Nucor Shares Slide As Revenue Miss And Soft Outlook Offset Earnings Beat

Nucor Corporation (NYSE:NUE) reported second-quarter earnings that topped analyst expectations, but its shares declined 5% in after-hours trading as revenue fell short and management issued a cautious forecast.

The steelmaker posted adjusted earnings of $2.60 per share, surpassing the consensus estimate of $2.52. However, revenue reached $8.46 billion, below the $8.54 billion analysts had expected, despite a 5% year-over-year increase from $8.08 billion.

Quarter-over-quarter, consolidated net sales rose 8%, while total steel mill shipments increased 10% compared to the same period last year. The company also improved operational efficiency, with steel mill operating rates rising to 85%, up from 80% in Q1 and 75% in Q2 2024.

Despite these gains, Nucor projected third-quarter earnings to be "nominally lower" than in Q2. The decline is expected primarily due to margin compression within the steel mills segment, even as backlogs remain strong and demand stable.