There has been a lot of talk among investment professionals about who will be the winners and losers this election season. Depending on the next U.S. president and the makeup of Congress, companies in some industries will likely be favored over others.

But no matter who wins the upcoming elections, there is a company built to win. nucor (NUE 1.21%). North America’s largest steel and steel products company has both external and internal tailwinds that shareholders will benefit from in the coming years.

Smart capital expenditure

Nucor has spent the last eight years increasing investments to grow its business. The company, which recently had a market value of approximately 35 billion dollars, has invested nearly 15 billion dollars in growth investments. These projects and acquisitions are already boosting Nucor’s earnings prospects over normal business cycles, with more coming into play in 2025 and 2026. The chart below shows the steady flow of capital it has committed to. new growth projects and acquisitions Since 2017.

Data source: Nucor. Chart by author.

Investors are also rewarded by Nucor management. CEO Leon Topalian outlined capital returns to shareholders over the first nine months of 2024 in the latest Q3 conference call: “Through September, Nucor returned $2.3 billion to shareholders through our share repurchases and dividends, and we completed a $2.3 billion investment “All capital expenditures were funded by operating cash flow and cash on hand, which ended the quarter at approximately $4.9 billion.”

Set up for success

The investments Nucor made were also strategic. Nucor has products for almost all infrastructure projects, energy grid works and data center construction. Construction of two new, highly automated utility tower manufacturing facilities is expected to be completed next year. Nucor also plans to launch a sheet steel coating line designed for value-added automotive products in 2026. Its largest ongoing project, construction of a new state-of-the-art sheet metal mill in West Virginia, is also expected to be completed in 2026. It is also in the midst of bringing its new plate facility in Brandenburg, Kentucky, to full production across all product lines.

And Nucor has created a data systems segment specifically to serve: rapidly growing data center construction market. One of the company’s acquisitions this year was a data center infrastructure manufacturer and installer. This is actually a new market for growth.

Some Wall Street analysts think: demand for artificial intelligence (AI) data center construction will remain strong for the foreseeable future. Major technology companies have stated that they plan to continue spending heavily in this area. Susquehanna analyst Christopher Rolland recently reiterated his positive views of many companies regarding AI. Barron’s. “Controls for AI remain robust and we expect hyperscaler (cloud computing providers) capex revisions to support H2 and next year,” Rolland noted.

Nucor shareholders should benefit

These projects are just one of the triggers that could help Nucor shares recover from recent highs. Shares are down more than 25% since reaching an all-time high of just over $200 per share earlier this year. However, with capital projects ongoing and starting to pay off, and new profits to be added in the near future, this looks like an opportunity for investors.

The company has a record of returning capital to shareholders. infrastructure projects They get support from the federal government through the Bipartisan Infrastructure Act, the CHIPS and Science Act, and other measures. This should lead to increased earnings potential over normal steel cycles, and Nucor shareholders should benefit no matter how the upcoming elections go.