Nucor Corporation NUE is benefiting from healthy demand in key markets, actions to expand its production capabilities and higher steel prices.
NUE, which is among the prominent players in the steel space along with Steel Dynamics, Inc. STLD, Cleveland-Cliffs Inc. CLF and ArcelorMittal S.A. MT, remains committed to boosting production capacity, which should drive profitable growth and strengthen its position as a low-cost producer. It is executing a series of growth projects to tap significant end-market demand. Nucor is seeing strong demand from non-residential construction & infrastructure, military & defense, and energy end markets and has a healthy order backlog. The company has already commissioned some of its growth projects with Gallatin and Brandenburg mills, showing strong production and shipment performance.
The construction of the 3,000,000 tons per annum (tpa) sheet mill with a low-cost profile in West Virginia, the company’s biggest ongoing project, is expected to be completed in late 2026 within production expected in 2027. The new 500,000 tpa galvanizing line at the Berkeley County sheet mill in South Carolina is also on track. Its third greenfield project in Utah is also on course for production commencement in 2027.
The company has been focusing on growth through strategic acquisitions over the past several years. The recent acquisition of Southwest Data Products expanded its growing portfolio of solutions for data center customers. The buyout of Rytec Corporation will also allow Nucor to further expand beyond its core steelmaking businesses into related downstream businesses. Adding high-performance doors is expected to create cross-selling opportunities with other Nucor businesses and significantly expand its product portfolio for the commercial space.
Higher U.S. steel prices have created a favorable landscape for American steel producers. U.S. steel prices recovered in the fourth quarter of 2025, following the lows seen in the third quarter, and the momentum continues so far this year. Overall demand weakness and abundant steel mill output dragged benchmark hot-rolled coil (“HRC”) prices below $800 per short ton in late August 2025 and continued through early September.
HRC prices rebounded on major steel mills' price increases, extending lead times and tightening supply, partly due to plant outages and reduced imports driven by tariffs. The recovery, which has been more pronounced since November, has led to HRC prices surging to above $1,300 per short ton lately. With end-market demand remaining high, steel prices will likely continue to climb, benefiting U.S. steelmakers, including NUE, with higher profit margins.
NUE recently announced its guidance for the third quarter of 2026. Earnings are projected to increase sequentially, supported by higher selling prices in the Steel Mills segment and higher volumes and higher average realized pricing in the Steel Products segment.
The company projects earnings for the quarter to range between $5.55 and $5.65 per share. Nucor reported net earnings per share of $5.04 and adjusted net earnings of $4.84 in the second quarter of 2026. Earnings were $2.63 per share in the third quarter of 2025.
Nucor anticipates improved sequential results due to higher earnings in its Steel Mills and Steel Products segments, partially offset by weaker performance in Raw Materials. The Steel Mills segment is expected to benefit from higher average selling prices and stable volumes.
Another prominent steel producer, Steel Dynamics expects third-quarter earnings of $5.34-$5.38 per share, well above $3.69 in the second quarter and $2.74 in the year-ago quarter. Stronger steel metal margins, record shipments, higher realized selling prices and lower scrap costs are projected to drive the significant sequential improvement in STLD’s steel operations profitability. Healthy order activity, solid end-market demand and low customer inventories are also supporting pricing conditions.
Cleveland-Cliffs, on its second-quarter call, said that it expects third-quarter 2026 adjusted EBITDA of approximately $575 million, more than double the second-quarter result. CLF also expects fourth-quarter EBITDA to exceed its third-quarter guidance as average selling prices, shipment volumes and costs continue to move in a favorable direction.
ArcelorMittal expects shipments in the second half of 2026 to exceed first-half levels across all segments. European steel shipments are projected to be stable to slightly higher sequentially in the third quarter, contrasting with the typical high-single-digit seasonal decline. MT’s portfolio of organic growth projects and completed acquisitions is forecast to increase EBITDA potential by approximately $1.8 billion from 2026 and beyond.
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