Nucor (NUE) 23 Jul 242024 Q2 Earnings call transcript

Good morning, and welcome to Nucor's Second Quarter 2024 Earnings Call. [Operator Instructions] Today's call is being recorded. [Operator Instructions] I would now like to turn or introduce Jack Sullivan, General Manager of Nucor Investor Relations.

You may begin your call.

Thank you, and good morning, everyone. Quarter and Second Update. Nucor's to Earnings Business Review Welcome Chair, is CEO; Vice Leading today Topalian, President President, CFO. Executive our call Laxton, Leon and Steve along and with participate executive call. also of of team members Q&A portion Nucor's here Other to during the today's are second materials release and non-GAAP our the portions them as Nucor we'll to investor you encourage call. Today's earnings forward-looking and information of meaning and include measures during of website, cover financial Relations we quarter the discussion to posted presentation the the We've Investor access use laws. will these of within securities results statements in disclosed outlined Actual different be statement Nucor's in may than and involve and harbor safe forward-looking risks filings. SEC our measures. today's information includes supplemental of with and appendix a presentation non-GAAP along The financial disclosures, reconciliation of

call So Leon. turn to that, I the over with

and Doug made Nucor in President businesses most to of May, businesses. Nucor our tubular executive run team. Doug In recent as his retirement. And he for very Spicer are like by He's was a part than Randy now to talented recently Thanks, with everyone. Doug, X excited our the XX promoted for more and of is have Randy We across team. [Luanna], June, we Nucor. as was entire him the bar and family our to most wish to has Executive served worked recently I'd best to President XX many bar executive part decades Vice in our and engineered leader begin years been who products. Strategy. team, and years changes of our Jack, tremendous highlighting welcome, contributions with Nucor to over after EVP Jellison retired X of

toward to in performance, history, on with our These team of Turning recordable world's I'd making X entire year first accomplishing for your safest XX of goal congratulate our team to XXX Nucor's half and of company. progress any XX,XXX our quarter injuries. steady members like safest to steel our second the are divisions thank results, ultimate achieving like Nucor fantastic our I'd the

results, per terms $X.XX our $X.XX of financial share. year-to-date share of the In quarter, we in earnings bringing earnings to per second generated diluted diluted

to senior prices key first both from capital and $XXX approximately Second quarter quarter, our components capital due steel decreased in overall and repurchased for to average steel philosophy, product Returning selling compared mills made the of stable both during primarily balance to strong shares maintaining its and X.X lower allocation in are fronts sheet Moody and earnings positive. our segments. a million, we the to rating quarter. unsecured million credit on Nucor's changed progress outlook shareholders Nucor

especially team long-term proud our is continues value-creating the make in thing of One strategy. to advancing progress I'm our

made into like hit operations few of initiatives. expanding During milestones greenfield core first XXXX. our on considerable Virginia sheet and expect of progress the wrap of construction quarter during and by Carolina the in to new we Lexington, track commission we've quarter growing our to our XXXX. key North the end make to quarter, steelmaking a fall At the mill, progress these mill take the last and At West bar downstream minute while since businesses. just I'd mill, up continued we groundbreaking remain to highlight a our in

tons market year million capabilities focus plate to volume. than on tons tube for new grand due mill. establishing we its our we shipped Brandenburg ship and softer almost continue out of XXX,XXX conditions, QX, in tons shipments for As production quarter, the daily mills. for and production ship the And in build in shipped nearly we new longer our celebrated recently At expect to Brandenburg, completed XX,XXX but imports, no rather the elevated opening Gallatin projects, momentum late and of records. to June, we Gallatin and X.X

However, EBITDA becoming positive we focus year's by will full to end. and achieving capabilities on rate run continue

of customers, the additional took Expand expand we solutions also our offer to strategy. recently announcing as steps Beyond We set part X of acquisitions

involves profiles, Overhead our potential. In doors. this steel-adjacent Rytec, high businesses strategy of As the compelling include high-performance leading as C.H.I. acquisition will growth a forming synergy well and growth attractive door Door platform, Doors with we're Nucor margins, announced planned this with which a manufacturer targeting June, reminder, conjunction In of overhead as we Technologies, Rytec. acquisition, overhead

stores form service. Wisconsin The Rytec customer warehouse, cold C.H.I. in and dealerships, facilities products storage. diverse by of we're the Nucor auto and XXX members and and for close is a and manufacturing end manufacturing Door acquisition to the residential of doors. X to excited quality that Technologies allows high-performance facilities, has strong Nucor The advanced reputation customers for combination has Rytec July, Rytec's portfolio superior team welcome expected to company produce us commercial of to a to family. The offer

go acquisition data gives rise manufacturer Southwest capabilities of Products, Data Southwest and Products, believe can and from a of installer the Earlier serve systems Rytec the create opportunities a market, with infrastructure. interior Nucor our the Products the to the growing existing expanded Data we customers Nucor to for buildings units by value meaningful in with the Southwest We nearly on artificial cross-selling driven of into that cloud infrastructure. intelligence This our provide and combining center all a group, quarter, will shareholders. data Data By and capabilities second create rapidly Nucor we and the steel of customers business acquisition building that now warehouse us closed products computing. center

in reducing needs key customer carbon we're higher-margin long-term to mills minute our we're increase segment, our product customers a today markets. to for how investments aligned value materials, take scrap create new growth Nucor's broader in segregation our years and enhance plan shareholders come. In our and strategy investing for to to value-added with steel raw like recovery address investment mix rates while revisit can making and the footprint. each our technologies our to I'd is In Now to products towards specific

we're that And products underpinned methods in by our steel safer and we're where to we're platforms investing value. investing automation growth For products, drive production And strong secular identify businesses innovating a new we trends. steel-adjacent and customers environment. create in efficiencies work downstream new finally,

Nucor embarked when I became growth XXXX in long-term strategy CEO. this on

past at this several QX. end which do. construction flow simultaneously. accomplished we've to the occurring X our Over got and to active be most of years likely lot, a cash operating still several next on years, The plan the projects was billion $X.X cash left but We with fund approximately capital-intensive we've hand, will with plenty

supplying mill, Northeast with and construction project more the begin in which largest Midwest XXXX. late is sustainable Our customers current in Virginia the West product a once sheet sheet completed will is

at and In and then, markets supply and complete complex 'XX high-growth including through-cycle company up finishing and throughout fall doubling serve earnings for set the on line a others important our startups quarter several galv we'll automated In Carolina, now construction of Nucor begin ramping other first spring the in mid-'XX. markets. we'll potential telecommunications projects, manufacturing capability several the the about 'XX, line new a Between projects. of in for not our Berkeley North coating and plants of Mid-Atlantic rebar Southeast to these and that, galv the It's with bringing micro differentiated construction of XXXX, we're Crawfordsville capacity, late power adding excited in customers Lexington, about to Each at new Nucor. roles. capabilities, highly X the of in regions. new the second it's while a After transmission serve along we'll about utility tower be mill

required goals several but X crossed laid yet our for have the on CapEx you the to We Day completed to get have it us the ago, We midpoint to our out at plan, takes Investor their earnings recently know accomplish full laser-focused is multiyear there. leadership reach and team of what our nearly years potential. we've projects execution

I'd concerns has practices. domestic the regarding Finally, to address unfair trade steel like industry

also other XX through and China the contrary from Over countries north seen that the Section and neighbors last evading material levels been the other uptick shipping steel and duties both XXX by far countries. It's Canada Mexico agreements to south. clear a historic our we've XXX above steel train and in Section the tariffs levels, with to to months, have imported

countries its imports rates view, address tariff Mexico North from trade imports free from does an of on from In to circumvention. America. the few Mexico on Mexican and of stop and Under new our melted agreements elsewhere. of a impose an the the not problem step it stop weeks important the surge first this with. flow this have to XX% poured to trade designed the U.S. China of will agreement and U.S. announced tariff Fortunately, ago, steel from steel representatives is agreement, and outside imported was agreed illegally steel Mexico that a raise And

efforts will largely are and needed, process stringent this new negate of benefits any to the agreement. exclusion the requirement, more through exceptions the However, including

we about practices these fabricated to government each steel and working have conduit, Mexican products issues. the And rise leaders electrical to from still the in involving U.S. concerns We coming address rebar, continue Mexico. urge in trade with of

] one from investigations to the expedite that U.S. also over With new of Chinese We I'll unfairly country share bipartisan the (sic) repeat imports X.X domestic We to that it with turn appreciate offenders updates [ to laws to address Steve, financial Field QX includes X.X that our against to Act that, Playing support another. strong urged and ability details Congress defend results. Leveling who will trade exists additional Playing move production on Steve? This enhance the pass cross-border Level the Field simply trade enforcement. for the subsidies industry's legislation to would Act critical traded remedy tools

morning. Thank continuing from Leon everyone the thank $X.X joining its advance the at team on And is you, executed the strategy. to us ball XXXX, on to billion $X how for cash of team just half highlighted and on results, call you of the also during earnings Leon, under just long-term value-creating the Nucor strong operations. billion and around of posting first this delivering

Nucor year. was earnings lower pricing, generated quarter from steel $XXX majority to our pretax the The factor attributable mills or earnings between earnings change the a to This $XXX of approximately During generated of prior the among the from the decline our biggest quarter, the contributing share, segment. of net per mills overall profitability. XX% earnings million segment segment realized is single million, of in of roughly the second quarter sheet prior quarter. Lower XX% especially reduced our first $X.XX than

products quarter. steel quarter, the for than delivered million first earnings of lower The segment roughly XX% $XXX pretax the second

increased pricing and than offset segment second the more shipments gains. in volume lower margins decreased Although quarter, realized

during results a of like to more composed that the I'd And market of the impact steel set on X segment Our quarter. had products highlight products groups solutions. segment diverse and is of our pronounced

saw quarter our group during as First, divisions than a declining worked those environment. through the XX% by tubular in products more earnings price substrate decline higher-priced

every than Our tubular more from of segment. accounts products group steel X products X the sold tons for out

Another this still moderated accounted products well, from group record is to more for highlight joist joist than pricing from quarter. half realized second X% years. roughly of earnings These in deck and divisions these operations. segment prior the and from the even continue Earnings declined of as the to for prior perform the but levels for our deck segment quarter,

segment the than Overall, but volumes pricing expenses offset for softer operating lower materials $XX quarter. more approximately these pretax raw Our of than were headwinds. the produced earnings quarter, million prior and

to Nucor cash its generation to value. us quarter, Nucor's allowed in operations. long-term cash the balanced, billion capital key approach strong model $X.X and factor and a During second consistent, to power continue allocating enabling generate creating the from is of This business

direct allocation of allocation foundational on advantage and stood again shareholder billion. framework end value was and providing growth in healthy enabling an long-term our of hand at trailing long EBITDA, cash second $X.X been That At includes and Nucor's quarter, quarter. strong disciplined our total strategy. of our has source less investment-grade sheet the was returns, a maintaining the second display balanced Our X.Xx a to balance on leverage capital XX-month and enabler a through balance capital investments. the approach and sheet, than

earlier, to revise Leon pleased mentioned we're Moody's outlook to as in May senior from And our unsecured see stable credit positive.

direct year-to-date. million $XXX repurchases. second through over the returns quarter, and more dividends yield with returns, shareholder combined first to billion when share $X.X than The quarter of return shareholders saw Nucor just These back

to on value shareholders. a and While we net create to tripled we've thinks it And return target this aspect or capital. of shareholders' more of invest earnings nearly shareholders, about how or we rate basis. to Nucor managing an grow important We XX% that returning either year-to-date valuable it demonstrates

to more strong acquisitions. returns, capacity come to the $XXX we million $XXX addition those and These investments company. help this will In fuel million shareholder capital than during more deployed and in than of earnings quarter, the of future spending

outlook. quarter third our to Turning

quarter, expected major to realized We expect pricing lower steel from to product than of be mills lower continued steel the earnings our in earnings segment most anticipated are categories. Earnings primarily decline segment. consolidated decline our the recently to second has of meaningfully as mills across because

We products and decline our in steel raw also segments. expect sequential to earnings materials

the Taken together, the EBITDA quarter quarter. for third sequential magnitude could in resemble of decline of our the that consolidated second

broader Taking step picture. macro a the to back reflect on

of factors While or near activity seen to margin several marginal these is evident delayed has year We've year-over-year increase products as rate in pronounced The imports and of a softened downturn, higher-for-longer continue driving avert it's tempered also an may to have the on confluence more some that economy our U.S. progressed. more pressure appears in the term. a the has becoming demand. interest environment

end there remain worth and infrastructure health facilities, to projects. noting It's data that facilities, other care are healthy, construction that activity quite energy centers, semiconductors and manufacturing including markets several and advanced related

to and most might diversified each questions. the service answer any North like to in is America, open Operator, Nucor hear and As the please you questions With that, these of producer for positioned well you markets. from largest line have. steel we'd

from of [Operator Instructions] question Your from first Bill the comes line Peterson JPMorgan.

Bennett This Bill. on is for

key the initial I takeaways? back you wondering some your could been relative your And customer has you how any since far? unfolded it's furthermore, to introduced in received about Given share strategy April, thus weekly months You've X.X if first CSP feedback was expectations?

Yes. we're the Bennett. what to in Noah, seeing sheet. us you'd kick if any about add the like CSP you I'll excited first, tell Thanks, and off you and have I regarding Look, comments market. we're would

CSP market little the create meaningful, today, most out price. long-term think like softer buying transparent the the a to take speculative we're down this relevant and spot in could market we're market like impact a think I seeing seeing I or of where published exactly is the speculation, be in a

steel to going side And take so in CSP it's again, little think we of sheet bit again, the segment solidify speculation. end-use we is driven for believe hearing a it's those customers, through full things. of our cycle of like a whose by positive less We're helping seeing. work us a lot to to and customers I or feedback conditions what from demand and time by we're market relationships But more steel

early are liking those again, we most. still, relationships customer we're And so seeing. the value the we're again, And what but days

to do Yes, Bennett, CSP. provided just afforded we've we culture, And to over the its add going done pricing. opportunity we've to I the prove this the as think is we last our Noah. transparency conditions said timely core I'd that in with believe relevant were have what months market pricing. We few just our us

want to we're in is we that for value I'll working customers not buying their our creates say customers. deploy managing in customers a way get their capital, And feedback from the opportunistically. that capital

matching continue underlying we're our -- timely success to do said going going we're we able success pricing. see how success point order better when about we'll demand. to the to see to relevant with to we'll entry your CSP, we've what So and do And we remain measure with in future, be gauge do

happy So with a so longer-term but and we're our I CSP engagement, far. committed think it's on we're progress

if could do And one Great. I more.

the the think is your how for third to on and for second about quarter? [Indiscernible] directionally and each looking comment helpful. But clear color I into should think the segment we earnings was relative shipments

shipments Bennett? related sorry, to I'm what,

expectations products quarter? segment third directionally, mills segment the into and steel the the steel For

softer lot think way are Certainly, we you, talk Yes. think highs that the off and in heading Look, to we of for be move tell it it's the relatively we But would there's a stability, ['XX.] of we I cliff? picture, From stabilized moderated. market most I at year, the 'XX] and parts of this a seen of it's back pricing groups. some and we've half And all. historic ['XX, feel a our market product flat. expect of And We has even found demand don't

at Again, the is if drop the to market for about year, X%. look the overall you expected ADC

a really remain from many products again our of things too not incredibly bad. picture, demand So again, are And resilient.

we've our systems data Rytec and So again, specifically Skyline on sector door rebar, racking. both businesses steel Vulcraft got in the fabricated sector, products C.H.I. very for and not it's and deck We've large we've Nucor. now, in our got and It's a buildings our are and Steel. joist got just facilities overhead

about it's in seeing steel order specifically it, large and so products much last stable consuming over business we've an incredibly rates incredibly entry it's stabilized. But overall And very into that us. an quarters, that's products, our so for of diverse we're some Incoming group XX% the segment buildings few seen

back of again, tick we're inventory, demand resilient. we so some pretty half continue while a And the will working And through price from higher think up. to picture remain year, the

Your next Partners. of Seaport line Englert Martin from Research question from comes the

Can applicable, touch process on To Nucor emission on longer you could extent making? provide materials raw you term, and investment but low strategy, ore electrolysis for is and low shred if iron update specifically an your this products iron upgraded maybe it's that the in copper Electra?

update. deliberate I has broadly Raw a Materials that. ask controlling XX over address But for the a group inputs raw would our last want you the I Behr, who's you taken to very, very material provide to detailed love Nucor on in we'd taken spectrum. a here focus Martin, second tell Yes, to Al our more years, across

some more really flexibility we and be do been on that, we've decades, to how control we to how optionality give Over the the able do last we're focused decade, of ourselves X.X if do term. things on, long already that the Al, and the share of where you some projects the maybe headed. for that are would we're of But working completed that

Sure, for you, Leon. the question. Martin, And thank

just our cost-effective say by minimizing raw embodied advantage that material to competitive our most is stream products. You that carbon way I'd create do about our supplying finished strategy. asked while the and it summarize inputs do what the we're with and this mills in of aiming to

our that's And so guiding light.

the that then, raw years see. by into and opportunity And about talked the execute adaptability we that market to that number that have demonstrate our we we've a of building for in material And had stream. flexibility that under through changes and

those you flexibility low that, how is on share And that about gives of us just we're of we one shred. that think I'll attacking copper So and how and I few it. know asked a thoughts area

Martin, for And you, the years that about product X with that been first locations. at new low thing making I'd isn't copper different for that shred us, is share we've XX

mastered you how to so it of We've mastered of some it. renewed the discipline But how have the newer in investments recently use And we've make in discipline seen mix. low and investment a to the for copper in that flexibility to our making up. we that's metallics strategy. by the responding shred high-quality key as investments shred see additional low so to And to add to the demand copper going we're

as And copper we and tons terms bringing we're I'd million process another sit tons of so with on shred, low you, today we about in can where speak. today, of XXX,XXX we share X.X

of shred. give couple million-ton another expect additional landing X.X million very of as another near So to copper out low million in capacity, million the in we capacity. us, look us the somewhere years, then X.X I'd X range us future, to tons about million X tons for add to that X.X of And will

about shred, we DRI X make, our you at million of tons X XX tons But million that if share we puts it that needs. which low Martin, the you, of think us copper about million of to metallics and you of about also that X/X tons is control, add with I'll

needs. opportunistic for and we our allowing to so because ability serve flexible that's us how the while it rest control, of the incredible And us and a the the in sweet market same be time, gives very spot very at us

you asked to about minute Electra, talk just too, a want I know that. I and for about just

a in say a interesting it's considering long very an is ways I that I'd are but wouldn't consider to sustainability And really remain but and investments investor work and Noah exciting really on benefit carbon that a got project. primarily remain I we for that's the space. lower advantages excited interesting and that really that go, closely. about us, think particularly I technology. and following It's benefit, together green are in range. a We that technology. what and got That's additional cost

Sequentially like quarter-on-quarter. helpful. one could, I conversion steel higher there. one If That's they seem costs stepped last implied

what You've in flat Can in to XQ? costs the sequential conversion on step-up to led unit touch XQ. conversion costs you in guided

our always the more that are is you rates cost. the quarter-over-quarter differences. things, on And Martin, timing what there The But creates processes this a conversion a costs is production question. look moving affects is comparison. probably of a that conversion quarter, a flow cost few really a of a function our different And to pronounced, of were few Steve. That parts. see Thanks through different bit down bit. materials in for causes little a higher the utilization

think with note with probably now you to is CPI I of what moderating, other see for most indicators. input costs or important the you thing that consistent right are take

of comes Paribas. Tristan question the Gresser next from BNP from Your line

the is instance, and on see? I at have you growth elections, front. solar a upcoming When the look mean, potential been for you one upside The risks wind and first source of business. policy do for what your

of of areas? potential So the some new how for funding concerned you are administration removing any those

in Yes, a speculate has what Tristan, tell From might Republican macro you, had success in administration. Nucor Democratic as in a candidates the today hard with control I it's incredible to both office. as come would well of really standpoint, on change

that be potential would We've we ambiguous, the question be or so your some evade to trying be well. as on rumors IRA that? same there would there not for think completely heard and pressure As again, about some

long in predict. is What you is would overweighted of term. We're the any the to overall side What our is invest market. I impact the really to to it's single to strategy not Nucor? tell hard Well,

incredible of So range of an customers, an customers. those incredibly we serve for have diverse capabilities range

impacting not wind changed, of elements that, So it would we're overweighted that offshore to be Nucor. or certain so if it

the other on regulation forward. from of for But and benefits relief, different you that, tax those see if investment change, moving side tailwinds less

very President. And with a tomorrow speculate so different again, difficult what it's really question a happen on to might

we'll But And portfolio wait I just we're to of love and see. I love again, and have so where and how positioned. we're our breadth strength the headed.

I continue going this think to serve well. it's to incredibly market

understand you've country? color. would All Where I an a administration And a as new quick you a the right. I Mexico, trade, it appreciate you to to exemption? comes pushing about follow-up believe should the case when for? and you I where Is little be deal, that, what new understanding, steel? #X what when to vocal comes to Brazil do specific trade being have do an your it again, bit be issue. the against see been does there And mean, -- priority the Vietnam

of partners that. always you for, following some trade, TRQs touched Look, make not USMCA. you it's that to free what we've are I trading fair if in the our things place, like the on tell that are And actually put advocated is Yes. would sure trade,

looked of tons. get have concerns the first levels got place get closer control. import control. We've curbed, still teeth then of into other for We its the products step has announcements all had -- administration from we the more We that it's right that years other are naught. X.X believe It that's doubled that electrical was got has And have the X.X if X several with brought that not see there with we to weeks about a sector that into enough. surging is recent while again, million has we few the So with at it. have fabricated than most ago put put steel products pick apart the back with million, million rebar, brought last won't to tons to over to conduit, exclusions, any some think that to piece it today Mexico, begin with it's into into all get

Nucor again, So of United vocally industry you're continue shores the from see that making of to administration level advocate legally protects a in create regardless deals from this the to field the subsidized going Washington into States. dumping and playing to

clear. All squeeze a right. very can And plate. That's maybe in that one, I last on if

perspective? adjustment You seeing last starting terms made to bit demand more is you pricing end And can you stable or the think a adjustment of would to -- various environment on a month. bottom Do further touch markets, the the are see hit in appreciated. be user there -- that What if prices? you you've little demand big from a end You're come?

Tristan, I'll Brad? from plate in current speak outlook go Ford ask the to to Brad our group and there.

Thanks Thanks, Leon. Yes. question, Tristan. the for

and with with start pretty 'XX to years robust. important context. coming 'XX, 'XX, it's think We're some I off some strong pretty Really were for plate.

some most which a softer, rate-sensitive of some kind equipment address. of the One, being this the we couple there's first pricing that in of up X/X heavy namely levels by imports, of take some bright higher their in said, they and a construction, the the softness the to certain see we've think back this of market, as use months vertical we first half of market are bit second as were a portions quota market almost we the the countries customers X things year, share meaningfully of seen year. gained imports, little about import the we try and as inventories. think All we put some through on on pricing. distribution purchasing half about our has pressure really spots. And of to led rightsize to cautious approach pressure do pretty of seeing interest So conversation, to significantly, two, their agriculture in This back to to challenged year side. And more this

up power a is late markets and lower to So we're supports ticking a hearing as steel IIJA the then our of and in there's pick second early in and And our which transmission in remain expect picture the awards. what those from 'XX, Really slightly Grids from is business kind but second our project developers customers half. about here funding plate going just half. of strong. lot and structural And we up we import wind and not impact the onshore late 'XX really think products.

Your question Jefferies. from of from LaFemina Chris next comes line the

remain LaFemina do mentioned sort Leon, steel But can and bit some this Is could the cost your you I putting could rest automation alluded benefits you're Chris how of relative you segment a to competitive? even become of sort in elaborate just kind that the producer in initiatives you what you need impact past. you've an in it Or by wondering was the see? margins. think of place? It's to stuff I mean, might just Jefferies. automation of automation that the from that on the of if industry to you you lower-cost products

I our Chris, today. the Yes, question. I And you, would sit appreciate where tell like position we

will embraced are coming would import speed. we and again, And regarding anyone world at it's embracing of it's to question. But cost you always and tell against anyone back something the world. are incredible that automation, fairly with competitive the rate in done changes the think long I Nucor regarding we again, compete as AI, an advocated, the I we've in as has

businesses, of and efficiencies. automation And technologies applications cost to from advantages, whole so deploy, members, using we're to team outcomes AI create a of our in our seeing create we're of different create raft areas the to safer that potential to

to innovation a and and few group, Hollatz give Chad embracing that. Utermark, just we're maybe if John and doing, over more detail touch Chad so we're specifics, those Chris little a And of of who's you would, background John, maybe to on I'd our how what like

we're continue opportunity, yes, technology our not a Thanks, teammates. our base to Beyond, for more of we Expand look about and a will so cyclicality customers. cost is safety Yes, also bring Yes. When in you invest to going a it's but for opportunity take businesses and especially be efficient businesses our and can to flexibility at that Chris, allow care opportunity, Leon. that us it only think

equipment seeing we're examples and that mentioned of our the automation plants, sales well forward about as and the tower excited they place. and bring and see fall highly operating We've we've before, next have we and and facilities And new as online specific cells. right of now, there. year robotic several plasma but we robotic spring automated invested in look Some what structure those group, we as we're X well are take plants well racking handling our have this our at Nucor material greenfield into

demand As take manufacturing through a of reminder, the really key fluctuation can in help that face we in seeing can businesses areas really of that is fluctuations so these many John? our care are us And demand that our downstream automation navigate we cycle. customers. what Nucor

Memphis, Thank here, share you, in of for operations. I'll mill and where a couple our is of One from a Chris, thank the Tennessee, our you, steelmaking examples able SBQ Chad, question. embraced a production of other few this has through scheduling very of use manhours to optimize the team AI complex AI. the process. about the XX% We've to our to been committed process reduce by

and another capital working yield project. benefit from also addition reducing that, to savings, Switching to In gears efficiencies. operational we

a assembly the been joist For been for a at process. have we Joist we're been South labor-intensive to robotic game in about we operating robotics to welding line perform This X joists. is really have operations X production in very years, rest changer the patented vision Vulcraft this the for now and the across traditionally new has This Carolina. line, utilizes joist our developing team, of which future. of our last robotic technology year, looking a and and grow

address thing one other is been we about on win. Chris, Nucor production advantage That's this how question efficiencies. Stephen. creating always has add not. just your about or I'll to

if and reach for gains. is scale across more bigger leveraged about a we advantage any technology what And do, the think system of you so

Nucor a the if scale unparalleled -- to. industry and is call you want to But efficiency, ability So that do that. our the in

of Your next from line Gibbs Philip Capital KeyBanc question comes the Markets. from

vast of So called release out costs. the in press that Is you to million of point? start-up at this $XXX the related majority Brandenburg

bit slightly is a is the West Phil, in Brandenburg, little in really this bigger It's projects, quarter which Steve. X Virginia. impact

little we're impact accelerating there. seeing more spending -- the a Virginia, bit at As West you're more

costs also you number? noncash Are that including Okay. in

and generally generally No, not. It's site-specific work. contractor work

'XX it's at is me of next I level like in in started commissioning question, West XXXX. the then build the 'XX it? so slide to sounds more some deck probably and terms also Okay. based in of capabilities. think so throughout year the way ramping back you of half and product Virginia, think it get as to about But Is least That leads on it your that my into plan

It's when of half ramp we'll Phil, into end of is a year later, up back so 'XX. 'XX, Brandenburg

Virginia. West

Virginia. West sorry, I'm

be And quarter, deck any a you call costs said third conversion perspective anything made maintenance in beyond outages the expected XQ? flat have Did out you And any do from to maintenance in in all have normal? quarter-on-quarter. particular you to Okay. in -- that anything your

segment Phil, have that a you necessarily. some overall our costs the some -- cost the those of in swing at little company, impacts won't plants, the DRI only outages, bit it But in numbers, we maintenance notice of the in in terms as segment. do of

for asking steel. was I

the impact Yes, for quarter. now, third -- headed you there's see steel pronounced shouldn't into any

Okay. CapEx to about or And mention year of didn't for you in next extent then to it? lastly for me, this that what terms update any the think

through see closer Yes. couple elevated us Phil, adjustments the $X.X years. at remarks the we on as we years, next We'll of CapEx you'll of as spend. about as it guidance keep you'll couple billion And we some the move is in any on these that the get There's forward past to projects. the billion given we the about the years, next update, eye year, end call to prepared an $X.X on of that. his of for year mentioned then really of in an we've the of for of larger see meaningful have move outset spending capital that. level see projects that if the We'll Leon

Alex question next Hacking comes from from line of the Your Citi.

I the wonder steel seeing at that's incremental you're something if from really you that much still maybe if point. this is Or horizon? IIJA on on could how any, comment demand,

If would I and that and legislation, think wind through, some some of X of is is things. there's a pieces What couple We're by getting Act processed seeing CHIPS upfront. that most the far put about and you, the steel and tell we of Alex, Yes. I torque I again, would you rate that innings again, that in tubes a by particularly the solar. itself. on of follow higher the for, think, the moving bill still and infrastructure applications within much at And lastly the then early IRA, tell

kind And that years. keep until the the through-cycle hit so state things it's X to finish books be in requests could the is by seeing order funds of mind the time to of start the one that

infrastructure So want federal maturation again, the to a process passed the for in rebuild the have state. money in to we getting that's work, long the the there, that for from that they package road actually state bridge,

continue to still that further and to those years it's into believe continue will increase more process as actually states to funds up So the come getting we move map that states, days. more the but early in of

rate perspective Okay. And the market ready in X then follow-up and run to the proving at Brandenburg If the XX not I utilization to rate on stopping there is you to now, anything could. was start-up ramping next a XXX% really Right phase that are XX% around operating a out to booming, capabilities mill Brandenburg, phase, the just is technical rate. it's if that yet? over utilization still plate from Or months?

good Alex, job The Yes. do answer mill the continues amazing to question, I no. team here's We at what online. of Brandenburg tell and would you. really that and short bringing is Look, anticipate an

able that full its conditions, So we mill XXXX. achieve market despite be run in rate that to even will capabilities expect

introduce they're decide capacity achieving going from out need capabilities. that that us keep working bugs, long but long But from how at some still yes, perspective, there's a situation materially Now nothing how we rate they and be we'll as over run those know market technical about to that's And full customers. again, now. plate think we We we again, year's years the end. And know we'll we how XX market. touch the to market. selling those we've been Obviously, the plate by our in mindful for

mindful balancing to that So team's the about think got to how be about achieve at that. we'll able that, be we time, same

it's all and when that are they required our tons know market. the last can year produce required, that they So hit for that

Research. from of Your Tanners line Timna next from Wolfe question comes the

picture question near-term a have and big question. a I

So decline should EBITDA not follow wanted about in then decline magnitude of normalizing, in the tubular term, but commentary, near magnitude the should said more should quarter? normalizing, again downstream? we on in just last and to the higher-cost wanted substrate pricing I be like downstream the indeed, segment. up volume of as concept, you about it a than was smaller and If same was that about to if deck the squeeze and And see ask be the joist

is the in they're Timna, would I Yes. we of about products, we that's flow reasons. fair going that's a the through Look, is weeks couple decline we going the you to backlog higher-priced QX next assessment. reason some working coming a What in forecasted -- tell and to assumption and months. through One, is of still think a that few know

in what deck, in that backlogs into we QX. strong rest strength, and that the to -- backlogs could impact, some for a that back one is, are. what of half there's pricing for would know and at we're the terms are least product some or little cuts, Vulcraft, again, certainly from year see the about on going out again, However, unemployment appetite spots as year, Those particularly QX a to rate we see you where have but seeing inflation joist we segment of some QX. But the intimation likely as the and the we're know think into bit of is. get we also picture And of squeeze backlog in our considerable more Fed's that bright more the elevated, again, demand and the that

it about It's more to Timna, Yes, add the pressure. first near volume the than margin term. is your pricing said, what Leon of I'd about much just pressure question part and

correct are assumption. in you So that

on And that A, I there. picture, an update incredible Gallatin there us, still? of the and then green-oriented just And is for we've back Okay. the amount this been auto on for still taking of past, steel the I other on thicker you grades. Virginia you can and the hearing is more Can further remind radar make make grades auto exposed. appetite sector? is could auto. I when in talked broadly even West these wanted but about in I've know your automotive big green-oriented also targeting And a some design? options electrical an know just Is compete step

X.X Yes, and over sector Timna, up open last to we couple as to off X.X it million look, supplying annually. the of the But kick years, in auto we're certainly add tons that I'll thoughts. that about wants it think some to anyone million

we've appetite years, Year for iconic So steels incredible. of been with has know with the a Motors got our that the on continue. relationship it's a big going the and Award achieved of We've Supplier customer Their for many General OEMs. base. great We X hopefully will

that so volume the our next several to double years. in expectation is And

see. possibly exposed steels And produce make to make Again, sales so and a going automotive is can go we going that into our as we for and money focus we most we'll customers How be to you we to that online, we're for Virginia want we is that we those us. how doing come the deliberate key upstream our think that, be see like wait know West far we and about the think shareholders. about again, because, how can about

at. It's who's supplied uses be imports looked in where potentially the tuned. stay that know to deliberate move auto, it's going market. up are higher-value forward. coming there. being know in, could the to the again would that I look, we deliberate we're Electrical we and value products that as So move very to something about We in that mindful to end but get We overweighted too how and continue that and we've it. know you, be to attractive chain really We steels, be tell not

that Nucor if continues that to currently just around some I want And tuned making are the coming again, it would as great we've the months. again, got make to world, you, mistake, stay those that, no that fits to in we'll evaluate got We've some relationships partners. see that go. evaluate with we and So tell continue where great

Partners. the next Englert from Research comes of line Your Seaport from question Martin

cost might thinking touch future. if protecting wondered how have typical steel the and get and that you the pay in for your duration rise start you could rates I on for how you to if to mills what about be to capability, and electricity you source that agreements,

going I'm really kick I'm and you to it look, glad Martin, asked that. off Yes,

Over took the taken over not about. really we've and X actually last X since And talked, CEO, it's been as we've just I steps. years that talked or something meaningful

So in investment NuScale, and own the in doing other TerraPower built. getting Bill X partnership our this small an that reactor you module Gates saw a nuclear few manufacturers. their years SMRs and with ago, advanced are as Obviously, reactors as well

have Nucor got and perspective, as XXXX. relationships doing from power states. well, to different We're we build been consumption this a to with, we need since a we we've at. So look large in understand We've that XX that around you XX country got EAFs the

with handled, many the relationships be states. you picture, the about computing incredible have about and volume you that green macro think the asking, you're cloud that largest of infrastructure But to one is utilities in the We think got and the consumer digital as data because those insatiable. we're power economies, that's build-out the the in center we're

XXX, And appetite. XXX, a XXX looking, centers from megawatts huge got as almost going nation they're about we everywhere really data huge, demand. energy XXX need growing have think so a to because we to how that in these to are It's solve are megawatts now XXX,

do to invest right at long long-term you're contracts term of supply get opportunities in, cost. not surety the Nucor our And many so look only ourselves are to promote, of for So we otherwise to again, pricing. or see continue for that condition going the

So future we're they're consistent will pricing or the versus continue have daily we that. monthly. years have out the look firm don't have able to that -- not -- market We but years variable, we're a not that and power going rates to we'll model into

of and to of be we years a our environment the how About as will So as in afford to important citizens and about coal the really as able for nation plants. them they're well about current XXXX. decommissioning going again, think the to idled manufacturing energy our XX% U.S. by be question think the we it's come as existing

a to you we and have want of pricing Steve, of and I out energy find utilities. got the cleanest, current on energy form there. we've nuclear reliable in reembrace, to most nation, to So add that's climate as think kind anything But is

tariff Martin, couple I the purchased locations point. agreement. power a a also so Leon to multisite majority think is our it's said, points of emphasis. It's vast delivery just specific to of build -- of rate what under We're not a on particular

over And we've a ironically, we've some some out or we, on the time. more familiar really and fundamental with agreements, partner those as our to But of some course, a slowly purchase fluctuations highlighted company Leon in that taken development importance country. And so long-term put place as the you're tend change power technology with work of shouldn't and companies closely say with, on of their procurement sector, steps folks utilities proactive ironically, to plan. I

we're this cost. our last cost is so little that overall issue. -- electricity-based or say Energy take, I'd about meaningful is XX% less quarter. on Roughly, part it's give So very $XX of ton a that than front-footed a of is it about a

that's there's Do duration goalpost, but X years of years an understand -- you facilities, lot is whether mills? the a or for I under XX or there contract average EAF

tell I've the those does you they're is would What that you utilities. answer average not vary. we're great a the contracts tell across that would got of I most I multi, you spectrum. cases, signing multiyear Martin, I'm with that, sure for in

X years So XX-year to not contracts. X or type X-, they're X-,

when obviously, in XXXX, came those plants the we be of of timing of online. all because sit So different those in where positions could and

you So is macro, from that. the about way contract again, it the a long-term think is could

to to a this been an some from globally? of some potentially U.S. electricity might this that but some rates ideal manufacturing touched others degree You has cost stymie historically reshoring at or energy your electricity base, more on and activity so concerns or least answer, versus of alluded the U.S. have disadvantage higher given do some you perspective in the market, of

Short answer, I Martin, yes, do.

in look they're China, U.S. XX Right today, now power. nuclear you facilities. I building is think building if no the

because power to X, the some we're we're years, in X, the end-use that the companies they absolutely, again, and biggest they We're of talking so out today. the partnerships And them. -- country we get talking have looking are XX customers. they know and with can't And

know absolutely there cases where projects forward so they can't And requirements. are the meet we are because power moving

the and we embrace again, So it's about in to that is the support yes that and how short as And superpower independence. with that to be overall continue has to think dealt of it's the an answer we, because how sitting to again, have our got economy again, opportunity question a right proliferate energy issue through door. we front an manufacturing, in our world, manufacturing to

all commentary. appreciate color and I Okay. the

now to turn Chair, Topalian, call the would I like CEO. and President Leon to

interest the thank for every us one world's safest dedication our an like us team becoming like company. once capital. great to And our you. to have Thank also our trusting in helping in for I'd outstanding shareholder half for first day. customers steel Thank Thank to I'd your safety. you to efforts, opportunity our again, thank Nucor finally, the you us and your of and each performance for thank serve your for your achieve goal to And day. giving to a valuable you and you Nucor, investors with another

call. conference Thank for today's you concludes your This participation.

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