0001193125-26-220778
SEC filingNucor's Q1 2026 earnings surged on record steel mill shipments, higher selling prices, and improved metal margins.
Nucor reported a substantial increase in profitability for the first quarter of 2026 compared to the same period in 2025. Net earnings attributable to Nucor stockholders rose to $743 million ($3.23 per diluted share) from $156 million ($0.67 per diluted share). Net sales increased 21% to $9.496 billion, driven by a 12% increase in average selling price per ton (to $1,279) and a 9% increase in total tons shipped (to 7,427,000 tons). Gross margins expanded significantly to 16% from 8%, primarily due to higher metal margins in the steel mills segment, where the average selling price per ton increased 14% to $1,074 while scrap and scrap substitute costs rose only 2% to $403 per gross ton. The steel mills segment also benefited from lower conversion costs per ton due to higher utilization rates (86% vs. 80% in Q1 2025). Pre-operating and start-up costs decreased to $108 million from $170 million, further supporting margin expansion. Marketing, administrative and other expenses increased by $88 million, driven by higher profit-sharing and incentive compensation costs tied to improved earnings.
The steel mills segment was the primary driver of the earnings improvement, with operating income surging to $1.128 billion from $231 million. This was fueled by record quarterly shipments, a 14% increase in average selling price per ton, and higher metal margins. All product groups within the segment contributed to the increase, with the largest gains at sheet mills. The steel products segment saw a slight decrease in earnings, with operating income of $285 million compared to $288 million in Q1 2025, as margin compression from increased steel input costs offset higher volumes and average selling prices. The raw materials segment reported operating income of $45 million, up from $29 million, driven by increased profitability of scrap processing operations, though this was partially offset by $15 million in impairment charges. Imports' share of the U.S. finished steel market declined from over 22% in Q1 2025 to approximately 15% in Q1 2026, supporting domestic pricing and volumes.
Management expects higher consolidated earnings in the second quarter of 2026, with improved earnings across all three operating segments. In the steel mills segment, the expected increase is due to higher realized selling prices with stable volumes. The steel products segment is expected to benefit from higher volumes on stable pricing, while the raw materials segment is expected to see increased earnings from higher realized pricing. Capital expenditures for 2026 are estimated at approximately $2.50 billion, down from $3.42 billion in 2025, with major projects including the sheet mill in West Virginia, expansion of Nucor Towers & Structures, and a galvanizing line at the South Carolina sheet mill. The company maintains strong liquidity with $2.48 billion in cash and short-term investments and an A- credit rating from S&P and Fitch.
Total assets stood at $35,635M as of April 4, 2026, with Nucor stockholders' equity of $21,453M (including noncontrolling interests: $22,548M). Short-term investments (marketable securities) were $255M. Deferred revenue (contract liabilities) totaled $247M.
No purchase commitments were disclosed in the notes for this quarterly period.
Operating cash flow of $886M significantly exceeded net earnings of $870M, reflecting strong cash conversion. The main non-cash items were depreciation ($321M) and amortization ($63M), partially offset by a $34M deferred tax benefit. Working capital was a net use of $378M, driven by increases in accounts receivable ($463M) and inventories ($183M), partially offset by a $226M rise in accounts payable. Capex of $661M represented a 23% reduction from the prior year ($859M), indicating a potential easing of investment intensity. Free cash flow (not explicitly stated) was positive after capex. Capital returns to shareholders totaled $254M ($129M dividends + $125M buybacks), which was well covered by operating cash flow. Financing cash flow was negative $472M, primarily due to $220M in distributions to noncontrolling interests and the $125M buyback. The company ended the quarter with $2.226B in cash, a slight decrease from $2.260B at year start. Anomalies: a large swing in accounts payable ($226M vs $378M) and a significant increase in other operating activities ($132M vs $60M) contributed to the strong operating cash flow improvement.