Nucor NYSE: NUE reported a stronger first quarter of 2026, with leadership pointing to record steel mill shipments, higher backlogs, and improving market conditions supported by trade enforcement. Management also reiterated that several large capital projects are progressing toward key milestones, while the company maintained its shareholder return framework alongside elevated growth investment.
First quarter results and operational performance
Chair and CEO Leon Topalian said the company generated approximately $1.5 billion of EBITDA and earned $3.23 per share in the first quarter, calling it “an excellent start to the year” and a “significant increase compared to the fourth quarter.” CFO Jack Sullivan said net earnings totaled $743 million, and that results exceeded the midpoint of guidance by “nearly $0.50,” largely due to higher volumes and a higher-margin product mix. He added that after weather-related shipping delays earlier in the quarter, March was particularly strong, with the sheet, plate, and rebar groups setting quarterly shipment records.
Topalian highlighted record quarterly shipments from Nucor’s steel mills, saying the company shipped 7 million tons, “the highest quarterly shipment volume in Nucor’s history.” He also pointed to strengthening order trends, noting steel mills backlog ended the quarter at 4.7 million tons, up 20% from year-end and the highest level since the second quarter of 2021. In the steel products segment, Topalian said backlog increased 9% from year-end, with gains across major product groups.
Segment performance: steel mills led sequential improvement
On a segment basis, Sullivan said the steel mill segment generated $1.1 billion of pre-tax net earnings, more than double the prior quarter. He attributed the increase to higher volumes and average selling prices across all four product groups, with sheet and structural the largest drivers, and said metal spreads expanded across all formats.
In steel products, Sullivan said Nucor generated $285 million of pre-tax earnings, up 24% from the fourth quarter on a 13% volume increase and stable pricing. He noted the Tubular Group set a quarterly shipment record and said strong demand related to the border fence was a significant contributor, adding that the company expects that demand to continue “for the next several years.” He also flagged margin compression from higher steel input costs flowing through, but said the company expects that to ease as realized pricing catches up.
In raw materials, Sullivan said pre-tax earnings were approximately $45 million versus $24 million in the prior quarter, reflecting higher DRI production following two planned outages in the fall. He said pre-operating and startup costs totaled $108 million in the quarter, and reiterated that the company expects those costs to trend higher as it moves toward completion of the West Virginia sheet mill.
Capital allocation, balance sheet, and shareholder returns
Topalian said the company returned $254 million to shareholders through dividends and share buybacks during the quarter and reinvested $661 million into the business. He said roughly 40% of quarterly capital spending went toward the new sheet mill in West Virginia.
Sullivan said Nucor ended the quarter with approximately $2.5 billion in cash and $3.2 billion in liquidity, with total debt at 24% of capital. He said the company remains on track with its $2.5 billion capital expenditure estimate for the full year, while characterizing investment levels as still elevated but moderating compared to recent years. Sullivan added that as capital spending trends down and cash from operations moves up, free cash flow increased meaningfully in the quarter and the company expects that trend to continue.
On shareholder returns, Sullivan said the company returned “over $250 million” in the quarter—about 34% of quarterly net earnings—reflecting that earnings came in above guidance. He said Nucor remains committed to returning at least 40% of net earnings to shareholders annually, and told analysts the company should “continue to close that gap and potentially exceed it” as the year progresses. In response to a question on the form of returns, Sullivan said Nucor’s traditional preference has been share repurchases, with special dividends considered only rarely, and that buybacks are typically executed through “dollar cost averaging” during the year.
Growth projects: West Virginia sheet mill timeline and other expansions
President and COO Steve Laxton said Nucor is entering the final phases of construction at its new sheet mill in West Virginia, with commissioning to be sequenced throughout 2026 beginning with the pickle line in the second quarter. He said the company expects commissioning, inspection, and testing of all equipment to be complete by the end of 2026, with commercial shipments ramping in early 2027. In Q&A, Laxton added that construction is about 85% complete, and detailed the commissioning sequence as starting with the pickle line, then the cold mill, followed by one galvanizing line and then the automotive-quality galvanizing line, with the melt shop and hot mill later in the year. He said Nucor expects to complete commissioning by year-end and then ramp production in 2027, with utilization “somewhere near 50% of capacity by the end of next year,” depending on market conditions.
Laxton also outlined additional projects:
- Utility towers facilities in Indiana (expected fully operational in the third quarter of 2026) and Utah (expected to reach full production by mid-2027).
- A second galvanizing line at the Berkeley County sheet mill in South Carolina, with commissioning planned for mid-2026 and production expected to begin in the fall.
- Recently completed projects that were EBITDA positive in March, including a micro mill in Lexington, North Carolina; a melt shop in Kingman, Arizona; and a galvanizing line in Crawfordsville, Indiana (with a paint line expected to be commissioned later this year).
- An Alabama towers and structures facility that Laxton said is expanding its customer base and is on track to reach EBITDA-positive run rates by the end of the summer.
Market outlook, pricing discipline, and trade policy
Laxton said after approximately 6% shipment growth in 2025, the company expects shipments to grow by more than 5% in 2026. He characterized overall demand as relatively stable, with pockets of strength including data centers, energy, border fence, and infrastructure, while consumer cyclicals, traditional office, heavy equipment, and agriculture remain softer. He said the company expects domestic steel consumption to be stable, with overall demand “flat to up 2%” for 2026.
In discussion of sheet pricing, EVP Noah Hanners said the company’s “slow and steady” approach has differed from prior cycles. He said Nucor did not “chase the market down” in the fourth quarter trough and instead managed its order book around what it viewed as underlying demand, with “modest, consistent” pricing increases supported by fundamentals. Hanners also said he believes this helped keep imports lower, contrasting 2024 imports of “9 million-ish tons” with 2026 tracking “4 million or under.”
Topalian said trade enforcement has contributed to reduced imports, with import share of the U.S. finished steel market declining from over 22% in the first quarter of 2025 to approximately 15% in the first quarter of 2026. He said the company was pleased to see the Administration reaffirm a 50% Section 232 tariff on steel and implement changes applying tariffs to the full value of derivative steel products, which he said closes a loophole related to undervaluation and circumvention. Topalian added that Nucor remains “vigilant” and said ongoing USMCA discussions present an opportunity to address challenges including Canadian steel subsidies and use of North American channels as “backdoors” into U.S. markets.
Looking to the second quarter, Sullivan said Nucor expects higher consolidated earnings with improvement across all three operating segments. He said steel mills should see stable volumes and increasing metal margins, steel products should see higher volumes and stable pricing, and raw materials should see higher earnings driven primarily by improved realized pricing for DRI, with the overall increase partially offset by higher corporate and intercompany profit eliminations on consolidation.
About Nucor NYSE: NUE
Nucor Corporation NYSE: NUE is an American steel producer headquartered in Charlotte, North Carolina. The company is primarily engaged in the manufacture and sale of steel and steel products, operating a network of steel mills, recycling facilities and fabrication plants across the United States and North America. Nucor's operations emphasize electric arc furnace steelmaking using recycled scrap metal, which supports a decentralized, mill-based production model focused on efficiency and flexibility.
Product offerings span a broad range of basic and value‑added steel items, including sheet, plate, merchant bar, structural beams, reinforcing bar, tubing, fasteners and fabricated components.
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