Nucor Corporation · NYSE:NUE
Nucor — Q3 2024 Earnings Presentation
22 slides from Nucor's earnings presentation, Oct 22, 2024
Slide 1: Third Quarter 2024 Earnings Call
THIRD QUARTER 2024 EARNINGS CALL LEON TOPALIAN Chair, President and CEO STEVE LAXTON Executive Vice President and CFO October 22, 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: Q3 2024: Advancing Our Strategy
Q3 2024: ADVANCING OUR STRATEGY ✓ On track for the safest year in Nucor history COMMITMENT TO ✓ YTD Injury & Illness rate of 0.77 vs 0.83 in prior YTD period SAFETY ✓ 35 of 109 Nucor divisions with Zero Recordables YTD ✓ $1.3 billion Cash from Operations and $869 million EBITDA1,2 Q3’24 FINANCIAL ✓
Slide 5: Market Uncertainty, Long-Term Strategy Remains Intact
MARKET UNCERTAINTY LONG-TERM STRATEGY REMAINS INTACT CURRENT HEADWINDS POTENTIAL CATALYSTS • Softer construction, manufacturing and • Monetary policy easing expected to automotive markets continue • Election uncertainty & geopolitical • Inflation has moderated & employment concerns trends remain res
Slide 6: Diverse Steel Product Capabilities
DIVERSE STEEL PRODUCT CAPABILITIES EVOLUTION OF NUCOR’S STEEL PRODUCTS SEGMENT 1960-2000 2000-2020 2020-2024 2025+ Steel Joists Rebar Insulated Metal Panels Seeking new Fabrication opportunities with: Warehouse Racking Decking • Attractive growth rates Steel Piling Overhead Doors Fasteners • Higher
Slide 7: Fair Trade Has Bipartisan Support, But More Is Needed
FAIR TRADE HAS BIPARTISAN SUPPORT, BUT MORE IS NEEDED • Lower domestic mill utilization rates IMPACTS OF • Lower domestic steel margins ELEVATED IMPORTS • Higher carbon footprint, on account of higher emissions imported steel • Corrosion Resistant Steel (CORE) trade case filed by domestic producers
Slide 8: Consolidated Financial Results
CONSOLIDATED FINANCIAL RESULTS ($ in billions except per share data) Diluted EPS1 EBITDA1 2023 2024 2023 2024 $14.83 Adj for $0.44 $7.66 non-cash impairment $6.05 $7.22 $4.57 $3.61 $1.49 $1.82 $1.05 $0.87 Q3 YTD Q3 YTD Q3 YTD Q3 YTD Capital Expenditures Cash Returned to Shareholders2 2023 2024 2023
Slide 9: Q3 Segment Results
Q3 SEGMENT RESULTS Q3 2024 SEGMENT RESULTS VS PRIOR PRE-TAX SEGMENT EARNINGS (1) QUARTER $71 (millions) $10 • Lower avg selling price STEEL • Lower volumes $807 $512 MILLS • 51% lower EBT/ton $39 $656 $441 • Lower avg selling price STEEL • Lower volumes $1,102 $883 $314 PRODUCTS $588 $645 • Includes
Slide 10: Q4 2024 Outlook
Q4 2024 OUTLOOK IMPACT ON Q4 SEGMENT EXPECTATIONS FOR Q4 vs Q3 EARNINGS VS Q3 • Lower average selling prices and lower Steel Mills volumes • Lower average selling prices and lower Steel Products volumes • Stable volumes and pricing, lower operating Raw Materials costs • Intercompany eliminations exp
Slide 11: Balanced Capital Allocation Drives Long-Term Shareholder Value
BALANCED CAPITAL ALLOCATION DRIVES LONG-TERM SHAREHOLDER VALUE BALANCED CAPITAL ALLOCATION GROWING SHAREHOLDER VALUE Jan. 2017 – Sep. 2024 Jan. 2017 – Sep. 2024 Total Shareholder Return 19% 300% Cash to Shareholders 200% ~$34 Bn 44% Capital Expenditures since 2017 100% Acquisitions 0% 37% -100% Incr
Slide 12: Appendix
APPENDIX NwUcoRF
Slide 13: Balance Sheet & Capital Allocation
BALANCE SHEET & CAPITAL ALLOCATION 26% SHARECOUNT REDUCTION SINCE 2017 COMMITTED TO A STRONG BALANCE SHEET Shares rounded to closest million 318 $USD in millions xLTM as of September 28, 2024 Amount EBITDA1 % cap Total Debt 6,939 ~1.4x 24% 235 Cash and Cash Equivalents 4,858 Net Debt 2,081 ~0.4x Tot
Slide 14: 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) Cashflow $2,500 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 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% • Renewable Energy • Dat
Slide 16: Segment Results: Steel Mills and Steel Products
SEGMENT RESULTS: STEEL MILLS AND STEEL PRODUCTS STEEL MILLS $s in millions, tons in thousands % Change Versus Prior Shipments Q3 ‘24 Q2 ’24 Q3 ’23 Prior Qtr. Year Q3 2024 vs. Q2 2024 Sheet 2,837 2,869 2,723 -1% 4% • Lower pricing was the primary driver of Bars 1,926 2,005 2,001 -4% -4% 52% lower ear
Slide 17: Segment Results: Raw Materials
SEGMENT RESULTS: RAW MATERIALS RAW MATERIALS $s in millions, tons in thousands % Change Versus Prior Q3 2024 vs. Q2 2024 Production Q3 ‘24 Q2 ’24 Q3 ’23 Prior Qtr. Year DRI 835 987 1,005 -15% -17% Scrap Processing 993 1,037 993 -4% 0% • Lower volumes and selling prices Total Production1 1,828 2,024
Slide 18: Quarterly Sales and Earnings Data
QUARTERLY SALES AND EARNINGS DATA SALES TONS (THOUSANDS) TO OUTSIDE CUSTOMERS EARNINGS (LOSS) STEEL STEEL PRODUCTS BEFORE COMP. INCOME TAXES SALES OTHER TOTAL PRICE TOTAL STEEL STEEL REBAR TUBULAR BLDG STEEL STEEL RAW TOTAL NET SALES PER $ PER YEAR SHEET BARS BEAM* PLATE STEEL JOISTS DECK FAB PRODS
Slide 19: Quarterly Sales Prices & Scrap Cost
QUARTERLY SALES PRICES & SCRAP COST STEEL MILLS AVERAGE SCRAP AND SCRAP AVG EXTERNAL SUBSTITUTE COST SALES PRICE TOTAL PER NET TON SHEET BARS BEAM* PLATE PER GROSS PER NET STEEL TON USED TON USED 2024 2024 1st Quarter $1,079 $993 $1,417 $1,334 $1,108 1st Quarter $421 $376 2nd Quarter $1,015 $942 $1,
Slide 20: Quarterly Sales Prices Steel Products
QUARTERLY SALES PRICES STEEL PRODUCTS STEEL PRODUCTS AVG EXTERNAL SALES PRICE OTHER TOTAL TUBULAR BUILDING PER NET TON JOISTS DECK REBAR FAB STEEL STEEL PRODUCTS SYSTEMS PRODUCTS PRODUCTS 2024 1st Quarter $3,349 $3,307 $1,732 $1,776 $5,759 $2,889 $2,608 2nd Quarter $3,284 $3,182 $1,745 $1,606 $5,428
Slide 21: 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 $4,040 $1,974 $2,847 interests Net Interest expense $153 $159 $170 ($30) $1 ($33) ($63) Income taxes -- $2,078 $2,165 $1,360 $1,155
Slide 22: Reconciliation of GAAP to Non-GAAP Measure - Free Cash Flow (FCF)
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 $5,592 $3,246 $4,766 OPERATING ACTIVITIES CAPITAL EXPENDITURES ($1,543) ($1,622) ($1,948) ($2,214) ($1,496) ($2,294) ($3,012) FREE C