Description
Largest recycler of any material in North America; produces steel from scrap in EAFs; lower emissions vs. traditional steel.
Created
Mar 26, 2025 6:21 PM
URL
Circular Economy Involvement
Company Name
Nucor Corporation
Industry/Subsector
Steel Manufacturing - Recycled Steel (Electric Arc Furnaces)
Investment Thesis
Cost advantage and sustainability edge with scrap-based production; proven capital returns; benefits from demand for “green steel.”
Market CapitalizationMarket Capitalization
Multi-selectMarket Capitalization
Recent Financial Performance
~$30.7B revenue, ~$2.0B net income, ~6.6% net margin, ROE ~10% in 2024, strong balance sheet (debt/equity ~0.34).
Stock
~$30 billion
Ticker
NUE
- Industry/Subsector: Steel Manufacturing – Recycled Steel (Electric Arc Furnaces)
- Market Capitalization: ~$30 billion
- Circular Economy Involvement: Nucor is the largest steel producer in North America and the continent’s largest recycler of any material. It operates electric arc furnaces (EAFs) that melt scrap steel to produce new steel products, using recycled metal as the primary raw material. This process exemplifies closed-loop manufacturing: Nucor recycles millions of tons of scrap steel each year, dramatically reducing waste and energy use versus traditional steelmaking. The company’s focus on recycling and efficient production has also made it one of the most sustainable steel manufacturers, with greenhouse gas emissions ~60% lower than the industry average.
- Recent Financial Performance: Nucor benefited from a steel price boom in 2021–2022, then saw normalization in 2023–2024. For 2024 it reported $30.7 billion in sales (an 11% decline from 2023) and $2.0 billion in net earnings after record profits in the prior two years. Net margin was ~6.6% in 2024. ROE has come down to ~10% (trailing) as steel prices moderated (versus ~40%+ at the 2021 peak). Nucor maintains a very strong balance sheet with low debt (debt/equity ~0.3) and has consistently generated positive free cash flow through cycles.
- Investment Thesis: Nucor is a long-term value creator that marries profitability with circular practices. Its scrap-based production gives it a cost advantage and a sustainability edge as demand rises for “green steel.” Management has a 50+ year track record of profitable growth and shareholder returns (dividends and opportunistic buybacks). While earnings are cyclical, Nucor’s disciplined cost structure and product diversification help it remain profitable even at cycle lows. As industries and governments prioritize low-carbon, recycled materials, Nucor is well-positioned to capture that trend. The company’s commitment to returning cash to shareholders (over $2.7 billion returned in 2024 via dividends and buybacksinvestors.nucor.com) and its fortress balance sheet underscore its attractiveness for long-term investors seeking exposure to sustainable infrastructure and manufacturing.