Investment Thesis
Nucor demonstrates solid operational fundamentals with strong revenue growth (+5.7% YoY) and robust liquidity metrics, but profitability appears pressured with concerning trends in margins and cash generation. The company's negative free cash flow (-$188M) combined with declining EPS (-11.1% YoY) despite modest net income growth suggests operational headwinds that warrant cautious positioning.
NUE Strengths
- Strong liquidity position with 2.94x current ratio and 1.57x quick ratio, providing financial flexibility
- Conservative leverage with 0.33x debt/equity ratio and exceptional 15.1x interest coverage ratio
- Solid operating cash flow generation of $3.2B supporting operational sustainability
- Revenue growth of 5.7% YoY demonstrates market demand resilience in steel sector
NUE Risks
- Negative free cash flow of -$188M indicates capital expenditures ($3.4B) are outpacing operating cash generation, raising sustainability concerns
- Severely compressed gross margin of 1.9% suggests intense competitive pricing pressure or unfavorable input costs in the steel market
- Declining diluted EPS (-11.1% YoY) despite net income growth signals share dilution or operational inefficiencies
- Weak return metrics (ROE 8.3%, ROA 5.0%) indicate suboptimal capital deployment and profitability relative to asset base
Key Metrics to Watch
- Free cash flow trend - critical to monitor if capital intensity moderates or if FCF returns to positive territory
- Gross margin recovery - track whether pricing power improves or input cost pressures ease
- Operating cash flow sustainability - ensure OCF can support both capex and shareholder returns without covenant stress
NUE Financial Metrics
NUE Profitability Ratios
NUE Balance Sheet & Liquidity
NUE 5-Year Financial Trend
5-Year Trend Summary: NUCOR CORP's revenue has remained relatively flat over the 5-year period, with a 5% decline. The most recent EPS of $18.00 reflects profitable operations.
NUE Growth Metrics (YoY)
NUE Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $7.4B | $250.0M | $1.05 |
| Q2 2025 | $8.1B | $603.0M | $2.60 |
| Q1 2025 | $7.8B | $156.0M | $0.67 |
| Q3 2024 | $7.4B | $249.9M | $1.05 |
| Q2 2024 | $8.1B | $645.2M | $2.68 |
| Q1 2024 | $8.1B | $844.8M | $3.46 |
| Q3 2023 | $8.8B | $1.1B | $4.57 |
| Q1 2023 | $8.7B | $1.1B | $4.45 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
NUE Capital Allocation
NUE SEC Filings
Access official SEC EDGAR filings for NUCOR CORP (CIK: 0000073309)