Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 27, 2026 · Beat 5 of last 7 quarters
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Nucor's record shipments and robust backlogs underscore the strength of AI-driven infrastructure demand, particularly data centers, energy, and power transmission. The company's ability to supply 95% of the steel needed for a data center positions it as a key beneficiary of the AI buildout, with multiyear demand visibility extending into 2027 and beyond.
Nucor delivered strong Q2 results with adjusted EPS of $4.84, beating consensus by $0.38, driven by better-than-expected steel mills performance. Steel mills pretax earnings rose over 35% sequentially to $1.6 billion on higher average selling prices, particularly in sheet and plate, and included $130 million of cash refunds related to prior period pig iron procurement. Steel Products earnings increased to $353 million on 11% volume growth, while raw materials earnings jumped to $146 million on higher DRI production and margins. The company generated $829 million in free cash flow and returned $479 million to shareholders. Shipments hit a record 7.1 million tons in steel mills, with Brandenburg plate mill shipping over 230,000 tons.
Management raised its 2026 shipment growth outlook to the higher end of the previously guided 5% to 10% range, citing broad-based demand strength across energy, advanced manufacturing, data centers, and infrastructure. For Q3, they expect higher consolidated earnings, with steel mills benefiting from expanding metal margins and stable volumes, and Steel Products from higher volumes and pricing. Raw materials earnings are expected to decline due to lower scrap pricing and elevated iron ore costs. The West Virginia sheet mill remains on schedule, with commercial shipments ramping in early 2027. Management expressed strong optimism for 2027, calling it a potential 'very special year' for both Nucor and the industry, while reiterating disciplined capital allocation with at least 40% of net earnings returned to shareholders.
“We now expect shipment growth to finish closer to the higher end of our previously suggested 5% to 10% range for 2026.”
on Shipment growth outlook
“I think '27 could be a very special year, not just for Nucor, but this industry.”
on 2027 outlook
“We're shipping thousands of tons every week to multiple locations along the border and that is expected to continue well into 2028.”
on Border wall demand
What do you attribute to the continued willingness of customers to buy domestic despite the import price advantage?
Leon and Noah highlighted robust demand across all product groups, with record backlogs and order entry rates. They noted that imports remain low (sheet imports expected ~4.5M tons vs 9M in 2024), and that CSP has reduced speculation, with buying reflective of supply/demand rather than speculation.
Can you help us quantify the benefit of the towers and structures and galv lines ramping up, and could Q4 see an offset to typical seasonality?
Leon said Lexington and Kingman are already EBITDA positive, Brandenburg is profitable, and Berkeley galv line and Crawfordsville coating will contribute later this year. He expects towers and structures to generate $150M EBITDA with upside potential, and noted demand drivers are so strong that Q4 seasonality may be muted.
What drove the strong raw materials segment performance and should the margin trends carry forward?
Al Behr attributed it to strong volumes and margins in recycling yards and a quarterly DRI production record, with rising pig iron prices allowing DRI to be an attractive alternative. He emphasized the flexibility in the raw material supply chain as a value driver, implying the team can find winning plays in any market.