Nucor and U.S. Steel shares drop on Q1 EPS guidance

Published 20/03/2025, 21:54
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Investing.com -- Shares of Nucor Corporation (NYSE:NUE) and United States Steel Corporation (NYSE:X) fell 2.25% and 2% respectively after both companies issued first quarter earnings per share (EPS) guidance below consensus expectations.

Nucor announced its EPS for the first quarter ending April 5, 2025, is projected to be between $0.45 to $0.55, significantly lower than the $1.22 reported in the fourth quarter of 2024 and $3.46 in the first quarter of 2024. Analysts had anticipated an EPS of $1.05 for the first quarter of 2025. The guidance includes estimated one-time charges of about $16 million, or $0.05 per diluted share, related to the shutdown of two facilities. Nucor’s steel mills segment is expected to perform similarly to the previous quarter, while the steel products and raw materials segments are projected to see a decline in earnings.

United States Steel provided an adjusted EPS guidance of ($0.53) to ($0.49) for the first quarter of 2025, with an anticipated adjusted EBITDA of approximately $125 million, which falls short of the consensus estimate of ($0.32). The company’s president and CEO, David B. Burritt, highlighted that the guidance aligns with their previous outlook and mentioned the sequential improvement expected in the Mini Mill segment due to increasing volumes from Big River Steel and Big River 2. Despite a slightly improved pricing environment in Europe and anticipated pricing improvements in the Tubular segment, overall demand remains subdued.

Both companies are navigating a challenging market environment, with Nucor’s lower average selling prices in the steel products segment and United States Steel’s seasonal logistical constraints in the mining sector affecting their financial performance. As they move forward, United States Steel’s outlook is supported by tariff policies and a partnership with Nippon Steel, while Nucor continues to return value to shareholders through share repurchases and dividends.

Investors reacted to the lower-than-expected guidance from both steel producers, resulting in the decline of their stock prices during the trading session.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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