Dive Brief:
- Nucor Corp., the largest U.S. steel producer and a recycler of ferrous metals, reported first quarter earnings that beat Wall Street estimates as tariffs on imports began to renew domestic demand.
- The Charlotte-based company generated net sales of $9.5 billion in the quarter, up from $7.7 billion the previous quarter and $7.8 billion a year ago. The increase was driven largely by higher sales pricing and volumes across its three main segments.
- Nucor posted net earnings of $743 million, or $3.23 per share, more than double what it made the previous quarter. This surpassed an estimate of $2.82 per share, according to a consensus of Yahoo! Finance analysts. The steel producer also beat its own revised earnings guidance provided in March.
Dive Insight:
U.S. steel companies are starting to see a bump in earnings as the Trump administration’s tariffs prevent steel imports from flooding U.S. markets and driving down prices.
The administration’s Section 232 tariffs and trade remedy orders have been effective at reducing imports since the back half of 2025, Nucor CEO Leon Topalian said in an earnings call Tuesday morning. More recently, the administration’s updated guidance on how tariffs should be applied to derivative steel products closed a “key loophole” that allowed exporters to undervalue and circumvent their goods, he said.
“These measures are working to ensure a more level playing field for domestic producers,” Topalian added. He and other industry stakeholders are looking to further bolster U.S. production and address ongoing challenges through the United States-Mexico-Canada Agreement.
Nucor’s steel mill shipments totaled 7 million tons in the quarter, up 19% from the previous quarter and 9% from a year ago. The growth came mostly from external customers, who accounted for a 22% increase in sales tonnage from the previous quarter.
At the same time, the average sales price for external customers was $1,074 per ton. This was up 14% from a year ago and 5% from the previous quarter.
Nucor’s steel mills segment saw double-digit tonnage growth compared to the previous quarter across its four main product categories: sheet, 21%; bars, 15%; structural 24%; and plate, 17%.
The company manufactures steel primarily from scrap steel and scrap steel substitutes using electric arc furnaces, as well as continuous casting and automated rolling mills, according to its latest annual report. It sells its products to steel service centers, fabricators and manufacturers across North America.
Nucor is making progress on its $4 billion sheet mill investment in Apple Grove, West Virginia. Construction of the mill is expected to be completed later this year, with commercial shipments beginning to ramp up in early 2027, Nucor CFO Steve Laxton said on the call. The mill will better position the company to grow sheet steel market share in the Midwest and Northeast in the coming years, he said.
The company’s steel products segment — a smaller division responsible for commercial construction and infrastructure goods such as joists, rebar and tubular products — also grew sequentially. Sales tonnage increased 13% to 1.2 million tons. The average sales price for external customers was $2,405, about the same as the previous quarter and up 5% from a year ago.
Nucor’s steel products segment growth came largely from tubular goods, which saw sales tonnage increase 39% sequentially. It also saw single-digit growth in rebar fabrication and building systems sales. It was offset by a 15% decline in joist and deck products from the previous quarter. Sales tonnage for the segment increased across all categories from a year ago.
Nucor’s raw materials segment, its smallest by revenue, nearly doubled its earnings to $45 million compared to the previous quarter and a year ago.
Looking ahead, Nucor is expecting higher earnings across its three main segments in the second quarter, driven by higher selling prices and stable sales volumes. Specific quarterly or annual estimates were not disclosed.
“We enter the second quarter with real momentum,” Topalian said.
Cleveland-Cliffs, a producer of flat-rolled steel, reported increased quarterly revenue last week and a full order book as more automotive and appliance customers switch from aluminum to steel products. Steel Dynamics also saw improved earnings, citing record steel shipments amid higher prices.
