AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 6/6 · 18/10/2026
Moat38
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 2/4 · Internal raw-material supply, facility proximity and sourcing flexibility are tangible operating strengths. Similar competing offerings and standardized products limit differentiation, while comparative cost leadership is unproven.
durability · 1/4 · The installed supply system persists, but short contracts, market-linked pricing and competitive bidding provide weak evidence of enduring economic protection. Expected investment benefits are prospective.
customer dependency · 1/4 · Committed supply has customer value, but typical six-to-12-month contracts, similar alternatives and competitively bid work indicate limited demonstrated dependence. No material switching friction is established.
erosion resilience · 2/4 · Improved raw-material operations and stronger steel mills metal margins demonstrate some resilience. Actual downstream margin compression in both 2025 and 2026, plus changeable trade protection, prevent a strong grade.
Pricing power44
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 2/4 · Observed outcomes are mixed: steel products prices declined in 2025, then rose 4% in the first half of 2026 alongside 12% shipment growth. Steel mills also achieved higher prices. These results demonstrate pricing recovery, but not a persistent premium or unilateral pricing power.
retention · 2/4 · Higher shipments, rising backlog and customer demand for committed supply support continuing demand indirectly. They do not identify repeat customers or isolate retention from construction-market growth; contracts are comparatively short.
margin resilience · 2/4 · Steel mills increased metal margins despite higher scrap costs, while steel products suffered input-cost-driven compression even with higher prices and volumes. Procurement refunds also benefited reported results. Resilience is demonstrated unevenly across segments.
contractual freedom · 1/4 · Market-indexed formulas and prevailing spot prices constrain independent price setting. Some fabricated products use competitively bid fixed-price contracts, and adjustment lags create cost exposure. Periodic resets provide flexibility without strong discretionary pricing authority.
Predictability71
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 12.30
- Positive FCF years (%)
- 80.00
- FCF margin volatility (pp)
- 7.50
Financial strength66
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 0.00
- netDebtEbitGrade
- 64.49
- interestCoverageGrade
- 100.00
- currentRatioGrade
- 100.00
- Net debt / operating income (x)
- 1.78
- Current ratio (x)
- 2.94
Capital allocation84
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 17.68
- 3-year average dilution (%)
- -4.19
- 3-year average SBC / revenue (%)
- 0.40
- cashConversionGrade
- 66.49
Management63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · First-half 2026 operating cash flow of $2.286 billion exceeded $1.232 billion of capital spending; repurchases were $475 million and dividends $258 million. Funded debt to capital was 23.4%. These support financing discipline, but substantial historical investment and continuing start-up costs leave project returns insufficiently demonstrated. Estimated 2026 spending is a plan, not an achieved reduction.
incentive alignment · 3/4 · Existing LTIP awards use overlapping three-year ROAIC periods and relative performance; actual officer award and vesting activity is disclosed. Ownership requirements, clawbacks and restrictions on hedging provide concrete alignment mechanisms. Individual ownership compliance and complete payout calculations are not supplied.
execution · 3/4 · Eight consecutive years of safety improvement, declining first-half start-up costs, improved raw-material performance and stronger cash generation provide demonstrated execution evidence. Financial outcomes are indirect evidence of management execution and also reflect market conditions; downstream compression and unfinished project economics temper the assessment.
governance · 2/4 · Seven of eight directors are independent, with annual elections, proxy access, written consent and an empowered independent lead director. Combined chair and CEO roles and a supermajority merger threshold provide counterweights. These are disclosed structures rather than proof of exceptional oversight effectiveness.
Evidence
• Tubular products – The Nucor Tubular Products (“NTP”) group has seven tubular facilities that are located in close proximity to Nucor’s sheet mills.
Business / tubular production facilities and proximity · Filed 25/02/2026
NCF obtains most of its steel from the Nucor bar mills, ensuring consistent quality and supply through all market conditions.
Business / cold-finished steel internal supply · Filed 25/02/2026
Our investment in DRI production facilities and scrap brokerage and processing businesses provides Nucor with significant flexibility in optimizing our raw materials costs.
MD&A / raw-material sourcing flexibility · Filed 25/02/2026
The majority of the raw materials segment's total sales are to internal customers in the steel mills segment.
MD&A / raw materials sales to internal customers · Filed 12/08/2026
23 Table of Contents • Gross margins in the raw materials segment increased in the first six months of 2026 compared to the first six months of 2025, primarily due to increased gross margins at our scrap processing operations and DRI facilities.
MD&A / first-half 2026 raw materials operating improvement · Filed 12/08/2026
In each of our product lines, we face competition from well capitalized domestic and international providers offering similar products and services.
Business / competition from similar offerings · Filed 25/02/2026
The majority of these contracts are firm, fixed-price contracts that are, in most cases, competitively bid against other suppliers.
Business / competitively bid fixed-price contracts · Filed 25/02/2026
• Gross margins in the steel products segment decreased in the first six months of 2026 as compared to the first six months of 2025, primarily due to increased steel input costs which outpaced the previously mentioned increases in volumes and average selling prices.
MD&A / first-half 2026 steel products margin compression · Filed 12/08/2026
• Pre-operating and start-up costs of new facilities decreased to approximately $228 million in the first six months of 2026 from approximately $306 million in the first six months of 2025.
MD&A / first-half start-up costs · Filed 12/08/2026
market. There can be no assurance as to when or if the Section 232 or other import tariffs, quotas or other duties may be enacted, enforced, extended, modified or terminated in the future.
Risk factors / uncertainty of import protection · Filed 25/02/2026
We expect these investments to grow our long-term earnings power by increasing our channels to market, expanding our product portfolio into higher value-added offerings, improving our cost structure and further building upon our market leadership positions.
MD&A / management's expected capital-project benefits · Filed 25/02/2026
Reinforcing and merchant bar steel are sold in standard sizes and grades, which allows us to maintain inventory levels of these products to meet our customers’ expected orders.
Business / standardized reinforcing and merchant bar products · Filed 25/02/2026
The steel products segment's earnings decreased in 2025 due to decreased average selling prices and margin compression, particularly at our joist and deck businesses and decreased earnings of our metal buildings systems and rebar fabrication businesses.
MD&A / realized 2025 selling-price declines and margin compression · Filed 25/02/2026
21 Table of Contents Net sales for the steel products segment increased 16% in the first six months of 2026 compared to the first six months of 2025, due to a 12% increase in shipping volumes and a 4% increase in average sales price from $2,313 to $2,410 in the first six months of 2025 and 2026, respectively.
MD&A / first-half 2026 steel products prices and shipments · Filed 12/08/2026
Earnings in the steel mills segment increased in the second quarter of 2026 due to higher average selling prices, increased volumes and higher metal margins.
MD&A / second-quarter steel mills pricing and volume improvement · Filed 12/08/2026
Despite the increase in average scrap and scrap substitute cost per gross ton used, metal margins increased in the second quarter of 2026 as compared to the second quarter of 2025 due to the previously mentioned increases in average selling prices and shipping volumes.
MD&A / metal margins despite higher scrap costs · Filed 12/08/2026
• Also benefiting gross margins in the second quarter of 2026 was a $130 million reduction in cost of products sold in the steel mills segment related to cash refunds associated with prior periods' raw material procurement costs.
MD&A / procurement refunds benefiting reported margins · Filed 12/08/2026
Federal trade policies, including anti-dumping and countervailing duty laws in combination with Section 232 national security tariffs, are continuing to reduce the volume of unfairly traded imports into the United States.
MD&A / management's account of tariff effects on imports · Filed 12/08/2026
The amount of consideration we receive and revenue we recognize for contract customers are based primarily on pricing formulas that incorporate monthly or quarterly price adjustments which reflect changes in the current market-based indices and/or raw material costs near the time of shipment.
Revenue recognition / market-based contract pricing formulas · Filed 25/02/2026
The significant majority of bar, structural and plate product sales are spot market sales, and the amount of consideration we receive and revenue we recognize for those sales are based upon prevailing prices at the time of sale.
Revenue recognition / prevailing spot prices for bar, structural and plate · Filed 25/02/2026
Contract sales typically have terms ranging from six to 12 months.
MD&A / contract duration · Filed 25/02/2026
To mitigate this risk, customers prefer to enter into contracts in order to obtain committed volumes of supply from the mills.
MD&A / customer preference for committed supply · Filed 25/02/2026
We saw resilient demand in key end markets for the steel products segment during the second quarter of 2026, and backlogs for the segment at the end of the second quarter of 2026 are higher than they were at the end of the first quarter of 2026.
MD&A / steel products demand and sequential backlog growth · Filed 12/08/2026
3 Table of Contents Nucor Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) Six Months (26 Weeks) Ended July 4, 2026 July 5, 2025 Operating activities: Net earnings before noncontrolling interests $ 2,150 $ 932 Adjustments: Depreciation 641 606 Amortization 126 128 Impairment of assets 15 20 Stock-based compensation 91 78 Deferred income taxes (61 ) (17 ) Distributions from affiliates 7 6 Equity in earnings of unconsolidated affiliates (15 ) (14 ) Changes in assets and liabilities (exclusive of acquisitions and dispositions): Accounts receivable (952 ) (706 ) Inventories (560 ) (352 ) Accounts payable 454 375 Federal income taxes 110 135 Salaries, wages and related accruals 130 (135 ) Other operating activities 150 40 Cash provided by operating activities 2,286 1,096 Investing activities: Capital expenditures (1,232 ) (1,813 ) Investment in and advances to affiliates (2 ) (1 ) Disposition of plant and equipment 21 39 Acquisitions (net of cash acquired) - (1 ) Divestiture of affiliate 3 - Purchases of investments (157 ) (666 ) Proceeds from the sale of investments 382 717 Other investing activities 29 2 Cash used in investing activities (956 ) (1,723 ) Financing activities: Net change in short-term debt 6 (68 ) Repayment of long-term debt (37 ) (1,007 ) Proceeds from issuance of long-term debt, net of discount 15 997 Bond issuance costs - (9 ) Proceeds from exercise of stock options 14 - Payment of tax withholdings on certain stock-based compensation (77 ) (31 ) Distributions to noncontrolling interests (282 ) (214 ) Cash dividends (258 ) (258 ) Acquisition of treasury stock (475 ) (500 ) Proceeds from government incentives - 77 Other financing activities (10 ) 17 Cash used in financing activities (1,104 ) (996 ) Effect of exchange rate changes on cash (8 ) 11 Increase (decrease) in cash and cash equivalents 218 (1,612 ) Cash and cash equivalents - beginning of year 2,260 3,558 Cash and cash equivalents - end of six months $ 2,478 $ 1,946 Non-cash investing activity: Change in accrued plant and equipment purchases $ 15 $ (27 ) See notes to condensed consolidated financial statements.
Financial statements / first-half operating cash flow, spending and financing · Filed 12/08/2026
As of July 4, 2026, the funded debt to total capital ratio was 27 Table of Contents 23.4% and we were in compliance with all non-financial covenants under the revolving credit facility.
Liquidity / funded debt to capital · Filed 12/08/2026
Capital expenditures for 2026 are estimated to be approximately $2.50 billion as compared to $3.42 billion in 2025.
Liquidity / actual 2025 capital expenditure and estimated 2026 expenditure · Filed 12/08/2026
Safety remains our most important value, and we achieved the lowest injury and illness rate in our history in 2025, marking eight consecutive years of improvement.
Proxy statement / historical safety outcomes · Filed 27/03/2026
LTIP awards are earned based on Nucor’s ROAIC across overlapping three-year performance periods that begin each January 1.
Executive compensation / existing three-year ROAIC performance periods · Filed 27/03/2026
Accordingly, 50% of each LTIP award is earned based on Nucor’s ROAIC ranking relative to the Steel Comparator Group, and the remaining 50% is earned based on Nucor’s ROAIC ranking relative to the General Industry Comparator Group, as outlined in the table below.
Executive compensation / relative ROAIC award structure · Filed 27/03/2026
8 Table of Contents Restricted Stock Awards A summary of Nucor’s restricted stock activity under the Nucor Corporation Senior Officers Annual Incentive Plan (currently, a supplement to the Nucor Corporation 2025 Omnibus Incentive Compensation Plan, the “AIP”) and the Nucor Corporation Senior Officers Long-Term Incentive Plan (currently, a supplement to the Nucor Corporation 2025 Omnibus Incentive Compensation Plan, the “LTIP”) for the first six months of 2026 is as follows (shares in thousands): Grant Date Shares Fair Value Per Share Restricted stock units and restricted stock awards: Unvested at beginning of year 203 $ 154.81 Granted 216 $ 166.63 Vested (233 ) $ 165.94 Canceled - $ - Unvested at July 4, 2026 186 $ 154.59 Compensation expense for common stock and common stock units awarded under the AIP and the LTIP is recorded over the performance measurement and vesting periods based on the anticipated number and market value of shares of common stock and common stock units to be awarded.
Stock-based compensation / actual senior officer awards and vesting activity · Filed 12/08/2026
Executive Officers are required to hold a significant number of shares as outlined below: Chief Executive Officer At least 100,000 shares Chief Financial Officer and Chief Operating Officer At least 35,000 shares Executive Vice Presidents At least 35,000 shares The above guidelines are higher than the median guidelines for Nucor’s steel company peers and other industrial and materials companies of similar size.
Executive compensation / stock ownership requirements · Filed 27/03/2026
What We Do What We Don’t Do ✓ Place a heavy emphasis on variable compensation x Offer significant perquisites ✓ Require significant stock ownership and holding requirements x Pay excise tax gross-ups on change in control payments ✓ Subject incentive compensation to a clawback policy x Permit hedging, pledging or short selling of Company stock ✓ Conduct annual compensation risk assessments x Frequently change plan designs ✓ Use an independent compensation consultant ✓ Reach out to discuss our compensation plans with our stockholders ✓ Provide change in control severange benefits or equity vesting only upon a double-trigger WHAT GUIDES OUR PROGRAM Program Aligned with Strategy Nucor’s executive compensation program continues to support our strategy.
Executive compensation / clawback, hedging and holding policies · Filed 27/03/2026
Our governance framework includes the following highlights: Board and Governance Information Highly qualified and engaged Board with relevant expertise to oversee our business and strategy Yes Empowered independent lead director with clearly articulated responsibilities Yes Size of current Board 8 Robust annual self-evaluations of Board, Board committees, Chair and CEO, and Lead Director Yes Current number of independent directors 7 Supermajority threshold for mergers Yes Average age of current directors 65 Proxy access Yes Average tenure of current directors 7.6 Years Stockholder action by written consent Yes Current percentage of women and minority Board members 38% Poison pill No All directors stand for annual election Yes Stock ownership guidelines for non-employee directors and executive officers Yes Majority vote resignation policy in uncontested director elections Yes Prohibition against hedging, short selling and pledging Yes Number of Board meetings in 2025 6 Executive Officer Incentive Compensation Recoupment Policy aligned with SEC clawback rules and related NYSE listing requirements Yes Separate Chair and CEO No Comprehensive and strategic risk oversight Yes Annual Meeting Attendance and Voting Instructions The Annual Meeting is to be held at 9:00 a.m., Eastern Time, on Thursday, May 14, 2026.
Corporate governance / board composition and shareholder rights · Filed 27/03/2026
Lead Director The independent Lead Director (i) provides leadership to the Board; (ii) chairs Board meetings in the absence of the Chair; (iii) sets the agenda for and leads executive sessions of the independent directors without the attendance of management; (iv) serves as a liaison between the Chair and the independent directors; (v) consults with the Chair and the Secretary of the Company to approve the agenda for each Board meeting and the information that shall be provided to the directors for each scheduled meeting; (vi) approves meeting schedules to assure that there is sufficient time for discussion of all agenda items; (vii) meets with the Chair between Board meetings as appropriate in order to facilitate Board meetings and discussions; (viii) has the authority to call meetings of the independent directors; and (ix) is available for consultation and direct communication with major stockholders.
Corporate governance / independent lead director authority · Filed 27/03/2026
Furthermore, since the selling price adjustments are not immediate, there will always be a timing difference between changes in the prices we pay for raw materials and the adjustments we make to our contract selling prices.
MD&A / lag between input costs and contractual selling-price adjustments · Filed 25/02/2026
