Nucor rides ‘tsunami of earnings power,’ citing data center buildouts

Core Insights - Nucor is expanding its steelmaking capabilities to become a key supplier for data center and e-commerce construction projects [3] - The company reported significant growth in steel mill shipments and net sales during Q3, driven by increased demand for data center construction materials [4][6] Group 1: Company Developments - Nucor acquired Southwest Data Products for $115 million to enhance its data center infrastructure capabilities [3] - The formation of Nucor Data Systems aims to streamline orders with hyperscalers and their developers [3] - Nucor now supplies over 95% of all steel products used in data centers, positioning itself uniquely in the market [4] Group 2: Financial Performance - In Q3, Nucor's steel mill shipments increased by 12% to 6.4 million tons compared to the previous year [4] - The company reported net sales of $8.5 billion for the period, reflecting a 145% increase year-over-year [4] - Steel mill earnings for Q3 were $793 million, a 157% increase from the previous year, despite a 6% decline from the previous quarter [6] Group 3: Market Conditions - Domestic demand for steel has been positively impacted by the Trump administration's 50% Section 232 tariffs on steel imports, leading to a 35% decrease in imports of Nucor's sheet products year-to-date [5] - The CEO emphasized that the tariffs are essential to address international overcapacity in the steel industry [5] - Nucor is experiencing a "tsunami of earnings power" due to the high demand for data centers and ongoing expansions [6]