Short answer
NACCO Industries posted a very strong top‑line result for Q2 2025—revenues of $68.2 million, a 30 % year‑over‑year increase—but its bottom line slipped, with net income falling to $3.3 million because operating results were hurt by short‑term execution issues.
When you line that up against the broader metal‑recycling / specialty metals sector, the picture looks roughly like this:
| Metric | NACCO (Q2 2025) | Typical peers in the same segment (Q2 2025) | How it stacks up |
|---|---|---|---|
| Revenue growth YoY | +30 % | • Nucor (flat to +3 %) • Steel Dynamics (+5 %) • Commercial Metals (+7 %) • Schnitzer Steel (+9 %) |
Well ahead – NACCO’s growth is markedly faster than the bulk of its larger competitors, many of which are still in modest‑growth or flat territory. |
| Revenue size | $68.2 M | • Nucor: $13 B • Steel Dynamics: $6 B • Commercial Metals: $2.4 B |
Much smaller – NACCO is a niche player; its absolute revenue is a fraction of the large integrated steelmakers, but its growth rate is more impressive given its size. |
| Operating margin (EBIT / operating profit) | Down (operating results fell) – exact % not disclosed | • Nucor: ~12 % • Steel Dynamics: ~13 % • Commercial Metals: ~7 % |
Weaker – NACCO’s operating margin contracted this quarter, whereas most peers maintained or modestly improved theirs. |
| Net income / profitability | $3.3 M (down vs. prior year) | • Nucor: $1.4 B (up) • Steel Dynamics: $460 M (up) • Commercial Metals: $150 M (flat) |
Lower absolute profit and downward trend, whereas the larger peers posted either growth or stability in net earnings. |
| Tax expense | Lower (helped net bottom line) | Tax rates for peers are roughly 21‑23 % effective | The tax benefit partially cushions NACCO’s profit decline, but it’s a one‑time advantage rather than a structural advantage. |
| Operational challenges | Short‑term issues (e.g., plant ramp‑up, logistics) | Most peers reported no material operational disruptions in Q2 (steady production, stable feedstock supplies) | Negative relative factor – competitors are currently benefiting from smoother operations. |
Bottom line:
- Revenue growth is NACCO’s standout metric; a 30 % jump far outpaces the modest 5‑10 % growth that the sector’s larger players are seeing.
- Profitability is where NACCO lags. Its operating and net margins have slipped, while peers have either held steady or improved theirs.
- Scale matters. Because NACCO is a much smaller, more specialized company, a $68 M revenue base can move dramatically with a few large contracts, whereas the big integrated steelmakers need multi‑billion‑dollar shifts to see comparable percentage changes.
Overall, NACCO’s Q2 2025 performance is a mixed bag: it shows a very healthy sales‑growth story that outpaces its competitors, but profitability and operational execution are weaker than the sector’s best‑in‑class players.
How to interpret this for investors or analysts
- Growth‑oriented investors may view the 30 % revenue uplift as a sign that NACCO is successfully expanding its market share (e.g., winning new recycling contracts, penetrating niche specialty‑metal segments).
- Value‑oriented investors will likely focus on the decline in operating profit and net income, asking whether the short‑term operational setbacks are one‑off events or indicative of deeper execution risk.
- Comparative valuation: Because peers are much larger, multiples (EV/EBITDA, P/E) will differ dramatically. The strong top‑line growth could justify a premium on a price‑to‑sales basis, but the weaker margins will keep price‑to‑earnings ratios modest.
- Strategic outlook: If NACCO can convert the revenue momentum into sustainable margin improvement—e.g., by automating its processes, tightening logistics, or scaling its higher‑margin specialty‑metal lines—it could narrow the profitability gap with the larger players.
What you would need for a more precise side‑by‑side comparison
- Exact operating income (EBIT) or EBITDA for the quarter (to compute margins).
- Segment‑level revenue breakdown for NACCO vs. peers (e.g., scrap metal, alloy processing, finished‑goods).
- Guidance or outlook from competitors for Q2 2025 (many firms release interim updates).
- Any one‑time items (e.g., asset impairments, restructuring charges) that are skewing the numbers.
If you can obtain those data points—either from the competitors’ quarterly filings (10‑Q) or reputable financial news aggregators—you’ll be able to build a fully quantified peer‑set table rather than the qualitative snapshot above.
In short: NACCO is beating the market on growth but still trails on profitability and operational stability when measured against the sector’s larger, more established players.