Core Insights - Nucor Corporation (NUE) is scheduled to release its third-quarter 2025 results on October 27, with expectations of lower earnings across all segments compared to the previous quarter [1][5][7] - The company has a trailing four-quarter earnings surprise of approximately 27.4% on average, having surpassed the Zacks Consensus Estimate in three of the last four quarters [1][10] - Nucor's shares have declined by 2.1% over the past year, contrasting with a 10.2% increase in the Zacks Steel Producers industry [2] Revenue Estimates - The Zacks Consensus Estimate for Nucor's third-quarter consolidated revenues is $8,162.8 million, indicating a year-over-year increase of 9.7% [4] Factors Affecting Performance - Lower segment earnings are anticipated to negatively impact Nucor's performance, with expectations of decreased earnings in the steel mills, steel products, and raw materials segments [5][7] - The steel mills segment is expected to experience reduced earnings due to lower volumes and margin compression, while the steel products segment may see decreased earnings from higher average costs per ton [5] - The raw materials segment is also projected to earn lower profits due to weaker profitability in scrap processing operations [5] Market Conditions - U.S. steel prices have retreated in the third quarter amid cautious buyer activity, with hot-rolled coil (HRC) prices dropping to around $800 per short ton from a peak of nearly $950 per short ton earlier in the year [8] - Despite the decline in prices, stable selling prices are expected to have supported Nucor's performance, with an estimated average sales price per ton for the steel mills unit at $1,041, remaining stable sequentially [9] Earnings Prediction Model - The current model does not predict an earnings beat for Nucor this quarter, with an Earnings ESP of -1.28% and a Zacks Rank of 4 (Sell) [10][11]

Core Insights - Commercial Metals Company (CMC) reported Q4 fiscal 2025 earnings per share (EPS) of $1.35, up from 90 cents year-over-year, and adjusted EPS of $1.37, exceeding the Zacks Consensus Estimate of $1.32 [1][9] - Net sales for the quarter reached approximately $2.11 billion, a 5.9% increase year-over-year, surpassing the Zacks Consensus Estimate of $2.04 billion [1][9] - The company announced an agreement to acquire Foley Products Company for $1.84 billion, which will enhance its portfolio in precast applications and position it as the third-largest player in the U.S. [8][10] Financial Performance - The cost of goods sold increased by 2.9% year-over-year to $1.72 billion, while gross profit rose by 21.6% to $393 million [2] - Core EBITDA for Q4 was $291 million, reflecting a 32.9% increase from the previous year [2] - For fiscal 2025, adjusted EPS was $3.13, a 24% decline from $4.13 in fiscal 2024, but still above the Zacks Consensus Estimate of $3.09 [6] Segment Performance - The North America Steel Group generated net sales of $1.62 billion, up from $1.56 billion year-over-year, with adjusted EBITDA of $239 million compared to $203 million [3] - The Europe Steel Group's revenues increased by 18.5% to $263 million, with adjusted EBITDA improving to $39 million from a negative $3.6 million [4] - The Emerging Businesses Group reported net sales of $222 million, up from $195.5 million, with adjusted EBITDA rising by 19.1% [5] Cash Flow and Balance Sheet - CMC's cash and cash equivalents at the end of fiscal 2025 were $1.04 billion, up from $0.86 billion at the end of fiscal 2024 [7] - Long-term debt increased to $1.31 billion from $1.15 billion year-over-year [7] - Cash generated from operating activities was $715 million, down from $899.7 million in the previous fiscal year [7] Future Outlook - CMC anticipates that finished steel shipments in the North America Steel Group will follow normal seasonal trends in Q1 fiscal 2026, with an expected rise in adjusted EBITDA margins [12] - The Emerging Businesses Group is expected to see a sequential decline due to seasonality but an increase year-over-year [13] - Overall, financial results for Q1 fiscal 2026 are projected to align with Q4 results [13] Market Performance - CMC's shares have decreased by 0.5% over the past year, contrasting with the industry's growth of 5.5% [14]

Core Insights - Nucor Corporation (NUE) is focused on maximizing shareholder returns through a robust balance sheet and strong cash flows, returning $758 million in the first half of 2025 and approximately $985 million year to date [1][8] - The company has a commitment to return at least 40% of its annual net earnings to shareholders, with a payout ratio of 36% and a five-year annualized dividend growth rate of 7.5% [3][4] Financial Performance - Nucor ended the second quarter of 2025 with strong liquidity of about $3.4 billion, including cash and cash equivalents of around $1.95 billion, and generated operating cash flow of roughly $1.1 billion in the first half of 2025 [2][8] - The company repurchased approximately 0.7 million shares in the third quarter and around 4.8 million shares year to date [1] Dividend Policy - Nucor raised its quarterly dividend to 55 cents per share from 54 cents in December 2024, marking 52 consecutive years of dividend increases since 1973 [3] - The current dividend yield stands at 1.5% based on the current stock price [3] Capital Allocation Strategy - Nucor is executing a disciplined capital allocation policy, utilizing substantial cash generation to enhance shareholder value, fund growth projects, and reduce debt [4] - The company remains committed to prioritizing capital returns to shareholders in the second half of 2025 [4] Industry Comparison - Among peers, Steel Dynamics, Inc. repurchased shares worth $450 million in the first half of 2025 and raised its quarterly dividend by 9% to 50 cents per share [5] - Commercial Metals Company also follows a disciplined capital allocation strategy, repurchasing shares worth $50.4 million in the fiscal third quarter [6] Stock Performance and Valuation - Nucor's stock has gained 22.3% year to date, compared to the Zacks Steel Producers industry's growth of 25.2% [7] - The company is currently trading at a forward 12-month earnings multiple of 14.09, which is approximately 28.3% higher than the industry average of 10.98 [10] Earnings Estimates - The Zacks Consensus Estimate for Nucor's 2025 earnings indicates a year-over-year decline of 8.9%, with EPS estimates trending lower over the past 60 days [11]

Government Initiatives - India plans to launch a 500 亿卢比 (approximately $600 million USD) program [1] Environmental Impact - The program aims to incentivize steel producers to reduce emissions [1]

Core Viewpoint - Nucor Corporation (NUE) has shown strong performance in the stock market, with a 20.1% increase over the past three months, outperforming both the Zacks Steel Producers industry and the S&P 500 [1][7] Financial Performance - Nucor missed earnings estimates in the second quarter but reported higher profits across its segments, driven by increased shipment volumes and higher average selling prices in its steel mill segment [1] - The company's top line rose by 5%, exceeding estimates [1] Market Comparison - Among major U.S. steel-making peers, Steel Dynamics, Inc. (STLD) has seen a decline of 4.4% in the past three months, while Cleveland-Cliffs Inc. (CLF) has experienced a significant rally of 38.6% [2] Technical Indicators - Nucor has been trading above its 50-day simple moving average (SMA) since June 2, 2025, and is also above its 200-day SMA, indicating a bullish trend following a golden crossover on July 30, 2025 [5][6] Growth Projects - Nucor is committed to increasing production capacity through various growth projects, including the Apple Grove sheet mill and the Lexington rebar micro mill, which are expected to meet strong demand from construction, military, and energy sectors [10] - The company has a healthy order backlog and has already commissioned some growth projects, showing strong production and shipment performance [10] Strategic Acquisitions - Nucor has focused on growth through strategic acquisitions, including the recent buyout of Southwest Data Products and Rytec Corporation, which will expand its product portfolio and create cross-selling opportunities [11] Financial Health - Nucor ended the second quarter of 2025 with strong liquidity of approximately $3.4 billion and has amended its revolving credit facility to increase borrowing capacity [12] - The company has returned around $13.2 billion to shareholders since 2020, with a commitment to return at least 40% of annual net earnings [13] Dividend Information - Nucor offers a dividend yield of 1.5% with a payout ratio of 36%, indicating a sustainable dividend policy backed by strong financial health [14] Steel Price Trends - A recent pullback in U.S. steel prices poses challenges for Nucor, with hot-rolled coil (HRC) prices dropping below $800 per short ton due to overall demand weakness and abundant steel mill output [15][16] Earnings Estimates - The Zacks Consensus Estimate for Nucor's earnings for 2025 and 2026 has been revised upward over the past 60 days, reflecting positive sentiment [17] Valuation Concerns - Nucor is currently trading at a forward 12-month earnings multiple of 14.88, which is a 37.9% premium to the peer group average, raising concerns about its valuation [18] Investment Outlook - Nucor's expansion efforts and strategic acquisitions are positive, but the company faces challenges from the steel industry's price volatility and its stretched valuation, suggesting a hold strategy for current investors [21]

Core Viewpoint - Nucor Corporation (NUE) is expected to report strong second-quarter 2025 results, driven by higher selling prices and volumes, with an earnings surprise of 13.2% in the last quarter and an average earnings beat of 31.6% over the past four quarters [1][4]. Financial Performance - Nucor's second-quarter earnings estimate is pegged at $2.62, with an Earnings ESP of +0.69% [4]. - The Zacks Consensus Estimate for consolidated revenues is $8,405.1 million, reflecting a year-over-year increase of 4.1% [9]. - The average sales price per ton for the steel mills unit is estimated at $962, indicating a 2.6% increase from the previous quarter, with shipments projected at 5,359,000 tons, a 2.5% sequential rise [13]. Market Dynamics - Higher steel tariffs and mill price hikes have contributed to increased hot-rolled coil prices, enhancing Nucor's outlook [8]. - The steel mills segment is expected to experience the largest growth due to improved average selling prices, while the steel products and raw materials segments are also forecasted to see earnings growth [10][11]. - U.S. steel prices have rebounded after a decline in 2024, influenced by tariffs imposed by the Trump administration, which raised steel import tariffs to 50% in June 2025, further driving up prices [12]. Stock Performance - Nucor's shares have decreased by 7.7% over the past year, contrasting with a 21.5% decline in the Zacks Steel Producers industry [2]. - Nucor currently holds a Zacks Rank 3 (Hold) [5].

Core Insights - Cleveland-Cliffs Inc. (CLF) is expected to report second-quarter 2025 results on July 21, with a projected revenue of $4.9 billion, indicating a year-over-year decline of 3.8% [4][7] - The company has experienced a trailing fourth-quarter negative earnings surprise of approximately 9.7% and a negative surprise of around 17.9% in the last reported quarter [1][2] - Higher steel prices and increased volumes are anticipated to have positively impacted CLF's performance, although rising unit costs may offset these gains [5][10] Revenue Estimates - The Zacks Consensus Estimate for CLF's second-quarter consolidated revenues is $4,899.2 million, reflecting a 3.8% decline compared to the previous year [4][7] - The average net selling price per net ton of steel products is estimated to be $1,020, representing a 4.1% increase from the prior quarter [8] Factors Influencing Performance - CLF is expected to benefit from higher steel prices, which have rebounded following a decline in 2024 due to reduced demand and oversupply [5][7] - The imposition of a 25% tariff on steel imports in March 2025 and its subsequent increase to 50% in June 2025 have contributed to a surge in hot-rolled coil (HRC) prices [5][10] - External sales volumes for steel products are projected at 4.2 million net tons, indicating a 1.4% sequential rise and a 5.3% year-over-year increase [9] Cost Considerations - Steelmaking unit costs are expected to have risen by $5 per ton in the second quarter compared to the first quarter, which may offset the benefits from higher prices and volumes [10] - Despite anticipated cost increases in the second quarter, a reduction in costs is expected in the latter half of 2025 due to the idling of underperforming assets [10] Earnings Prediction - The Earnings ESP for CLF is -4.60%, with the consensus estimate indicating a loss of 67 cents for the second quarter [12] - CLF currently holds a Zacks Rank of 3, suggesting a neutral outlook for earnings performance [12]

Core Insights - Cleveland-Cliffs Inc. has launched a new Vertical Stainless Bright Anneal Line at its Coshocton Works facility, representing a $150 million investment aimed at producing premium stainless steel for high-end automotive and critical appliance applications [1][8] - The new annealing line utilizes a 100% hydrogen atmosphere, replacing traditional acid-based processing, and includes a hydrogen recovery unit to enhance efficiency [1][2] - The stainless steel segment has been a consistent profit driver for Cleveland-Cliffs, and this new line is expected to improve quality and productivity, thereby enhancing profitability prospects [2] Financial Performance - Cleveland-Cliffs shares have decreased by 52.2% over the past year, while the Zacks Steel Producers industry has seen a decline of 30% [3] - The company anticipates a reduction of approximately $50 per net ton in steel unit costs for 2025, an increase from the previous expectation of a $40 reduction, primarily due to the idling of underperforming assets [4] - Projected capital expenditures for the company are around $625 million, down from an earlier estimate of $700 million [4] Market Position - Cleveland-Cliffs currently holds a Zacks Rank of 3 (Hold) [5] - In the basic materials sector, better-ranked stocks include Carpenter Technology Corporation, Centrus Energy Corp., and Avino Silver & Gold Mines Ltd. [5]

Core Viewpoint - Cleveland-Cliffs Inc. reported a significant loss in Q1 2025, with a net loss of $495 million or $1.00 per share, which is a substantial increase from a loss of $67 million or $0.14 per share in the same quarter last year [1] Financial Performance - Revenues decreased by approximately 11% year-over-year to $4,629 million, although this figure exceeded the Zacks Consensus Estimate of $4,596.6 million [2] - Steelmaking revenues were reported at $4,467 million, down around 11% year-over-year, missing the estimate of $4,495 million [2] - The average net selling price per net ton of steel products was $980, reflecting a decline of about 17% year-over-year, which also fell short of the estimate of $986 [3] - External sales volumes for steel products increased by roughly 5% year-over-year to approximately 4.14 million net tons, surpassing the estimate of 4.06 million net tons [3] Financial Position - The company ended the quarter with cash and cash equivalents of $57 million, up around 6% from the previous quarter [4] - Long-term debt rose approximately 8% sequentially to $7,601 million [4] - Net cash used by operating activities was reported at $351 million for the quarter [4] Outlook - Cleveland-Cliffs anticipates a reduction of about $50 per net ton in steel unit costs for 2025 compared to 2024, an increase from the earlier expectation of a $40 reduction, primarily due to the idling of underperforming assets [5] - Projected capital expenditures are now around $625 million, down from the previous estimate of $700 million [6] - The forecast for selling, general, and administrative expenses has been revised to approximately $600 million from around $625 million [6] - Depreciation, depletion, and amortization expenses are projected at roughly $1.1 billion [6] Price Performance - Cleveland-Cliffs shares have declined by 51.3% over the past year, compared to a 36.8% decline in the Zacks Steel Producers industry [7] Zacks Rank & Comparisons - The company currently holds a Zacks Rank of 3 (Hold) [8] - Other better-ranked stocks in the Basic Materials sector include Hawkins, Inc. (HWKN), Avino Silver & Gold Mines Ltd. (ASM), and Contango Ore, Inc. (CTGO), each with a Zacks Rank of 1 (Strong Buy) [8]

Core Viewpoint - Cleveland-Cliffs Inc. (CLF) is expected to report first-quarter 2025 results on May 7, with anticipated challenges due to lower year-over-year steel prices despite cost-cutting measures and increased volumes [1][5][9]. Revenue Estimates - The Zacks Consensus Estimate for CLF's first-quarter consolidated revenues is $4,596.6 million, indicating an 11.6% year-over-year decline [4]. Performance Factors - CLF is likely to face headwinds from weaker steel prices, with benchmark hot-rolled coil (HRC) prices dropping over 40% last year, closing near $700 per short ton from $1,200 per short ton at the beginning of 2024 [5][6]. - The average net selling price per net ton of steel products is estimated at $986, reflecting a 16.1% year-over-year decrease [8]. Cost Management - The company is expected to benefit from reduced steelmaking unit costs, with a sequential decline of approximately $15 per ton in the fourth quarter of 2024 and an anticipated reduction of about $40 per net ton in 2025 compared to 2024 [9]. Volume Growth - CLF is projected to have experienced higher sales volumes in the March quarter, estimated at 4.06 million net tons, suggesting a 3% year-over-year increase, driven by automotive demand and contributions from the Stelco acquisition [10]. Earnings Prediction - The Earnings ESP for CLF is -25.19%, with the consensus estimate indicating a loss of 67 cents for the first quarter, suggesting a low probability of an earnings beat [11][12].