Slide 1: Second Quarter 2024 Earnings Call
SECOND QUARTER 2024 EARNINGS CALL LEON TOPALIAN Chair, President and CEO STEVE LAXTON Executive Vice President and CFO July 23, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain statements made in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties. The words “anticipate,” “believe,” “expect,” “intend,” “may,
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES The Company uses certain non-GAAP (Generally Accepted Accounting Principles) financial measures in this news release, including EBITDA and Free Cash Flow (FCF). Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial position
Slide 4: Q2 2024: Executing on Multiple Fronts
Q2 2024: EXECUTING ON MULTIPLE FRONTS ✓ $1.23 billionEBITDA $1.5 Billion EBITDA1 FINANCIAL ✓ $645 million Net Earnings $845 Million PERFORMANCE ✓ $2.68 $3.46 Earnings Per Share (diluted) ✓ $1 ✓ Billion $500 in Share million in Q2 Repurchases Share Repurchases (~2.9 million shares) CAPITAL ALLOCATION
Slide 5: Expanding Our Suite of Downstream Capabilities and Solutions
EXPANDING OUR SUITE OF DOWNSTREAM CAPABILITIES AND SOLUTIONS RYTEC SOUTHWEST DATA PRODUCTS I • An industry leader in high-growth mkt • A leading player in the high- performance door market • Known for product quality, on-time ✓ ✓ delivery, and skilled install services Strategic Fit • Complements C.H
Slide 6: A Long-Term Strategy to Drive Growth and Create Shareholder Value
A LONG-TERM STRATEGY TO DRIVE GROWTH AND CREATE SHAREHOLDER VALUE STRATEGY INITIATIVES & INVESTMENTS ▪ Leverage our market intelligence and ▪ Advanced separation technology flexible supply chain to provide lower- ▪ Carbon Capture & Storage (DRI) RAW MATERIALS cost, more sustainable inputs ▪ Investin
Slide 7: Significant Progress to Date, But Plenty More to Accomplish
SIGNIFICANT PROGRESS TO DATE, BUT PLENTY MORE TO ACCOMPLISH WEST VIRGINIA SHEET MILL REGIONAL BAR MICRO MILLS GROW BRANDENBURG PLATE MILL THE CORE GALLATIN SHEET & TUBE EXPANSION CALIFORNIA STEEL INDUSTRIES (CSI) VALUE-ADDED FINISHING LINES 2021 2023 2025 2027+ INSULATED METAL PANELS WAREHOUSE SYSTE
Slide 8: Repositioning the Business to Double Nucor's Through-Cycle Earnings Potential
REPOSITIONING THE BUSINESS TO DOUBLE NUCOR'S “THROUGH CYCLE” EARNINGS POTENTIAL • Midway through our multi-year capex plan designed to double Nucor’s through-cycle EBITDA • Investments to further diversify our set of capabilities and generate more sustained earnings • Many recently completed project
Slide 9: Elevated Imports of Various Steel Products Putting Pressure on Pricing
ELEVATED IMPORTS OF VARIOUS STEEL PRODUCTS PUTTING PRESSURE ON PRICING U.S. Import Surge – Key Nucor Products Impacts on 1H 2024 vs. 1H 2023 Domestic Steel Producers Corrosion Resistant Sheet +705,000mt +50.3% • Compression of domestic steel prices Wire Rod +144,000mt +36.8% • Industry capacity fact
Slide 10: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS ($s in billions except per share data) Diluted EPS EBITDA1 2023 2024 2023 2024 $10.26 $4.23 $6.14 $5.81 $2.34 $2.73 $2.68 $1.23 Q2 YTD Q2 YTD Q2 YTD Q2 YTD Capex Returns to Shareholders2 2023 2024 2023 2024 $1.77 $1.47 $1.06 $1.14 $0.80 $0.58 $0.53 $0.63 Q2 YTD Q2 YTD
Slide 11: Segment Results
SEGMENT RESULTS PRE-TAX SEGMENT EARNINGS (a) Q2 2024 SEGMENT RESULTS VS PRIOR (LAST 5 QTRS, $M) QUARTER $138 • Relatively flat volumes STEEL • lower avg selling price & $1,011 MILLS metal margin $71 $10 • 41% lower EBT/ton $512 $807 $39 • higher volumes $656 $441 STEEL • lower avg selling price, $1,
Slide 12: Balance Sheet & Capital Allocation
BALANCE SHEET & CAPITAL ALLOCATION 25% REDUCTION TO SHARECOUNT SINCE 2017 COMMITTED TO A STRONG BALANCE SHEET Shares rounded to closest million 318 $USD in millions xLTM as of June 29, 2024 Amount EBITDA1 % cap Total Debt 6,892 ~1.2x 24% 237 Cash and Cash Equivalents 5,434 Net Debt 1,458 Total Equit
Slide 13: Capex Plan Funded with Robust Operating Cashflow and Healthy Balance Sheet
CAPEX PLAN FUNDED WITH ROBUST OPERATING CASHFLOW AND HEALTHY BALANCE SHEET $3,000 FCF Line = Operating Cashflow minus Capex Annual Annual Annual Cash Period Operating Capex FCF Balance(1) $2,500 Cashflow 2017 – 2019 $2.1B $1.0B $1.1B $1.4B (average) $2,000 2021 – 2023 $7.8B $1.9B $5.9B $4.9B (averag
Slide 14: Q3 2024 Outlook
Q3 2024 OUTLOOK IMPACT ON Q3 SEGMENT EXPECTATIONS FOR Q3 2024 EARNINGS VS Q2 Steel Mills • Primarily due to lower average selling prices • Expected to decrease due to lower average Steel Products selling prices • Decreased profitability, and lower DRI Raw Materials shipments due to planned outages •
Slide 15: Medium-Term Outlook for Key End Markets
MEDIUM-TERM OUTLOOK FOR KEY END MARKETS NUE Primary Markets and % of Total External Shipments (2023) HEAVY EQUIPMENT, TRADITIONAL CONSTRUCTION & AUTO & CONSUMER TRANSPORTATION, AND RENEWABLE INFRASTRUCTURE DURABLES LOGISTICS & OTHER ENERGY % NUE ‘23 Shipments: 53% 25% 13% 9% • Advanced Manufacturing
Slide 16: Appendix
APPENDIX NwUcoRF
Slide 17: Broad Suite of Products Well Suited to Data Center Applications
BROAD SUITE OF PRODUCTS WELL SUITED TO DATA CENTER APPLICATIONS NUCOR PRODUCT OFFERING 17
Slide 18: Summary of Major Capex Projects
SUMMARY OF MAJOR CAPEX PROJECTS Est. Capex Project Investment Rationale Est. Completion ($ millions) Kingman, AZ • 600,000 tpa melt shop to increase regional flexibility Early 2025 $150 Melt Shop • Allows Utah bar mill to transition toward higher value bar products Lexington, NC • New 430,000 tpa mi
Slide 19: Segment Results: Steel Mills and Steel Products
SEGMENT RESULTS: STEEL MILLS AND STEEL PRODUCTS STEEL MILLS % Change Versus Shipments (tons in thousands) Q2 ’24 Q1 ’24 Q2 ’23 Prior Qtr. Prior Year Q2 2024 vs. Q1 2024 Sheet 2,869 2,974 2,786 -4% 3% • Overall flat shipments Bars 2,005 1,912 2,122 5% -6% • Lower realized pricing and metal margin Str
Slide 20: Segment Results: Raw Materials
SEGMENT RESULTS: RAW MATERIALS RAW MATERIALS % Change Versus Production (tons in thousands) Q2 ’24 Q1 ’24 Q2 ’23 Prior Qtr. Prior Year Q2 2024 vs. Q1 2024 DRI 987 1,066 1,028 -7% -4% Scrap Processing 1,037 1,049 1,075 -1% -4% • Lower production and average pricing Total Production1 2,024 2,115 2,103
Slide 21: Quarterly Sales and Earnings Data
QUARTERLY SALES AND EARNINGS DATA SALES TONS (THOUSANDS) TO OUTSIDE CUSTOMERS EARNINGS (LOSS) BEFORE STEEL STEEL PRODUCTS INCOME COMP. TAXES SALES OTHER TOTAL PRICE TOTAL STEEL STEEL COLD REBAR TUBULAR STEEL STEEL RAW TOTAL NET SALES PER $ PER YEAR SHEET BARS STRUCTURAL PLATE STEEL JOISTS DECK FINIS
Slide 22: Quarterly Sales Prices & Scrap Cost
QUARTERLY SALES PRICES & SCRAP COST STEEL MILLS AVERAGE SCRAP AND SCRAP AVG TOTAL SUBSTITUTE COST EXTERNAL STEEL SALES PRICE TOTAL SHEET BARS STRUCTURAL PLATE PRODUCTS PER GROSS PER NET PER NET TON STEEL TON USED TON USED 2024 2024 1st Quarter $1,079 $993 $1,417 $1,334 $1,108 $2,608 1st Quarter $421
Slide 23: Reconciliation of GAAP to Non-GAAP Measure - EBITDA
RECONCILIATION OF GAAP TO NON-GAAP MEASURE - EBITDA $ in millions 2020 2021 2022 2023 YTD ‘23 YTD ‘24 LTM Net earnings before non-controlling $836 $7,122 $8,080 $4,913 $2,819 $1,671 $3,765 interests Net Interest expense $153 $159 $170 ($30) $15 ($40) ($85) Income taxes -- $2,078 $2,165 $1,360 $828 $
Slide 24: Reconciliation of GAAP to Non-GAAP Measure - Free Cash Flow
RECONCILIATION OF GAAP TO NON-GAAP MEASURE – FREE CASH FLOW (FCF) $ in millions YTD YTD 2020 2021 2022 2023 LTM 2023 2024 CASH PROVIDED BY $2,697 $6,231 $10,072 $7,112 $3,128 $1,945 $5,929 OPERATING ACTIVITIES CAPITAL EXPENDITURES ($1,543) ($1,622) ($1,948) ($2,214) ($1,057) ($1,471) ($2,628) FREE C
Slide 25: Industry Leading GHG Intensity
INDUSTRY LEADING GHG INTENSITY 2023 GHG INTENSITY COMPARISON 1 1 Overall Global and BF-BOF Global Scope 1, 2 and 3 Intensities are based on Worldsteel Association’s latest sustainability indicator report. 25
Slide 26: 2023 Sustainability Report Highlights
2023 SUSTAINABILITY REPORT HIGHLIGHTS • 5th consecutive year of improved safety, with 0.71 injury & illness rate – 25% lower than prior year SAFETY & • 28 Nucor divisions had zero recordable injuries in 2023 TEAMMATES • An employer of choice with a + 90% retention rate • 93% of teammates feel a sens