Nucor (NUE) Financials

Nucor’s Q2 2026 results show a significant rebound in profitability and cash generation. Revenue increased to $10.4 billion from $9.5 billion in Q1 2026 and $8.5 billion in Q2 2025. Gross profit rose to $2.0 billion, producing a gross margin of approximately 19.6%, up from 15.8% in Q1 and 14.5% in the year-ago quarter. Operating income increased to $1.6 billion, while net income attributable to common shareholders reached $1.16 billion, or $5.04 per diluted share.

The improvement follows a sharp earnings decline from the exceptionally strong 2022 and early 2023 periods. Quarterly revenue has generally remained below the $10.5 billion recorded in Q3 2022, while gross profit and EPS also remain below those peak levels. However, the Q2 2026 recovery is notable: diluted EPS increased from $1.27 in Q4 2024 and $1.62 in Q4 2025 to $5.04 in the latest quarter. Selling, general and administrative expense remains well controlled relative to revenue, and Q2 2026 included no impairment charge.

Cash flow and liquidity were solid in Q2 2026. Operating cash flow was $1.4 billion, more than enough to fund $571 million of capital expenditures, $350 million of share repurchases and $191 million of dividends. Cash and short-term investments totaled approximately $2.7 billion at quarter-end, while total debt was about $7.1 billion. The balance sheet remains well capitalized, although working capital requirements and ongoing investment spending warrant monitoring.

• Strong sequential and year-over-year earnings recovery: Q2 2026 revenue rose 9.9% from Q1 and 22.9% from Q2 2025, while diluted EPS increased to $5.04 from $3.23 and $2.60, respectively.
• Improved margins: Gross margin expanded to approximately 19.6% from 15.8% in Q1 2026 and 14.5% in Q2 2025, indicating better profitability after cost of revenue.
• Operating cash flow strengthened: Cash flow from operations increased to $1.4 billion in Q2 from $886 million in Q1 and $732 million in Q2 2025.
• Capital returns remain substantial: Nucor returned approximately $541 million to shareholders through $350 million of repurchases and $191 million of dividends during Q2 2026.
• Capital spending is supported by internal cash generation: Q2 capital expenditures of $571 million were comfortably covered by operating cash flow, leaving positive quarterly free cash flow before financing distributions.
• Liquidity improved during the quarter: Cash and equivalents increased to $2.48 billion from $2.23 billion in Q1, while total current assets rose to $13.2 billion.
• Share count continues to decline gradually: Diluted weighted-average shares fell to 228.5 million in Q2 2026 from 230.8 million in Q2 2025, supporting per-share results, although the reduction was modest compared with the size of the earnings improvement.
• Balance-sheet equity continued to build: Total equity and noncontrolling interests increased to $23.3 billion from $21.5 billion in Q2 2025, supported by higher retained earnings.
• Working capital absorbed cash: Changes in operating assets and liabilities reduced Q2 operating cash flow by $317 million. Accounts receivable increased to $4.0 billion and inventories rose to $6.0 billion from Q2 2025 levels.
• Debt remains material and investment spending is high: Total debt was approximately $7.1 billion at quarter-end, while Q2 capital expenditures and the first-half total of roughly $1.2 billion could pressure free cash flow if profitability weakens.