NUCOR CORP Q1 FY2025 earnings call

Acknowledged retirement of Chad Utermark and Greg Murphy, and promoted Ben Pickett, Doug Wilner, and Tom Batterbee. Nucor generated EBITDA $696 million, adjusted EPS $0.77. Reinvested ~$860 million, returned ~$430 million to shareholders, prefunded debt maturities. Capital projects include Rebar Micro Mill in Lexington, NC rolling first billet, Kingman, AZ bar mill melt shop to start seed in June, coating facilities in Crawfordsville, IN and Berkeley County, SC progressing. Greenfield projects in Alabama and Indiana to commence operations in 2025-2026. Welcomed reinstatement and broadening of Section 232 steel tariffs, and preliminary anti-dumping duties on coated flat rolled steel from 10 countries. Backlogs rose over 30% in steel mills and nearly 25% in steel products, with healthy order entry rates and focus on reshoring, rebuilding, repowering of American industry.

The steel mill segment had adjusted pre-tax earnings of $241 million, increasing ~43% from the prior quarter, with volume up 14%, led by a 21% QoQ and 20% YoY rise in bar mill group shipments. Plate shipments improved due to customer demand and Brandenburg, Kentucky plate mill operations; backlog grew over 30% in steel mills. The steel products segment generated adjusted pre-tax earnings of $307 million, with backlog up nearly 25% across downstream products. Joist & Deck backlogs extend into Q4, and while some products have a lag in pricing realization, margins are expected to remain well above pre-pandemic levels. The overhead doors, racking, and insulated metal panels platforms had ~$400 million EBITDA in 2024, expected ~$450 million in 2025, with further growth in 2026 from new towers and structures facilities. The raw materials segment realized pre-tax earnings of ~$29 million, down ~$28 million from Q4, due to lower DRI realized pricing and higher operating expenses in scrap processing.

Expect earnings to be meaningfully higher in Q2 2025. Steel mills segment expected to drive largest sequential growth due to stable volumes and higher realized pricing. Steel products segment expected higher volumes and improved cost offsetting slightly lower realized pricing. Raw materials segment expected flat volumes, moderating scrap pricing, and stable DRI pricing with sequential cost improvements. Demand expectations for 2025 remain in line with year-end optimism, expecting growth in domestic steel demand.

Macroeconomic uncertainty and volatility affecting steel demand. Potential impact of tariffs on equipment imports from Europe, particularly for West Virginia mill. Lag in realizing pricing changes in some steel products segments affecting margins.

Q: Lawson Winder asked about start-up costs magnitude and Brandenburg utilization.

A: Steve Laxton said start-up costs similar to last year, Leon Topalian and Brad Ford discussed Brandenburg's progress and product development.

Q: Timna Tanners asked about Q2 guidance and tariff impact.

A: Steve Laxton mentioned no quantitative guidance, Leon Topalian and John Hollatz discussed tariff impacts and margin compression in steel products.

Q: Bill Peterson asked about shipping days and pull-forward demand.

A: Leon Topalian discussed backlog strength and demand drivers, Steve Laxton mentioned fiscal calendar impact.

Q: Mike Harris asked about adjusted EPS beat and margin squeeze.

A: Steve Laxton explained volume beat in steel segment and margin impacts from energy and scrap costs.

Q: Katja Jancic asked about CapEx and Brandenburg production.

A: Leon Topalian confirmed CapEx not including tariffs, Steve Laxton mentioned Europe as equipment source, Leon Topalian discussed Brandenburg's production pace.

Q: Chris LaFemina asked about demand differentiation and stockpiling.

A: Leon Topalian discussed fabricator behavior and strong order book despite tariffs.

Q: Tristan Gresser asked about trade policy and West Virginia CapEx.

A: Leon Topalian discussed advocacy on trade policy, Noah Hanners and Steve Laxton discussed West Virginia CapEx progress.

Q: Carlos de Alba asked about capacity utilization and inventories.

A: Leon Topalian and Steve Laxton discussed expected improvement in capacity utilization and inventory alignment with backlog.