Impact of U.S. Steel Tariffs and Trade Enforcement Strategies
Nucor supports increasing tariffs to 50% under Section 232 and advocates for vigorous enforcement of trade laws.
Preliminary trade investigations into steel derivative products and rebar imports from multiple countries are underway, with expected affirmative final determinations later in the year.
Nucor's raw material supply chain is highly diversified, with internal and external sourcing options, enabling agility in response to tariffs and import pressures.
The company has mitigated the impact of tariffs on Brazilian slab imports through supply chain adjustments, including internal sourcing and alternative international sources.
Capital expenditures totaled $954 million in Q2, with a full-year CapEx guidance of approximately $3 billion.
Debt to capital ratio was approximately 24% with $2.5 billion in cash at quarter end; next major debt maturity is in 2027.
Nucor generated EBITDA of approximately $1.3 billion and earned $2.60 per diluted share in Q2 2025, a significant improvement over Q1 results.
Raw materials segment pretax earnings were approximately $57 million, a 95% increase over Q1.
Returned $329 million to shareholders in Q2 via dividends and buybacks, totaling $758 million for the first half of 2025.
Second quarter net earnings were $603 million or $2.60 per share, at the midpoint of guidance, compared to $0.77 adjusted EPS in Q1 and $2.68 EPS in Q2 2024.
Steel mills segment pretax earnings were $843 million, more than triple Q1, driven by higher average selling prices and stable volumes.
Steel Products segment pretax earnings were $392 million, up 28% over Q1, marking the best quarter since Q2 2024.
Impact of U.S. Tariffs on Swiss Imports and Guidance Revision
U.S. administration announced a significant increase in tariffs on Swiss imports to 39%, which would negatively impact FY2025 EPS guidance by approximately $0.40.
The gross impact of tariffs on the company is estimated at around $95 million annually, with efforts underway to fully offset these costs by next year.
Management emphasized ongoing mitigation actions and confidence in their ability to offset tariff impacts, despite the dynamic and uncertain trade environment.
Impact of Tariffs and Trade Negotiations on Supply Chain Strategy
Mohawk emphasizes the importance of local production, with about 85% of U.S. sales produced in North America, including Mexico under USMCA.
The company is actively monitoring and adjusting to tariffs, with a new deadline of August 1 for tariff negotiations.
Tariffs initially ranged from 10% to 50%, with ongoing negotiations causing uncertainty.
Mohawk is promoting domestically produced collections and optimizing supply chains to mitigate tariff impacts.
The company is adjusting prices and supply chain strategies in response to evolving tariffs, with no current inclusion of potential tariff impacts in guidance.
Impact of Tariffs and Trade Flows on North American Imports
Tariff uncertainties have led to strategic shifts in trade flows, with import volumes rising significantly in North America and some pressure on European markets.
The company expects that with current tariff levels, imports into North America will decrease, supporting higher operating rates and potentially better pricing power.
The company continues to focus on its core strategy of being a supplier of choice in uncoated freesheet, despite trade flow disruptions.
Impact of Tariffs on Business Strategy and Operations
Hyster-Yale is actively managing tariff impacts through monthly price adjustments based on actual product costs, reflecting a flexible pricing strategy to offset tariff-related cost increases.
The company has built in a 10-15% tariff impact into its outlook, with ongoing negotiations and adjustments, especially in China and India where tariffs remain high.
Tariffs have caused a $10 million negative impact on product margins in Q2, prompting proactive measures such as global sourcing and cost management to mitigate effects.
Management expects tariffs to negatively affect financial results in the second half of 2025 despite mitigation efforts, with some uncertainty about the timing and magnitude of tariff stabilization.
Dafinchi
