Nucor Posts Record Mill Shipments, $5.04 EPS in Q2; Sees Higher Q3 Earnings
Nucor Corp. reported consolidated net earnings attributable to Nucor stockholders of $1.16 billion, or $5.04 per diluted share, for the second quarter of 2026, the Charlotte, N.C.-based producer said July 27. Excluding a non-cash, pre-tax benefit of $61 million, or $0.20 per diluted share, adjusted net earnings were $1.11 billion, or $4.84 per diluted share.
That compares with net earnings of $743 million, or $3.23 per diluted share, in the first quarter of 2026 and $603 million, or $2.60 per diluted share, in the second quarter of 2025. Net sales were $10.40 billion and EBITDA was $2.02 billion. Net earnings before noncontrolling interests totaled $1.28 billion. Adjusted EPS of $4.84 and revenue of $10.4 billion both exceeded consensus estimates of $4.37 and $10.14 billion; Nucor shares rose more than 5% to $262.33 following the results.
The non-cash benefit related to an increase in the value of Nucor’s investment in Helion, a fusion energy company, after Helion completed a capital financing round during the quarter.
Total sales tons to external customers rose 12% year-over-year to 7,605,000 tons, and the external average sales price per ton increased 10% to $1,367. Overall operating rates at the company’s steel mills were 91%, up from 86% in the first quarter of 2026 and 85% in the second quarter of 2025.
“Investment across key sectors of the U.S. economy, combined with supportive federal trade policies, drove a second consecutive quarterly record for Nucor steel mill shipments,” said Leon Topalian, Nucor’s chair and chief executive officer.
On the company’s earnings call July 28, Topalian said steel mill shipments reached an all-time high of 7.1 million tons, the second straight record quarter. He singled out the Brandenburg plate mill, which shipped more than 230,000 tons in the quarter, producing another quarterly shipment record in plate. In steel products, shipments were up 11% versus Q1 with growth across all major product lines, led by the tube group, which posted a second consecutive quarterly shipment record. “Even as our shipments grow, our backlogs continue to build,” Topalian said.
By segment, CFO Jack Sullivan said the steel mills segment generated approximately $1.6 billion in pre-tax earnings, an increase of more than 35% from the prior quarter, driven largely by higher average selling prices in the sheet and plate groups. Results also reflected $130 million of cash refunds associated with prior-period raw materials procurement costs, primarily related to pig iron. Steel products generated pre-tax earnings of $353 million, up more than $75 million sequentially on an 11% volume increase and stable pricing. Raw materials generated $146 million, versus $45 million in the prior quarter, on higher volumes and improved margins, with DRI operations benefiting from a higher transfer price tied to rising pig iron pricing.
Pre-operating and startup costs totaled $120 million for the quarter. Nucor said it expects those costs to remain elevated through the rest of 2026 and throughout 2027 as it completes construction and ramps production at its greenfield sheet mill in West Virginia.
Nucor ended the quarter with approximately $2.7 billion in cash, cash equivalents and short-term investments, and total liquidity of $3.4 billion. Its $2.25 billion revolving credit facility remains undrawn. Total debt as a percentage of capital stood at 23%. The company generated $829 million in free cash flow, its strongest quarter since 2023, and capital expenditures moderated to $571 million. Nucor returned $479 million to shareholders through dividends and share repurchases during the quarter, an increase of more than $200 million from Q1 and 41% of quarterly net earnings. Year-to-date, the company has returned more than $730 million to shareholders and deployed roughly $1.2 billion in capex.
For the third quarter, Nucor expects higher consolidated earnings. In steel mills, the company does not expect any further cash refunds to materially benefit results in Q3 or beyond but still expects higher segment earnings from expanding metal margins and stable volumes, with margin improvement reflecting higher realized pricing across all product groups. In steel products, Nucor expects increased earnings from higher volumes and higher average realized pricing. In raw materials, it expects lower earnings, primarily due to lower margins from lower expected realized scrap pricing and elevated iron ore costs tied to the idling of some pellet capacity in the Middle East.
President and COO Steve Laxton said Nucor now expects 2026 shipment growth to finish closer to the higher end of its previously suggested 5%-10% range. Capital spending remains on track at approximately $2.5 billion for the year, with about 60% allocated to growth projects.
On end markets, Laxton said Nucor saw double-digit shipment growth in both sheet and plate in the first half. Sheet demand is expected to continue into 2027, led by energy, advanced manufacturing and data centers. In plate, domestic consumption has moderated from 2025 levels, but demand remains healthy while imports have fallen significantly. In the bar group, rising rebar demand reflects a sustained multi-year construction cycle, with energy, infrastructure, advanced manufacturing and data centers more than offsetting softness in residential construction. In structural, domestic consumption has increased approximately 15% this year, fueled by data centers and other mega projects, and Nucor’s backlogs are up significantly compared with prior years.
“The backdrop for the demand picture is, again, it’s broad enough and strong enough in enough channels, and it’s driven by some fundamental reshoring, fundamental capital investment cycles that are probably multi-year in nature,” Laxton said.
On growth projects, Laxton said the West Virginia sheet mill remains on time and on budget. Commissioning of the melt shop and of both the automotive and construction galvanizing lines began earlier in July and will expand to the cold mill and hot mill later this year, keeping the project on track to complete commissioning, inspection and testing across the mill by year-end. Commercial shipments are expected to begin ramping in early 2027, with capacity utilization and product offerings building steadily through 2027 and into 2028.
Nucor also expects to complete its Berkeley galvanizing line, the full range of its Crawfordsville coating operation, and its Indiana Towers and Structures facility later this year, with the Utah Towers and Structures facility reaching full production by mid-2027. Among recently completed projects, the Lexington micro mill and Kingman melt shop reached EBITDA-positive run rates during the first quarter, while the Alabama Towers and Structures facility is expected to reach EBITDA-positive later this year.
On trade, Topalian said finished steel imports are down 25% year-over-year due to the strengthening of the Section 232 program along with anti-dumping and countervailing duties on corrosion-resistant steel and other products, although imports increased from the first quarter. “Vigorous enforcement of our trade laws is helping level the playing field for domestic producers by curtailing the flood of unfairly traded steel into the U.S. market,” he said.
Topalian said the administration’s decision earlier in July not to renew the USMCA agreement unless changes are made triggers an annual review process. Nucor’s priorities in that review include requiring that all steel used in steel or steel-intensive products be melted and poured in North America to qualify as USMCA compliant; increasing the North American steel purchasing requirement for automotive products with an immediate melted-and-poured requirement; and requiring Canada and Mexico to take additional steps to prevent excess capacity from non-USMCA economies, particularly China, from entering North American supply chains. He also said Nucor supports the US Trade Representative’s ongoing Section 301 investigations and commended the administration’s decision to exempt steelmaking inputs and raw materials from the final action in the Brazil forced labor 301 investigation.
Asked during Q&A why customers continue to buy domestic steel despite import parity pricing, Topalian said the driver is demand rather than the pricing delta, citing record backlogs, strong order entry, lower imports and multi-year demand from energy, data centers and border wall construction. On Brandenburg, management said the mill is still increasing utilization and that nearly one-third of second-quarter shipments were new grades and sizes not previously available from Nucor, including API line pipe and shipbuilding grades. On capital allocation, the company said it will remain disciplined, pursuing acquisitions only if they are accretive and strategic and returning cash to shareholders otherwise.