Nucor Q2 Earnings Call Highlights

Key Points

• Nucor’s second-quarter results exceeded expectations: Net earnings reached $1.2 billion, or $5.04 per share, while adjusted earnings were $4.84 per share. Record steel mill shipments, higher selling prices and improved results across all three segments drove approximately $2 billion in EBITDA.
• The company expects stronger third-quarter earnings as expanding metal margins, stable volumes, higher pricing and improved Steel Products results offset weaker Raw Materials performance. Nucor also expects 2026 shipment growth near the high end of its 5%–10% target range.
• Nucor continues investing while returning capital to shareholders: The company reaffirmed approximately $2.5 billion in 2026 capital spending, with 60% allocated to growth projects, and returned $479 million through dividends and buybacks during the quarter. Its West Virginia sheet mill remains on schedule, with commercial shipments expected to ramp in early 2027.

Nucor NYSE: NUE reported stronger second-quarter earnings as record steel mill shipments, higher selling prices and improved performance across all three operating segments lifted results above the midpoint of the company’s guidance range.

The steelmaker generated net earnings of $1.2 billion, or $5.04 per share, for the second quarter. Excluding a $0.20-per-share non-cash benefit tied to an increase in the value of its Helion investment, adjusted earnings were $4.84 per share. Nucor generated approximately $2 billion of EBITDA during the quarter.

Chief Financial Officer Jack Sullivan said the company exceeded the midpoint of its guidance by $0.29 per share, primarily because Steel Mills results were better than anticipated, with several divisions outperforming their June forecasts. Steel Products and Raw Materials also exceeded internal expectations.

Record Shipments and Segment Improvement

Nucor’s Steel Mills segment posted quarterly shipments of 7.1 million tons, an all-time record and the second consecutive quarterly record, according to Chair and Chief Executive Officer Leon Topalian. The company cited strength across its product categories and continued benefits from investments in core steelmaking capacity.

The Steel Mills segment generated $1.6 billion of pre-tax earnings, up more than 35% from the first quarter. Higher average selling prices, particularly for sheet and plate products, were the principal drivers. Segment results also included $130 million of cash refunds associated with prior-period raw-material procurement costs, primarily for pig iron.

Steel Products generated $353 million in pre-tax earnings, an increase of more than $75 million sequentially. Shipments rose 11% from the first quarter, with growth across the company’s major product lines. Topalian said Nucor’s tube group set a second straight quarterly shipment record.

Raw Materials pre-tax earnings rose to $146 million from $45 million in the first quarter. Executive Vice President of Raw Materials Allen Behr attributed the increase to strong recycling-yard volumes and margins, as well as record direct reduced iron production. The DRI business benefited from higher pig iron prices, which influence Nucor’s internal DRI transfer pricing.

At the company’s Brandenburg plate facility, shipments exceeded 230,000 tons during the quarter. Brad Ford, executive vice president of Plate and Structural Products, said nearly one-third of Brandenburg’s second-quarter shipments consisted of grades and sizes previously unavailable from Nucor’s plate group, including API line pipe, armor grades, shipbuilding grades and wide plate for bridge applications.

Outlook Calls for Higher Third-Quarter Earnings

Nucor forecast higher consolidated earnings in the third quarter. In Steel Mills, the company expects expanding metal margins and stable volumes to offset the absence of additional material cash-refund benefits. Sullivan said realized pricing is expected to increase across all product groups.

Steel Products earnings are projected to rise on higher volumes and average realized prices. Raw Materials earnings, however, are expected to decline as lower realized scrap prices and elevated iron ore costs pressure margins. Nucor said iron ore costs have risen following the idling of some pellet capacity in the Middle East.

President and Chief Operating Officer Stephen Laxton said Nucor now expects 2026 shipment growth to finish near the high end of its previously communicated 5% to 10% range. While the company expects customary seasonal softness in the fourth quarter, Laxton said demand remains strong across its product portfolio, supported by energy infrastructure, advanced manufacturing, data centers, construction and reshoring activity.

Nucor estimated overall U.S. steel demand could increase about 2% in 2026. Laxton said some consumer-oriented markets remain weaker, but noted that reshoring could increase domestic steel consumption in sectors such as automotive even when end-market consumption is not growing.

Noah Hanners, executive vice president of Sheet Products, said Nucor’s sheet operations set another production record in the second quarter. He said the company sees continued demand strength into 2027, including in energy, data centers, automotive and consumer durables. Hanners also cited low inventories at service centers and said service-center shipments rose 10% year over year in June.

Growth Projects Continue to Advance

Nucor said its new sheet mill in West Virginia remains on schedule and on budget. The company began commissioning the melt shop and automotive and construction galvanizing lines earlier this month, with cold mill and hot mill commissioning expected later in the year. Commercial shipments are expected to begin ramping in early 2027, with utilization and product offerings building through 2027 and into 2028.

Hanners said Nucor expects the West Virginia mill to reach roughly 50% utilization by the end of its first year of operation. The company plans to focus initially on safe, reliable and consistent production before expanding into higher-value products and qualifications.

Other projects expected to be completed later this year include Nucor’s Berkeley galvanizing line, the full range of its Crawfordsville coating operation and an Indiana Towers and Structures facility. A Utah Towers and Structures facility is expected to reach full production by mid-2027.

Laxton said the Lexington micro mill and Kingman melt shop reached EBITDA-positive run rates in the first quarter. Nucor’s Alabama Towers and Structures facility is expected to reach an EBITDA-positive run rate later this year.

Capital Allocation and Trade Policy

Capital expenditures totaled $571 million in the second quarter, and Nucor reaffirmed its expectation to spend about $2.5 billion during 2026, with about 60% directed to growth projects. The company generated $829 million of free cash flow, its strongest quarter since 2023, and ended the period with approximately $2.7 billion in cash and $3.4 billion of liquidity.

Nucor returned $479 million to shareholders through dividends and share repurchases during the quarter, representing 41% of net earnings. The company said it remains committed to returning at least 40% of annual net earnings to shareholders.

Topalian said finished steel imports increased sequentially but remained down 25% year over year, which he attributed to strengthened Section 232 measures and antidumping and countervailing duties. He also called for changes to the U.S.-Mexico-Canada Agreement, including North American melted-and-poured requirements for steel used in steel-intensive products.

“We remain incredibly optimistic about the opportunities and the future ahead of Nucor,” Topalian said in closing remarks.

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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