Given Brandenburg's Q2 shipments, is 75% capacity utilization a reasonable model assumption for that asset going forward?

Brad Ford confirmed Brandenburg had an 'awesome quarter' and expects utilization to 'continue to creep up.' He highlighted that nearly one-third of Q2 shipments were new grades and sizes (e.g., API line pipe, armor grades, ABS grades) previously unavailable from Nucor's plate group, which is opening up additional opportunities. “I'd expect that number to continue to creep up, right? The investments we've made over the last 18 months in product development is really paying dividends. It's nearly 1/3 of the shipments out of Brandenburg in Q2 were grades and sizes that were previously unavailable from the new core plate group prior to Brandenburg.”

How to quantify the benefit of ramping projects, and can Q3/Q4 demand offset typical seasonality?

Leon Topalian stated that Lexington micromill and Kingman melt shop are already EBITDA positive. Towers and structures facilities will contribute positively in H2, with the Berkeley galv line expected to contribute by year-end/early Q1 FY27 due to strong demand. He reiterated the $150 million EBITDA target for the towers and structures group, suggesting potential upside. Steve Laxton confirmed Q4 seasonality but expects overall strength to persist due to robust demand drivers. “We've mentioned probably several calls ago that we were going to generate $150 million of EBITDA through that group. And so what I would tell you is the order book the backlog, the relationships with the utilities that is being built by that team and I hope that's a really low number. I think there's upside potential to that number.”

What are Nucor's plans for cash use in 2027, specifically regarding build vs. buy in downstream?

Leon Topalian detailed the 'expand beyond' strategy, focusing on mega-trend areas like towers and structures, enclosures, and energy infrastructure. He emphasized a disciplined M&A approach, only pursuing accretive deals that lead to market leadership and double the cost of capital. If suitable opportunities are not found, cash will be returned to shareholders via dividends and buybacks, maintaining the 40% net earnings commitment. “If it's not accretive. If we can't find pathways to being the market leader and do it way better than our cost of capital, if not double our cost of capital. We're just not going to do it. So if we don't, then you're going to see a lot of money coming back in the form of dividends and share repurchases back to our shareholders.”

NUE

Nucor (NUE) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Materials· Jul 28, 2026

Source: earnings call transcript

Executive summary

Nucor Q2 FY26 — Record Shipments and Strong Demand Across End Markets

Nucor delivered a strong second quarter, marked by record steel mill shipments and robust demand across diverse end markets, including energy, advanced manufacturing, and data centers. The company continues to execute on growth initiatives, with new projects ramping up and contributing positively, while maintaining a disciplined capital allocation strategy focused on shareholder returns and strategic 'expand beyond' investments. Management expressed optimism for continued strength into 2027, driven by multi-year demand trends and a favorable trade policy environment.

Highlights

Adjusted earnings of $4.84 per share, exceeding guidance midpoint by $0.29.
Steel Mills segment achieved all-time high quarterly shipments of 7.1 million tons, a second consecutive record.
Steel Products shipments increased 11% versus Q1, with growth across all major products.
Generated $829 million in free cash flow, the strongest quarter since 2023.
Returned $479 million to shareholders through dividends and buybacks, representing 41% of net earnings.

Concerns

Pre-operating and start-up costs totaled $120 million in Q2, expected to remain elevated through 2026 and 2027.
Raw materials segment expects lower earnings in Q3 due to lower expected realized scrap pricing and elevated iron ore costs.
Finished steel imports increased Q-o-Q, particularly in beams, absorbing some incremental demand.

Guidance & targets

Category	Target	Timeline	Confidence
Overall Shipment Growth	Closer to higher end of 5% to 10% range high materiality	FY26	High
Consolidated Earnings	Higher high materiality	Q3 · FY26	High
Steel Mills Segment Earnings	Higher medium materiality	Q3 · FY26	High
Steel Products Segment Earnings	Increased medium materiality	Q3 · FY26	High
Raw Materials Segment Earnings	Lower medium materiality	Q3 · FY26	High
Capital Expenditures	~$2.5 billion high materiality	FY26	High
Shareholder Returns Payout Ratio	At least 40% of net earnings high materiality	Annual	High
Pre-operating and Start-up Costs	Remain elevated medium materiality	Rest of 2026 and throughout 2027	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Steel Mills Driven by higher average selling prices, especially in sheet and plate. Included $130 million cash refunds associated with prior period raw material procurement costs, primarily related to pig iron. Shipments: 7.1 million tons (all-time high, second straight record)Pretax earnings growth: >35% from prior quarter	—	—	—	$1.6 billion pretax earnings
Steel Products Volume growth occurred across all major product lines with stable pricing. The Tube group posted a second consecutive quarterly shipment record and strong earnings. Shipments growth: 11% vs Q1Pretax earnings growth: >$75 million from Q1	—	—	—	$353 million pretax earnings
Raw Materials Reflecting higher volumes and improved margins. DRI operations benefited from a higher transfer price based on pig iron pricing. Improved performance in scrap processing operations. Pretax earnings: vs $45 million in Q1	—	—	—	$146 million pretax earnings

NUE operating KPIs by quarter

NUE operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2025 Q1 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Employees	32K+ So on behalf of our more than 32,000 team members, thank you both for all of your leadership, friendship and dedication to Nucor You will be greatly missed. Source: earnings call transcript	33K I want to begin by thanking our 33,000 Nucor teammates for their continued commitment to safety. Source: earnings call transcript	33K And on behalf of our 33,000 team members, Dave, thank you. Source: earnings call transcript	33K And as always, I want to begin by recognizing our 33,000 teammates across the company for their continued commitment to working safely. Source: earnings call transcript	33K Culture, obviously, is how we care for the 33,000 men and women of this incredible family of ours. Source: earnings call transcript	0%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Steel Mills Backlog record backlog Q2 FY26

across all product categories; reflects business momentum

Steel Products Backlog backlogs continue to build Q2 FY26

reflects business momentum from customers across broad sectors

Structural Backlog up significantly Q2 FY26

compared to prior years

strength expected to carry into next year

Towers and Structures Backlog order book, backlog, relationships with utilities being built Q2 FY26

expected to generate $150 million of EBITDA, with potential upside

Deals & partnerships

CHI overhead doors Acquisition of overhead door manufacturer

Part of the 'expand beyond' strategy.

Ridetech Acquisition of company

Part of the 'expand beyond' strategy.

Capital programs

West Virginia Sheet Mill underway

Spent to date: on time and on budget

Achieved several important milestones: first coil through pickle line in June, commissioning of melt shop and galv lines started earlier this month. Priority is safe, reliable, and consistent production.

Berkeley Galv Line nearing completion

Expected to come online later Q3, likely contributing cash positive by end of year or early Q1 FY27 due to strong demand. Second galvanizing line for the facility.

Crawfordsville Coating Operation (full range) nearing completion

Full range of coating operations expected to complete later this year.

Indiana Towers and Structures Facility nearing completion

Expected to complete later this year.

Utah Towers and Structures Facility underway

Expected to reach full production by mid-2027. Will start up in Q1 next year and take some time to ramp up.

Lexington Micromill completed

Reached EBITDA positive run rate during Q1 FY26. Part of recently completed growth projects.

Kingman Melt Shop completed

Reached EBITDA positive run rate during Q1 FY26. Part of recently completed growth projects.

Alabama Towers and Structures Facility underway

Expected to reach EBITDA positive later this year. Part of recently completed growth projects.

Risks & headwinds

Elevated Pre-operating and Start-up Costs through rest of 2026 and throughout 2027

$120 million in Q2

Mitigation:Costs are associated with completing construction and ramping up production at the greenfield sheet mill in West Virginia and other major capital projects.

Lower Raw Materials Segment Earnings in Q3 Q3 FY26

Lower earnings

Mitigation:Primarily due to lower expected realized scrap pricing and elevated iron ore costs resulting from the idling of some pellet capacity in the Middle East.

Finished Steel Imports Q2 FY26

Up Q-o-Q in Q2, particularly in beams

Mitigation:Management notes overall imports are down 25% YoY and attributes current spikes to robust demand rather than pricing delta. Vigorous enforcement of trade laws (232 program, AD/CVD) is helping to level the playing field.

What to watch in Q3 FY26

West Virginia Sheet Mill Ramp-up

Early 2027

Current Commissioning melt shop and galv lines, first coil through pickle line in June.

Target Commercial shipments begin to ramp.

Why it matters

Successful ramp-up of this major greenfield project is key to future growth and capacity utilization.

Following commissioning, our priority will be to operate safely and reliably as commercial shipments begin to ramp in early 2027, and capacity utilization and product offerings will be building steadily throughout 2027 and into 2028.

Find out whether NUE delivers this. Inve re-checks your case every morning.

Q&A highlights

Why are customers buying domestic steel despite import price advantage, given CSP is up and imports are still coming in?

Management explained that robust demand across almost all product groups is driving record backlogs and order entry rates. Finished steel imports are significantly down year-over-year (from 9M tons in 2024 to ~4.5M tons in 2026), creating a large addressable market for domestic suppliers. Nucor's CSP approach has reduced market volatility and speculation, allowing customers to buy based on supply and demand, which also helps keep imports low. Reshoring in auto and consumer durables is also contributing to demand.

“It is a very different condition today. And again, I think part of that comes in what Noah and his team have done regarding CSP, but no, why don't you unpack that and then dive a little deeper to his question.”

asked by Lawson Winder · answered by Leon Topalian

3 min read 7 chapters

Detailed narrative

Safety Performance and Culture

Nucor emphasized its commitment to safety, highlighting the launch of its 'safest summer ever' initiative. The company is on pace to achieve its safest summer and safest year in Nucor's history, underscoring safety as the most important measure of performance. Management reiterated the goal of becoming the world's safest steel company, attributing positive results to the dedication of its workforce.

Trade Policy and Level Playing Field

Management discussed the positive impact of trade enforcement, noting finished steel imports are down 25% year-over-year due to the 232 program and anti-dumping/countervailing duties. They highlighted the USMCA trade agreement review as an opportunity to strengthen North American content requirements, advocating for 'melted and poured' steel provisions and increased automotive content.

Nucor supports Section 301 investigations and urges consistent application of exemptions for vital steelmaking inputs.

Growth Project Progress and Ramp-up

The West Virginia sheet mill is on time and on budget, with commissioning of the melt shop and galv lines underway, targeting full equipment commissioning by year-end. Commercial shipments are expected to ramp in early 2027, with capacity utilization building through 2027 and into 2028.

Other projects like the Berkeley galv line, Crawfordsville coating, and Indiana Towers are expected to complete later this year, while the Utah Towers facility aims for full production by mid-2027. Earlier projects like Lexington micromill and Kingman melt shop are already EBITDA positive.

Robust Market Demand and End Markets

Nucor reported strong demand across most key end markets, including energy, advanced manufacturing, and data centers, which are driving multi-year construction cycles. Flat products saw double-digit shipment growth in the first half, and structural domestic consumption increased approximately 15%, fueled by data centers and mega projects.

Reshoring trends in automotive and consumer durables are also contributing to new demand, with service center shipments up 10% year-over-year in June amid low inventories.

Capital Allocation and 'Expand Beyond' Strategy

The company reaffirmed its commitment to returning at least 40% of net earnings to shareholders annually. Nucor's 'expand beyond' strategy focuses on high-growth mega-trend areas such as towers and structures, enclosures, and energy infrastructure. Management emphasized a disciplined M&A approach, only pursuing accretive deals that lead to market leadership and double the cost of capital.

If suitable opportunities are not found, cash will be returned to shareholders.

Raw Materials Segment Performance

The raw materials segment delivered a strong Q2, driven by robust performance in recycling yards, which saw strong volumes and higher margins on shredded and nonferrous metals. DRI operations achieved a quarterly production record, benefiting from a higher internal transfer price linked to rising pig iron pricing. This performance highlights Nucor's strategy of building flexibility into its raw material supply chain to drive value.

Border Wall Opportunity

Nucor identified the border wall construction as a significant mega-trend, with the company shipping thousands of tons weekly to multiple locations. This demand is expected to continue well into 2028. Nucor positions itself as uniquely capable, being the only company with the necessary raw materials, sheet, tube capacity, and logistics team to meet this demand.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.