NUCOR CORP (NUE) - 10-Q Summary
Business Context and Reporting Period
This summary covers Nucor Corporation's unaudited financial results for the quarterly period ended July 4, 2026, and the six months ended on that date. Nucor is North America's largest recycler and a leading producer of steel and steel products, operating through three primary segments: Steel Mills, Steel Products, and Raw Materials.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Net Sales | $10,397 million | $8,456 million | $19,893 million | $16,286 million |
| Net Earnings (Attributable to Nucor) | $1,156 million | $603 million | $1,899 million | $759 million |
| Diluted EPS | $5.04 | $2.60 | $8.27 | $3.26 |
| Gross Margin | $2,034 million (20%) | $1,223 million (14%) | $3,535 million (18%) | $1,828 million (11%) |
| Operating Cash Flow | N/A | N/A | $2,286 million | $1,096 million |
| Cash & Equivalents | $2,478 million | N/A | $2,478 million | N/A |
| Total Debt (Current + Long-term) | $6,949 million | N/A | $6,949 million | N/A |
Note: Debt figures include short-term debt, current portion of long-term debt, and long-term debt/finance lease obligations.
Material Changes vs. Prior Period
- Revenue Growth: Net sales increased 23% in Q2 2026 and 22% YTD compared to the prior year. This was driven by a 10% increase in average selling prices and a 12% increase in tons shipped in Q2.
- Profitability Surge: Net earnings attributable to stockholders nearly doubled in Q2 (up 92%) and more than doubled YTD (up 150%). The primary driver was the Steel Mills segment, which saw higher metal margins due to increased selling prices outpacing raw material costs.
- Segment Performance:
- Steel Mills: Earnings before taxes rose to $1,556 million in Q2 from $843 million in Q2 2025. A $130 million reduction in cost of products sold due to cash refunds on prior raw material procurement costs contributed to this increase.
- Steel Products: Earnings decreased slightly in Q2 ($353 million vs. $392 million) due to margin compression from higher steel input costs, despite volume growth.
- Raw Materials: Earnings increased significantly ($146 million vs. $57 million) due to higher selling prices and improved profitability at Direct Reduced Iron (DRI) facilities.
- Unusual Items: Q2 2026 included a non-cash benefit of $61 million from an increase in the fair value of the company's investment in Helion, a fusion energy company, following a capital financing round.
Guidance, Outlook, and Risks
- Outlook: Management expects higher consolidated reported earnings in Q3 2026.
- Steel Mills: Anticipated earnings increase due to higher realized pricing and stable volumes.
- Steel Products: Anticipated earnings increase due to higher volumes and pricing.
- Raw Materials: Anticipated earnings decrease due to lower margins.
- Capital Allocation:
- Dividends: Declared a quarterly dividend of $0.56 per share (213th consecutive quarter).
- Share Repurchases: Under a new $4.0 billion authorization approved in February 2026, the company repurchased $475 million of stock YTD. Approximately $3.62 billion remains available.
- CapEx: Estimated at $2.50 billion for 2026, down from $3.42 billion in 2025. Major projects include the West Virginia sheet mill and Nucor Towers & Structures expansion.
- Risks: Key risks include cyclical demand in the steel industry, volatility in raw material costs (scrap, natural gas), trade policies affecting imports, and environmental compliance costs. The company maintains strong credit ratings (A- from S&P and Fitch, A3 from Moody's).
Investor Verification Checklist
- Margin Sustainability: Verify if the 20% gross margin in Q2 is sustainable given the $130 million one-time refund benefit and rising scrap costs ($422/ton in Q2 vs. $403/ton in Q2 2025).
- Steel Products Margins: Monitor the Steel Products segment closely, as input costs are currently outpacing price increases, leading to margin compression.
- Utilization Rates: Confirm the reported utilization rates (Steel Mills 88%, Steel Products 65%, Raw Materials 76%) against industry benchmarks to assess capacity constraints.
- Debt Maturities: Review the reclassification of $500 million of 4.300% Notes due 2027 to current liabilities and its impact on the current ratio (dropped from 2.9 to 2.5).
- Non-Cash Gains: Assess the impact of the $61 million Helion investment gain on reported earnings and determine if it is a recurring item.