Nucor, the Charlotte, North Carolina-based steelmaker, said its fourth-quarter profit and revenue came in below Wall Street expectations, citing rising costs that eroded margins across its steel-producing operations. The shortfall prompted a 3.4% decline in the company's shares in aftermarket trading.
For the quarter ended December 31, Nucor reported earnings of $1.73 per share, underperforming analysts' consensus of $1.91 per share compiled by LSEG. Revenue for the period increased 9% to $7.69 billion, which also missed the analysts' average forecast of $7.87 billion, according to LSEG data.
Management noted that while President Donald Trump’s sweeping import duties have supported higher U.S. steel spot prices, the benefit was not fully realized in the quarter because many steel customers are covered by long-term contracts that reset slowly and are based on older price levels. That contract lag meant steel producers did not see immediate uplift in selling prices even as tariffs put upward pressure on spot markets.
Chief Executive Officer Leon Topalian addressed the outlook directly, saying: "Looking ahead to 2026, we are encouraged by robust demand in several key end markets, historically strong backlogs, and federal policies that support a vibrant domestic steel industry." The comment reflected management's longer-term view amid the near-term margin squeeze.
The company attributed the earnings miss primarily to cost pressures in its steel-producing segments, which compressed margins despite revenue growth. The difference between spot price movements and contract pricing mechanics was cited as a key factor in the quarter's weaker-than-expected financial performance.
The quarterly results illustrate the tension between industry-level pricing developments and contract structures that determine when higher input or market prices flow through to producers' financials. Nucor’s results show revenue momentum but also highlight how timing and contract terms can mute the effect of tariff-driven price moves for steelmakers in a given reporting period.
Investors reacted to the numbers by selling shares in aftermarket trading, consistent with the miss on both the per-share profit and revenue metrics. Management, however, emphasized demand fundamentals and supportive federal policies when discussing the company's prospects for 2026.
Key metrics reported
- EPS for the fourth quarter: $1.73 per share (vs. $1.91 LSEG estimate)
- Revenue for the fourth quarter: $7.69 billion, up 9% (vs. $7.87 billion LSEG estimate)
- Shares moved down 3.4% in aftermarket trading following the release
Context from management
Topalian underscored expectations for stronger conditions into 2026, citing demand across key end markets, solid backlogs, and federal measures that he said support the domestic steel industry. At the same time, the company reported it had not benefited immediately from higher spot prices because contract pricing during the quarter reflected earlier, lower price points.