What Nucor (NUE) Said on Its Q3 Earnings Call

Key Points

• Nucor delivered its strongest quarter in more than three years, with $1.3 billion in net earnings, $5.80 per share, approximately $2.3 billion in EBITDA and record steel shipments exceeding 7.2 million tons.
• The company generated $1.6 billion in free cash flow and returned $629 million to shareholders, while major growth projects—including its West Virginia sheet mill and Berkeley galvanizing line—move toward production and ramp-up in 2027.
• Management expects fourth-quarter earnings to be in line with or modestly above Q3, supported by higher prices despite seasonal volume declines, planned outages and elevated startup costs; full-year shipment growth remains projected near the upper end of the 5%–10% range.

Nucor NYSE: NUE reported its strongest quarterly performance in more than three years for the third quarter of 2026, citing record steel shipments, improved pricing and contributions from recently completed investments. The company generated net earnings of $1.3 billion, or $5.80 per share, and approximately $2.3 billion in EBITDA.

Chair and CEO Leon Topalian said Nucor’s steel mills shipped more than 7.2 million tons during the quarter, marking the company’s third consecutive quarterly shipment record. He also highlighted a record quarter for the plate group, including approximately 240,000 tons shipped by the Brandenburg, Kentucky, mill, as well as record shipments in the bar group.

“Strong demand across key end markets, growing contributions from recent investments, and federal policies that support a healthy domestic steel sector” supported the results, Topalian said.

Segment Results and Cash Flow

CFO Jack Sullivan said third-quarter earnings exceeded the midpoint of Nucor’s guidance range by about 3.5%, primarily reflecting higher-than-expected shipments and average selling prices in the steel mills segment.

• Steel mills: Pre-tax earnings were $1.8 billion, up $232 million sequentially. Volumes increased 2%, while average selling prices rose, led by sheet and structural products.
• Steel products: Pre-tax earnings rose $112 million from the prior quarter to $465 million. Volumes increased 6% and average selling prices rose 7%, lifting the segment’s EBITDA margin by about 200 basis points from the second quarter.
• Raw materials: Pre-tax earnings totaled $105 million, down from $146 million in the second quarter, due to lower pricing and shipments.

Sullivan noted that steel-mill costs were higher in the third quarter, partly because the prior quarter included $130 million in cash refunds that reduced cost of goods sold. He also cited increased spending on consumables, freight, energy and services, along with planned outages that reduced fixed-cost absorption.

Nucor generated $1.6 billion in free cash flow during the quarter, bringing its year-to-date total to nearly $2.7 billion. Capital expenditures totaled just under $1.9 billion through the first nine months, mostly for growth projects. The company expects full-year capital spending at or slightly below its original $2.5 billion estimate.

The company returned $629 million to shareholders through dividends and repurchases during the quarter, bringing year-to-date returns to nearly $1.4 billion, or 42% of net earnings. Nucor ended the quarter with approximately $3.6 billion in cash and $4.3 billion in liquidity.

Growth Projects Move Toward Production

President and COO Steve Laxton said Nucor is commissioning equipment at its new West Virginia sheet mill. The melt shop produced its first heat in September, while the pickle line began shipping coils to downstream Nucor divisions in October. The company expects to run initial coils through the hot mill, cold mill and construction-grade galvanizing lines by December.

Nucor expects to begin ramping production at the West Virginia facility in early 2027 and target 50% utilization by the end of that year. Laxton said startup costs would remain elevated in 2027 at levels similar to or higher than 2026.

At Nucor’s Berkeley, South Carolina, sheet mill, a new automotive-grade galvanizing line began production in October. The line is expected to reach 50% utilization in the second quarter of 2027 and add 500,000 tons of annual galvanizing capacity at full production.

Topalian said Nucor had secured an award from General Motors for exposed automotive sheet on an SUV platform. Noah Hanners, executive vice president of sheet products, said the company expects automotive shipments to account for about 10% of West Virginia’s output, or roughly 1 million tons, once the mill is ramped.

Elsewhere, Nucor’s towers and structures business continued to build capacity and customer commitments. Laxton said the Decatur, Alabama, facility is on track to become EBITDA positive in October, while the Crawfordsville, Indiana, location began full production in the third quarter. The order backlog has more than doubled since the start of the year and extends into early 2028. Nucor recently announced $165 million in investments to expand capacity at its Indiana and Alabama operations by about 50%, lifting its projected long-term annual EBITDA contribution from the business to about $200 million.

Demand Outlook and Trade Concerns

Nucor continues to expect 2026 steel-mill shipment growth near the upper end of its 5% to 10% forecast range. Management pointed to infrastructure activity, manufacturing reshoring, data-center construction, grid investment, oil and gas projects, LNG terminals, shipbuilding, defense, appliances and heating and cooling equipment as sources of demand.

Topalian said data centers account for about 15% of Nucor’s total backlog. He added that Nucor can supply or manufacture roughly 95% of the steel required inside and outside a data center through its product portfolio and acquired capabilities.

John Hollatz, executive vice president of fabricated construction products, estimated that about 1,400 miles of new border wall remain to be built, including primary and secondary barriers, with around 1,500 tons of steel required per mile. He said Nucor has been shipping thousands of tons weekly to border-wall projects and expects that activity to continue through 2027 and into 2028.

Topalian said finished-steel imports were down more than 13% year over year and 24% from 2024, but he cautioned that imports had increased in recent months, including what he described as a large increase from South Korea. He said Nucor would continue working with the administration to ensure trade measures remain effective.

Fourth-Quarter Expectations

For the fourth quarter, Nucor expects consolidated earnings to be in line with or modestly above third-quarter results. Steel-mill earnings are expected to remain stable as higher average prices offset seasonally lower volumes and increased costs tied to outages and West Virginia startup activity.

Steel-products earnings are also expected to be stable, with higher prices offsetting lower volumes. Raw-material earnings are expected to decline slightly because of lower realized direct-reduced iron pricing.

Sullivan said the fourth quarter includes fewer shipping days, additional holiday-related non-shipping days and planned outages, including at some of Nucor’s largest mills. Historically, third- to fourth-quarter shipments have declined about 7%, he said, though management said its objective remains to ship every available ton.

About Nucor (NYSE:NUE)

Nucor Corporation is a steel producer headquartered in Charlotte, North Carolina. Through its operating subsidiaries, the company manufactures steel and steel products for customers in construction, automotive, energy, heavy equipment, transportation and other industrial markets.

Nucor's operations include electric arc furnace steel mills, which produce carbon, alloy and galvanized steel products. Its product portfolio includes sheet steel, plate, beams, bars, wire and wire mesh, steel joists, deck, piling, fabricated concrete reinforcing steel and other downstream products.

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