NUCOR CORP Q4 FY2024 earnings call

• Safety: 2024 was the safest year in Nucor's history with the fewest recordable and reportable injuries, and the injury and illness rate declined for the seventh consecutive year. - Financials: Earned $1.22 per share in the fourth quarter and $8.46 for the full year. Generated EBITDA of $751 million for the quarter and nearly $4.4 billion for the year. Balance sheet was strong with $4.1 billion in cash at year-end. Returned over $2.7 billion to shareholders in 2024. - Growth initiatives: West Virginia sheet mill near 40% through construction phase, on track to commission by end 2026. Bar mill group projects in Lexington, NC and Kingman, AZ to complete in 2025. Steel products to complete two automated tower plants, break ground on third in Utah by 2027. - Trade: Unfairly traded imports pose a challenge, need for fair trade measures like extending Section 232 and passing Leveling the Playing Field Act 2.0.

Steel mill segments generated pre-tax earnings of $169 million, a decrease of roughly 45% from the prior quarter. Shipment volumes were roughly in line with the third quarter, but realized pricing and metal margins declined, with about half of the decline attributable to the sheet business. The steel product segment delivered pre-tax earnings of $329 million for the fourth quarter, a decrease of about 5% compared to the third quarter (excluding the third quarter's non-cash impairment charge). Volumes for this segment were 4% lower than the prior quarter, and realized pricing declined about 1%. The raw materials segment realized pre-tax earnings of approximately $57 million for the quarter, an increase of approximately $40 million from the third quarter (excluding the third quarter's non-cash impairment charge). DRI production increased by about 20% from the third quarter, and there were lower operating costs in scrap processing facilities.

• 2025 CapEx estimated at ~$3 billion, with growth-oriented investments making up about two-thirds of the spend. - First quarter 2025 outlook: Steel mills and steel products operating results generally in line with prior quarter, but realized pricing and margins may not exceed prior quarter. Raw materials segment likely to have lower contribution compared to fourth quarter. - Plan to return at least 40% of annual net earnings through quarterly dividends and share repurchases.

• Unfairly traded imports distorting the American market and eroding profitability. - Weakened Section 232 measures and country exemptions/quota arrangements that need to be addressed.

Q: Timna Tanners with Wolfe Research asked about the payout ratio and tariffs.

A: Leon Topalian and Steve Laxton responded on the commitment to shareholder returns and trade policies.

Q: Carlos De Alba with Morgan Stanley inquired about M&A and downstream business pricing.

A: Leon Topalian and others discussed M&A appetite and downstream business trends.

Q: Bill Peterson with JPMorgan asked about plate pricing and Brandenburg.

A: Brad Ford responded on plate market and Brandenburg's progress.

Q: Katja Jancic with BMO Capital Markets asked about shipments and inventory.

A: Steve Laxton commented on seasonality and economic optimism.

Q: Tristan Gresser with BNP Paribas asked about M&A and imports.

A: Leon Topalian and others discussed M&A potential and import policies.

Q: Lawson Winder with Bank of America Security asked about towers business and rebar market.

A: Leon Topalian and Randy Spicer responded on tower business impact and rebar market outlook.

Q: Martin Englert with Seaport asked about 1Q outlook and scrap.

A: Leon Topalian commented on scrap and 1Q outlook.

Q: Timna Tanners followed up on foreign companies building in the US.

A: Leon Topalian and Noah Hanners responded on competition and market dynamics