NUE - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Nucor's First Quarter 2024 Earnings Call. [Operator Instructions] And today's call is being recorded. [Operator Instructions]

I would now like to introduce Jack Sullivan, General Manager of Nucor Investor Relations.

You may begin your call.

Jack Sullivan

morning, good and you, everyone. Thank First Welcome Business Earnings and XXXX to Nucor's Update. Review Quarter call Topalian, and Leading CEO; is today our Leon Steve Executive along Chair, Laxton, Vice President CFO. with and President

Sustainability Greg members of Chief Counsel; Products; and Needham, Raw Structural Business Materials; posted Noah the during Sumoski, Al Murphy, Products; Rex and We cover also Ford, you Officer; Corporate release Nucor Fabrication; Commercial; have Chad quarter Nucor's encourage access Innovation. We team call. we the and Doug Fabricated including to first we'll Operating and Plate with for portions responsible Bar Hanners, over and Investor these John Rebar Dan executive of General Jellison, and as Behr, Query, Brad Relations presentation Hollatz, Dave us, to them Utermark, and Sheet New our Strategy; Services, website, Products; earnings other Products Construction materials

and use with different Today's within reconciliation today's than discussion be and of outlined of the and of include forward-looking may supplemental SEC the includes measures. in and will financial information statements of Nucor's financial harbor The involve filings. forward-looking laws. results disclosed statement along safe meaning presentation appendix risks information securities Actual our disclosures, measures in non-GAAP non-GAAP a

let's So with the turn call that, over to Leon.

Leon Topalian

XXXX. our welcome, Thanks, to to teammates Nucor XX,XXX congratulating a I'd for Jack, and by everyone. start and begin safe profitable like

generated EBITDA million quarter, approximately In $XXX share. or net we the diluted of billion per first of $X.X and $X.XX earnings

average quarter. per to steel from of in the the compared million and up ahead a remained XXXX. all we to quarter, X.X for XX% up the line quarterly ton outside the Average quarter XXXX. first Pricing for X% shipped nearly in also the prior quarter pricing For average shipments prior strong and mill slightly was tons with our of customers, total of

Products, prices to continue moderate. realized Steel For

mentioned to over investment Nucor consistently payments repurchases shareholders X our made generate capital capital will above our spending on shareholders balanced allocation, growth Structures our our will dividend to rebar along pre-pandemic platform. in Lexington, robust returns. In part billion quarter. levels of our in Carolina we've we have with during We're year continue construction Virginia of And downstream first get previously, returned that commitments to North $X.X facilities as as sheet also & this production are and progress key the share our the and mill keeping increase good micro work the capital projects Towers phase quarter. West We on advancing and prices mill. held Nucor and through However, to approach further

On that team of last with delivered proud making XXXX the history QX experienced. to since roughly drive safety steady injury the XX% our rate of Nucor's safest illness incredibly quarter the and safety lower we an incidents the than number we of I'm year. progress front, in been down have

the Our goal continuous company and world's the how steadfast improvement we require determination, safest will to become steel in operate. innovation

Econiq-RE extractive that and furnace-based for less its energy renewable of made manufacturing with Tuscaloosa, signed than the in vehicles and our we plant. is produced with be world, a greenhouse are at exciting sustainability in position great Econiq-RE and delivering Alabama March, Mercedes-Benz production one XXXX leadership results customers, taking We these In across who to X. and our capable blast high an anywhere on of several kicked shareholders. Building most X, focused half steel initiatives. gas the another, agreement assembled a and continues all with priority, off have team Scopes supply to X has intensity on care we XXX%

reduce carbon example with to supply chain. with world-class another is within customers of we're Our partnering Mercedes-Benz how their agreement emissions

and advance Google and to with projects. customers Google seek initiative technologies. to new adoption a needs creditworthy with energy We by often Developers find technologies scale cleaner affordable, Microsoft energy. struggle large-scale clean will announced Microsoft, the like early-stage these and others, of and forms that to our energy also energy aim such of We lower of aggregating obstacles to reliable

energy we'll be Earlier magazine sustainability forward, policymakers, recognition and other working energy providers, designated Going with year, work. Nucor receive for to our Barron's continues advance this Nucor large efforts. consumers to this for the this its commitment operating and Most day. Sustainable every of to your entire Nucor Top only among XXX Companies. company to sustainably well-deserved ranked steel each Congratulations our recognition team

pricing customers, hot-rolled to with coil in real-time their price coil. updates Price, our our which hot-rolled for The for make to inherent Nucor's better speculation. CSP will sheet the customers has Having reliable, meet lead pricing, with with our We're to coupled ways shorter provide information commercial short, to looking to real-time reduce better weekly will help or our better us Consumer for provide products. information CSP always led serve customers introduce pricing customers risks will needs. Turning strategy. our decisions for times, Spot

a While customer place been only few the for pricing feedback positive. framework thus the CSP far weeks, in has has been

data base. off XXX like customer to On Products, the Data members productive recently center Southwest start. is of front, the I'd announced family. Southwest strategy the to infrastructure team impressive reputable Products and to With with the Data manufacturer We that, blue-chip a at installer a Nucor acquisition an corporate XXXX welcome of

launching In the to new market. serve conjunction center business Nucor Systems, better with this data transaction, Data unit, a we're

equipment. The a racks reputation which gives Nucor manufacturing downstream and center, Products efficiently structures, relationships Southwest deep the of at data have high-quality many products. Southwest the for and of which capabilities separating other from help in containment by centers cross-sell expanded in largest leverage products professional data server a generated also with cold air timely more and run installing strong them way. codevelopers airflow team Nucor Data hyperscalers, has heat and to engineering our by They can

expected are double-digit at cloud through annual driving reliance decade. strong this centers, demand rise the and on market artificial grow computing the rates intelligence of for data this the next-generation The of to is end growing and

growth of to prospects aligned other compelling acquisition sectors, with evaluate and robust continue a we in trends. steel-adjacent pipeline We high-growth opportunities have

serve the like Before turning enforcement on a where during Chair. meeting as trade ongoing designed Steve, over recent strengthen we published Association The I Earlier to nation's that to U.S. I recently a Department it World updates take comment Steel its this meeting, global currently a overcapacity. attended to And by to to production policy. discussed month, posed final rule the steel changes, moment our I'd behaviors. Commerce duty challenges for Field enforcement We still countervailing positive a Level as tools Department it's we they X.X and development believe for the Nucor are crucial give These to address of Commerce trade-distorting the regulations. pass antidumping these and changes trade but laws. entire appreciate to industry strengthen rule for necessary the that additional making legislation commerce Congress the Playing existing

our turn to Steve? details some share financial on QX it over I'll who'll more Steve, that, With results.

Stephen Laxton

thank Thank you, all Leon, joining for our and you call morning. this

first advance Nucor made and quarter moves itself. The growth commercial saw continue differentiate its XXXX of to meaningful strategy,

our in higher net a earnings the or to guidance roughly quarter share. We a had earnings of per range. but the also came of nearly with solid share was quarter on This $X.XX start our first X% below earnings prior midpoint than XX% the earnings million $XXX year front

I'd on So minute to a to share like take some that. color

our X segments for forecast the from were results with important, in quarter. line most operating generally the first and First,

our eliminations costs and However, intercompany certain administrative exceeded estimates.

larger costs medical employee of Some to related of the as drivers benefits, insurance higher-than-expected administrative such coverage.

a Nucor a from the more function to materialized. what divisions eliminations delivery materials construction than difference were timing of pre-guidance had own actually eliminations One driver Intercompany our Higher-than-expected of pronounced expected. projects assumptions more is was between impact. predominantly a X This things. and our

activity profits anticipated than The our second driver operating was more divisions. and between

set businesses. synergies, you This and long aspect diverse and has mitigation periods integrated of of most risk provides benefit, of Nucor As time. over a know, strategic

particularly results, respect that to in same realized customers. With of eliminations our these periods between first change higher can adjustments quarter. simply our which of in business in quarter. and the beneficial rates during improved gains. segment-level and quarter-over-quarter our higher to intercompany recognition, final from earnings saw realized in generating are result nearly billion sale XX% sheet speaking, approximately prior factor business $X.X pretax timing was segment results recognition pricing short-term the volume to the both of the the largest the during operating differences first That XX% pricing, in increase and in quarter, for approximately earnings However, Generally driving steel earnings attribute XX% occurred earnings Improved our quarter. mills the pretax shipments

for regional pretax of to wet the earnings during believe Steel $XXX were million the activity adversely period. the quarter. shipments some segment approximately X% affected from Moving down Total Products. start have an unusually approximately construction We prior segment the quarter. may delivered year to This

and generate higher individual from receded from deck, the buildings, margin segment the have our downstream joist pricing This products a contributions first and and of and saw cash strong tubular for by more years, fabrication offset our few flows. Highlighting to high margins rebar steel was returns than metal the lines, continues recent While from moderating operations. quarter divisions. products historically levels attractive product

that deck to our believe the backlogs over than the relative earnings. single quarter. will foreseeable X largest the to Our for higher times the half year, of business future, continues to and and results contributor in business as we to expected the months. joist noting given stabilize approach averages. seen of business have Consequently, we earnings lead segment is X tends back business likely and the This to our pre-pandemic of deck considerably worth remain the pricing be that joist products steel we've maintain last this It's stability profile

pretax million metallics segment margin lower were Overall, $XX but produced of Materials the the Raw volumes compressed for segment. Our higher quarter. earnings approximately prices for

allocation. in These the allocation, in enabled position balanced maintaining growth year direct its through providing capital Let $XXX the and first from approach the investment, to and generated rating. factors strong Nucor balance cash to cash attention We enabling quarter. a sheet strong our and investment-grade returns now continue turn million capital me began with operating shareholder a to activities

progress quarter, deploying to greenfield projects described spending, and advance front, our growth On million expansion first on during we several the $XXX continued earlier. capital in strategy, the with made

was quarter saw debt our the includes reduced the robust, financial discipline quarter, a of billion to cash first practice cash repurchases, the first share acquisition return we liquidity to This return expected higher continue an enabler opportunities. on pipeline to our at share to over near-term The sheet both and of put its that CapEx which to and Today, repurchasing remains Nucor count our display of or been healthy shareholders. Nucor's practice plans have balance year. position, it. in Nucor's total activity maintains where the X.X capital This back billion also and success. due shares. It in of start million than balance to normal a our million by total in was orientation and long again ended a dividends strong trailing and $X.X long-term has use sizable $X approximately $XXX quarter investment-grade rating Xx the leverage and roughly XX-month enables ratio of EBITDA. We with XX% capital

than Looking segment. lower expect earnings with ahead steel to consolidated earnings mill XXXX, the in segment, of our from be quarter by first materials to steel improvements and quarter second modest raw products partly we the offset earnings from our reduced

Lower are our for segment largest the earnings. mills of earnings reduced second quarter drivers our from steel outlook

overall this by business volumes for change prices. company. mill of be higher the will more steel We segment sheet our driver For we the results slightly realized than largest to lower expect segment, the in and be anticipate for offset

from Our steel of continues record historically to moderate performance. high products segment levels

segment with the we being quarter, the For slightly lower net lower volumes this pricing and realized the for effect higher segment. expect earnings in second

profitability. backlogs improved businesses, raw higher across and For volumes in the should overall historic stable remain all margins Overall, line in with segment, result healthy materials norms. and an

positive. overall pricing is However, lead expectations, and and the segment to second resilience. for to earnings. On reduction flows quarter the economy the recent U.S. steel steel a demonstrate lower are in anticipated to cash overall That past realized in appears our an expected macro near-term products level, mills relative to strength,

from secular In such as markets, infrastructure, to and show continue data trends. select strength manufacturing, addition, advanced centers, end

stable. collectively, demand near-term Taken appears

we out, positive fundamentals, rebuilding. the cautiously further trends reshoring, of on and Looking given remain optimistic demand repowering

With that, answer and like we'd Operator, hear please any questions. open to the for Q&A. you from line

Operator

first your Englert Martin Seaport Research So from [Operator Instructions] from Partners. comes question

Martin Englert

to last digits the degree. overall segment, in these declines something a the improvement year. where in kind of continue double-digit Or start similar down of to Within were both to lower? steel anticipate going plate are is expected and volume going down Also, volumes potentially sequential offset products to we'll XQ? this were Do volumes products versus mill double similar you steel a bar trend see

Leon Topalian

not I 'XX, of Martin, is keep we record another when is the important maybe however. When but volumes is your including as things are QX's to look year, broadly or context flat substantial. We're at moderating. look mind 'XX, play think in stronger, believe like pricing, important you thing. appreciate a we about we XXXX certainly I better, the 'XX, Look, one out, as [indiscernible] question. really for we again, more expect either it although to strong volumes markets And of to be a strong as is we -- think be moderating. years going me, Q-over-Q, context products, our little excuse But 'XX so as But

above off highs, what in while saw that's So the way, way the we products group, level. coming is example, for pre-pandemic historic it

there group. regarding we a So we've believe out stable market that seen pretty

out within relative. little But groups. or generate want again, that for think to there's So still I I and to our individual expecting many break We're of be our out be QX shareholders. pricing are individual a product very it's us going going to to product returns don't robust those break groups softer.

of area the that the heavy -- overall as into flat, remarks, from picture. construction, opening a look Other across segments, service automotive, having -- demand really couple mentioned keeps we that, energy, in get in we those his improving markets a stable as little we see equipment that as the slightly bit transportation we really And see QX. Steve or at than declining centers, an is only are

Martin Englert

looks cost period? costs ton, Within comparable year-ago expect steel higher Would conversion the similar volumes, per something XQ you estimated similar in declined decline it versus modestly sequential the quarter. like prior mills, on Great. to maybe a the conversion given

David Sumoski

Martin. Thanks for is Dave. This question, the

decline. Our don't also down I P&L. and Gallatin are role. costs the played a because there's mainly more rates that whole a slightly big [indiscernible] of think utilization lot

that So has stabilized. cost the we think

the them what you than You to saw a first bit little can expect maybe in be certainly but down quarter.

Martin Englert

I challenged helpful. recycling the trends? perspective materials and And one has from recycling, improvement on recent If that's DRI operations. do why recent Okay, one. What is that Raw to the quick strength improve a XQ to in in last been given quarters? believe going could, expected you drive pricing both margin

Noah Hanners

Martin, this is Noah.

answer about price opening has been peaked about recycling month-over-month we talk demand, your to and compression as Well, We've really, first, is scrap go I margin December. Let's prices then on DRIs. want since, in We in point in back just remarks. declining expect and the pricing to the hit stabilizing seen lower. those stabilize and mentioned

of So we expect there. normalization margin

advanced the contribute our also We facility. facility in commissioning start-up those normalized We'll and Bushnell a to costs bringing in related costs some our are early we've that'll and that incurred as QX, additional well. through margins Florida, online plant, see -- to new metal more in you'll recovery work recycling

in into DRI QX. just I outages extended We DRI there. X want additional QX as to in well. I mentioned sure context You provide executed some make going

now to these back back And will us as DRI performing us volumes to that's high are rates, higher DRI in and been you plants be to QX we're running in through of running of that rates higher QX advantageous see continue [indiscernible]. consistently. So

able to in not higher pig market we're higher-cost and So rates DRI. of iron participate run

plants saw are the DRI outages. we at the levels our that back before performing So to

Martin Englert

one to as facility you're the separation in XQ? to adding you and right anticipate you recycling the frame there for advanced technology was start-up might the The XQ cost up costs what impact Can -- it and now. in what

Noah Hanners

and that to We're It'll rates additional be million $X in allows in commissioned. a recover about is at QX. higher aluminum. nearly us stand-alone of fully was Bushnell minimal It It copper QX. facility Yes.

add-on an processes. not our it's one for of existing So

Martin Englert

of course any? planned many you those do more How over of the the year, if have

Noah Hanners

of going Nothing from more and the and else this additional platform we'll our broad. technology rest process. to across out recovery this process take learn build the year. It's We're this going realize We're really recycling to continue technology. learn this and take state-of-the-art from this to from

Martin Englert

facility to to you switch And is some to you with trend allows or right? increased degree crux of that some at optionality, product, substitutes would that the prime that upgraded an charge what

Noah Hanners

really a Yes. for This material. is That's process. nonferrous different

obsolete we're doing about of offset Berkeley. think our a X,XXX upgrading you iron one an process. if of scrap is at scrap our in shift. per We're producing facilities So about in shredded that that scrap, now prime And or replacement for tons pig or really,

So to our we've got mills that and now, fully as at capability we'll well. to expand continue that scale other

Operator

from comes Curt of next your question line Woodworth from And the UBS.

Curtis Woodworth

and into joist was substantially year, I pretty Yes. to hoping Last entry we're negative talked still the a up quarter seeing categories. was materially quarter, downstream yet to product little just start about trends. deck more down bit drill you pretty the volume

changed was stabilization curious, half proceed expected? And quarter? commented can historically, of then operating to of talked just EBIT today I year. back I'm then maybe you of versus and that than of we division. stand joist understanding the frame maybe margin. contribution? that about the And you the majority better joist in you you can any kind have that deck on historical? anything think do where in fab to around it's higher you a much out and more So deck XX% did Could expect margins comment so accounting that that as the now. also Did I But price XX% the see know you for

Leon Topalian

like us specifics make it see, if then of he'd Brad Yes. to the off, margins. to over turn me let Curt, I'll any there's kick I'll on comments and and, terms in

we but years better. $X billion has short had that of well incredible. in products of performance or over looking downstream been our of in where earnings over net has quarters nothing group or Their several last performed years. the the in several And a the not XX at I'm last me, XX general, generated incredibly group, front Look, data run

to in we're how individual care But And solutions, go but that there. bit a proud we very moderating. speak a our and, so breadth just Brad? to differentiated taking come forward market the of meeting with move to the word team year incredibly the details, seen, capability different Brad the serving way. products, what of seeing I he's to able of of strength We're let what together been pricing more as has provide again, little I'll the . Again, coming envisioning then use again, what moderating. they've the in in Nucor's do, from not some set together customers

Brad Ford

Thanks Yes. Thanks, Leon. for the question.

we of institutional know, breadth to different you downstream significant manufacturing, projects data areas nonres, us to and right healthcare As and of produce be in a this for many we our centers, some customers, products, offering product bring multiproduct differentiator seeing continues strength we're education. specifically in as advanced now solutions

noted, site optimistic bit slow environment, rate interest X Steve extreme said, us the on driven construction. out side, started job some delays. and mainly a remain current As we nonres about for in of resiliency light in and the weather associated That quarter by product very

expect we specifically, pre-pandemic over slow, in in saw rapidly activity joist that and the and last the we've we accelerate side that as pretty started again, with sit relatively and with booking noted deck XX% quote the but about we volumes bookings seen improved above remained still March couple industry strong. On February, levels, outpacing year We at XX far QX. January and days, what backlogs

levels seen that market than for reflect price products market. solutions consistent pretty X the historical value norms, quarters we to again, now the far of side, On last remaining bringing which and believe the at better we're higher we've the the stabilize, pricing the

we're this Product the I optimistic. discussing, we've take approach well megatrends. balance and advantage solutions-focused about these of As breadth been of and positioned to very year megatrends we're think means the

executing, together said, downstream how of are to continuing extremely Leon in working earnings Like that the of proud products our take care step drive change generating. customers we're and I'm teams to

Stephen Laxton

And profitability a I'll talked is fundamentally and Curt, in just Yes. about the Leon to has This said. what different And Brad Leon position. Steve. add on

a segment million from segment averaged, that that you quarter. if it, call $X.X from pre $XXX in we billion year. profits Our EBITDA back over go pandemic, were this for segment And

a we the we past. are today different than fundamentally been company So in positioned as have

reference that to referenced of be pretty demand So when that it trends those you has with in this moderation, good. Brad along broader taken context a are

is you products going that an within that. But you will roughly bit from to diverse to, set profitability tube to XX% referenced pipe and orientation, businesses, We're again, little Brad particular deck of and XX% is give and is done about the to that what the get a not be going not to fabrication. XX% of volume we segment. very have into joist and to rebar of and XX% downstream XX% of We've XX% business, a to our I point

gives in I you hope the of that mix segment. set So a good products that

Curtis Woodworth

as can still a seems update static follow-up, demand kind if the mean, No, mill last level of trends and how plate that's you bar year? somewhat an on looking guiding I volumes infrastructure you helpful. us And plate still to how of see there. evolving you at going can you of give then it And you this similar is the the there's and spending comment doing kind then quarter? on on were expect volumes, Brandenburg

Leon Topalian

I'll touch jump in, side want kick comment Al, maybe bar please on, on then, I anything off. if to on that and John, miss ramp. you us And the Brandenburg's

of X of the have Curt, we've of that and the construction. along legislation passed, We've worth the To news semiconductor estimated of long products built with billion It's $XXX those that'll Obviously, furthest the pieces right? talking the be Act. in worth roughly out have been date, new an X way I'll ground announced, coming XX in XX there. begun of been CapEx broken were CHIPS The great and years. the are pieces got books. start that in about for the too just legislation is those money

hit that's the seeing again, renewables, where at different IRA Those into advanced, for -- tubes, orders flowing seeing We're when real. again particularly sort solar of most we are orders and the we're our look that's and through next coming. being CHIPS next, those being So behind at product shipped moving. produced, our groups. If Act books, that look we

and last very, again, is individual the or in the then and infrastructure the to early projects innings. and through flow IIJA then the and that, the most very on got still bridges probably And fund ] like. there highways, [ states through lagging that execute That's federally, in

a are where in and X we're megatrends And going, the incredibly million structures to total X you look the X, growth come, somewhere in, we'll we're that for impact. we're like those or X estimate as and the the years centers, to showing is X tons than still growth expecting X,or the X next years next we're X, X, some like annually will beams excited about, focusing, double-digit all Nucor the that towers more continue ramp. next and between play, data over an our X will million of role. to plate, that between or We we a have of see incredible which products, sheet -- to X think thing least and that bar years again, positive play that, the most strategy that going be group, also of not is of tailwind. significant And our The

like you'd John, add, that? Anything on to

John Hollatz

flow take in look at our advantage as as of Kingman Leon. going a these ], they Lexington, we add, (sic) positioned Arizona, [ Yes, and to to start North Kingston slowdown, to as well through. commissioning infrastructure dollars we're mills seeing spending. Leon a Carolina be slowdown, But would noted, we're but a I in delay or building out certainly, the Yes. not

long-term the we're products about So and going we're where long feel optimistic demand good there. on about

Allen Behr

is Al Behr. Yes. just your about on Curt, I'll quickly this comment Brandenburg. question

is for to on to the talked year we plan X.X continues last about tons ramp-up for million fall, the year. which according go Brandenburg that The this about

volume tonnage to QX Our weighted QX. double going in to tons. half, double expect that Obviously, to the it's but again and was in I'd in QX and about XX,XXX that second QX be heavily

We able continues be that's to story. for so something customers weren't those shipped head a it customer, new We to first tank take capability. a us. a care plate before. our railcar for It's So capability new of

tick and for of Nucor we So it us, second will the off to volume half. in care due can with gives capability how the we to firsts continue new customers these our take Brandenburg the on come

Operator

question from BNP And Tristan Paribas. your from Gresser next comes

Tristan Gresser

follow-up normalizing with on fair downstream mark divisions? Maybe about and joist quick QX and will to say you start the that a the is that said the trough to the deck volume With prices outlook. for what and direction,

we more the look yet of environment that to we products, certain given it more is nothing earning at kind stable there? or fair you when outlook, And from visibility HX but perspective, of momentum the a an positive terms earning your of optimistic with have have be in of

Leon Topalian

framing Tristan, flow I to sure moderation to understood the the really quarter-to-quarter make question. I want how Is going earnings? through to it is to

Tristan Gresser

of mentioned more have, it the would to that deck, joist at just the and outlook and and looking if earning be the an given in even, direction a half deck, we're saying the don't stabilized, really QX of the the division, division, uptick second like Yes, product if And me elements could pretty we uptick on looked year on positive and the division. big an the on for then you see I you're much. given Or potentially And given all division. positive prices, you visibility I'm are that have in for HX? prices -- the to the for have bit if you understand mark have stable more commentary to say some trough that joist the in trying visibility certain products a of your steel for know, you margins

Stephen Laxton

trough joist stability over we this, quarter can there pretty times Steve. does are yes, for seen Brad we're good say lead that might in this for the much lead and at and stability, price the positive call terms call but backlogs is up a Yes. been -- we've very in overall around back out that like. so. gap. business field . But model long price deck, you any Thanks, too it, what clean of too a the we more stabilization. certainly, get last, year to I've going deck, that half in the to joist There's variability I'll confidence Tristan. healthy, look that and very point. of This trend given relative particularly and that's misses our with have to or That very,

of like times. have products questions to just downstream backlogs much that portfolio segment, sort around parts of that of lead linked the Curt's part there's their the don't our and earlier of diversity And other that

hesitant to question that's I I'd characterize say as and position relative second positive trough. your little So But be why affirming of a that would be joist the deck. will quarter

Brad Ford

only I would add Steve, nonres somewhat is from perspective, Yes. construction a volume is seasonal. the thing

So bit to are volumes side. a more we're seeing QX usually QX be and robust, right what the products now. QX that's on lower tends and

Tristan Gresser

as That's in right. data talk the little data you about use centers right joist give now could sense, be and the deck could quantified products? driver to your complementarity discussed of us big And how this future. will and a and a sense maybe maybe other if bit you a recent I And center acquisition. you and of Am helpful. really those certain right products, downstream understand when that All that

Leon Topalian

that Utermark Chad overall then new Yes. I'll we maybe who's ask Tristan. off, for businesses kick this and M&A and acquire,

about Couple about opportunity the next data demand couple with of and power you're projecting center these excited hundreds of really or is just again, the in year-over-year pivot bit XX% Boston need, XX% projections hundreds the and X Consulting are. the a that large X talking that over hundreds with Group long-term megawatts. to we're that But construction years. little of -- many hyperscalers that a of growth here,

require One, comments, I space. are in continue our going and as in my major this build-out Two, a acquisitions, hyperscalers -- now make to energy things. grow and center to we requirements a have that So shared prompting few other leadership to under earlier solutions data data provide Chad's the will these infrastructure we're builders. center the we and opening holistic group

long-term, cash you're continue QX. back the marketplace, to these on sitting again, of generating the calls And are have these you're going again, What to of are to in going again, long-established that so you questions earnings that in what are, returned get XXX% are relationships And over the often to do Nucor with shareholders or we move to and the with you money? going see we forward. Many on? do we

getting see to going too we incredibly data economy our to is centers robust and returns for to strong megatrends this our in going without and continue focus, be them. But that growth far, are in generate the one of being shareholders,

for Southwest cool hot to come air and pathways air to makes out. sort the get of in

forward that of members the -- XXX welcoming family center, terms to the that and Nucor new we data team into In or family. look into the

details other in the that in any Southwest? share But and market you'd general Chad,

D. Utermark

you, Leon. Thank

me data by for start been space center saying, this we've in Let a while.

of down And figure the hard $X Group, be probably in as a kind division. on Buildings SWDP a they're our And mean, XXX ago digits. big or I us mentioned, great the acquire of that our new structures is put space. billion but it's through data in will Leon relationships with ago, we playing team entered north about members, the And it that. deck to weeks what think inside space the of center, our able capabilities and growing, is, This this to were data call in growth double to this we Nucor I some year have to market. hyperscalers racking the And lot saw colocators. We of there. tremendous dollar with data the in a serve of we Our beam center, racking of for these then and the we're kind to center do lot maybe the supplied building as estimate growing actually acquisition going have this to and They furniture a there explosion. how and along furniture X middle 'XX, products, right inside joist give of continue of Leon mentioned. They

center bolster feel many on colocators, we the front preferred and center data really key opportunity be to hyperscalers, Nucor's going the buildout. who like it's a the So supplier of are to to nation's

of installs other things as Nucor that we're to products, a piping that of make, Kind and part sprinkler which note, assets be into possibly those a that and really and even we produce. bring also we products SWDP their excited other install

the looking players. and about are about key we're have. excited we're have with the space. about products ringing, We're we those the significantly We excited We're we space. the at So have really relationships the in already excited phones But growing already this relationships.

Tristan Gresser

you're have premium, on XXX get volume the Do very or you clear. the look EUR how to All you you if selling that's intensity product probably premium And right, you're in final to were that a XXX, question sell bit And if selling, ton. can you in much years? Econiq. disclose which maybe target? you Or selling carbon any volume a a coming sell target on EUR Europe, at per I a of at little

The significant. you is was obviously done, tonnage. peers the type if I share, looking this some of could have much wondering pretty different. for premiums be U.S. you're other can it as So But market at

Leon Topalian

construction nuanced billions the in becomes their and And again, regarding when today while our places making entire not road very of we've sustainability the again, we're like continue and racking to We're like still. automotive try that investments take down and question. and our we're billions Nucor it really come. But to and spend a and to tens sustainability, to for capabilities other your about standing looking in the customers dollars grow XX, comes billions Tristan, excited entire Yes. look providing nations years someday, to data structures and centers towers front, and that it work the for revamping and solutions is able are Nucor, of XX, to done. XX answer and to portfolio decades and

them to renewable the the we than that announced that more do scale, Nucor's the ago, very do what do was Scope somewhere realm capability gate, customers can at in the that But things. provide need net-X the for But first to at how make we Mercedes-Benz the We incoming scale. A that. million XXX% around important. at our least year carbon-free X that I the these important was figure Nucor right, we was example, we X steels to trying I used and solutions think is energy different we're looked critically that For tons. our relationship steel, and of out Nucor to ability produce identify really, to that was can at emissions, just mistake, hard no ship

some net-X for use or are don't customers, to offsets there example, want to So that to us target. regs that able to get be

starting the and integrated at competitors. extractive is Okay, well, X.X process hundreds our percentage points traditional steel-making or of our point already below

differences, at incredibly to Sedalia, regions the there you different And our that to when then in further. or then mills, are that operating low. And X.XX are able that U.S. Nucor lower becomes range. even starting look certain So that across regional in point operate are that like steel

the breadth a to And across opportunity, today needs meet unique geographic of have so Nucor the we and term. really the footprint, with again long

quite there We're net-X would and again, that. of for so. not a the of believed or is subsidies that before pathway you Lastly, anything were We're we XXXX, OpEx and in control frankly, that I'd handouts we that. a pressure out to looking comment, there just can to technologies it jump about target. directly for Nucor lot deliberate the was or on very Greg, and do just excited make the unsellable. Dan, steelmaking, things was government final didn't way or product. And with We and we in out well when true we We're control. want to looking net-X make it came there a took we're produce add -- our our did We the

require improvement steels. We're ourselves that customers continued to going overall Econiq stay those investments for be for the again, out But see there. lead, and in our the make to long to to term leaders front. You'll continue we're We're to performance. going going well position need and

Daniel Needham

for is add was that out Econiq, about And companies. that think bit evolved is years tell what we personal you I net-X Scopes sustainability if ago. is X. would a Dan. X of about And quite lot What rolled a would absolutely of and market's this I to for a journey you, It a The since product then. these couple a Tristan, the

has, market the offering And we're what evolved as so we've and the need. customers

flexible. very we're So

what Scope the just Mercedes, around that that's has we As desired. X because announced an customer the Econiq-RE was product

So we're very that. as we flexible approach

say States. going last how Europe, get is. absolutely that that's I'd realizing in in what's premiums. specifics look if to here and similar into at to that the there Your question are you premiums shaping we're out U.S. was United achieving I'm what it's around not And around happening But the in

Operator

Timna next Wolfe from Tanners question from comes And your Research.

Timna Tanners

because a a outlook get for struggling on color decline hoping to quarter-over-quarter. to the Was the we're little more bit

which key that improve to is, does bit quarter usually I do a seasonally, end fact think the your out, second pointed demand it with the markets. has for you in

the think light that, projects, to helpful quarter us would of going how with of inventories in remain bit you we so some that, help eliminations corporate your if or discuss the can that elevated And sticky about maybe it can be of if to some are a guidance. that's those of into impact, second in-process to

Leon Topalian

to of diversity. hole accounting Steve a point I'll Timna, of incredible good elims. Nucor is But maybe us if corporate off jump because and it the of too kick ask Okay. the in into our I strengths look, far go one is

our you for that when billion a is America. Well, of provide Our internal. in wide to we, for the billion for had quarter, in customers a set $X.X the variety ability $X North revenue capability is in quarter. unmatched -- About

So hundreds it's locations shipping Nucor. of to across

miss you quarters. and shipments maybe again, tracking and strength in in states, it's to your elim does XX% locations of come and It really inexact do means and team So the an ebbs hard science. to our to works overall of weeks across a our point, the not hundreds will just of it in months terms But flow of well, next the about magnitude of and into having internal Nucor every try flows it's missed back XX it of that. couple down And through you of the potential back. that our go property

to So going they sell as to products see end you're final their boost that customers. their

our well. Q-over-Q So that in out sort would a getting balanced asking look, I get But performance. see this year I the I don't I again, backdrop, a and of low little I your at of QX And QX. sort bit not stable you're little of again, more the you're want And it way think market think you, and is the point against the optimistic what to still back -- seeing point. we're that answered half softening again, in trough call point stabilizes. Steve tell would we it into the

strong. year really, and, However, is going for the see think we to do half the be of overall back and pretty do strengthening, year we the Nucor

add? you'd anything Steve,

Stephen Laxton

is is, And Steve. products business products. flow and pickups said in the know Yes. The Timna, do have. of volume and only and this add to how would our we the different through we businesses knowledgeable our Leon you're very see of thing steel innings I what both

results that, And in the us so different expect give pricing said quarter you and than first corporate should reasonably bit second to that the look the did a quarter. Having both mills the might for second pressure on quarter. products elims they lower in are little the expected

pluses of a was question So minuses I of at think your characterization some as QX. and correct look those we

Timna Tanners

going helpful. It's to corporate Okay. any It's break guidance more out just for or I bit it's any as a mentioned. I tricky, forward. way tricky know for just eliminations Yes, us. you. -- color and you there's if that's

And as So dig you quarter you that my have you on quarter? you balance but given this you But aggressively into. make how could huge about going amount capacity deploy cadence question the think that it on forward? we do chosen was a your second to the that because big hadn't sheet, like, amount. those what buyback pointed How could is have do cadence obviously, decisions? pretty Or until spare you as first out, which a look

Stephen Laxton

is Yes. Steve this Timna, again.

take. piece it's quarter. we've find And a long-term our and -- managing of that's you excellent about rigor what that's over, and number back two, years put uses really to or how we And balance the we first very right And and shareholders. was give sheet. is it the thinks first if quarter a obviously Nucor its think it's done evidence around we number an for perspective I that one, can't value, to capital something it to years discipline of that [indiscernible] create use in the we for

reasons releasing fair if at amount the want the we the capital, to of M&A And that potential the year was liquidity of pipeline comfortable felt you of activity. because the year an do. last One end in position, of that, we quarter sit still good higher normally liquidity, active leverage rate we a it commitment We excellent first continued at call M&A with growth. pipeline, an balance than sheet, great to get

choppy bit buybacks. parts balance. of blacked were some striking that we're maybe quarter, the of of little out from the because It so we but And quarter-over-quarter share a the of looks the fourth amount fourth dollars quarter from

of part quarter-over-quarter you're the you're change So why that's about thinking seeing if numbers.

Timna Tanners

So as for M&A?

Leon Topalian

share looking basis. other to we just normal to the and of at you return can going our look, mindset a billion than focus -- on any know again, dividends shareholders repurchases. Sorry, watched billion, M&A But thinking get not $X.X way, to and continue activities some in There Nucor's cash We're are how on we're a our tell And you and into metrics, pipeline I expect that that company sort was $X about of through say, our get you. rewarding further will that to long can't either future. think you've the probably hard going roundabout asked to about well enough more that. little sit in qualitative, if

Operator

Peterson comes question from next your from And JPMorgan. Bill

William Peterson

then do are taking planning that then double what And -- unlock it quarters. sounds this like ramping you're the you you market? next Brandenburg, into market, Yes. -- the And are as the plate turning I I we to of months? last apparent market. inventories, consumption I wanted views the guess kind are especially drivers how the key to your elevated on XX over given What down will back come think few guess, to for account

quarters. Just wanted as we on look to the get several out the over next market your thoughts

Allen Behr

Bill, this Behr. is Al

strength. not to transmission that's at look look yet. steady. as is build power of remains of the area bridge That's strength. part the market an plate infrastructure consumptive we the the an work pretty Bridge of work market, area at When you As necessarily related

work plate, his will of remains high-margin weak. very, and shared a lot That's right strong coming. that's a some. coming, activity some lot up Vertical that segments. still just high-rise is probably kind segment think it's John and very construction is there's Barge there's That market or to a opportunistic there of weaker [indiscernible] rebar low-volume an will plate. But but I and of construction it work It's effect. now. not Military very specialized be around work. remains comments highly tick

that's softened coming comments from you at It's look had the really starting months. in it's heat, heat, last down soften. around XX but If high and to Leon

year, what is on probably last buy feel mean, that side. down in what best as And similar they I comes is to consumptive their they it steady boil center just to we when business. looks then for the year. So the to according a service It's out and fairly

just volumes year some rest remains steady second lot do maybe higher. When volumes restocking the you with fairly last through year, of driver we QX see we think half that So because cycles. saw of biggest and lot look of the a and this being probably in our it election that drove year. sliding That's down. in the We the -- a of continuing

we'll to which not and margin they're a that the any many outlook space. trade And I'm anyway, is it. trading known trade the in way abuse, talking that to with making that margin of that to to continue as And fight got and On commercially. know, countries the But so-called we elected we to And continue known part as our countries about, it that trending aware laws. those for a probably Until side side, that tend we've move of then decisions. we to fight marketplace, make. to And Imports our on we compete problem. and on have creates They're we plate agreements some to agreements squeeze happens the in also having account higher, officials as and and higher. are other to compete forward. It's continue we'll our partners election abide imports. is margin side the regulatory story see [indiscernible] officials -- the nonres hold create stall of we just by was the some continue the regardless as construction bigger it results,

you and that. some Brandenburg But we provides hopefully, plate backdrop went our the So that at on market of way the that's plate is. ramping, for all the we And side. through and what outlook along that's look the color

William Peterson

asking you coming then something how for indices? Spot that guess you is Are customers, for? from other it you far the this any but share I of any customers do to Index address thus looking been were we to And expectations this for employed, concerns guess I of feedback further, customers? Yes. that to compete achieve? customers thing And expand that You potentially this And step take were you've one what formats? doing if you type received sort I you're Customer mean, could to commented have products? Can it with steel asking other to

Leon Topalian

Yes.

heads would up and off if who Query, group, it like in. you'd you jump an . But Rex was please for that, we're one look, I'll this. sheet but asked tell for great question. And been you, they So unequivocally, asking yes, I have kick there's look, our comments great asking customers were within to excited. additional this. our question, and question, that make, important

I'm obviously so indices. not We're of going all. other to And them name aware

a price basis relevant. provide and provide for more reliable, and our window time cost ] on on them simply a period, top shorter that and goal Our real-time consistent, was lead band spots consistent [ relevant weekly providing pricing predictable, to was

and And page so price each our commitment to them week. is to maintain a every relative

again, ups that, create again, see part asking. And down we volatility value driver that shrink in the often the so that for and too customers And yes, get of giving information hot-band that market. our all for the we better and better of whipsaw in marketplace, markets to the in stabilization the more try to that them decisions make also, and the price were business out to their speculation and see

drivers. So were the those really

again, evolves we this We'll like think the transparent. goal that, love that we deciding and the the moves customers that want to We forward, We it's yes, job our and rather it. only right us is be at opportunity weeks. and provide us allow decide easy see. again, incredibly to our And to wait They'll feedback that the to it's How we'll than use ones indice. We this. make it. our few and been that. look -- As a

Rex, anything that? you'd to add

Rex Query

a Bill, covered well. I'll mean, only Leon it add I couple of comments.

very CSP, Really, develop cycles the look last predictable. as was it we we and years, several the the at over

would speculative As then imports pricing see started see would demand. would pull would inviting They into customers times go dramatically. had orders buying. we beyond to we firm, Pricing that And you up would enter fall generally really then supply-demand in. balloon, ahead to extend. could stop and pricing balances, work and Inventories off. Lead

And So to speculative our at customers, maintaining that, we our and what's got that's current look this offering our marketplace on can positive how stability, really see as from can we And spot in at it's customers pricing at. lead at buying. us create feedback looked happened. as times the we what we've And potentially point stated. Leon count look what they so avoid a we through said, we

Operator

call question-and-answer I for like over our session. to the hand closing remarks. to Topalian would concludes now that And Leon

Leon Topalian

our closing, Nucor In a XXXX. to teammates just want to great thank for I start

of for in that team and Let's XX,XXX safety And books us you us value, and the the valuable and the that with. help orders as placed our family. of focused you Nucor capital you every well-being continue members one the important each us most our to to up as make customers stay thank trust shareholders to our both you trust shareholder the on well order that give that and

and We earn your continued each hard and your day work will to business. every trust

Thank you, a have and day. great

Operator

conference gentlemen, this and concludes Ladies today's call.

disconnect. now may You

Nucor (NUE) 23 Apr 242024 Q1 Earnings call transcript