Shares of Nucor (NUE), the largest steel producer in the United States, are set to open sharply lower on Tuesday, plummeting 5.58% in pre-market trading. This significant drop comes in the wake of the company's second-quarter earnings report and disappointing third-quarter outlook released on Monday after market close.

Despite reporting better-than-expected second-quarter results, Nucor's cautious forward guidance has overshadowed its recent performance. For Q2 2025, the company posted earnings per share (EPS) of $2.60, surpassing analysts' expectations of $2.55, although this represents a slight decrease from $2.68 a year earlier. Revenue rose 4.7% to $8.46 billion, marginally missing the projected $8.54 billion. Notably, Nucor's adjusted net income of $706 million significantly exceeded the estimated $557 million.

However, investors seem more focused on Nucor's outlook for the third quarter. The company stated it expects Q3 earnings to be "nominally lower" than Q2, citing decreased earnings in the steel mills segment. This conservative forecast, coupled with ongoing concerns about rising raw material costs pressuring the company's steelmaking segment, appears to have spooked investors. As the steel industry continues to navigate through these challenges, market participants will be closely monitoring Nucor's ability to maintain its performance in the face of increasing input costs and potential market headwinds.