Nucor Q3 2026 Earnings: Higher Steel Prices Lift Profit

Nucor (NYSE: NUE) reported Q3 2026 net sales of $11.25 billion, up 32% from $8.52 billion a year earlier, while diluted EPS rose to $5.80 from $2.63. Higher selling prices and shipment volumes lifted earnings in steel mills and steel products, taking net earnings attributable to stockholders to $1.32 billion. For the first nine months, free cash flow reached $2.66 billion, supporting capital spending and shareholder returns.

Core Earnings Data

For the 13-week quarter ended October 3, 2026, external average selling prices increased 19% year over year and external sales volumes rose 11%. Together, those changes accounted for the 32% increase in net sales.

Cost of products sold rose 22% to $8.92 billion, slower than revenue growth. As a result, net earnings attributable to Nucor stockholders increased about 117%, and the corresponding net margin expanded to approximately 11.7% from 7.1%.

EBITDA is a non-GAAP measure based on net earnings before noncontrolling interests, with interest, taxes, depreciation, amortization, losses, and impairments added back.

Business and Segment Performance

Steel mills generated most of Nucor’s segment earnings. External mill sales volumes rose 14% year over year to 5.662 million tons, while the average external price increased 19% to $1,233 per ton. Management attributed the sequential earnings increase to higher prices and volumes, partly offset by higher product costs.

Steel products also improved sequentially on higher realized prices and volumes. Raw materials moved in the opposite direction from Q2 as lower pricing and shipments reduced earnings; external raw-material shipments declined 23% sequentially.

Sequential comparisons include two notable factors. Q2 steel mill costs benefited from $130 million of cash refunds related to prior-period raw-material procurement costs, which did not recur in Q3. Corporate and eliminations expense also increased because Q2 included a $61 million pre-tax valuation benefit from Nucor’s Helion investment.

Within steel mills, plate shipments led year-over-year growth at 32%, followed by bars at 14%, structural products at 12%, and sheet at 8%. In steel products, tubular-product shipments rose 82%, helping offset declines in joist and deck and rebar fabrication volumes.

Profitability, Cash Flow, and Balance Sheet

Nucor’s EBITDA margin was approximately 20.3%, compared with 14.8% a year earlier, reflecting the combination of higher pricing and increased shipments. Pre-operating and start-up costs were $124 million, up from $103 million in Q3 2025, as the company continued investing in new capacity.

Cash-flow figures were provided on a nine-month basis rather than for Q3 alone. Operating cash flow for the first nine months increased to $4.52 billion from $2.44 billion, despite cash uses of $1.20 billion from accounts receivable and $560 million from inventory. Capital expenditures declined to $1.86 billion from $2.62 billion, leaving free cash flow of $2.66 billion.

Nucor ended the quarter with $3.64 billion of cash, cash equivalents, and short-term investments. Its $2.25 billion revolving credit facility remained undrawn and does not expire until March 2030.

During Q3, Nucor repurchased approximately 2.03 million shares at an average price of $247.04 and returned about $629 million through buybacks and dividends. Total capital returned during the first nine months was approximately $1.36 billion.

Management View

Management expects Q4 2026 earnings to be generally in line with or modestly above Q3. Steel mill earnings are expected to remain stable as higher realized pricing is offset by seasonally lower volumes and higher costs. Steel products should follow a similar pattern, while raw-material earnings are expected to decline slightly because of lower realized direct-reduced-iron pricing.

CEO Leon Topalian pointed to robust demand across key end markets and highlighted the first heat at the West Virginia sheet mill in September and the start-up of a second galvanizing line at Nucor Steel Berkeley. These projects expand capacity, but their ramp-up will remain relevant to start-up costs and operating efficiency.

Recent Insider Transactions

Aggregate insider data for the previous six months showed 191,460 shares purchased and 189,614 shares sold, for a net purchase of 1,846 shares across 43 transactions. The latest detailed records consisted of five sales, three exercise-related conversions, and two gifts; these transactions alone do not establish insiders’ views on Nucor’s outlook.

All listed transactions were reported as direct ownership transactions.

Investor Risks to Watch

• Seasonal volume and cost pressure: Management expects seasonally lower Q4 volumes and higher steel mill costs to offset higher realized pricing, leaving results sensitive to whether pricing holds.
• Raw-material weakness: Raw-material earnings declined sequentially in Q3, and management expects a further modest reduction because of lower direct-reduced-iron pricing.
• Project ramp-up costs: Pre-operating and start-up costs reached $124 million as Nucor advanced new facilities. The pace and efficiency of these ramp-ups can affect margins and returns on capital spending.
• Working-capital requirements: Higher receivables and inventories absorbed cash during the first nine months. Continued growth in these balances could constrain cash conversion even if reported earnings remain elevated.

Summary

Nucor’s Q3 2026 performance was driven by higher steel prices and increased shipment volumes, with steel mills and steel products producing the largest earnings gains. Profit expanded faster than revenue, while nine-month free cash flow and available liquidity supported investment and shareholder returns. The next focus is whether higher realized pricing can continue to offset seasonal volume declines, rising costs, and weaker raw-material results as new capacity ramps up.