Key financial results
- Nucor delivered its strongest quarter in more than 3 years with approximately $2.3 billion of EBITDA and earnings of $5.80 per share.
Nucor delivered its strongest quarter in more than 3 years with approximately $2.3 billion of EBITDA and earnings of $5.80 per share.
- Net earnings were $1.3 billion in the third quarter.
In the third quarter, Nucor generated net earnings of $1.3 billion or $5.80 per share.
- Free cash flow reached $1.6 billion in the third quarter, bringing the year-to-date total to nearly $2.7 billion.
We generated $1.6 billion of free cash flow in the third quarter, bringing our year-to-date total to nearly $2.7 billion.
- For the fourth quarter, consolidated earnings are expected to be in line with or modestly higher than third quarter results.
Business segment results
- Steel mills: Steel mills quarterly shipments exceeded 7.2 million tons, setting a shipment record for the third consecutive quarter.
quarterly shipments exceeded 7.2 million tons, setting another shipment record for the third consecutive quarter.
- Steel mills: Steel mills generated $1.8 billion of pretax earnings, an increase of $232 million from the prior quarter.
The steel mills segment generated $1.8 billion of pretax earnings, an increase of $232 million from the prior quarter.
- Steel Products: Steel Products generated pretax earnings of $465 million, an increase of $112 million from the prior quarter, with volumes up 6% and average selling prices rising 7%.
We generated pretax earnings of $465 million, an increase of $112 million from the prior quarter. Volumes increased 6% and average selling prices rose 7%.
- Raw materials: Raw materials generated pretax earnings of $105 million compared to $146 million in the prior quarter, reflecting lower pricing and shipments.
our raw materials segment, we generated pretax earnings of $105 million compared to $146 million in the prior quarter, reflecting lower pricing and shipments.
Capital allocation
- Nucor returned $629 million in dividends and buybacks during the quarter, bringing the year-to-date total to nearly $1.4 billion.
returning $629 million in dividends and buybacks during the quarter, bringing our year-to-date total to nearly $1.4 billion.
- Capital expenditures reached just under $1.9 billion year-to-date, and are expected to finish at or slightly below the original $2.5 billion estimate for the full year.
- Capital expenditures are expected to decline further in 2027.
Looking ahead, we expect our CapEx to decline further in 2027, extending the step down from peak spending in '24 and '25.
- Total debt as a percentage of capital was 23%, and the company ended the quarter with approximately $3.6 billion in cash and liquidity of $4.3 billion.
Industry trends and dynamics
- Finished steel imports are down more than 13% year-over-year and down 24% compared to 2024, though import volumes have been increasing in recent months.
- Demand is supported by healthy economic conditions and broad-based investment across key end markets including infrastructure, reshoring, data centers, and energy.
Competitive landscape
- Nucor is leveraging its broad portfolio, manufacturing team, and trade policy improvements to capture market share.
Nucor is benefiting from these conditions because trade policy improvements over the past decade have created more level playing field
- Management noted that EAF producers are successfully supplying high-end exposed automotive steel, competing directly with integrated producers.
we're on it, we're doing it, and we're going to continue to do it, and we're going to continue to take that market share away from the integrated producers
Macroeconomic environment
- Infrastructure activity is accelerating with over $135 billion of IIJA funding yet to be spent as of August.
- Reshoring, manufacturing construction, and power sector investments are driving strong demand.
Growth opportunities and strategies
- The new sheet mill in West Virginia is in final construction, with commercial sheet production and customer qualification ramping toward a 50% utilization target by the end of 2027.
- The new automotive grade galvanizing line at Berkeley, South Carolina began production and is expected to reach 50% utilization in the second quarter of next year.
Our new automotive grade galvanizing line began production early this month. We expect utilization rates for the new galv line to reach 50% in the second quarter of next year
- Towers and Structures are expanding, with expected long-term annual EBITDA contributions reaching approximately $200 million.
we now expect our long-term annual EBITDA contribution from our Towers and Structures business to reach approximately $200 million
Financial guidance and outlook
- Steel mill shipments are expected to finish closer to the higher end of the 5% to 10% range for 2026.
Nucor continues to expect steel mill shipments growth to finish closer to the higher end of our 5% to 10% range for 2026
- Fourth quarter consolidated earnings are expected to be in line with or modestly higher than third quarter results.
- Management expects 2027 earnings to be even stronger than 2026.
we fully expect that '27 will be even stronger.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Net earnings | $1.3 billion | Not stated |
| Earnings per share | $5.80 per share | Not stated |
| EBITDA | $2.3 billion | Not stated |
| Steel mills segment pretax earnings | $1.8 billion | Increase of $232 million from the prior quarter |
| Steel Products segment pretax earnings | $465 million | Increase of $112 million from the prior quarter |
| Raw materials segment pretax earnings | $105 million | Compared to $146 million in the prior quarter |
How management sounded
Balanced (+35 on our -100 to +100 scale). Management expressed strong optimism regarding robust demand, record shipments, and multiyear growth drivers while expecting 2027 to be even stronger. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- The commissioning and early 2027 production ramp-up of the new sheet mill in West Virginia and its start-up costs.
- Utilization rates and customer qualifications for the new automotive-grade galvanizing line at Berkeley, South Carolina.
- Progress on Towers and Structures facilities in Indiana, Alabama, and Utah toward reaching full production and profitability.
Earlier calls
- Q2 2026 (Jul 28, 2026), tone Balanced: Nucor reported second quarter net earnings of $1.2 billion, or $5.04 per share, driven by strong steel demand and record shipments in steel mills.
