NUE · 10-Q · 2026Q4 · Full report

Gross Margin Drivers

NUCOR CORP · 2026-11-10 · Importance 69 · Surprise 64 · From source text

Nucor’s third-quarter 2026 gross margin increased to $2.33 billion, or 21% of sales, from $1.19 billion, or 14%, in the third quarter of 2025. Higher steel mills metal margins were the largest driver: average scrap and scrap-substitute cost rose 8% to $421 per gross ton, but selling prices and volumes increased enough for total metal margin dollars to grow. First-nine-month gross margin increased to $5.86 billion, or 19% of sales, from $3.02 billion, or 12%, in 2025, with higher steel mills earnings and metal margins leading the improvement. A $130 million reduction in cost of products sold from prior-period raw-material procurement refunds benefited the first nine months of 2026; new-facility start-up costs were $352 million, down from $408 million in the comparable 2025 period.

Key facts

• Gross margins were $2.33 billion (21%) in Q3 2026, compared with $1.19 billion (14%) in Q3 2025. source
• Gross margins were $5.86 billion (19%) in the first nine months of 2026, compared with $3.02 billion (12%) in the first nine months of 2025. source
• Steel mills segment earnings in the first nine months of 2026 included a $130 million second-quarter reduction to cost of products sold from cash refunds for prior-period raw materials procurement costs. source
• Steel mills segment gross margins in the first nine months of 2026 benefited from a $130 million reduction in cost of products sold related to cash refunds for prior-period raw material procurement costs. source
• The average steel mills scrap and scrap substitute cost per gross ton in Q3 2026 was $421, up 8% from $391 in Q3 2025. source
• Average scrap and scrap substitute cost per gross ton used in the first nine months of 2026 was $416, up 5% from $396 in the first nine months of 2025. source
• Q3 2026 steel products segment earnings increased due to higher volumes, most notably in tubular products, and higher average selling prices, partly offset by higher steel input costs. source
• Q3 2026 raw materials segment earnings increased primarily due to higher average selling prices, improved margins and increased shipments. source

Impact estimates