Slide 1: First Quarter 2024 Earnings Call
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 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: Q1 2024: Executing on Multiple Fronts
Q1 2024: EXECUTING ON MULTIPLE FRONTS ✓ $1.5 Billion EBITDA1 SOLID Q1 FINANCIAL ✓ $845 Million Net Earnings PERFORMANCE ✓ $3.46 Earnings Per Share (diluted) ✓ $1 ✓ $1 Billion Billion in in Share Repurchases Q1 Share Repurchases $1.13 BN RETURNED ✓ Reduced Reduces share count by ~5.5 million shares T
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 market with attractive economics Airflow Containment • Longstanding relationships with some of the largest data center developers Cabine
Slide 8: Q1 2024 Expenses Related to Corp/Elims Higher Than Expected
Q1 2024 EXPENSES RELATED TO CORP/ELIMS HIGHER THAN EXPECTED CORPORATE / ELIMINATIONS QUARTERLY SEGMENT EARNINGS INCLUDE THE FOLLOWING: & CORPORATE / ELIMINATIONS(a) $ in millions $138 Teammate incentive compensation programs $1,011 $58 Interest expense on $71 $10 corporate debt $971 $512 $807 Sellin
Slide 9: Q1 2024 Segment Results
Q1 2024 SEGMENT RESULTS STEEL MILLS SEGMENT Q1 2024 vs. Q4 2023 % Change vs. • 7% increase in shipments, led by Q1 ‘24 Q4 ‘23 Q1 ‘23 Prior Qtr Prior Year sheet Shipments (tons in 000s) 5,890 5,513 6,035 7% -2% • Higher realized pricing, increased EBT1($M) $1,102 $588 $838 87% 32% metal margin EBT/To
Slide 10: Balance Sheet & Capital Allocation Recap
BALANCE SHEET & CAPITAL ALLOCATION RECAP 25% REDUCTION TO SHARECOUNT SINCE 2017 COMMITTED TO A STRONG BALANCE SHEET 318 Shares rounded to closest million $USD in millions xLTM as of March 31, 2024 Amount EBITDA1 % cap 240 Total Debt 6,851 ~1.0x 24% Cash and Cash Equivalents 5,539 Net Debt 1,312 Tota
Slide 11: Q2 2024 Earnings Outlook
Q2 2024 EARNINGS OUTLOOK OUTLOOK VARIANCE SEGMENT EXPECTATIONS FOR Q2 2024 TO Q1 2024 • Lower average selling prices partially Steel Mills offset by modestly increased volumes • Modestly decreased earnings due to Steel Products lower average selling prices, partially offset by increased volumes • In
Slide 12: Appendix
APPENDIX NwUcoRF
Slide 13: Segment Results: Steel Mills and Steel Products
SEGMENT RESULTS: STEEL MILLS AND STEEL PRODUCTS STEEL MILLS % Change Versus Shipments (tons in thousands) Q1 ’24 Q4 ‘23 Q1 ‘23 Prior Qtr. Prior Year Q1 2024 vs. Q4 2023 Sheet 2,974 2,675 2,819 11% 5% • 7% increase in shipments, led by sheet Bars 1,912 1,901 2,169 1% -12% • Higher realized pricing, i
Slide 14: Segment Results: Raw Materials
SEGMENT RESULTS: RAW MATERIALS RAW MATERIALS % Change Versus Production (tons in thousands) Q1 ’24 Q4 ‘23 Q1 ‘23 Prior Qtr. Prior Year Q1 2024 vs. Q4 2023 DRI 1,066 728 1,002 46% 6% • Higher shipments Scrap Processing 1,049 972 1,098 8% -4% Total Production1 24% 1% • Lower margins 2,115 1,700 2,100
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 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 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 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 non-controlling interests $836 $7,122 $8,080 $4,913 $959 Net Interest expense $153 $159 $170 ($30) ($38) Income taxes -- $2,078 $2,165 $1,360 $266 Depreciation expense $702 $735 $827 $930 $257 Am
Slide 18: Reinvesting to Grow the Core and Expand Beyond
REINVESTING TO GROW THE CORE AND EXPAND BEYOND PRODUCT GROUP DIVISION PROJECT EST. COMPLETION CAPEX BUDGET ($MILLIONS) Kingman, AZ New Melt Shop Early 2025 $150 BAR BAR Lexington, NC New Mill H1 2025 $440 Pacific Northwest New Mill Late 2027 $860 STRUCTURAL STRUCTURAL NYS, Blytheville, AR Roll Mill
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 COST SAVING 9% CAPABILITIES & EXPANSION 66% INDIANA COATING COMPLEX $250 TOWERS & STRUCTURES MAINTENANCE GREENFIELDS $250 15% LEXINGTON REBAR MILL $230 Millions of USD AIR SEPARATION UNITS $230 BERKELEY
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 ▪ RETURN ON EQUITY: ▪ SCOPE and SCALE: ▪ LOW GHG INTENSITY: 33% avg annual ROE (2020-2023) Largest and most diversifi
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 lower- ▪ Carbon Capture & Storage (DRI) RAW MATERIALS cost, more sustainable inputs ▪ Investing in emerging 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 Tubular Products 41% 4% Joist & Deck 4% Non-Residential Construction & Infrastructure 53% Plate 7% Structural 7% Other Energy 5% 13% Transport & Logistics Automotive Bar 7% 7% 25% Mac