Nucor Corporation (NUE) Earnings & Analysis

Latest quarter

Nucor reported Q2 FY2026 revenue of $10.4 billion, up 23.0% from $8.5 billion a year earlier. The company’s revenue exceeded the consensus of $10.1 billion by 3.34%. Nucor reported adjusted EPS, as the consensus counts it, of $4.84, above the $4.57 consensus by 5.91%, while diluted EPS was $5.04, compared with $2.60 a year earlier.

The filing attributed the year-over-year earnings increase principally to Steel Mills, where higher average selling prices, volumes and metal margins lifted earnings. The filing said Steel Products earnings declined because higher steel input costs more than offset increased volumes and modestly higher average selling prices. Raw Materials earnings increased on higher average selling prices and shipments and improved direct-reduced-iron facility profitability.

Nucor reported a gross margin of 19.6%, versus 14.5% a year earlier, and an operating margin of 15.7%, versus 10.9%. The company reported free cash flow of $836.0 million, compared with −$186.0 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Leon Topalian said demand for steel and steel products remained strong across most key end markets, while Steel Mills quarterly shipments reached 7.1 million tons. He said backlogs continued to build as shipments grew, and he attributed lower finished-steel imports year over year to the Section 232 program and anti-dumping and countervailing duties.

Jack Sullivan said Q2 adjusted earnings of $4.84 per share excluded a $0.20-per-share non-cash benefit related to Nucor’s Helion investment. Sullivan said the result above the midpoint of the company’s mid-quarter range was largely driven by Steel Mills divisions that outpaced their June forecasts, while Steel Products and Raw Materials also exceeded forecast. He said Steel Mills’ sequential earnings increase reflected higher average selling prices, especially in sheet and plate, and included $130 million in cash refunds associated with prior-period raw-material procurement costs.

When an analyst asked about sheet demand and imports, Noah Hanners said the company saw low sheet imports and expected a larger addressable market for domestic suppliers. Hanners cited demand from border fence, energy and data-center projects, along with reshoring by customers, and said Nucor expected these demand drivers to extend into 2027. He also said the company’s transparent hot-roll pricing approach had reduced speculative purchasing, with buying reflecting supply and demand.

In response to questions about growth investments, Topalian said recently opened facilities in Lexington, Kingman and Brandenburg were contributing to operations, while Towers & Structures facilities were expected to add to the balance sheet and cash flow in the second half. He said the West Virginia facility would begin operations later in 2026, with 2027 expected to be its ramp-up year. Sullivan said pre-operating and start-up costs were expected to remain elevated through the rest of 2026 and throughout 2027 while the West Virginia mill is completed and ramps production.

Topalian said Nucor intended to direct future cash toward acquisitions and business development in downstream areas including towers and structures, enclosures, energy and energy infrastructure, but said he could not identify potential companies. Sullivan said the company remained committed to returning at least 40% of annual net earnings to shareholders.

Guidance

Steve Laxton said Nucor now expects FY2026 shipment growth to finish closer to the high end of its previously suggested 5% to 10% range. This updates the company’s prior expectation that FY2026 shipments would grow by more than 5%.