Nucor (NUE) just delivered first-quarter results that topped analyst expectations, supported by higher steel prices, firm demand, and trade protections. The company reported revenue of $9.5 billion, up 21.3% year over year, and earnings per share (EPS) of $3.23, up 382% year over year. Analysts had predicted revenue of $8.86 billion and EPS of $2.82. The company’s stock is up almost 5% since its earnings announcement and more than 38% so far this year. What is Nucor, and why are analysts sold on it as a profitable stock investment?
Nucor produces nearly a quarter of all the raw steel in the U.S. Chair, and CEO Leon Topalian said the company generated approximately $1.5 billion of EBITDA and earned $3.23 per share in the first quarter, calling it “an excellent start to the year” and a “significant increase compared to the fourth quarter.” CFO Jack Sullivan said net earnings totaled $743 million, and that results exceeded the midpoint of guidance by “nearly $0.50,” largely due to higher volumes and a higher-margin product mix.
The boom in the price of steel and its other products generated big profits for Nucor that could see its stock stay in the green as we enter the second half of 2026. The reasons for the price increase include infrastructure projects in the major developing nations and the current conflict in the Middle East, which has made it more expensive for China and other major steel exporters to produce steel. In addition, Spring and summer are also high-demand seasons for construction, so builders are buying more steel and stocking up. The World Steel Association predicts that the world’s appetite for steel will grow slightly this year and then jump as much as 4% in 2027, excluding demand in China. Nucor is a primary beneficiary of the ongoing infrastructure investment boom, meaning its value will surely go up as the year continues.
At $226, NUE is trading near the top of its 52-week range and above its 200-day simple moving average. Its shares have climbed over 5% this week thanks to the solid earnings report. Furthermore, analysts rate NUE a buy, suggesting the stock has more room to grow. Analysts remain cautious following UBS’s downgrade of the stock, yet demand for steel in sectors like construction and energy is expected to support continued growth for Nucor.