Nucor's Earnings Lag Estimates in Q2, Sales Up on Higher Volumes

Core Insights - Nucor Corporation (NUE) reported earnings of $2.60 per share for Q2 2025, a decrease from $2.68 in the same quarter last year, and missed the Zacks Consensus Estimate of $2.62 [1][8] - The company achieved net sales of $8,456 million, reflecting a year-over-year increase of approximately 4.7%, surpassing the Zacks Consensus Estimate of $8,405.1 million [1][8] Nucor's Operating Figures - Total sales tons to outside customers for steel mills in Q2 were 5,044,000 tons, up 9% year over year, but below the estimate of 5,359,000 tons [2] - Overall operating rates at Nucor's steel mills increased to 85% in Q2 2025 from 80% in Q1 2025 and 75% in Q2 2024 [2] Segment Highlights - The steel mill segment saw an increase in earnings compared to the previous quarter, primarily due to higher average selling prices at Nucor's sheet and plate mills [3] - The steel products segment also experienced an earnings increase from Q1, driven by stable average selling prices and higher volumes [3] - The raw materials segment's earnings rose sequentially, supported by scrap processing operations [4] Financial Position - Cash and cash equivalents at the end of the quarter were $1,946 million, down approximately 57.4% year over year [5] - Long-term debt increased to $6,692 million, up 18.5% year over year [5] - Nucor repurchased around 1.8 million shares of its common stock during the quarter [5] Outlook - The company anticipates Q3 2025 earnings to be slightly lower than Q2 due to expected declines in the steel mills unit and stable earnings in the steel products and raw materials segments [6] - Despite strong backlogs and a consistent demand outlook, Nucor expects margin compression in Q3 compared to Q2 [6] Price Performance - Nucor's shares have decreased by 9.3% over the past year, in contrast to a 21.7% decline in the industry [7]