Nucor expects lower Q3 earnings amid steel market challenges

Published 17/09/2025, 21:42
Nucor expects lower Q3 earnings amid steel market challenges

CHARLOTTE - Nucor Corporation (NYSE:NUE), a $32.8 billion steel giant trading at a P/E of 25.9, announced Wednesday it expects third quarter earnings to range between $2.05 and $2.15 per diluted share, down from $2.60 in the second quarter of 2025 but up from $1.05 in the same period last year. According to InvestingPro data, the stock is currently fairly valued based on its Fair Value analysis.

The steelmaker anticipates earnings decreases across all three of its operating segments compared to the previous quarter. The steel mills segment faces lower volumes and margin compression, while the steel products segment expects higher average costs per ton with stable pricing and volumes. The raw materials segment projects lower profitability in scrap processing operations. Despite these challenges, InvestingPro analysis shows the company maintains strong financial health with a GOOD overall score, and analysts maintain a bullish outlook with 3 recent upward earnings revisions.

During the third quarter, Nucor repurchased approximately 0.7 million shares at an average price of $140.46 per share. Year-to-date, the company has repurchased about 4.8 million shares at an average price of $126.26 and returned approximately $985 million to stockholders through share repurchases and dividends. The company has maintained dividend payments for 53 consecutive years, currently offering a 1.54% yield.

Nucor plans to release its complete third quarter results after markets close on October 27, 2025, followed by a conference call the next morning.

The company operates steel manufacturing facilities throughout the United States, Canada, and Mexico, producing various steel products including bars, beams, sheet, plate, and structural components. Nucor describes itself as North America’s largest recycler.

This information is based on a press release statement from the company.

In other recent news, Nucor Corporation has been the subject of several analyst upgrades and revisions. Freedom Broker upgraded Nucor’s rating from Hold to Buy, raising the price target to $174. This decision was influenced by positive developments in the U.S. steel market, bolstered by tariffs and infrastructure spending. Jefferies also upgraded Nucor to Buy, with a new price target of $170, citing an improving steel demand outlook and potential upside in steel prices. Meanwhile, UBS increased its price target for Nucor from $147 to $169, maintaining a Buy rating due to confidence in the durability of the Section 232 tariffs.

Additionally, Wells Fargo initiated coverage on Nucor with an Equal Weight rating and a price target of $145. In corporate developments, Nucor announced a quarterly cash dividend of $0.55 per share, marking its 210th consecutive payout. This dividend will be payable on November 10, 2025, to stockholders of record as of September 30, 2025. These updates highlight the company’s ongoing financial activities and the evolving market conditions surrounding its operations.

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