Core Viewpoint - Nucor Corporation is facing challenges in its fourth-quarter earnings guidance, which is below analyst expectations, but remains optimistic about recovery in 2026 due to improving order backlogs [2][4][6] Financial Performance - Nucor's projected earnings per share (EPS) for the fourth quarter is between $1.65 and $1.75, which is below the consensus estimate of $2.18 [2][6] - The company's current stock price is $160.69, reflecting a decrease of 0.97% or $1.57 [5] - Nucor's market capitalization is approximately $36.78 billion [5] Operational Segments - The anticipated decline in earnings is attributed to seasonal pressures and fewer shipping days, affecting all three operating segments: steel mills, steel products, and raw materials [3] - In the steel mills segment, earnings are expected to decrease due to lower volumes and margin compression, particularly in sheet products [3] - The steel products segment faces challenges with lower volumes and higher average costs per ton, although improved average pricing may provide some relief [3] Shareholder Actions - Nucor has continued its share repurchase program, buying back approximately 0.7 million shares in the fourth quarter at an average price of $145.23, bringing total repurchases for the year to about 5.4 million shares [4][6] Market Outlook - Despite current challenges, Nucor remains optimistic about a recovery in 2026, driven by improving order backlogs [4][6]

Financial Data and Key Metrics Changes - Net sales for the second quarter were $871.9 million, with adjusted EBITDA at $48.3 million and adjusted earnings per share at $0.38, reflecting a solid operational performance despite market headwinds [4][15] - Adjusted EBIT increased to $26.6 million, up from $14.3 million in the prior-year quarter, driven by higher direct volumes and improved direct spreads [15][16] - Earnings for the quarter were reported at $18.8 million or $0.37 per share, compared to $12.8 million or $0.25 per share in the same quarter last year [15][16] Business Line Data and Key Metrics Changes - Direct sales volume made up 65% of the total mix, up from 55% in the prior-year quarter, with direct volumes increasing by 13% year-over-year [16] - Automotive shipments increased by 26% year-over-year, reflecting market share gains and a return to normal production levels at an OEM customer [16][17] - Energy shipments rose by 50% year-over-year, driven by project-based solar programs, while agriculture volume was up 1% [17] Market Data and Key Metrics Changes - North American light vehicle output is expected to hold near 15.2 million units in calendar year 2025, essentially flat with 2024 [5] - The construction market remains stable but subdued, with pockets of strength in power and infrastructure [6] - The heavy truck and trailer market is expected to see a rebound beginning in late calendar year 2026 [6] Company Strategy and Development Direction - The company is focused on long-term strategies, including electrical steel growth plans, new product development, and business optimization through transformation [7][9] - Expansion projects for electrical steel are on track, with initial production in Mexico expected in the first quarter of calendar year 2026 [7][8] - The integration of Sitem is progressing well, enhancing the company's capabilities in stamping electrical steel laminations and automation [9] Management's Comments on Operating Environment and Future Outlook - The management expressed cautious optimism for early 2026, anticipating improved conditions as interest rates ease and policy uncertainties subside [6][14] - The company remains focused on maintaining safety, quality, and service while navigating a mixed demand environment [15][22] - Management highlighted the importance of transformation initiatives and the integration of artificial intelligence to improve operational efficiency [10][50] Other Important Information - The company announced a quarterly dividend of $0.16 per share, payable on March 27, 2026 [21] - Worthington Steel was recognized as a 2025 Supplier of the Year by Schaeffler Group USA and received the Military Friendly Employer Gold designation for the 11th consecutive year [11][12] Q&A Session Summary Question: Inquiry about SG&A increase and one-time nature of costs - The increase in SG&A was primarily due to professional fees related to strategic projects, with Sitem's integration contributing to ongoing costs [26][30] Question: Automotive momentum and market share gains - The automotive market share gains were attributed to existing programs reaching expected volumes and not solely to cold rolled strip [33][34] Question: Impact of tariffs and onshoring on market share - A significant portion of recent market share gains is due to the onshoring of supply chains, with no immediate gains from announced onshoring manufacturing [35][36] Question: Deductions for minority interest partners - The smaller deductions were attributed to slower demand and the removal of the Worthington Samuel Coil Processing joint venture from the current year [39][40] Question: Compressed galvanized spreads and normalization - Decreased demand in construction has contributed to compressed spreads, but management expects margin expansion and normalization in the second quarter of the calendar year [45][46]

Financial Data and Key Metrics Changes - Net sales for the second quarter were $871.9 million, with adjusted EBITDA at $48.3 million and adjusted earnings per share at $0.38, reflecting a solid performance despite market headwinds [4][17] - Adjusted EBIT increased to $26.6 million, up $12.3 million from the prior year quarter, driven by higher direct volumes and improved direct spreads [18] - Earnings for the quarter were reported at $18.8 million or $0.37 per share, compared to $12.8 million or $0.25 per share in the prior year quarter [17] Business Line Data and Key Metrics Changes - Direct sales volume increased by 13% year over year, making up 65% of the sales mix, compared to 55% in the prior year [18] - Automotive shipments increased by 26% year over year, reflecting market share gains and a return to normal production levels at an OEM customer [19] - Energy shipments rose by 50% year over year, driven by project-based solar programs, while agriculture volume was up 1% [19] Market Data and Key Metrics Changes - North American light vehicle output is expected to hold near 15.2 million units in calendar year 2025, essentially flat with 2024 [5] - The construction market remains stable but subdued, with pockets of strength in power and infrastructure [6] - The heavy truck and trailer market is expected to see a rebound beginning in late calendar year 2026 [6] Company Strategy and Development Direction - The company is focused on long-term strategies, including electrical steel growth plans, new growth opportunities through CapEx and acquisitions, and continuous improvement through transformation [7][10] - Expansion projects for electrical steel are on track, with initial production in Mexico expected in the first quarter of calendar year 2026 [8] - The integration of CDEM is progressing well, enhancing competitiveness in advanced mobility and industrial markets [10] Management's Comments on Operating Environment and Future Outlook - The management expressed cautious optimism for early 2026 and a positive outlook for the second half of the calendar year, despite a mixed macroeconomic environment [6][15] - The company anticipates improvements in market conditions as interest rates ease and policy uncertainties subside [6] - Management highlighted the importance of transformation and AI integration in improving operational efficiency and financial discipline [11][12] Other Important Information - The company reported cash flow from operations of $99 million and free cash flow of $75 million for the quarter [23] - A quarterly dividend of $0.16 per share was announced, payable on March 27, 2026 [23] - Worthington Steel was recognized as a 2025 Supplier of the Year by Schaeffler Group USA and received the Military Friendly Employer Gold designation for the 11th consecutive year [12][13] Q&A Session Summary Question: What is the nature of the SG&A increase? - The increase in SG&A was primarily due to higher compensation and benefits, as well as professional fees related to strategic projects [28][34] Question: What contributed to the automotive momentum? - The automotive momentum was largely due to market share gains from new programs reaching expected volumes, rather than solely from the cold-rolled strip business [36] Question: What is the impact of decreased demand on galvanized spreads? - Decreased demand, particularly in construction, has created competitive rivalry, but management expects margin expansion going forward [48] Question: What are the top transformation initiatives for 2026? - Key initiatives include back office transformation and leveraging AI for operational improvements [52][53]

Core Insights - Nucor Corporation (NUE) has projected fourth-quarter earnings per share (EPS) for the period ending December 31, 2025, in the range of $1.65 to $1.75, indicating a decline from $2.63 in the third quarter of 2025 but an improvement over $1.22 in the fourth quarter of 2024 [1][7] Earnings Outlook - The anticipated decline in earnings is attributed to seasonal factors and fewer shipping days, with the steel mills segment expected to see moderated earnings due to lower shipment volumes and margin pressure, especially in sheet products [2][7] - The steel products segment is forecasted to experience reduced profitability due to lower volumes and higher average costs per ton, although this is partially offset by improved realized pricing [3] - The raw materials segment is expected to underperform due to two planned outages at Nucor's direct reduced iron facilities [3] Shareholder Returns - Despite the earnings decline, Nucor has prioritized shareholder returns, repurchasing approximately 0.7 million shares at an average price of about $145.23 during the quarter, totaling around 5.4 million shares repurchased year-to-date at an average cost of roughly $128.66 per share [4][7] - Including dividends, Nucor has returned about $1.2 billion to shareholders year-to-date in 2025 [4][7] Future Outlook - Management remains optimistic for 2026, citing significantly higher order backlogs compared to the previous year, particularly in construction-related end markets such as energy, infrastructure, data centers, and manufacturing [5] - The company anticipates a gradual improvement in market conditions, supported by favorable monetary, tax, and trade policies [5] - Nucor is scheduled to report fourth-quarter results after market close on January 26, 2026 [5] Stock Performance - Shares of NUE have increased by 27.3% over the past six months, compared to a 33.6% rise in the industry [6]

Core Viewpoint - The recent volatility in US equity markets is attributed to "extreme crowding" in speculative growth stocks, which are at risk of a reversal due to macroeconomic events [1][2]. Group 1: Market Performance - The S&P 500 index fell by 1.2%, marking the fourth consecutive day of losses after reaching a record high the previous week [2]. - The selloff has been primarily driven by technology shares as investors shift away from high-performing stocks [2]. Group 2: Speculative Stocks - JPMorgan Chase has identified six stocks as speculative growth plays that are vulnerable to market reversals: Broadcom Inc., Advanced Micro Devices Inc., Expedia Group Inc., Estee Lauder Cos Inc., Invesco Ltd., and Nucor Corp. [1][3]. - These stocks are considered sensitive to market shocks, which increases their risk of sudden repricing [3]. Group 3: Stock Performance - Since December 10, Broadcom shares have decreased by over 21%, Advanced Micro Devices has dropped by 11%, and other identified stocks like Estee Lauder, Invesco, and Nucor have also seen declines, with only Expedia showing a modest increase of about 3% [3]. Group 4: Investment Strategy - JPMorgan suggests that investors should buy bearish put options on speculative stocks while taking bullish positions on less volatile stocks [5]. - Recommended "low volatility" stocks include Cigna Group, Pfizer Inc., and Verizon Communications Inc. as safer investment alternatives [5].

Core Insights - Worthington Steel, Inc. reported its financial results for the fiscal 2026 second quarter ending November 30, 2025, indicating a significant performance update for stakeholders [1] Financial Performance - The company’s financial results reflect key metrics that are essential for evaluating its operational efficiency and market position [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Group 1 - The document provides details for a conference call scheduled for December 18, 2025, at 8:30 a.m. ET [1] - The conference ID for the call is 5714141 [1] - A toll-free dial-in number for participants is provided as 888.510.2553 [1]

Market Overview - U.S. stocks are showing strong momentum as major indexes approach record levels, with shallow short-term pauses indicating investor confidence for a positive year-end and transition into the new year [1] - Recent labor and economic updates present a mixed but reassuring picture, suggesting a gradual slowdown in job growth rather than a sharp decline, which may lead policymakers to support employment as the year ends [2] Investment Strategy - Relative price strength is highlighted as a practical strategy for investors, with stocks that have outperformed during year-end often becoming leaders in the following year [3] - Stocks recommended based on relative price strength include Commercial Metals Company (CMC), Illumina (ILMN), Kinross Gold (KGC), Las Vegas Sands (LVS), and Hamilton Insurance Group (HG) [3] Stock Performance and Estimates - Commercial Metals Company (CMC) has a market capitalization of $7.9 billion, with a projected earnings growth of 95.9% for fiscal 2026 and a share price increase of 38.7% over the past year [10][11] - Illumina (ILMN) has a market capitalization of $20.6 billion, with a projected earnings growth of 92.2% for 2025, although shares have decreased by 1.8% in the past year [11][12] - Kinross Gold (KGC) is expected to see a 147.1% year-over-year growth in earnings per share for 2025, with shares increasing by 208% in the past year [12][13] - Las Vegas Sands (LVS) has a market capitalization of $45.3 billion, with a projected earnings growth of 30% for 2025 and a share price increase of 32% over the past year [14] - Hamilton Insurance Group (HG) has a market capitalization of $2.8 billion, with an 18.5% upward revision in earnings estimates for 2025 and a share price increase of 50.9% in the past year [15][16] Screening Parameters - Stocks are screened based on relative price changes over 12 weeks, 4 weeks, and 1 week, focusing on those outperforming the S&P 500 [8] - Stocks must have a current price of at least $5, an average 20-day volume of at least 50,000, and a VGM Score of A or B to qualify for potential investment [10]

Core Viewpoint - Steelmakers Nucor and Steel Dynamics have indicated that their fourth-quarter earnings will significantly fall below Wall Street's expectations [1] Company Summary - Nucor and Steel Dynamics are both major players in the steel manufacturing industry [1] - The warning about earnings suggests potential challenges in the market environment affecting these companies [1] Industry Summary - The steel industry is facing pressures that may lead to lower-than-expected financial performance for key companies [1] - The earnings forecast indicates a broader trend that could impact investor sentiment and market dynamics within the steel sector [1]