Nucor (NUE) Q2 2024 earnings summary

Executive summary

• Q2 2024 net earnings were $645 million ($2.68 per diluted share), down from $844.8 million in Q1 2024 and $1.46 billion in Q2 2023, with EBITDA at $1.23 billion.

• First half 2024 net earnings totaled $1.49 billion ($6.14 per share), down from $2.60 billion ($10.26 per share) in 2023.

• Achieved the safest first half in company history, with a YTD injury & illness rate of 0.74 and 52 of 109 divisions reporting zero recordable injuries.

• Strategic growth initiatives included the acquisition of Southwest Data Products, the pending acquisition of Rytec, and major project milestones at Gallatin, Brandenburg, Lexington, and West Virginia.

• Revenue and profitability declined across all segments, with the largest decrease in the steel mills segment due to lower average selling prices and volumes.

Financial highlights

• Q2 2024 net sales were $8.08 billion, down 1% sequentially and 15% year-over-year; average sales price per ton decreased 2% sequentially and 11% year-over-year.

• Q2 2024 EBITDA was $1.23 billion, and diluted EPS was $2.68; gross margin fell to 15% from 26% in Q2 2023.

• Operating cash flow for the first six months was $1.94 billion, down from $3.13 billion year-over-year.

• Returned over $1.7 billion to shareholders year-to-date through dividends and share repurchases.

• Pre-operating and start-up costs for growth projects were $137 million in Q2 2024, up from $90 million in Q2 2023.

Outlook and guidance

• Q3 2024 consolidated earnings expected to be lower than Q2, mainly due to further declines in steel mill and steel products segment pricing.

• Margin pressure anticipated from increased imports and a higher-for-longer interest rate environment.

• CapEx guidance for 2024 is $3.5 billion, with elevated spending expected over the next two years for major projects.

• Demand for most product groups expected to remain stable in the back half of the year, with order entry rates steady.

• Raw materials segment earnings also expected to decline in Q3 2024.