Nucor Corporation

What they do

Nucor operates three segments: steel mills (62% of external sales in 2025), steel products, and raw materials. It produces sheet, bar, structural, and plate steel, along with fabricated products like joists, deck, and metal buildings. The raw materials segment includes scrap brokerage (DJJ), DRI production, and natural gas operations.

Revenue drivers

• Steel mills — Largest segment; external sales of $6.48B in Q2 2026 (up 23% YoY). Products include sheet, bar, structural, and plate; sheet sales are ~85% contract-based.
• Steel products — External sales of $3.11B in Q2 2026 (up 17% YoY). Includes joists, deck, fabricated rebar, cold finished steel, and insulated metal panels; demand tied to nonresidential construction.
• Raw materials — External sales of $811M in Q2 2026. Includes scrap brokerage/processing (DJJ), DRI production, and natural gas; profits rose on higher prices and shipments.

Recent performance

In Q2 2026, Nucor reported net earnings of $1.16B ($5.04/diluted share) on net sales of $10.40B, up from $603M ($2.60/share) in Q2 2025. The first six months of 2026 saw net earnings of $1.90B ($8.27/share) versus $759M ($3.26/share) in the prior year. Steel mills segment earnings jumped to $1.56B in Q2 2026 from $843M a year ago, helped by higher prices, volumes, and a $130M refund benefit. Steel products earnings fell slightly (Q2 2026: $353M vs $392M) due to margin compression from higher input costs. Raw materials earnings rose to $146M from $57M in the prior-year quarter.

Strategy

Management follows a 'Grow the Core, Expand Beyond' strategy, prioritizing growth in core steelmaking, steel products, and raw materials, with acquisitions and investments to expand beyond traditional capabilities. Investments include new rebar micro mills (e.g., Lexington, NC) and DRI production to control metallic inputs. The company emphasizes maintaining the strongest credit ratings in the North American steel sector (A-/A-/A3) and returning capital to stockholders.

Risks

• Global steel overcapacity — OECD estimates 704 million net tons of excess global capacity in 2025, eight times U.S. annual production; China's record 131 million ton exports could pressure U.S. prices.
• Ferrous scrap price volatility — Rapid scrap price swings can compress margins if Nucor cannot pass through costs quickly; mitigated by inventory management and DRI investments.
• Import competition and trade policy — Tariffs and trade duties have reduced imports, but circumvention through third-party countries remains a risk; changes in policy could increase import pressure.
• Interest-rate sensitive demand — Weakness in automotive and residential construction could reduce demand for steel products, as seen in 2025.

Outlook

For the second half of 2026, management cites strong demand in infrastructure, data centers, energy, and advanced manufacturing, with backlogs at steel mills and steel products higher at the end of Q2 2026 than Q1. Federal trade policies are expected to continue reducing unfairly traded imports. However, global overcapacity and scrap price volatility remain key uncertainties.