Al Root

Higher steel prices have been a boon to American steel companies. Now, higher costs, such as for scrap steel, are starting to bite.

On Wednesday, the U.S. steel producer Nucor offered financial guidance, as it usually does, this time for the fourth quarter. It sees earnings per share landing between $1.65 and $1.75.

Nucor reported EPS of $2.63 in the third quarter of 2025 and $1.22 in the fourth quarter of 2024.

Wall Street was looking for $2.16 a share, according to FactSet, so the number seems disappointing.

Nucor stock was down 3.2% at $157.11 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 0.2% and 0.3%, respectively.

Earnings will be down sequentially due to seasonal effects and what management described as "margin compression" in sheet steel. Benchmark steel prices have been fine, at about $900 per ton, up $100 since the end of the third quarter and up about $200 compared with a year ago. But costs, it seems, are rising too.

The price of scrap steel matters to Nucor because its business model relies on remelting scrap to make new steel.

Management struck an optimistic tone about 2026, noting that its backlogs of orders are higher than a year ago. Still, investors appear to be focused on the fourth quarter.

Other steel stocks might move on Nucor's guidance. Shares of Steel Dynamics were down 2.4% in premarket trading. Cleveland-Cliffs stock was off 0.1%.

Coming into Wednesday trading, Nucor stock was up 39% year to date because steel prices have gotten a lift from President Donald Trump's tariffs on steel and aluminum.

Write to Al Root at allen.root@dowjones.com

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December 17, 2025 09:26 ET (14:26 GMT)

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