Nucor Corp. (NUE) reported stronger third-quarter 2026 earnings as record steel mill shipments, higher realized prices and improved steel products performance lifted results. The steelmaker expects fourth-quarter consolidated earnings to be in line with or modestly above the third quarter, as higher pricing is offset by seasonal volume declines and increased costs.
Nucor generated third-quarter net earnings of $1.3 billion, or $5.80 per diluted share, compared with diluted EPS of $2.63 a year earlier and adjusted EPS of $4.84 in the second quarter. Second-quarter GAAP EPS was $5.04 and included a $0.20-per-share non-cash benefit related to an increase in the valuation of the company’s Helion investment.
Net sales reached $11.25 billion, up from $8.52 billion in the year-earlier period. EBITDA, a non-GAAP measure, increased to $2.28 billion from $2.02 billion in the second quarter and $1.27 billion a year earlier.
Operating cash flow was $2.24 billion, while capital expenditures totaled $629 million, resulting in free cash flow of $1.61 billion. Nucor returned another $629 million to shareholders during the quarter, including $501 million of share repurchases covering 2 million shares and $128 million of dividends.
Steel Mills and Products Drive Earnings Growth
Steel mills posted adjusted pretax earnings of $1.79 billion, up 15% sequentially and 125% from the prior-year quarter. Total shipments rose 2% from the second quarter and 12% year over year to 7.23 million tons. Adjusted earnings before tax per ton increased to $247 from $219 in the second quarter and $123 a year earlier.
The company said steel mill shipments reached a record for a third consecutive quarter, with year-to-date shipments up 10%. Production was broadly in line with the second quarter after excluding the effects of planned outages. The average external sales price for the mills increased to $1,233 per net ton from $1,145 in the second quarter, while the average scrap and scrap substitute cost was nearly unchanged at $376 per net ton used.
Steel products adjusted pretax earnings rose 32% sequentially and 46% year over year to $465 million. Shipments increased 6% from the second quarter and 15% from a year earlier to 1.36 million tons, while adjusted pretax earnings per ton climbed to $341.
Joist and deck operations led the sequential improvement, with shipments rising 20% and realized pricing increasing by $110 per ton. Nucor also reported improved results in building systems, tubular products and insulated metal panels. Building systems shipments rose 25% sequentially, while tubular shipments increased 11%. Backlogs for many steel products extend into mid-2027.
Raw materials moved in the opposite direction. Adjusted pretax earnings declined 28% from the second quarter to $105 million as shipments and realized pricing fell. Total production decreased 5% sequentially to 2.26 million tons, including a 13% decline in direct-reduced iron production.
Growth Projects Move Toward Production
Nucor said its West Virginia sheet mill remains on time and on budget, with construction nearly complete and commissioning underway across the plant. The project achieved its first heat and shipped its first prime pickled coil to internal divisions in September. Production is scheduled to begin in 2027, with the mill targeting a 50% utilization run rate by the end of that year and further capability and utilization gains during 2028.
The company is also expanding its automotive steel capabilities. Flat-rolled automotive shipments increased 4% during the first nine months of 2026 despite relatively stable North American vehicle production. A new galvanizing line at Nucor Steel Berkeley began production in October, adding advanced products for automotive customers in the Southeast.
In towers and structures, backlog has more than doubled since the start of the year and extends into the first quarter of 2028. Nucor announced a $165 million expansion at facilities in Indiana and Alabama, while its Crawfordsville, Indiana, operation entered full production during the third quarter. A Brigham City, Utah, facility is expected to reach full production by mid-2027.
Nucor also began operating a carbon capture facility at its Louisiana direct-reduced iron plant during the quarter. Under an agreement with ExxonMobil, up to 800,000 metric tons of carbon dioxide per year can be captured for permanent offsite storage. Nucor said the project will allow it to produce DRI with an approximately 80% lower carbon footprint than pig iron made using blast furnaces.
Fourth-Quarter Outlook
Management expects fourth-quarter consolidated earnings to be in line with or modestly higher than the third quarter. Steel mills and steel products are expected to benefit from higher average realized pricing, although seasonal shipment declines are anticipated in both segments. Steel mills also face higher costs.
Raw materials earnings are expected to be slightly lower because of reduced realized DRI pricing. The company also anticipates lower eliminations upon consolidation.
Nucor ended the quarter with $3.64 billion of cash and short-term investments and approximately $4.3 billion of liquidity. Total debt was $7.09 billion, equal to 23% of total book capitalization, while net debt was 0.5 times last-12-month EBITDA.
The outlook remains subject to steel pricing and demand, raw-material and energy costs, competitive pressure from imports and substitute materials, trade policy changes, construction activity and the cyclical nature of the steel industry. Nucor also identified project execution, equipment disruptions, environmental regulation, currency movements and the integration of acquired businesses among the factors that could cause actual performance to differ from its expectations.
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