Nucor Corporation
NUEBusiness Overview
ticker: NUE step: 01 generated: 2026-05-12 source: quick-research
Nucor Corporation (NUE) — Business Overview
Business Description
Nucor Corporation is the largest steel producer in the United States by capacity, operating a network of approximately 26 steel mills and 100+ downstream manufacturing facilities across the U.S., Canada, and Mexico. Headquartered in Charlotte, North Carolina, Nucor pioneered the electric arc furnace (EAF) model in the U.S. — melting recycled scrap steel rather than processing iron ore in blast furnaces — which gives it a greenhouse gas intensity approximately one-third lower than traditional integrated steelmakers. The company produced and sold approximately 18.5 million tons of steel in FY2024.
Revenue Model
Nucor operates through three segments: (1) Steel Mills (~61% of revenue) — produces sheet, plate, structural steel, bars, beams, and rebar at EAF mills; (2) Steel Products (~33%) — value-added downstream products including steel joists, steel deck, fabricated rebar, cold-finished steel, tubular products, and metal building systems; (3) Raw Materials (~6%) — scrap processing (David J. Joseph Company), direct reduced iron (DRI), and brokerage. Revenue is primarily driven by steel tonnage shipped × realized price per ton, with pricing closely tied to hot-rolled coil (HRC) benchmark prices.
Products & Services
- Sheet Steel — hot-rolled, cold-rolled, galvanized coil for automotive, appliance, construction
- Plate Steel — heavy plate for energy, shipbuilding, industrial equipment
- Structural & Long Products — wide-flange beams, angles, channels for construction
- Rebar & Bar Products — merchant bar, rebar for infrastructure and construction
- Steel Joists & Decking — engineered building components for commercial construction
- Metal Building Systems — pre-engineered building kits (Nucor Building Systems brand)
- Raw Materials — scrap collection/processing via David J. Joseph; DRI production
Customer Base & Go-to-Market
Nucor sells primarily to service centers, fabricators, OEMs, and construction contractors. End markets include non-residential construction (~45%), automotive (~15%), infrastructure/energy (~15%), and industrial/other (~25%). No single customer dominates — the business is broadly distributed. The company's downstream Steel Products segment sells directly to contractors and building owners, capturing higher margin per ton than raw steel sales.
Competitive Position
Nucor is the #1 U.S. steel producer and consistently the most profitable, with the lowest cost position driven by its EAF model (variable cost structure; scrap as feedstock), scale, and geographic distribution (mills near customers reduce freight costs). Key competitors include Cleveland-Cliffs (#2, integrated), Steel Dynamics (#3, EAF), and U.S. Steel (integrated, acquired by Nippon Steel). Section 232 tariffs (currently 50%) on steel imports are a structural protective factor, limiting low-cost import competition and supporting domestic pricing power.
Key Facts
- Founded: 1940 (as Nuclear Corporation of America; steel focus from 1960s)
- Headquarters: Charlotte, North Carolina
- Employees: ~33,000
- Exchange: NYSE
- Sector / Industry: Materials / Steel
- Market Cap: ~$20–25B
Financial Snapshot
ticker: NUE step: 04 generated: 2026-05-12 source: quick-research
Nucor Corporation (NUE) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $41.51B | $34.71B | $30.73B | -11.5% |
| Gross Margin | ~30% | ~22.5% | ~13% | -950bp |
| Operating Margin | ~22% | ~16% | ~9.4% | -660bp |
| Net Income | $7.61B | $4.52B | $2.03B | -55% |
| EPS (diluted) | $28.79 | $18.00 | $8.46 | -53% |
FY2022 was a record-earnings year driven by peak HRC steel prices post-COVID. FY2023–2024 reflect a sharp steel price normalization cycle. FY2025 (actual): revenue ~$32.5B (+5.7%), with FCF near breakeven due to elevated growth capex ($3.4B). Q1 2026 EPS +264% YoY on earnings beat.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$2.8B |
| Free Cash Flow | ~$823M |
| Capital Expenditures | ~$2.0B (growth projects) |
| Cash & Equivalents | ~$4.5B |
| Total Debt | ~$5.5B |
FY2025 FCF near break-even (~-$190M) due to peak capex spend of $3.4B on four major capacity expansion projects that completed in 2025. Capex drops to ~$2.5B in FY2026 as build cycle ends, unlocking FCF.
Key Ratios (approximate)
- P/E (FY2026E): ~13x on $12.57 consensus EPS | EV/EBITDA: ~8–10x
- Revenue Growth (FY2025): +5.7% | FCF Yield: inflecting sharply positive in 2026
- Dividend: 51+ consecutive years of dividend payments; never cut dividend in company history
Growth Profile
Nucor's financials are highly cyclical, tied to steel pricing. From FY2022's record $7.6B net income (peak HRC prices post-COVID), earnings have compressed sharply through FY2024 as steel prices normalized. However, FY2025 marks the trough: four major capital projects (collectively adding ~$500M in incremental annual EBITDA) completed in 2025, and HRC prices stabilized. The FY2026 earnings recovery is expected to be sharp: consensus EPS of $12.57 (+63% YoY) driven by higher realized prices, a 5% increase in planned steel mill shipments, and capex dropping from $3.4B to $2.5B.
Forward Estimates
- FY2026 EPS consensus: ~$12.57 (+63% vs. ~$7.71 in FY2025)
- FCF: swing from -$190M (FY2025) to $1.9B (FY2026), growing to $3.3B by FY2027
- $4B share buyback authorization announced; aggressive repurchase expected in FY2026
- 14 of 15 analysts rate Buy/Outperform; mean price target
$188 (+15% upside)
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $NUE.