Nucor Corporation · NYSE:NUE
Nucor — Q3 2023 Earnings Presentation
18 slides from Nucor's earnings presentation, Oct 24, 2023
Slide 1: Third Quarter 2023 Earnings Call
THIRD QUARTER 2023 EARNINGS CALL LEON TOPALIAN Chair, President and CEO STEVE LAXTON Executive Vice President and CFO OCTOBER 24, 2023
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. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance or financial position that either excludes or
Slide 4: Q3 2023 Highlights
Q3 2023 HIGHLIGHTS FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS Brandenburg Plate Mill • $1.8 billion EBITDA1 • On track to set 5th consecutive record • $1.1 billion Net Earnings safety year • $4.57 Earnings Per Share (diluted) • Total Steel Mills segment shipped ~5.8M • Returned $627 million to shar
Slide 5: Nucor Is Made For Good
NUCOR IS MADE FOR GOOD Made for Good is a campaign highlighting Nucor’s leadership role in sustainable steel production and our work across industries to help customers achieve their sustainability goals. SUSTAINABILITY INITIATIVES – PAST 12 MONTHS SEP 2023 Investment in Helion Energy to develop 500
Slide 6: Growing the Core to Create Shareholder Value
GROWING THE CORE TO CREATE SHAREHOLDER VALUE SHEET SHEET PLATE PLATE BAR BAR • Shift mix to higher margin, • Establish flagship mill in • Capitalize on growing value-added products largest plate consuming demand for rebar over next region in North America decade • Broaden geographic STRATEGIES reach
Slide 7: Steel Mega-Trends: Still in the Early Innings
STEEL MEGA-TRENDS: STILL IN THE “EARLY INNINGS” STEEL INNINGS PLAYED HOME BASE MVPs MEGATRENDS (not tons produced) RUNS HITS Still some tailgating ➢ FABRICATED ➢ PILING REBUILD REBAR ➢ BEAM ➢ PLATE (IIJA) ➢ MBQ ➢ SHEET Bottom of the 1st ➢ TORQUE TUBE ➢ POLE MOUNTS REPOWER ➢ ELCYON™ ➢ TOWERS & PLATE
Slide 8: Q3 2023 Segment Results
Q3 2023 SEGMENT RESULTS STEEL MILLS SEGMENT Q3 2023 VS. Q2 2023 % Change Versus Q3 ‘23 Q2 ‘23 Q3 ‘22 Prior Qtr Prior Year Shipments (tons in 000s) 5,746 5,979 5,869 -4% -2% • Lower realized pricing, reduced metal margin • Modest decrease in shipments EBT1($M) 883 1,404 1,288 -37% -31% • Higher conve
Slide 9: Balanced Capital Allocation Continues
BALANCED CAPITAL ALLOCATION CONTINUES CAPTAL ALLOCATION (2018-2023YTD) Q3 ‘23 BALANCE SHEET SUMMARY thousands of $USD $USD in millions xLTM 10,000 as of September 30, 2023 Amount EBITDA1 % cap $1.75Bn Revolving Credit Facility $0 Short-Term Debt $36 8,000 Long-Term Debt2 $6,646 Total Debt $6,682 0.8
Slide 10: Q4 2023 Earnings Outlook
Q4 2023 EARNINGS OUTLOOK OUTLOOK VARIANCE SEGMENT EXPECTATIONS FOR Q4 2023 TO Q3 2023 • Decreased profitability on lower average Steel Mills selling prices and shipments • Profitability to decrease with lower average Steel Products selling prices and seasonally lower volumes • Expect lower earnings
Slide 11: Appendix
APPENDIX NwUcoRF
Slide 12: Strength of the Portfolio: A Diverse Mix
STRENGTH OF THE PORTFOLIO A DIVERSE MIX 2017-2023 EARNINGS MIX 100.0% 2% 4% 4% 5% 6% 5% 90.0% 11% 22% 11% 14% 80.0% 35% 48% 45% 70.0% Earnings Before Income Taxes & NCI 60.0% 50.0% 40.0% 81% 83% 84% 79% 30.0% 61% 50% 51% % Contribution to 20.0% 10.0% 0.0% -1% -10.0% FY 17 FY 18 FY 19 FY 20 FY 21 FY
Slide 13: Segment Results: Steel Mills and Steel Products
SEGMENT RESULTS: STEEL MILLS AND STEEL PRODUCTS STEEL MILLS % Change Versus Shipments (tons in thousands) Q3 ‘23 Q2 ‘23 Q3 ‘22 Prior Qtr. Prior Year Sheet 2,723 2,786 2,677 -2% 2% • Decrease in shipment levels Bars 2,001 2,122 2,169 -6% -8% • Lower realized pricing Structural 530 505 583 5% -9% • Hi
Slide 14: Segment Results: Raw Materials
SEGMENT RESULTS: RAW MATERIALS RAW MATERIALS % Change Versus Production (tons in thousands) Q3 ‘23 Q2 ‘23 Q3 ‘22 Prior Qtr. Prior Year DRI 1,005 1,028 987 -2% 2% • Lower shipments Scrap Processing 993 1,075 945 -8% 5% • Lower realized prices Total Shipments1 1,997 2,103 1,932 -5% 3% EBT2 ($ in milli
Slide 15: 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 TUBULA OTHER TOTAL PRICE TOTAL STEEL STEEL COLD REBAR R STEEL STEEL RAW TOTAL NET SALES PER PER YEAR SHEET BARS STRUCTURAL PLATE STEEL JOISTS DECK FINISH
Slide 16: 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 2023 2023 1st Quarter $876 $1,031 $1,452 $1,490 $1,035 $2,872 1st Quarter $414
Slide 17: Reconciliation of GAAP to Non-GAAP Measure
RECONCILIATION OF GAAP TO NON-GAAP MEASURE $ in millions 9Mo 9Mo 2021 2022 LTM 2022 2023 Net earnings before non-controlling interests 7,122 8,080 6,753 4,040 5,367 Net Interest expense 159 170 143 1 28 Income taxes 2,078 2,165 1,958 1,155 1,362 Depreciation expense 735 827 610 681 898 Amortization
Slide 18: Reconciliation of GAAP to Non-GAAP Measure
RECONCILIATION OF GAAP TO NON-GAAP MEASURE $ in millions 2021 2022 9Mo ’23 CASH PROVIDED BY OPERATING ACTIVITIES 6,231 10,072 5,592 CAPITAL EXPENDITURES (1,622) (1,948) (1,496) FREE CASH FLOW 4,609 8,124 4,096 18