Slides
Page 1
July 29, 2025 LEON TOPALIAN Chair, President and CEO STEVE LAXTON Executive Vice President and CFO SECOND QUARTER 2025 EARNINGS CALL
Page 2
2 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,” “project,” “will,” “should,” “could” and similar expressions are intended to identify forward-looking statements. These forward-looking statements reflect the Company’s best judgment based on current information, and although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. The Company does not undertake any obligation to update these statements. The forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this presentation. Factors that might cause the Company’s actual results to differ materially from those anticipated in forward- looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to general market conditions, and in particular, prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long- lived assets; (8) uncertainties and volatility surrounding the global economy, including excess world capacity for steel production, inflation and interest rate changes; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; (14) our ability to integrate businesses we acquire; (15) the impact of the COVID-19 pandemic, any variants of the virus, and any other similar public health situation; and (16) the risks discussed in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and elsewhere therein and in the other reports we file with the U.S. Securities and Exchange Commission.
Page 3
3 NON-GAAP FINANCIAL MEASURES The Company uses certain non-GAAP (Generally Accepted Accounting Principles) financial measures in this news presentation, including adjusted earnings, EBITDA and Free Cash Flow (FCF). Generally, a non- GAAP financial measure is a numerical measure of a company’s performance or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable financial measure calculated and presented in accordance with GAAP. We define EBITDA as net earnings before noncontrolling interests adding back the following items: interest expense, net; provision for income taxes; depreciation; amortization; and losses and impairments of assets. We define Free Cash Flow (FCF) as Cash Provided by Operating Activities less Capital Expenditures. Please note that other companies might define their non-GAAP financial measures differently than we do. Management presents the non-GAAP financial measures of EBITDA and FCF in this news release because it considers them to be an important supplemental measure of performance. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors evaluating the Company’s financial and operational performance by providing a consistent basis of comparison across periods. Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures provided in this presentation, including in the accompanying tables located in the Appendix.
Page 4
4 ✓ Safety: Safest first half of any year with 0.71 I&I rate ✓ Steel Mills: EBITDA positive @ Brandenburg; record sheet shipments ✓ Steel Products: Higher shipments and margins in Q2; stable backlog ✓ Growth Projects: On track to complete four major projects in Q3 & Q4 ✓ $1.5 Billion EBITDA ✓ $845 Million Net Earnings ✓ $3.46 Earnings Per Share (diluted) ✓ Stable Q/Q External Shipments: ~6.8 million tons ✓ Strong Mill Backlogs: ~3.7 million tons at end of Q2 (30% higher Y/Y) ✓ Lower Imports: ~9% lower YTD though June vs. 2024 YTD3 ✓ Capex: Deployed $954 million in Q2; reaffirming ~$3Bn estimate for FY ✓ NUE Share Repurchases: $200 million (1.8 million shares) ✓ Quarterly Dividend: $129 million (208th consecutive quarterly payment) ✓ Returns to Shareholders: 55% of Q2 Net Earnings; 100% of YTD Earnings NUE Q2 FINANCIAL & OPERATIONAL HIGHLIGHTS 1) EBITDA is a non-GAAP financial measure. For a reconciliation of non-GAAP measures, please refer to the Appendix 2) Liquidity defined as cash & equivalents, plus available revolver capacity of $2.25 billion facility less ~$1.35 billion outstanding floating-rate IRBs 3) Source: AISI (finished carbon & alloy) ✓ EBITDA1: ~$1.3 billion ✓ Net Earnings: $603 million ✓ Earnings Per Diluted Share: $2.60 EPS ✓ Balance Sheet & Liquidity: ~24% Total Debt/Cap; ~$3.4 billion Liquidity2 FINANCIAL PERFORMANCE CAPITAL ALLOCATION RESILIENT MARKET CONDITIONS OPERATIONAL HIGHLIGHTS
Page 5
5 GROWTH PROJECTS NEARING COMPLETION BAR MILL PROJECTS LEXINGTON, NC REBAR MICROMILL • 430K tpa mill conducted first continuous melt/cast/roll in July • In the early stages of ramping up production KINGMAN, AZ MELT SHOP • Multiple heats from new melt shop completed in July • Will continue to ramp up throughout Q3 NEW SHEET COATING FACILITIES INDIANA COATING COMPLEX • 300K tpa continuous galv line and 250K tpa pre-paint line • Expect to complete construction by end of 2025 BERKELEY GALV LINE • Advanced capabilities to serve SE automotive customers • Commissioning and startup planned for 2H 2026 TOWERS & STRUCTURES GREENFIELDS ALABAMA GREENFIELD • Customers touring site, qualification work ongoing • Pole production & galvanizing set to begin in September INDIANA GREENFIELD • All equipment purchased, and installation underway • Pole production and galvanizing operations by end of Q1 2026
Page 6
6 DIVERSE STEEL PRODUCTS SEGMENT CONTINUES TO DELIVER STRONG RESULTS EVOLUTION OF NUCOR’S STEEL PRODUCTS SEGMENT 1960-2000 2000-2020 2020-2025 Future Steel Joists Decking Fasteners Pre-engineered Metal Buildings Rebar Fabrication Steel Piling Tubular Products Insulated Metal Panels Warehouse Racking Overhead Doors Towers & Structures Data Center Infrastructure Key Criteria of Future Investments: • Attractive growth rates • Higher free cash flow • Attainable synergies • More stable earnings Steel Products Segment expected long-term run rate EBITDA margin 16% Attractive Steel Products EBITDA Margins Greater Steel Products Earnings Contribution1 2017-19 Avg Earnings Contribution 15%+ Steel Products Steel Mills & Raw Materials 1 Segment earnings before income taxes and non-controlling interests, excludes Corporate/eliminations 45% LTM Earnings Contribution 9% 19% 16% 2017-2019 Avg 2024 LTM
Page 7
7 TRADE POLICY DEVELOPMENTS Overall, federal trade policy has been constructive for the American steel industry Recent actions strengthen the Section 232 program • 50% tariffs on all steel imports and listed derivative products are beginning to curb the volume of transshipped and unfairly traded imports into the U.S. • We expect comprehensive approach will increase demand for domestically produced steel and derivative products [Picture] Supportive preliminary determinations in steel-related trade cases • Rebar: DOC launched new investigation into rebar imports. Favorable preliminary determinations from ITC; DOC prelim determinations expected by November • Corrosion Resistant: Final rulings on AD/CVD expected in August (DOC) and October (ITC). Final rates will “stack” with the existing section 232 steel tariffs [Picture] Navigating reciprocal tariffs and country-specific negotiations • Evolving trade policies will likely impact American steel producers unevenly, underscoring the need for vigilance and flexibility to optimize cost structures • Nucor’s raw materials sourcing and logistics teams have a wealth of experience adapting to a highly dynamic supply chain
Page 8
8 NEAR TERM CATALYSTS FROM OBBB Several provisions could have a positive impact on Nucor and our customers A catalyst for steel-intensive investments • Allows manufacturers to fully expense the costs related to new domestic manufacturing facilities and new machinery & equipment • Increases incentive to reshore steel-intensive semiconductor facilities and promotes Research and Development to accelerate innovation Significant federal investment in steel intensive projects • $150B in new defense spending, including ~$29B for shipbuilding • New investments in transportation and infrastructure • Funding for border security, including $47 billion for the border wall New tax provisions reduce near-term cash tax obligations for Nucor • Restores full immediate expensing of costs of new machinery and equipment, mfg. buildings in NUE growth pipeline, and domestic R&D • Produces NPV savings and value creation for Nucor shareholders
Page 9
9 CONSOLIDATED FINANCIAL RESULTS Diluted EPS1 Capital Expenditures $2.68 0.67 $2.60$0.77 Q2'24 Q1'25 Q2'25 (1) Adjusted Earnings and EBITDA for Q1’25 to exclude $29 million of one-time charges. See appendix for a reconciliation of non-GAAP measures. (2) EBITDA is a non-GAAP financial measure. For a reconciliation of non-GAAP measures, please refer to the Appendix (3) Cash Returned to Shareholders includes dividends and share repurchases EBITDA2 Cash Returned to Shareholders3 ($ in Millions except per share data) $1,242 $696 $1,295 Q2'24 Q1'25 Q2'25 $801 $859 $954 Q2'24 Q1'25 Q2'25 $631 $429 $329 Q2'24 Q1'25 Q2'25 Adj for $0.10 impairment
Page 10
10 $645 $309 $169 $241 $843 $442 $354 $329 $307 $392 $39 $17 $57 $29 $57 ($228) ($168) ($165) ($263) ($393) Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Steel Mills Steel Products Raw Materials Corporate/Eliminations $millions Q2 2025 SEGMENT RESULTS ADJUSTED PRE-TAX SEGMENT EARNINGS (1) • Higher avg selling price • Stable volumes • Higher EBT/ton • Stable avg realized price • Higher volumes • Higher EBT/ton • Lower operating costs STEEL PRODUCTS RAW MATERIALS STEEL MILLS Q2 2025 VS Q1 2025 (1) Total segment earnings before income taxes and non-controlling interests (2) Adjusted to exclude $83 million impairment in Raw Materials and $40 million impairment in Steel Products taken in Q3 2024. For a reconciliation of non-GAAP measures, please refer to the Appendix. (2) (3) Adjusted to exclude $10 million impairment in Steel Mills and $19 million impairment in Steel Products taken in Q1 2025. For a reconciliation of non-GAAP measures, please refer to the Appendix. (3)
Page 11
11 DIVIDENDS $2.8B SHARE REPURCHASES $10.3B 74% 55% 43% 46% 100% 2020 2021 2022 2023 2024 2025 YTD STRONG BALANCE SHEET & SHAREHOLDER RETURNS REMAIN PRIORITIES COMMITTED TO A STRONG BALANCE SHEET 1EBITDA is a non-GAAP financial measure. For a reconciliation of non-GAAP measures, please refer to the Appendix. 2Long-Term Debt includes Current Portion of Long-Term Debt and Finance Lease Obligations 27% REDUCTION TO SHARECOUNT SINCE 2017 Shares rounded to closest million RETURNS TO SHAREHOLDERS (2020 – Q2 2025) Cash Returns Committed to returning at least 40% of annual net earnings $13.2B 40% 318 231 2017 2019 2021 2023 Q2 2025 $USD in millions as of July 5, 2025 Amount xLTM EBITDA1 % cap Total Debt2 $6,881 1.9x 24% Cash and Cash Equivalents $2,483 Net Debt $4,398 1.2x Total Equity & Non-Controlling Int. $21,492 76% Total Book Capitalization $28,373 100% 135%
Page 12
12 KEY MARKET SEGMENTS DRIVING DEMAND (1) Source: Semiconductor Industry Association, 2024 State of the US Semiconductor Industry Report (2) Source: WhiteHouse.gov (3) Source: Dodge Construction Network MARKET SEGMENTS DEMAND DRIVERS NUCOR IMPACT Technology / Manufacturing • Over $450B in semiconductor investments announced under 2022 CHIPS Act1 • Over $2T of US manufacturing investments announced during the first half of 20252 • Currently supplying eight semiconductor plants under construction • Actively bidding new projects across a broad set of industries, including Pharma, Machinery, and Technology Infrastructure • Annual infrastructure spending expected to rise ~10% between 2024 and 20263 • State DOT bridge & tunnel contract awards up 18% YTD through May4 • OBBB allocated $47 billion for border wall, supporting 800 – 1,000 miles (~1M tons) • Bar shipments up 13% YTD • All-time high in plate shipped to bridge market in 2Q, up 35% YTD • Actively bidding on HSS for border wall Energy • Energy utility capex predicted to increase 22% in 2025; over $1T of capex planned over the next five years5 • Dept. of Interior is taking steps to expedite the review and approval of new energy resources, including oil and gas pipelines • Power transmission shipments nearly doubled YTD; highest level since 1H21 • Brandenburg approved by key pipe mfg. to supply line pipe for LNG & oil transmission • Solar (beam, tube) & onshore wind (plate) orders trending higher YTD Data Centers • Annual sqft of new data center construction starts expected to rise ~50% between 2024 and 20263 • Represents ~$100B in data center project starts over next two years3 • Structural steel shipments for data center projects doubled YTD • Steel Product orders for data centers (J&D, Metal Buildings, and Data Systems) up over 30% YTD Technology & Manufacturing Energy Data Centers Infrastructure (4) ARTBA (5) S&P Global research – 04/03/2025
Page 13
13 Q3 2025 EARNINGS OUTLOOK SEGMENT EXPECTATIONS FOR Q3 vs Q2 IMPACT ON Q3 EARNINGS VS Q2 Steel Mills • Stable volumes and realized pricing, with margin compression expected in Q3 Steel Products • Margin compression, offset by higher volumes Raw Materials • Slightly lower volumes, offset by lower costs Corp / Eliminations • Lower eliminations upon consolidation Consolidated Earnings • Nominally lower compared to Q2
Page 14
14 APPENDIX
Page 15
15 CONSTRUCTION & INFRASTRUCTURE HEAVY EQUIPMENT, TRANSPORTATION, LOGISTICS & OTHER TRADITIONAL AND RENEWABLE ENERGY AUTO & CONSUMER DURABLES % NUE ‘24 Shipments: ~50% ~28% ~9% ~13% NUE Primary Markets and % of Total External Shipments (2024) Market Outlook • Data Centers • Bridge & Highway • Institutional Bldgs • Advanced Manufacturing • Residential • General Manufacturing • Warehouse • Traditional Office • Military & Defense • Heavy Equipment • Truck & Trailer • Rail • Agriculture • Traditional Energy • Solar Projects • Light Vehicles • Electric T&D • HVAC & Water Heaters • Appliances MEDIUM-TERM OUTLOOK FOR KEY END MARKETS • Barge • Offshore Wind • Onshore Wind • Border Wall
Page 16
16 % Change Versus Shipments Q2 ’25 Q1 ’25 Q2 ’24 Prior Qtr. Prior Year Tubular 243 270 214 -10% 14% Joist & Deck 217 182 185 19% 17% Rebar Fabrication 306 247 265 24% 15% Building Systems 64 48 66 33% -3% Other 311 301 344 3% -10% Total Shipments 1,141 1,048 1,074 9% 6% Adj. EBT2 $392 $307 $442 28% -11% Adj. EBT2/Ton $344 $293 $412 17% -17% % Change Versus Shipments Q2 ’25 Q1 ’25 Q2 ’24 Prior Qtr. Prior Year Sheet 3,057 2,981 2,869 3% 7% Bars 2,148 2,290 2,005 -6% 7% Structural 635 577 512 10% 24% Plate 606 577 448 5% 35% Other Steel 28 38 33 -26% -15% Total Shipments 6,474 6,463 5,867 0% 10% Adj. EBT1 $843 $241 $645 250% 31% Adj. EBT1/Ton $130 $37 $110 249% 18% SEGMENT RESULTS: STEEL MILLS AND STEEL PRODUCTS STEEL PRODUCTS STEEL MILLS • Higher avg selling price • Stable volumes 1 Adjusted to exclude $10 million impairment in Steel Mills taken in Q1 2025. For a reconciliation of non-GAAP measures, please refer to the Appendix. 2 Adjusted to exclude $19 million impairment in Steel Products taken in Q1 2025. For a reconciliation of non-GAAP measures, please refer to the Appendix. • Stable avg realized price • Lower avg costs per ton • Higher volumes Q2 2025 vs. Q1 2025 Q2 2025 vs. Q1 2025 $s in millions, tons in thousands $s in millions, tons in thousands
Page 17
17 RAW MATERIALS SEGMENT RESULTS: RAW MATERIALS % Change Versus Production Q2 ‘25 Q1 ‘25 Q2 ’24 Prior Qtr. Prior Year DRI 979 1,038 987 -6% -1% Scrap Processing 1,155 1,102 1,037 5% 11% Total Production1 2,134 2,140 2,024 0% 5% EBT2 $57 $29 $39 97% 46% 1Total production excluding scrap brokerage activities. 2EBT refers to Earnings (loss) before income taxes and noncontrolling interests as disclosed in relevant Nucor quarterly earnings news release • Lower operating costs Q2 2025 vs. Q1 2025 $s in millions, tons in thousands
Page 18
18 YEAR SALES TONS (THOUSANDS) TO OUTSIDE CUSTOMERS NET SALES ($ MILLIONS) COMP. SALES PRICE PER TON ($) EARNINGS (LOSS) BEFORE INCOME TAXES STEEL STEEL PRODUCTS RAW MATLS TOTAL TONSSHEET BARS BEAM* PLATE TOTAL STEEL JOIST & DECK REBAR FAB TUBULAR PRODS BLDG SYSTEMS OTHER STEEL PRODS TOTAL STEEL PRODS ($ 000’S) $ PER TON 2025 Q1 2,475 1,702 495 554 5,226 182 247 270 48 301 1,048 556 6,830 $7,830 $1,146 $215 $33 Q2 2,449 1,507 513 575 5,044 217 306 243 64 311 1,141 635 6,820 $8,456 $1,240 $796 $126 Q3 Q4 YEAR 2024 Q1 2,517 1,344 431 384 4,676 180 238 208 55 284 965 583 6,224 $8,137 $1,307 $1,111 $188 Q2 2,348 1,445 407 417 4,617 185 265 214 66 344 1,074 598 6,289 $8,077 $1,284 $831 $139 Q3 2,394 1,402 406 405 4,607 169 278 213 60 291 1,011 578 6,196 $7,444 $1,201 $335 $57 Q4 2,210 1,445 441 484 4,580 178 239 221 57 273 968 510 6,058 $7,076 $1,168 $332 $58 YEAR 9,469 5,636 1,685 1,690 18,480 712 1,020 856 238 1,192 4,018 2,269 24,767 $30,734 $1,241 $2,610 $111 QUARTERLY SALES AND EARNINGS DATA *Beam includes all structural steel
Page 19
19 AVG EXTERNAL SALES PRICE PER NET TON STEEL MILLS SHEET BARS BEAM* PLATE TOTAL STEEL 2025 1st Quarter $888 $877 $1,300 $1,014 $938 2nd Quarter $1,008 $927 $1,352 $1,194 $1,041 First Half $948 $900 $1,327 $1,106 $989 3rd Quarter Nine Months 4th Quarter YEAR 2024 1st Quarter $1,079 $993 $1,417 $1,334 $1,108 2nd Quarter $1,015 $942 $1,374 $1,301 $1,051 First Half $1,048 $967 $1,396 $1,317 $1,079 3rd Quarter $913 $902 $1,319 $1,145 $967 Nine Months $1,003 $945 $1,371 $1,259 $1,042 4th Quarter $875 $851 $1,292 $1,036 $926 YEAR $974 $921 $1,350 $1,195 $1,013 AVERAGE SCRAP AND SCRAP SUBSTITUTE COST PER GROSS TON USED PER NET TON USED 2025 1st Quarter $394 $352 2nd Quarter $403 $360 First Half $398 $355 3rd Quarter Nine Months 4th Quarter YEAR 2024 1st Quarter $421 $376 2nd Quarter $396 $354 First Half $409 $365 3rd Quarter $378 $338 Nine Months $399 $356 4th Quarter $381 $340 YEAR $394 $352 QUARTERLY SALES PRICES & SCRAP COST *Beam includes all structural steel
Page 20
20 AVG EXTERNAL SALES PRICE PER NET TON STEEL PRODUCTS JOIST & DECK FABRICATED REBAR TUBULAR PRODUCTS BUILDING SYSTEMS OTHER STEEL PRODUCTS TOTAL STEEL PRODUCTS 2025 1st Quarter $2,734 $1,651 $1,351 $5,832 $2,838 $2,294 2nd Quarter $2,605 $1,593 $1,559 $5,206 $2,876 $2,331 First Half $2,664 $1,619 $1,450 $5,472 $2,857 $2,313 3rd Quarter Nine Months 4th Quarter YEAR 2024 1st Quarter $3,330 $1,732 $1,776 $5,759 $2,889 $2,608 2nd Quarter $3,239 $1,745 $1,606 $5,428 $2,731 $2,517 First Half $3,284 $1,739 $1,689 $5,577 $2,803 $2,560 3rd Quarter $3,052 $1,752 $1,369 $5,702 $2,954 $2,469 Nine Months $3,210 $1,743 $1,582 $5,619 $2,851 $2,530 4th Quarter $2,877 $1,734 $1,301 $5,750 $3,030 $2,448 YEAR $3,127 $1,741 $1,509 $5,650 $2,891 $2,510 QUARTERLY SALES PRICE STEEL PRODUCTS
Page 21
21 RECONCILIATION OF GAAP TO NON-GAAP MEASURE - EBITDA 2022 2023 2024 LTM Q2 2024 Q2 2025 Net earnings before non-controlling interests $8,080 $4,913 $2,319 $1,580 $712 $706 Net Interest expense $170 ($30) ($30) $43 ($2) $19 Income taxes $2,165 $1,360 $583 $382 $186 $193 Depreciation expense $827 $931 $1,094 $1,172 $271 $303 Amortization expense $235 $238 $262 $270 $61 $63 Losses and impairments of assets $102 -- $137 $163 $14 $11 EBITDA $11,579 $7,412 $4,365 $3,611 $1,242 $1,295 $ in millions
Page 22
22 RECONCILIATION OF GAAP TO NON-GAAP MEASURE – EARNINGS ATTRIBUTABLE TO NUCOR STOCKHOLDERS Q3 2024 Q1 2025 Diluted EPS Diluted EPS NET EARNINGS ATTRIBUTABLE TO NUCOR STOCKHOLDERS $250 $1.05 $156 $0.67 LOSSES AND IMPAIRMENTS OF ASSETS, NET OF TAX $103 $0.44 $23 $0.10 ADJUSTED NET EARNINGS ATTRIBUTABLE TO NUCOR STOCKHOLDERS $353 $1.49 $179 $0.77 $ in millions
Page 23
23 RECONCILIATION OF GAAP TO NON-GAAP MEASURE – PRE-TAX SEGMENT EARNINGS Q3 2024 Q1 2025 Steel Mills Steel Products Raw Materials Steel Mills Steel Products Raw Materials EARNINGS (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS $309 $314 ($66) $231 $288 $29 LOSSES AND IMPAIRMENTS OF ASSETS -- $40 $83 $10 $19 -- ADJUSTED EARNINGS (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTERESTS $309 $354 $17 $241 $307 $29 $ in millions