Nucor Corporation (NYSE:NUE), a leading steel manufacturer, disclosed its financial results for the fourth quarter following Monday's market close. The steelmaker's latest performance metrics indicate a shortfall relative to analyst expectations, though the company is optimistic about prospects for the upcoming quarter.
For the three months ending December 31, Nucor reported total revenue amounting to $7.69 billion. This figure did not meet the consensus estimate of $7.87 billion anticipated by market analysts. In terms of earnings per share, the company posted $1.64, falling below the projected $1.99 per share.
Drilling down to segment-specific results, Nucor experienced a decline in profitability within its steel mills unit. This reduction was principally driven by diminished production volumes and compression of profit margins, particularly in the sheet segment. The steel products division also registered a downturn in earnings, a consequence of both lower volumes sold and elevated per-ton production costs. Additionally, the raw materials segment faced a decrease in profit margins, impacted notably by two planned shutdowns at facilities processing direct reduced iron.
During the quarter, the company engaged in share repurchases, acquiring roughly 700,000 shares at an average purchase price of $145.23 each. Following this activity, as of December 31, 2025, Nucor had approximately $406 million remaining under its current buyback authorization. By the end of the quarter, it reported liquidity of $2.70 billion held in cash, cash equivalents, and short-term investments.
Looking ahead to the forthcoming year, Leon Topalian, Nucor’s chairman, president, and CEO, expressed cautious optimism. He emphasized steady and strong demand across multiple critical market segments, robust levels of backlogged orders compared to historical norms, and supportive federal policies aimed at sustaining a vigorous domestic steel industry.
The company forecasted that first-quarter earnings in 2026 would rise across all three of its main operational areas. The steel mills segment is expected to show the most significant growth relative to the others. In conjunction with these projections, Nucor's board declared a cash dividend payment of 56 cents per share, scheduled for distribution on February 11 to shareholders registered as of December 31, 2025.
To provide further insights on the quarterly results and outlook, Nucor planned a conference call for Tuesday at 10 a.m. Eastern Time. This forum will allow investors and analysts to engage directly with company executives.
Following the earnings announcement, Nucor’s common shares declined in aftermarket trading, decreasing by 3.47% to $171.50 at the time of reporting. The broader market metrics and analytical rankings indicated mixed momentum and quality scores but were not detailed extensively in the company's disclosures.
Key Points
- Nucor's fourth-quarter revenue was $7.69 billion, below analyst estimates of $7.87 billion.
- Earnings per share for the quarter were $1.64, missing the projected $1.99.
- The steel mills segment experienced decreased earnings due to lower production volumes and narrower margins, especially in the sheet subcategory.
- Company projects earnings growth across all segments in Q1 2026, with steel mills expected to lead the improvement.
Risks and Uncertainties
- Ongoing margin compression in steel operations could pressure profitability if cost factors or volumes do not improve.
- Scheduled outages at direct reduced iron facilities contributed to reduced raw materials segment earnings, indicating potential operational vulnerabilities.
- Market demand fluctuations and volume decreases may continue to affect earnings negatively in the near term.
- The company’s ability to sustain buybacks and dividends hinges on future cash flow performance amid sector challenges.