Nucor Corporation · NYSE:NUE
Nucor — Q1 2024 Earnings Presentation
22 slides from Nucor's earnings presentation, Apr 22, 2024
Slide 1: First Quarter 2024 Earnings Call
Exhibit 99.2 FIRST QUARTER 2024 EARNINGS CALL LEON TOPALIAN Chair, President and CEO STEVE LAXTON Executive Vice President and CFO April 23, 2024
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certainstatementsmadeinthispresentation 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,” “pr
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: Q1 2024: Executing on Multiple Fronts
Q1 2024: EXECUTING ON MULTIPLE FRONTS 1 ü $1.5 Billion EBITDA ü $1.5 Billion EBITDA SOLID Q1 FINANCIAL üü $845 Million $845 Million Net Earnings Net Earnings PERFORMANCE üü $3.46 Earnings $3.46 Earnings P Pe er r Share Share (diluted) (diluted) ü $1 Billion in Share Repurchases ü $1 Billion in Q1 Sh
Slide 5: Advancing Our Sustainability Goals
ADVANCING OUR SUSTAINABILITY GOALS PARTNERING WITH INDUSTRY LEADERS… . . . to proliferate the greenest steels . . . RANKED #1 IN OUR INDUSTRY THREE YEARS IN A ROW . . . and reduce GHG emissions from energy consumption RANKED #67 IN BARRON’S 100 MOST SUSTAINABLE COMPANIES 5
Slide 6: Committed to Price Transparency for Our Customers
COMMITTED TO PRICE TRANSPARENCY FOR OUR CUSTOMERS • Launched Nucor Consumer Spot Price (CSP) on April 8 to provide weekly published pricing for Nucor’s hot-rolled coiled product • Increases pricing transparency for our customers and provides real- time information • Allows customers to make more inf
Slide 7: Expanding Our Suite of Solutions to Support Growing Market Segments
EXPANDING OUR SUITE OF SOLUTIONS TO SUPPORT GROWING MARKET SEGMENTS SOUTHWEST DATA PRODUCTS (SWDP) ACQUISITION • Accelerates Nucor’s entry into rapidly growing end Airflow Containment market with attractive economics • Longstanding relationships Cabinets / Racks with some of the largest data center
Slide 8: Q1 2024 Expenses Related to Corp/Elims Higher Than Expected
Q1 2024 EXPENSES RELATED TO CORP/ELIMS HIGHER THAN EXPECTED CORPORATE / QUARTERLY SEGMENT EARNINGS ELIMINATIONS INCLUDE (a) & CORPORATE / ELIMINATIONS THE FOLLOWING: $ in millions $138 Teammate incentive compensation programs $1,011 $58 $71 Interest expense on $10 corporate debt $512 $971 $807 Selli
Slide 9: Q1 2024 Segment Results
Q1 2024 SEGMENT RESULTS STEEL MILLS SEGMENT Q1 2024 vs. Q4 2023 % Change vs. · 7% increase in shipments, led Q1 ‘24 Q4 ‘23 Q1 ‘23 Prior Qtr Prior Year by sheet Shipments (tons in 5,890 5,513 6,035 7% -2% 000s) · Higher realized pricing, 1 EBT ($M) $1,102 $588 $838 87% 32% increased metal margin EBT/
Slide 10: Balance Sheet & Capital Allocation Recap
BALANCE SHEET & CAPITAL ALLOCATION RECAP COMMITTED TO A STRONG BALANCE 25% REDUCTION TO SHARECOUNT SINCE SHEET 2017 Shares rounded to closest 318 xLTM $USD in millions million 1 as of March 31, 2024 Amount EBITDA % cap 240 Total Debt 6,851 ~1.0x 24% Cash and Cash Equivalents 5,539 Net Debt 1,312 Tot
Slide 11: Q2 2024 Earnings Outlook
Q2 2024 EARNINGS OUTLOOK OUTLOOK VARIANCE EXPECTATIONS FOR Q2 2024 SEGMENT TO Q1 2024 • Lower average selling prices Steel Mills partially offset by modestly increased volumes • Modestly decreased earnings due to lower average selling prices, Steel Products partially offset by increased volumes • In
Slide 12: Appendix
APPENDIX 12
Slide 13: Segment Results: Steel Mills and Steel Products
SEGMENT RESULTS: STEEL MILLS AND STEEL PRODUCTS STEEL MILLS % Change Versus Q1 2024 vs. Q4 2023 Shipments (tons in Prior Q1 ’24 Q4 ‘23 Q1 ‘23 Prior Qtr. thousands) Year · 7% increase in shipments, led by Sheet 11% 5% 2,974 2,675 2,819 sheet Bars 1% -12% 1,912 1,901 2,169 · Higher realized pricing, i
Slide 14: Segment Results: Raw Materials
SEGMENT RESULTS: RAW MATERIALS RAW MATERIALS % Change Versus Q1 2024 vs. Q4 2023 Production (tons in Prior Q1 ’24 Q4 ‘23 Q1 ‘23 Prior Qtr. thousands) Year · Higher shipments DRI 46% 6% 1,066 728 1,002 Scrap Processing 8% -4% 1,049 972 1,098 · Lower margins 1 Total Production 24% 1% 2,115 1,700 2,100
Slide 15: Quarterly Sales and Earnings Data
QUARTERLY SALES AND EARNINGS DATA EARNINGS SALES TONS (THOUSANDS) TO OUTSIDE CUSTOMERS (LOSS) BEFORE STEEL STEEL PRODUCTS INCOME TAXES COMP. 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 16: Quarterly Sales Prices & Scrap Cost
QUARTERLY SALES PRICES & SCRAP COST STEEL MILLS AVERAGE SCRAP AND SCRAP AVG TOTAL SUBSTITUTE COST EXTERNAL STEEL TOTAL SALES PRICE STRUCTURAL SHEET BARS PLATE PRODUCTS PER GROSS PER NET STEEL PER NET TON TON USED TON USED 2024 2024 st st 1 Quarter $1,079 $993 $1,417 $1,334 $1,108 $2,608 $421 $376 1
Slide 17: Reconciliation of GAAP to Non-GAAP Measure
RECONCILIATION OF GAAP TO NON-GAAP MEASURE $ in millions 2020 2021 2022 2023 YTD ‘24 Net earnings before $836 $7,122 $8,080 $4,913 $959 non-controlling interests Net Interest expense ($30) ($38) $153 $159 $170 Income taxes -- $2,078 $2,165 $1,360 $266 Depreciation expense $702 $735 $827 $930 $257 Am
Slide 18: Reinvesting to Grow the Core and Expand Beyond
REINVESTING TO GROW THE CORE AND EXPAND BEYOND CAPEX BUDGET PRODUCT GROUP DIVISION PROJECT EST. COMPLETION ($MILLIONS) Kingman, AZ New Melt Shop Early 2025 $150 Lexington, NC New Mill H1 2025 $440 BAR BAR Pacific Northwest New Mill Late 2027 $860 NYS, Blytheville, STRUCTURAL Roll Mill Upgrade Mid 20
Slide 19: 2024 Projected Capex: ~$3.5 Billion
2024 PROJECTED CAPEX: ~$3.5 BILLION $2.4 BILLION WEST VIRGINIA SHEET MILL $1,200 IMPROVED PRODUCT CAPABILITIES & COST SAVING 9% INDIANA EXPANSION 66% COATING COMPLEX $250 TOWERS & STRUCTURES MAINTENANCE GREENFIELDS 15% $250 LEXINGTON REBAR MILL $230 AIR SEPARATION UNITS $230 BERKELEY GALV LINE $125
Slide 20: Leading the American Steel Industry
LEADING THE AMERICAN STEEL INDUSTRY FINANCIAL OPERATIONAL ENVIRONMENTAL MVA, please insert “made for good” photo from slide 5 of Q3’23 earnings call deck and improve formatting below § SCOPE and SCALE: § LOW GHG INTENSITY: § RETURN ON EQUITY: Largest and most diversified 60% lower than global 33% av
Slide 21: Strategies & Investments That Drive Growth
STRATEGIES & INVESTMENTS THAT DRIVE GROWTH STRATEGY INITIATIVES & INVESTMENTS § Leverage our market intelligence and § Advanced separation technology flexible supply chain to provide § Carbon Capture & Storage (DRI) lower- RAW MATERIALS § Investing in emerging cost, more sustainable inputs technolog
Slide 22: Broad Product Capabilities Aimed at Large Steel Consuming End Markets
BROAD PRODUCT CAPABILITIES AIMED AT LARGE STEEL CONSUMING END MARKETS Other Downstream Rebar Fabrication 6% 5% Sheet 41% Tubular Products 4% Joist & Deck 4% Non-Residential Construction & Infrastructure 53% Plate 7% Structural Other Energy 7% 5% 13% Transport & Logistics Automotive 7% Bar 7% Machine