Core Insights - Nucor's fourth-quarter earnings showed a decline in pretax earnings across its steel mill segment, attributed to seasonal effects and lower shipment volumes, despite some pricing improvements in specific product categories [1][3] - The company reported adjusted earnings of $1.73 per share for Q4 and $7.71 for the full year, with a significant EBITDA of $918 million for the quarter and approximately $4.2 billion for the year [3][6] - Management expects a rebound in earnings in early 2026, driven by completed projects transitioning to ramp-up and a projected 5% growth in steel mill shipments for 2026 [5][14] Financial Performance - The steel mill segment generated $516 million in pretax earnings, down about 35% from the previous quarter, primarily due to an 8% drop in shipment volumes [1] - The steel products segment reported $230 million in pretax earnings, a decrease from $319 million in the third quarter, with rebar fabrication being a significant contributor to the volume decline [6] - The raw materials segment's pretax earnings fell to approximately $24 million from $43 million, mainly due to scheduled outages [7] Capital Allocation and Cash Flow - Nucor reinvested $3.4 billion into the business in 2025 and returned $1.2 billion to shareholders, representing about 70% of net earnings, while ending the year with $2.7 billion in cash [8] - The company anticipates a reduction in capital expenditures to approximately $2.5 billion in 2026, with two-thirds allocated to growth investments [9] - Nucor generated negative free cash flow in 2025 due to aggressive growth spending but expects significantly higher free cash flow in 2026 with lower capital spending and improved market conditions [10] Market Outlook - Nucor expects continued strength in several end markets, including infrastructure and energy, with domestic steel demand anticipated to be slightly higher than in 2025 [13] - The company reported historically strong backlogs entering 2026, with steel mill segment backlogs up nearly 40% year-over-year [14] - Management guided for higher consolidated earnings in Q1 2026, driven by improved shipment volumes and pricing, particularly in the steel mill segment [15] Trade Policy and Import Levels - Enforcement actions and reinstated Section 232 tariffs have reduced the import share of the U.S. finished steel market from about 25% a year ago to an estimated 14-16% [4][16] - Nucor's management expects imports to remain at or below these levels in 2026, as the market adjusts to the impact of trade policies [16] - The company is focused on preventing illegally dumped and subsidized steel from entering the U.S. market, with a supportive environment from U.S. trade authorities [17]

Financial Performance & Outlook - Q1 Net Earnings reached $1773 million[15], while Adjusted Earnings were $2062 million[15] - Q1 Core EBITDA stood at $3169 million[15], with a Core EBITDA Margin of 149%[15] - The company aims to exit FY 2026 with an annualized run-rate EBITDA benefit of $150 million from TAG initiatives[14, 21] - Precast business is expected to contribute approximately $165 million to $175 million to Construction Solutions Group Adjusted EBITDA in fiscal 2026[34] Strategic Initiatives - The company launched new Transform, Advance, Grow ("TAG") initiatives with commercial opportunities in focus[14, 19] - The company rebranded Emerging Businesses Group to Construction Solutions Group to better reflect business composition and strategic role of segment[14, 28] - The company completed acquisitions of Concrete Pipe & Precast ("CP&P") and Foley Products Company ("Foley")[2, 34] Market Dynamics - Construction Solutions Group net sales were up 170% year-over-year, while adjusted EBITDA increased by 747%[52, 65] - Europe Steel Group shipments increased by 157% on a year-over-year basis[52, 72] - The company anticipates reducing net debt to adjusted EBITDA to below 2x within 18 months[14, 46]

Core Insights - The Nasdaq has rebounded above its 50-day moving average, indicating bullish sentiment as investors look towards 2026 with a focus on strong earnings growth for the S&P 500 and potential Fed rate cuts [1] - Investors are encouraged to consider stocks that have demonstrated strong performance in 2025, as market conditions are expected to remain favorable [2] Group 1: Stock Screening and Selection - A screening method using the Research Wizard identifies Zacks Rank 1 (Strong Buy) stocks, focusing on those with upward price momentum and trading within 20% of their 52-week highs [3][4] - The screening criteria include a PEG ratio and Price to Sales ratio to ensure value, narrowing down to seven stock picks [4] Group 2: Commercial Metals Company (CMC) - CMC has seen a 40% increase in stock price in 2025, reaching all-time highs and significantly outperforming the S&P 500 over the past 30 years [5][6] - The company operates in the steel industry, primarily recycling scrap metal into new steel products, and is positioned to benefit from ongoing infrastructure spending in the U.S. [6][9] - CMC's earnings estimates for FY26 and FY27 have increased by 21% and 31% respectively, contributing to its Zacks Rank 1 (Strong Buy) status [11] - The company trades at a forward P/E of 10.3X, which is a 34% discount to its sector, indicating potential value for investors [14]