Nucor Steel's Q2 shipments hit record high, driven by both prices and demand
Nucor Steel's Q2 2026 steel shipments reached 7.1 million tons, a record high, up 10% year-over-year; net income was $1.2 billion, a significant increase of 92%. Benefiting from higher steel prices driven by Section 232 tariffs and robust domestic demand, the company expects continued profit growth in Q3.
Key Points
- Nucor, the largest steel and scrap metal producer in North America, shipped7.1 million tonsof steel in the second quarter, a record high, driven by rising prices from tariffs.
- Shipments rose 1% quarter-over-quarter and 10% year-over-year. Bar, sheet, and other steel products all saw double-digit year-over-year growth, with the quarterly increase mainly from sheet products.
- Nucor, headquartered in Charlotte, North Carolina, posted net earnings of $1.2 billion, up 92% year-over-year, significantlyabove its June guidance. The company expects higher earnings in the third quarter but did not disclose a specific range.
In-Depth Analysis
This year, U.S. steel producers have broadly benefited from the Trump administration's Section 232 tariffs, which impose a 50% tax on imported goods made almost entirely of aluminum, steel, or copper. As a result, steel imports have declined and commodity prices have risen significantly.
Cleveland-Cliffs' average steel selling price recently rose to$1,124 per ton, up $76 quarter-over-quarter. Meanwhile, domestic steel demand has remained stable. Cleveland-Cliffs CEO Lourenco Goncalves said on last week's earnings call that shipments to automotive customers hit their highest level in the past two years.
He hailed Section 232 as "the most effective industrial policy our country has implemented in a generation."
Nucor, a manufacturer of steel and steel products such as joists and trusses, posted second-quarter sales of $10.4 billion, up 9% quarter-over-quarter and 23% year-over-year.
"Investment in key sectors of the U.S. economy, combined with supportive federal trade policies, drove record mill shipments for the second consecutive quarter," Nucor CEO Leon Topalian said in a statement.
The steel mills segment posted earnings of $1.6 billion, up 38% quarter-over-quarter and nearly doubling year-over-year. The segment's results were partially offset by $430 million in corporate administrative expenses.
Nucor's average steel selling price was $1,145 per ton, up $71 quarter-over-quarter.
Beyond Nucor, competitorSteel Dynamicsalso achieved record second-quarter steel shipments of 3.7 million tons.
Nucor also recorded a $61 million non-cash, pre-tax gain related to its investment in fusion energy company Helion. In 2023, the two companies partnered to develop a500-megawatt fusion power plantto provide zero-carbon electricity to one of Nucor's steel mills, with operations planned to begin in 2030.
"We continue to execute our growth strategy by investing to expand our capabilities, solidifying our position as the market leader in the most diversified product line of steel and steel products in North America," Topalian said in the statement.
As of the end of the quarter, Nucor held $2.7 billion in cash and repurchased 1.5 million shares at approximately $229 per share.
Looking ahead, Nucor expects higher earnings in the third quarter, driven by stable demand and rising prices in its steel mills and steel products segments, while anticipating lower earnings and margins in its raw materials segment.