UBS has revised its price target for Nucor (NUE, Financial), reducing it from $153 to $147. Despite this adjustment, the firm continues to maintain a Buy rating on Nucor's shares. This move indicates UBS's ongoing optimism about the company's future performance, albeit with slightly tempered expectations regarding its stock price. Investors might take this as a sign of confidence in Nucor's market resilience and potential for growth.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Nucor Corp (NUE, Financial) is $138.07 with a high estimate of $175.00 and a low estimate of $39.00. The average target implies an upside of 26.86% from the current price of $108.84. More detailed estimate data can be found on the Nucor Corp (NUE) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Nucor Corp's (NUE, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Nucor Corp (NUE, Financial) in one year is $146.88, suggesting a upside of 34.95% from the current price of $108.84. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Nucor Corp (NUE) Summary page.
NUE Key Business Developments
Release Date: April 29, 2025
- EBITDA: $696 million for Q1 2025.
- Adjusted EPS: $0.77 per share.
- Net Earnings: $156 million or $0.67 per share.
- Capital Reinvestment: Nearly $860 million reinvested, with two-thirds for projects commencing in the next two years.
- Shareholder Capital Return: Nearly $430 million returned to shareholders.
- Debt Issuance: $1 billion in new senior notes with a 4.88% weighted average coupon.
- Steel Mill Segment Adjusted Pretax Earnings: $241 million, a 43% increase from the prior quarter.
- Steel Products Segment Adjusted Pretax Earnings: $307 million for Q1 2025.
- Raw Materials Segment Pretax Earnings: Approximately $29 million.
- Backlog Growth: Steel mill segments up over 30%; steel products up nearly 25%.
- Cash Position: Over $4 billion in cash, with plans to use $1 billion to retire debt.
- Debt to Capital Ratio: Approximately 27%, adjusting to just under 25% after debt retirement.
- Second Quarter 2025 Outlook: Earnings expected to be meaningfully higher than Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nucor Corp (NUE, Financial) generated EBITDA of $696 million and earned $0.77 of adjusted EPS, demonstrating strong financial performance despite lower results compared to prior quarters.
- The company reinvested nearly $860 million into projects that will commence operations over the next two years, indicating a commitment to long-term growth.
- Nucor Corp (NUE) returned nearly $430 million of capital to shareholders, showcasing a strong commitment to shareholder value.
- The company has a strong balance sheet and deep liquidity, allowing it to advance long-term growth plans and maintain financial stability.
- Nucor Corp (NUE) is well-positioned to benefit from recent changes in federal trade policy, including the reinstatement and broadening of Section 232 steel tariffs, which are expected to strengthen the US steel industry.
Negative Points
- Nucor Corp (NUE) experienced lower results compared to prior quarters, indicating potential challenges in maintaining previous performance levels.
- The company incurred $170 million or $0.56 per share in pre-operating and start-up costs, creating near-term earnings headwinds.
- There are concerns about potential impacts from tariffs on raw materials and equipment, which could affect Nucor Corp (NUE)'s operations and costs.
- The steel products segment is expected to experience margin compression due to lower realized pricing in the coming months.
- Nucor Corp (NUE) faces macroeconomic uncertainty and volatility, which could impact steel demand and overall financial performance.
