Nucor Corporation (NUE) Q2 2024 Earnings Report

Nucor reported a solid Q2 2024 with revenue of $8.08 billion and net income of $645 million, or $2.68 per diluted share. Despite earnings per share and net income that declined modestly versus Q1, the company maintained healthy cash generation, delivering $1.49 billion of cash from operations and generating about $684 million of free cash flow. The quarter featured meaningful margin pressure driven by softer prices in the Steel Mills and Steel Products segments, with gross margin at 14.8% and EBITDA of roughly $1.23 billion (EBITDA margin about 15.2%). Management emphasized a disciplined capital allocation framework, repurchasing $500 million of stock and signaling Moody’s positive rating outlook. The company reiterated a multi-year, capex-intensive strategy to expand downstream platforms and automation, including the West Virginia Sheet Mill (on track for 2026 completion) and the Brandenburg plate-capability initiatives, as well as the Lexington Rebar Micro Mill start-up in early 2025. In addition, Nucor advanced its Expand Beyond strategy through acquisitions (Rytec for high-performance overhead doors and Southwest Data Products for data-center infrastructure), aiming to broaden the product portfolio and cross-sell across steel-adjacent businesses. Looking ahead, the Q3 outlook suggests a sequential EBITDA decline similar in magnitude to Q2, as pricing and demand trends remain under pressure from imports and macro softness. Investors should monitor key catalysts, including further progress on CSP pricing deployment, bridgehead efficiencies from automation, the ramp of West Virginia and Brandenburg, and our ability to manage raw material inputs (e.g., low-copper shred and DRI) to sustain margins.