processes ferrous and non-ferrous scrap metal.

In the steel mills segment, Nucor produces sheet steel (hot-rolled, cold-rolled and galvanized), plate steel, structural steel (wide-flange beams, beam blanks, H-piling and sheet piling) and bar steel (blooms, billets, concrete reinforcing bar, merchant bar and engineered special bar quality (SBQ)). The steel mills segment also includes Nucor's equity method investment in NuMit LLC, as well as international trading and distribution companies. The steel mills segment sold approximately 19,848,000 tons to outside customers in 2025 ⁷. In 2025, 79% of the shipments made by the steel mills segment were to external customers ⁸. The remaining 21% of the steel mills segment's shipments went to the steel products segment ⁹. Nucor operates 15 bar mills with an estimated capacity of approximately 9,800,000 tons per year ¹⁰, six sheet mills with an estimated capacity of approximately 14,500,000 tons per year ¹¹, two structural mills with an estimated capacity of approximately 3,300,000 tons per year ¹², and three plate mills with an estimated capacity of approximately 3,600,000 tons per year ¹³. Approximately 85% of Nucor's sheet steel sales in 2025 were to contract customers ¹⁴. Nucor owns a 51% controlling economic and voting interest in Nucor-JFE Steel Mexico, S. de R.L. de C.V. (NJSM), a joint venture that operates a galvanized sheet steel plant in central Mexico with an annual capacity of approximately 400,000 tons ¹⁵. Nucor also owns a 51% interest in Nucor-Yamato Steel Company (Limited Partnership) and a 50% economic and voting interest in NuMit, which owns 100% of the equity interest in Steel Technologies LLC, an operator of 30 strategically located sheet processing facilities in the United States, Canada and Mexico ¹⁶.

In the steel products segment, Nucor produces steel joists and joist girders, steel deck, galvanized torque tubes used in solar arrays, hollow structural section (HSS) steel tubing, electrical conduit, fabricated concrete reinforcing steel, cold finished steel, steel fasteners, steel grating and expanded metal, wire and wire mesh, metal building systems, insulated metal panels, steel racking for warehouse systems and data centers, overhead doors, and utility towers and structures for communications and energy transmission. The Vulcraft/Verco group is the nation's leading producer of open-web steel joists, joist girders and steel decking, with an annual joist and deck production capacity of approximately 1,300,000 tons ¹⁷ and an annual production capacity for its grating business of approximately 50,000 tons ¹⁸. The Nucor Tubular Products (NTP) group has seven tubular facilities with a total annual capacity of approximately 1,600,000 tons ¹⁹. Nucor Rebar Fabrication operates nearly 70 fabrication facilities across the United States and Canada with a total annual rebar fabrication capacity of approximately 1,700,000 tons ²⁰. The Nucor Buildings group is the nation's leading supplier of pre-engineered metal buildings. The Nucor Racking Group (NRG) has six primary manufacturing locations. The Nucor Door Technologies group includes C.H.I. Overhead Doors, LLC (CHI) with two manufacturing locations, and Rytec Corporation (Rytec) with two manufacturing facilities. Nucor Towers & Structures (NTS) produces steel poles and other steel structures for utility infrastructure. Nucor Cold Finish (NCF) is the largest and most diversified producer of cold finished bar products in North America, with a total capacity of approximately 1,000,000 tons per year ²¹. In the raw materials segment, DJJ operates six regional scrap recycling companies across the United States that together have shredders capable of processing approximately 6,800,000 tons of ferrous scrap annually ²². DJJ is the leading broker of ferrous scrap in North America. Nucor operates two DRI plants which supplied approximately 3,300,000 metric tons of material to its steel mills in 2025 ²³. As of December 31, 2025, Nucor had 10 industrial gas plants operating, and six others at various stages of commissioning, construction, or planning ²⁴.

Consistent with its strategy to Grow the Core, Expand Beyond and Live Our Culture, Nucor has invested significant capital in recent years totaling approximately $9.73 billion over the last three years, with approximately 91% going to capital expenditures and the remainder going to acquisitions ²⁵. In January 2022, Nucor announced a new state-of-the-art sheet mill in Mason County, West Virginia, expected to be completed by the end of 2026. In February 2025, Nucor's Board of Directors approved additional capital as the estimate of total construction costs increased to approximately $4 billion ²⁶. The State of West Virginia has committed $350 million for the project ²⁷. Nucor expects its net cash outlay for the West Virginia sheet mill will be approximately $3.65 billion ²⁸. The West Virginia sheet mill is expected to have an annual production capacity of approximately 3,000,000 tons ²⁹. In April 2022, Nucor announced it would build a new rebar micro mill in Lexington, North Carolina, a $440 million investment expected to have an annual capacity of approximately 430,000 tons ³⁰. Construction of the new rebar micro mill was completed in 2025 and the facility is currently in the production ramp-up phase. In April 2024, Nucor acquired Southwest Data Products, Inc. (SWDP) for $115 million ³¹. In July 2024, Nucor acquired Rytec for $565 million ³². Nucor has paid $1.55 billion in dividends to its stockholders during the past three years ³³. The Company repurchased $700 million of its common stock in 2025 ($2.22 billion in 2024 and $1.55 billion in 2023) ³⁴. On March 5, 2025, Nucor completed the issuance and sale of $500 million aggregate principal amount of its 4.650% Notes due 2030 and $500 million aggregate principal amount of its 5.100% Notes due 2035 ³⁵. Net proceeds from the issuance and sale of the Notes were $997 million ³⁶. In November 2025, Nucor issued $220 million in 40-year variable rate West Virginia Economic Development Authority industrial development revenue bonds (IDRBs) to partially fund the construction of the West Virginia sheet mill ³⁷.

Nucor reported consolidated net earnings of $1.74 billion, or $7.52 per diluted share, in 2025, which decreased compared to $2.03 billion, or $8.46 per diluted share, in 2024 ³⁸. Net sales for 2025 increased 6% from the prior year to $32.494 billion ³⁹. Average sales price per ton decreased 2% from $1,241 in 2024 to $1,221 in 2025 ⁴⁰. Total tons shipped to outside customers increased 7% from 24,767,000 tons in 2024 to 26,615,000 tons in 2025 ⁴¹. In 2025, Nucor recorded gross margins of $3.85 billion (12%), which was a decrease from $4.10 billion (13%) in 2024 ⁴². The average scrap and scrap substitute cost per gross ton used was $392 in 2025, which was a 1% decrease from $394 in 2024 ⁴³. Pre-operating and start-up costs of new facilities decreased to approximately $496 million in 2025 as compared to approximately $594 million in 2024 ⁴⁴. Return on average stockholders' equity was 8.5% and 9.8% in 2025 and 2024, respectively ⁴⁵. Nucor's cash and cash equivalents and short-term investments position remained strong at $2.70 billion as of December 31, 2025, compared with $4.14 billion as of December 31, 2024 ⁴⁶.

Management expects earnings to increase in the first quarter of 2026 across all three operating segments, with the largest increase in the steel mills segment due to higher volumes and higher realized prices across all major product categories. In the steel products segment, improved earnings are expected due to increased volumes on stable pricing. The raw materials segment is expected to have increased earnings in the first quarter of 2026. Capital expenditures are expected to decrease to approximately $2.5 billion in 2026 ⁴⁷.

A key growth vector is the expansion of value-added product offerings and cost-reduction strategies in the steel mills segment. The new state-of-the-art sheet mill in Mason County, West Virginia, is expected to be completed by the end of 2026 with an annual production capacity of approximately 3,000,000 tons ⁴⁸. The mill will be equipped to produce 84-inch sheet products and include a 76-inch tandem cold mill and two galvanizing lines capable of producing advanced high-end automotive and construction grades. The new rebar micro mill in Lexington, North Carolina, with an expected annual capacity of approximately 430,000 tons, was completed in 2025 and is in the production ramp-up phase ⁴⁹. Nucor is also expanding its Nucor Towers & Structures (NTS) division with new manufacturing locations in Decatur, Alabama (construction complete, in production ramp-up), Crawfordsville, Indiana (planned to be completed in 2026), and Brigham City, Utah (planned to be completed in 2027) ⁵⁰.

Another growth vector is the Expand Beyond strategy, focused on acquisitions and investments to expand products and services beyond traditional capabilities, particularly in the steel products segment. The acquisitions of Southwest Data Products (SWDP) in April 2024 for $115 million and Rytec in July 2024 for $565 million are part of this strategy ⁵¹. SWDP combined with Nucor's steel racking business to form the Nucor Racking Group (NRG), which now has six primary manufacturing locations and capabilities to serve the rapidly growing data center market with steel racking, airflow containment structures, and other products. The combination of Rytec and C.H.I. Overhead Doors is expected to create an overhead door platform designed to deliver superior product breadth and solutions to commercial customers. Nucor believes these investments can enhance profit margins, return on invested capital and free cash flow generation, and over time, accelerate overall growth while reducing the volatility of earnings.

Nucor's margin trajectory is influenced by metal margins, which is the difference between the selling price of steel and the cost of scrap and scrap substitutes. The average scrap and scrap substitute cost per gross ton used remained relatively stable from $394 per gross ton used in 2024 to $392 per gross ton used in 2025 ⁵². The Company employs variable steel pricing mechanisms to better maintain operating margins as scrap and scrap substitute costs fluctuate. Pre-operating and start-up costs decreased to approximately $496 million in 2025 from approximately $594 million in 2024, primarily related to the plate mill in Kentucky, the sheet mill in West Virginia, and the melt shop in Arizona ⁵³. Profit sharing costs, a major component of marketing, administrative and other expenses, decreased from $298 million in 2024 to $256 million in 2025 due to decreased profitability ⁵⁴. Stock-based compensation included in marketing, administrative and other expenses increased by 7% to $56 million in 2025 compared with $52 million in 2024 ⁵⁵.

Nucor's operational outlook includes a focus on securing reliable access to low-cost raw material inputs, as they are the Company's largest expense. The raw materials segment's investments in DRI production facilities and scrap yards, as well as access to international raw materials markets, provide significant flexibility in optimizing raw material mix. The Company's DRI plants in Trinidad and Louisiana supplied approximately 3,370,000 metric tons of DRI to its steel mills in 2025 ⁵⁶. Nucor received over 2,000,000 gross tons of pig iron in 2025 ⁵⁷. The Company is also investing in clean electricity initiatives, including two Power Purchase Agreements (PPAs) for output from one solar and one wind project in the United States. In 2025, Nucor contracted with a third party to install and operate a 50 MW onsite battery energy storage system at its Kingman, Arizona bar mill, which became operational in the fourth quarter of 2025 ⁵⁸. A 25 MW solar project is planned for construction in 2026 at the same site ⁵⁹. Nucor also signed an agreement with ExxonMobil to capture, transport, and inject carbon from its DRI plant in Convent, Louisiana, with ExxonMobil expected to capture between 600,000 and 800,000 metric tons per year of CO2, with start-up expected in late 2026 ⁶⁰.

Nucor's capital allocation strategy has three primary aspects: investing in the business for profitable long-term growth through optimizing existing operations, greenfield expansions and acquisitions; returning capital to stockholders through cash dividends and share repurchases; and maintaining a strong balance sheet with relatively low financial leverage. The Company intends to return at least 40% of its net income to stockholders over time via a combination of both cash dividends and share repurchases ⁶¹. Over the past three years, Nucor has returned approximately 73% of its net income in this manner ⁶². Nucor paid a total dividend of $2.20 per share in 2025 compared with $2.16 per share in 2024 ⁶³. In December 2025, the Board of Directors increased the base quarterly cash dividend to $0.56 per share from $0.55 per share ⁶⁴. Capital expenditures for 2026 are estimated to be approximately $2.50 billion ⁶⁵. The Company expects capital expenditures directed toward safety and environmental stewardship to total approximately $250 million in 2026 ⁶⁶. Capital expenditures at existing facilities associated with environmental regulation compliance for 2026 and 2027 are estimated to be less than $100 million per year ⁶⁷. Nucor's debt to total capital was approximately 24% at year-end 2025 ⁶⁸. At the end of 2025, Nucor had the strongest credit ratings in the North American steel sector (A-/A-/A3) with stable outlooks at Standard & Poor's, Fitch Ratings and Moody's, respectively ⁶⁹.

A significant headwind is global steel production overcapacity, which the OECD has estimated to be approximately 704 million net tons in 2025 ⁷⁰. This level of excess capacity is eight times the current annual steel production in the United States. The OECD projects that excess global steel capacity could increase nearly 20% to an estimated 795 million net tons by 2027 ⁷¹. China continues to be a significant contributor, producing more than one billion net tons of steel in each of the past eight years and exporting a record 131 million net tons in 2025 to offset weak domestic consumption ⁷². Chinese steel producers are also investing in new steelmaking capacity in several countries in southeast Asia and Africa, which poses a risk of circumvention of trade duties. The cyclical nature of the steel industry and sensitivity to general economic conditions, particularly in nonresidential construction, are also key headwinds.

Another constraint is the volatility in the price and availability of raw materials, particularly scrap steel. The average cost of scrap and scrap substitutes used in the steel mills segment was $392 per gross ton used in 2025 ⁷³. The Company relies on outside vendors for key consumables such as graphite electrodes, alloys, and other raw materials. The availability and prices of raw materials may be negatively affected by new laws and regulations, allocation by suppliers, interruptions in production, accidents or natural disasters, war and other forms of armed conflict or political instability, changes in exchange rates, worldwide price fluctuations, inflation, increases in interest rates, labor shortages, and the availability and cost of transportation. Many countries that export steel into U.S. markets restrict the export of scrap, protecting the supply chain of some foreign competitors and creating an artificial competitive advantage.

Global steel production overcapacity, estimated by the OECD at approximately 704 million net tons in 2025, poses a significant risk as surplus output from non-market economies like China can flow into the U.S. market, depressing steel prices ⁷⁴. The cyclical nature of the steel industry and sensitivity to general economic conditions, particularly in nonresidential construction, energy, and automotive markets, can materially adversely affect results. Volatility in the cost and availability of raw materials, especially scrap steel, is a key risk; the average cost of scrap and scrap substitutes was $392 per gross ton used in 2025 ⁷⁵. The Company relies on outside vendors for critical raw materials and may be unable to pass on increased costs to customers. Changes in the availability and cost of electricity and natural gas, which are volatile and influenced by factors beyond Nucor's control, could negatively impact operations. Environmental regulation, particularly related to greenhouse gas emissions, could increase costs; capital expenditures for environmental compliance at existing facilities for 2026 and 2027 are estimated to be less than $100 million per year ⁷⁶. The Company's substantial capital investment requirements, with total capital expenditures of approximately $8.90 billion over the three-year period ended December 31, 2025, and the need for adequate capital resources to fund these projects, represent a risk ⁷⁷.

Management's message emphasizes that Nucor's operating performance in 2025 reflected modest domestic steel demand growth and lower import levels, with operating rates at steel mills increasing to 83% as compared to 76% for the full year 2024 ⁷⁸. Demand was strong in several key end markets, including infrastructure, data centers, energy, and advanced manufacturing, while interest rate sensitive markets such as automotive and residential construction experienced softer conditions. Management highlights the Company's strengths, including being North America's most diversified steel producer, its raw material supply chain providing flexibility in optimizing raw materials costs, and its highly variable, low-cost structure combined with financial strength and liquidity. The strategic priorities emphasized are the 'Grow the Core, Expand Beyond and Live Our Culture' mission, with significant capital invested in recent years to expand product portfolio, improve cost structure, and increase exposure to markets with attractive growth prospects such as data centers and renewable energy. Management expects earnings to increase in the first quarter of 2026 across all three operating segments, with the largest increase in the steel mills segment due to higher volumes and higher realized prices ⁷⁹. Capital expenditures are expected to decrease to approximately $2.5 billion in 2026 ⁸⁰.