Nucor (NUE) 22 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to Nucor's Third Quarter 2024 Earnings Call. [Operator Instructions] 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.

Thank you, and good morning, everyone. Quarter and Third 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 us executive portion Relations Q&A the website. Nucor and call. Yesterday, third also of investor during our of team posted earnings members may participate Nucor's here Other Investor with quarter today we presentation and the the are release to as include we the encourage use will portions We these you measures during will access of within of financial call. Today's non-GAAP materials discussion information the the to of them forward-looking securities cover and meaning laws. may harbor statements and statement results filings. involve safe in different disclosed our SEC Nucor's in Actual than and be risks forward-looking outlined reconciliation The measures. today's appendix supplemental information of includes non-GAAP a of presentation with and financial along disclosures,

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

welcome, Jack, and Thanks, everyone.

like Florida our that in Before and take we hearts Western across our wake begin, hurricanes and North the the to go I'd to a in of neighbors moment say Carolina, Milton. to out Helene Southeast

Nucor storms, putting friends Nucor we impacted rebuilding. in face do by lives and the to of together, continue operations relief the their the support and monumental the difficult these task now back many team members task and adversely will have were effort While who areas were not of

Turning to performance. quarter Nucor's third

on is track the team all, especially generated X of during it economic to per an the let's Nucor remained color of steadfast rapid illness rates phases we returning cycle steel period XX team company. adjusted Our progress $X.XX to totaling to XXX and safest last accomplishment continue pretax and more on have becoming year In is injury Nucor to prudent stay figures has with the and expansion of $X.XX for safety injury-free $XXX for Steve since history. million all on committed we the the of divisions the provide the close remains raise of noncash September. lower in for of making long-term world's impact to out members per members focused quarter, Nucor it Congratulations trend $XXX This the share. investments entire through safest year. Building commitment team company. Through to occurred EBITDA shortly. Nucor charges Nucor share, a continue through the performance our XX,XXX the bar their continue earnings as have shareholders and on and years, the in been company's will the and shareholder to million These create cash which that value. making or exclude amazing third

this repurchases share so has $X.X objectives. of significant year, And and to Nucor returned both September, billion expenditures. capital headway we've shareholders far $X.X billion dividends, Through on through and made we've completed our

on has operating this been billion. All cash of and cash which funded ended flow at hand, the quarter with $X.X approximately

line North Arizona tower utility mill rebar highly commission a facilities for the In XXXX, take mill Carolina. to of me shop things bar commence to Indiana. will a in manufacturing Steel plan and and located in X automated construction at we Lexington, new we of micro coating complete our new galv complex Nucor Also will and in our at update first our a provide the brief where half 'XX, Kingman, moment operations melt capital projects. some we new Let of of existing largest on stand

Turning to XXXX.

racking earnings complete and new growth. expect catalyst time in at mill potential, the specific earnings can progress full operations their our record sheet for reach Virginia. to of for of automotive the it get address integrating Berkeley our these Each Carolina also expect safely including West with designed our the early starting while to Products. we needs as will from long-term sheet these has Rytec And teams in And year. mill in whatever for our a acquisitions are South we take of middle and team and recent there. We're of to County Southwest takes state-of-the-art of commission is Data to already platforms the to XXXX, making projects by it compelling track growth progress These we're serve present customer pleased galv strong to line like and door We overhead businesses construction our doing recognize. opportunities projects large end by the

time, several the resilient, has decreased will year. While volumes conditions our the higher U.S. but our are economy the along see relief recent are looser durables margins pressure in Federal Reserve's impactful consumer a to demand. That the continues likely steel construction, broader throughout markets and healthy. start, The industrial flow-through we rate from more markets to effect several do that and said, good actions before end-use of lending more steel be import to remain demand put with market on it take start quite so

data ahead. When monitor And moving related to our seek for higher-margin advanced Nucor intensive A of generate that and in institutional the very continue trends. diverse we'll with facilities, less investing demand than with further spur activity do expect ways as construction still secular could higher next that are strong. near-term For cyclical capabilities. originally spending forward, started to well look XXXX. and we incremental been And more increased is aligned while to are get to steel improve businesses to factories, of set has by growth diversify still given steel expected, the positioned year. we centers, we new trend policy infrastructure indicators semiconductor have underlying we are example, years to monetary in leading less we few fundamentals recognize into easing and further to manufacturing potential There catalysts construction several buildings the future,

Products well product in seen averages. above volumes have more mills. Steel segment XXXX remain margins returns We Steel than have their have and as this shown from but steel peaks, from historic current EBITDA resilience fallen play our bookings our may out

of in September, period the Products contributed that During on nearly pretax which earnings, of attention is XX% a lot Xx been average. segment There's XX-month trade ending historical Steel Nucor's our recently. of

producers along the laws, mill domestic now. vigorous continues imported recent other steel prices touch emissions continues steel both Nucor, rates. and me to the trade steel for high domestic let on with affect negatively surge of enforcement utilization in advocate topic that to So

a As several result, producers of in filing Nucor recently joined XX flat-rolled imports from other against cases steel steel corrosion-resistant nations.

as and monitor corrosion-resistant that steel traded and Trade As that dumped to we result our legally of legally Commission's we have industry imports continue are International for injured determination has subsidized been cases products will when done applaud domestic reasonable decades, market. We the in indication imports. preliminary closely is there bring a materially

Department in decision the to circumvent economy. Vietnam's State-owned Vietnam. calculation applaud to Any market duties. to also economy, products China duties continues play in impacted status significantly to would antidumping relocating We major change role have nonmarket as through continue a of a by production shipping and Vietnam's continue Commerce's U.S. the trade August classifying and Vietnam enterprises of

just With away, XXXX regardless American the well presidential the believe is positioned steel weeks we of election industry X outcome. the

made years strong it that grasp is both and there elected industry, priority with have on been to Congress of details enforcement infrastructure We Steve, with to relationship Steve? our we both office for China. Democratic will that from of a strong forward parties and also share bipartisan in our and now look both priority fix issues. our decades. With in strong and officials financial quarter is We whichever with we After Republican trade consensus with who work bipartisan by trade support have administrations, work is a for additional spending. our to just it have There's need that, to I'll working as results. turn done trading administration over third a

morning. and Leon, call you you, on thank the joining Thank us for this

Nucor million per or of GAAP a $XXX During earnings the generated $X.XX share third net on basis. quarter,

Leon pretax of segment. share million totaling assets onetime mentioned impairment Materials million earlier, As of a per certain in segment certain our charges $XX Products noncurrent an $X.XX noncurrent quarter. or assets noncash our during impairment and million booked included Steel These in Raw $XX the we $XXX charges

Through Excluding earnings Nucor's approximately our share. $X.XX a these were adjusted were or $X.X adjusted year-to-date approximately share. September, a or $XXX billion million earnings charges, $X.XX

account Turning Products of approximately prior driver XX% a of decline pretax our largest to pricing, among delivered the especially quarter, Mills The The saw adjusted other typically profitability. decrease quarter. Products earnings of diverse Products segment-level & the XX% the the for stable. Nucor earnings for quarter. segment was our realized and roughly segment segment of pretax industry. pricing Deck generated in Lower lower Steel of Deck and The Steel most XX% and segment segment, quarter Volumes In a mills, of comprehensive in results. from X% for than most quarter. while Steel Products, a compared segment operates sheet range Joist Tubular business second market $XXX the third realized were reduced to the relatively remained for $XXX million for million, pricing this of our about prior Tubular our Joist shipments. products solutions lower &

let quarter. down & these X% Joist Deck quarter pricing more businesses. past realized provide So about during me prior little color Average the a X on was the from

first to this earn years, While backlogs through above from we Joist in moderate strong XXXX, of continue the remain & averages. Deck pricing attractive to quarter well the peak levels has continued historic of business, recent and margins

weaker but this tube have substrate offset Tubular sheet costs, declining our been For prices Products, meant lower by has pricing. benefit

have combined in, continued on new Products. to additional of accelerated call, demand, Softer is An supply imports value pricing margins weigh Tubular increased part Beyond. what we for Expand strategy and Nucor's creation and domestic and important growth

of these $XXX leverage into including over metal our entirely doors Nucor has EBITDA new of range of months. generated key Over several few new businesses, portfolio. core the meaningful and increase the years, trends the and XX strides businesses exposure solutions insulated adding racking Three past panels, overhead our to approximately past to made million and markets, macro

the to the of relative immune not they're is testament the impacts power a construction the to stable the While markets, earnings in resilience. changes

in in growth flow meaningful years to optimistic come. Looking remain ahead, we Nucor's prospects expect growth businesses in them for and serve cash as the catalysts to these

Our performance. quarter. [$XX] for realized operations in the Lower volumes approximately down were and Raw drivers the quarter-over-quarter for earnings $XX Materials quarter, approximately our from of segment recycling second million margins million adjusted pretax the in the change primary

to outlook. our fourth quarter Turning

to the earnings Nucor's lower on of We realized than be variance the and Steel that where expected Mill is earnings anticipated lower net to attributable lower The decline third seasonally to quarter. segment majority pricing of volumes. are this consolidated expect

lower sequentially be earnings to Steel Earnings also in Materials Raw Products to segment volumes. lower also segment higher. expected moderately our expect due realized pricing are and We the in

quarter Taken together, quarter. consolidated for could EBITDA than lower the be the meaningfully fourth third

X/X CapEx We billion than start growth-oriented are into Nucor lower at going spending expenditures. slightly norms. expansions, capital many XXXX the capital billion, to $X.X year. towards approximately With full we projects XXXX, Nucor's nature. for to look Consequently, approximately of the the be in now expect provided to its as the Turning $X.X historic year estimate expenditures continue have of capital we these multiyear expect above of to

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

direct provided to During buybacks million by dividends. meaningful of returns the and $XXX of way quarter, shareholders Nucor

our and that, end We quarter, $XXX to the hand of may expanded Operator, enabler creation an answer in of while on trailing for these shareholder on strong healthy strength leverage please Rytec questions. long-term the million was grew source line stood from maintaining on for a This a for balance billion. of any growth, at $X.X executed you total growth CapEx the advantage roughly approximately third questions all closing you with position acquisition has have. growth, we'd of and of XX-month a capabilities, also deploying $XXX cash value continued open foundational endeavors, our like continue hear X.Xx sheet. EBITDA, invest At the million. Nucor to future returns. And and and is and our

with Lawson [Operator of America Instructions] Your Winder the Securities. of line comes Bank first from question

in outlook the ask the I if could. pricing about continued be on to growth you wanted helpful. the production? outlook ramp on comment plate up And I Could comments any for really there, Brandenburg, would just

Nucor and Absolutely, it's optimistic we're I'll but And ask comment. Ford, not with Lawson. I they've you, assume Brad offerings want incredibly how I specifics, kick maybe in But appreciate over of market, Brad, incredibly safely again, and up, then proud move to backdrop ramp the our The the portfolio would in off him continues continued exact our set and the on the group, of done widest tell and on and of how and proud pricing, we're incredibly as plate plate it North and success, to to I turn we date up. current going particular, diverse much on the are you outlook, we're the again, about team that of a question. general, but it build what done And in we've that positioned continue it plate touch America. to to things our against we Brandenburg, market operate the forward. plate in well. most there ramp so

conversion for Thanks Leon what Leon. our board records records, of their lowest rolling cash in cost for question. terms the broke record. the and Thanks, and the record, echo in with shipping accomplishments team a production records, most year September, during for across I'll thank quarter, team when bookings the our said the notably record, performance,

improvements of and see in see results better And performance the in each change quarter. to and continue quality and we step a truly development utilization out product So Brandenburg.

was a the only to group sizes the and there be expand plate And able Brandenburg. of capabilities to portfolio. at Brandenburg are just that as And built grades make reminder, will

So tilt at think ramping plate as branded shipped during quarter volumes, for proprietary that our the or And SXXX for up specifically, we customers our for capabilities cars XXX-inch about applications and customers really order wind. project those excited received we those Brandenburg. are bridge the things targeting the that we wide the like a about on our monopile those Elcyon, offshore plate

across sourcing we'll our a spend tonnage shipments get really they product The Brandenburg more that meet ramp to by meet out And even not The profitability, needs. methodically. we're and but the at each about just evidenced they focused the to right to thoughtfully continued. group will we their up chance mix as but come time sustainable plate with of As increased excited continue with Brandenburg tonnage. Brandenburg visit and domestic them get a this and of quarter on maximize right year, our team, products

color. follow-up. helpful If That's Okay. ask very a I could

a You your flow commented benefit rates general. and would in been of some to start discussion in we've a through release for steel have that consistent for lower any Do catalyst through? when that pricing time might steel interest in demand that's thoughts having you take to been flow terms and on

Yes. uncertainty to imports, Quite the an compounded you to X.X some industry, I steel I can okay, which clarity ourselves our continue think I now with position not I and projects. Lawson, of we think take as trade it's policy, fiscal and think, position that's themselves would we how to as more the know the the current environment the who as election. in see hopefully, tell weeks, and -- lending see as industry, in the whether frankly, have that, out and the we they ambiguity tariffs surety to the release to, just in but nation environment begin of those taxes, we again, customers like,

drop the through flow of think rate for interest the again, end as points and forecasted into the both in year of half think well measured basis 'XX, of as and don't I again, I what's XXX that's So the the back 'XX. initial

November. right? are will that kind those think in States weeks should the trade? see faster. corporate release to What movement at? in flow current think tax rate from to of the like through current do we the again, going to up I election, waiting that stay the releasing are to environment and against start now? but that see, I think and through regulation begin that you'll we post movement post What's do to to much environmental United jobs X backdrop got What's end been then tuned, going But So look of to just some I going get the with of

backdrop I a conditions I'd comment the very the in that just what if could, add are to Lawson, said, macroeconomic actually Leon of we're encouraging.

months the economy, favorite bit CPI think our quite you you in PCE And would stable economists the we've we where that If down XX in think consumer-driven a place. a Fed's last measure with to seen come fairly and of back over in were it is unemployment being years. projecting about maybe XX good we're ago X it if the and the where recession, actually a be to

that overall was potential given So more points the even and stability macro the economy. have highlighting Leon impact those in catalyst relative

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

bit there What to Day the you've CHIPS a yet Wanted from about of IIJA. past? things. contribution is I numbers be when patterns quite in think X One well materialize you ask disclosed talked we're of of years and to think with those you underway do ago you've spending with to is government Investor seen? what couple initiatives, IRA a think a number do is the and of those the Act the And you in going

as Timna, we early be moves, seen might Yes, wait okay, our over to have some projects. probably to I that. a like thing in at what know, we those committed maybe $XXX CHIPS, billion IIJA that does it's the stages -- of legislation. flow of particularly the the But point in X And think right, the sector. in past with continue and still IRA It's look, meaningful see question. good look, The being of it's not and -- fair on into you, is, we

facilities States now think planned of with that are range about be United construction. comes under XX in that currently over to to of I built the those XX out something semiconductor the in

steel not also in through. massive building but end-use move to are major those So customers them, complex large-scale, or supplying intensive our facilities only

But and infrastructure solar and So yet you, meaningful torque seen books. of I through Again, we've the both in we're in that that's those of the legislation see IRA, tubes IRA order pieces flow in tell of both supplying. into the to we're would terms moving. again, support on some

So -- yes, sorry?

and to look, or obviously some going of I But election that, obviously, President X.X of Kamala trends look, -- say, to don't pieces is like. on to X.X Trump's what changed, right? I of want the commented Well, IRA. have was the out could the Harris' part just what There's big would going discussions macroeconomic moving look speculate be I of Steve that that And to right? again, a

policies what So of sector? manufacturing okay, to to office we're and those, of, the the who's through to I fiscal going drive both see think monetary in in in those policies need are surety going and

to X we're per the you additional say about, million below million you X far. of tons So end that the talking so talked targeted about? or that year would what lower you're that Is on

we of Yes. think I of time. period I somewhere for mean, X between we a look, and X million XX-year million tons estimated -- supply

we're And so sure. under that sitting is safe in we're yes, under of that I'd number I don't for no, I would that have a that scale. me, think front say, but categorization

Okay. Fair...

Timna, we've with going things bridge forward. to that has see steel-intensive. of some I those the is projects of those. some spending is one seen We're apparent less timing the to And more was the as just to starting date come the delay of of add to shovel-ready, well, been just

on or announced Sometimes years it to before the steel arrive we're more starting are X those take see could those sites. once

I if they're have just other a be I think are level, believe. you ask but Brandenburg, then, volumes. Correct Lexington I helpful. just and Super additional thinking asked replacement. projects about But could. number capacity, broadly that would of And XXXX, know additional I'll high into Lawson one me Kingman Okay. if more I

are mills, incremental do conditions how market? market from those to you volumes seeing able be time see for new think think? additional do hit to the those about sufficient And supply So frame we the

doing long a peaks put I keenly It's Timna, is current our allocation and actions what Yes. of one of relevant there conditions. also capital strategy necessary. obviously long the when on investment strategy required us time, not and and valleys for take Nucor's reflective the end the the you caveat market term. followed markets the that are we're aware Again,

really black in would with So Brandenburg at time a to look Supply commodity-driven it But global event we're capacity, like our how name, business. and to deep the but paused. project and Gallatin stopped in you is XXXX long with demand analyze if we projects always at we go was pandemic, stay How We back swan to just we dictate. as going are this? a us? today those they additional of

we're have to set, win. best lowest we the quality, capability offer So differentiated price, a if going

love our strategy I so love growth serve we're where Nucor I markets that And and to going underserved. sits, the they're because

Virginia, the West that in for the share take have the market U.S. lowest you we entire Northeast, that in If example, is

So in for asking a our again, set market bring that region. different we of products to we're again, demanding. that And are that, underrepresented we and can know customers

really volumes comes that obviously, aware, sheet, end online meaningful start-up as keenly 'XX. and in you're 'XX by So talking again, into the we're of but

What of you're above then? Investor away confident XXXX, that power be through-cycle predict is look $X.X So or what that through-cycle And -- I still EBITDA. happens. the Virginia couple we of the can referenced combination does our again, Well, in of a at economy like West our I billion predict. with years you before are earnings Day can't the will November when

very of again, love our where we're our in making going in the portfolio And end-use -- confident the this So Expand that's backdrop demand. the we're complementary. Beyond we we again, feel piece, investment additions

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

on briefly guidance touch in to in the unit steel costs costs, wanted the your slide deck. I conversion

have expect kind slight with to if decline there speak curious You same I'm maybe you some a quarter-on-quarter XQ. and cycle then after costs costs could facilities? ramp-up exited expect along with expecting conversion to lines through decrease you other you're do greenfield where you costs, of why the this longer term, volumes? some on or substrate lower given Does also costs that

pre-COVID comes the up as CSI, and Sumoski. and start-up that. of Dave part costs, in have at you addition our on gone a mentioned. looked then up our big costs, accounting consolidated today, operational based look utilization a of is been bit. the This the I'm CSI When Inflation Martin. reporting cost Thanks into versus at you you've for quite they've question, cost sure

been of and have So critical start-ups start-ups. resources where outside affected that's really a our stressed lot

certainly has our that costs. So increased

not up to our affect a not coming stabilize we don't as about made the future. good we to of going continue effectiveness. costs in levels and costs rates and ratcheting impact considerably And move good still inflation roll still coming as feel fourth We start-ups utilization several very our start-up as the projects will -- But the impact our utilizations them down. it's forward, we back. to our see not startups it's So down And we just those we're stabilized, but go in off fourth although up big our really based see start-up increase costs inflation, see probably on going quarter, on off, feel you pre-pandemic in and on an quarter. better. still get we will going and But going that. if based back have amount from a will all tremendous of see some But to maybe improvements, mode on, going

on to core less serving just trade of this lighter some question follow-up us fixed remind from could shied you away of due wherein in interest case. more coating historically, producers the and favorable Nucor's A cost markets the your gauge leverage? capabilities maybe Maybe if

about we capacity. any you comments. set. kick capability additional of off Yes, look -- But and it differentiated Martin, if to have It's the for, not again, I'll It's Steve, not about continue volume. any

steel we administration's there's overdue. the and first, that the tell think ITC industry. into the up chain finding initial applaud I We value coated material products, injury would long that's moving so to And you, the

we've We've a basis. looked of in at XXX% Mexico, the spikes out seen quarter like for that some example, of of

roughly particularly in out the oversupply metric United of greatest of greatest global it's well, home, States, the is to the coming in looking strongest million again, backdrop the China steel with a So a tons economy. and situation, the of world find home XXX

it never can in the tell I is has tireless finding, proud end. I'm work how again, there to that's the of continue the be ITC need industry I'm in of Washington, advocates that would you done. but to So get Nucor proud the vigilance and to been What never, circumventions?

Back in somewhere in question, XX% XX% lines move exact over us the to and West X Virginia, our to that with better growing Indiana coated a value-added expand between capabilities as years Crawfordsville, which terms and we of to market, prepaint, getting Nucor several galv little look your galvanizing the us with next Berkeley, again, again, to the it's our little end HRC. products is position on a and less and and reflect the dependent better growing, bit at

a This just is comments. little of Noah. to bit top color more on Leon's Maybe add

the one by it's core market. 'XX substantial the all, us. 'XX, served look we're of really it's come case. core additional million about that this It excited about market, a if to First is steel for you -- big from And But tons been of import. to XX% an year, through back over last we've seen

we've with the on the orders, Coast in an immediate improving impact week last couple West galv -- days. seen already So and especially of

We the see of final Department determination from positive need still to sustainability and requires do that Commerce.

you, about One strategy. it's that findings excited evolving things. the really is X our customer is part on there. demand tell So we're watching, but for we're I'll Leon regional. matching galv on and founded commented of better potential the

other side and for The strength on this capabilities capabilities question us. that better about customers. bringing of higher bear hits is improving serve also our gauge, thinner new to your And to

falls production 'XX, at the Our up new going of example to auto are through more bring capacity market. next galv -- aligning to demands galv but with regional and demand tons a million this. it's auto serve new And of of asking we're over the evolution customers' better have X the more category the our that capabilities the into It's in for with really us of set to Berkeley and that Southeast, we better it line market is capabilities. customers to all awesome galv our line, an bring to

extremely excited we're So about that.

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

that business, does EBITDA one of levels? for Is earnings target first you Steel a fall expect And fall QX, that you also the When short say an Products, when look market XX% steel that XX% target. mean you achievable long-term bad? into meaningful next the EBITDA COVID contraction actually could in margins is on guidance. the could ton Is basis, on on that quarters? I below that The the year? per is And coming the the possible of reiterated the you at

this -- is let Tristan, me Steve.

Let sure I the question. of What me to? of last understand the your reference XX% part make was

Products. EBITDA Steel for XX% The the margin target

So the is question twofold.

and was lows the on Mills Products interested term? that the then below Steel side on I on versus Steel level more fall margin also the First, COVID Mills, on for the potential near and the On you on Steel to could margin, more Steel Products. break the

question of continuation of going Yes, is not first, quarter really a into outlook you us thank quantitative we'll of that fourth kind for the to in quarter and And we're trends guidance consolidated you've you do. later that, this course, give a here do level for seen. today, we the always a as But at the the little dig more. to bit allowing

moderation. XX realizing really the quarter-over-quarter last, that But if the for really continuing that been months, at level you're you changes of look sequential we've call it,

we've some had cash million various a continue impact do large Steel it start-up horribly that But unpacked of through we are sort back that to those we if in preoperating and relate Those segment, lies earnings, thing of the of to keep spending where on is There so of while about very capital it costs, are we kind companies reaffirm basis. that that markets had And actually play are not One $XXX we have. that are Tristan, of levels continue our costs. costs that at work Leon bad earlier we in spot always the the things. to you and look charges, those to add adjusted into start-up not. mind

need So normalize, trying trying you kind some if you're questions you're of that, play. referenced if normalize take to into some there, to to pre-COVID factor that you of

a bit bigger question, more second And helpful. That's picture.

on in intensity I intensity investigation and carbon months. You is mentioned there And should be imports. delivered the the ITC the for an U.S. coming higher of report carbon believe ongoing

there room XXXX? believe carbon-based is to you question tariffs my the see So simple. in is U.S. Do in

-- is Tristan, yes, answer do. Yes, macro the I look, the

at level shores that. would tell work? with in United the to you're States, States world, is I devil what absolutely. adjustment again, field anywhere steels get what the and the I excluded? digital And advancing in is making included, wrong are with But you steels playing does United the carbon solar And cleanest is, if in green does want the details. the in building gets How applied, in that border think the like wind the you looking the the world. what mechanism How something technologies economy the future steel the there's and dirtiest fundamentally of industry

demand can we of the are where ability carbon end-use that intensity into its And do going so, continue steels Nucor States customers that as develop forward. the our to we and sits and finding to we're in that to many that. offer is to move our to a that where close to way not love relation love the that. to recognize I sustainable again, I anywhere it of I time truly But trade that product rationalize think currently make United and levels are

is and to on the based policy we're to the This Greg a ITC of is What If establish going transparency meaningful add efforts really may one data. applaud We we we need need mechanism. adjustment quarter try thing. total Murphy. gather to I if complete

so is, that course, in And Nucor actively participating process. of

of Your next question Stanley. Alba comes Morgan line Carlos from with De the

bit a the in is, would mill products? first helpful. you numerically, to softness fourth steel steel color more flat than -- products steel quarter, long if offer can Any the comment as details do you on be just more not in the see little guidance So question you but the for can

Okay, as Leon. over yes, Mexico it's refined at of more kick than averages at it at I'll and Again, we've that policies, trading out is off. applaud our ask longs. where as are NAFTA to to look, looked last others year, USMCA but the But to there's the X,XXX% [indiscernible] import look Mexico, case, need 'XX. rebar backdrop up Brad imports with look levels the of This on we of get the Maybe XXXX continue too Carlos, Randy our we or the just high. we were comment

pricing to the transparency group market. marketplace. And some are overall reflected in announcement to meaningful again, bar So our these to saw again, the you relativity provide additions that and

and we aren't pressure. on immune really of of and our that some the But to historically, that, not businesses from say However, some our improve the downward they're many be they're demand picture the longs money, the this continues but seeing call, slightly. products and have, are and generating as fundamentals not. I consistent all that reliable case, we times bad, We're backlogs shared this earning

much, than However, healthier levels, in X to we again, X, those much much, compared not are what still X, ago. were they saw years prices pre-pandemic

or But of as again, pricing on So picture-wise, maybe more sustainable too we into flow-through bottom off, longs? the Steve market that again, isn't Mill those from the year specifics, you'd the going from off end XXXX, you outlook, the a but I any on X% move comments those the earlier X% shared far expect into Steel take demand like are into Randy depending of earnings is think the segment to QX. what can to be or Brad,

trailer the that Leon, Thanks, certainly rebar business sustained is manufacturing. and covered company. There's continue standpoint long the that, add be steel transmissions racking manufacturers, metal manufacturing, build MBQ infrastructure, anticipate product manufacturing that, question. transition of whether growth today you to orders the the products our strong well. mind advanced that to in reshoring in signs from thank would any in us giving all and the diverse, the again, buildings, our we Leon standpoint, of that our energy portfolio I what continued Obviously, market an Keep propelled we that remains that's a Yes. would and out. most demand for long in see by to strong, investment and from it continue

remain pace well space about those we to XXXX of the we take to we positioned in interest excited and opportunities. see are advantage as cuts we move very as the in that into that So continued continue rate potential the

centers, I can vertical resilient chime slightly seeing in hospitals. government Obviously, year-over-year, in in on the construction structural school, side. but works, Demand in advanced weaker strength and lot structural we're pretty a data manufacturing, of stadiums, has warehousing, flat. pretty been

since we're ADC pretty have where XXXX. [indiscernible] on. structural imports seeing flat. as up touched Leon pricing. imports doubled were imports [indiscernible] overall, fabricated is on is pressure really XX% really And So that's more year-over-year, than

is I'd is, Yes. longs here amount One said Steve. of group Carlos, mentioned and has remarks, a in seasonality just thing flats. this affects already we and opening this our add to certain that there's what the

it that to contract about, but on is flats, most or thing sales is of longs is steel question our sheet remember basis. another Your are

So there see certain versus lag that financial changes marketplace. you the a you is prices us realized might effect see our when results have to in in

Right. order Great. can extends the qualitative quarter of in if the on first -- I through level know Any Steel next or the comments pricing you for And mentioned seeing the book you're don't Products backlog? that then high-level of you margin that volumes, year.

we Carlos, how the I'll to a products. to going And and obviously, give QX's up can we see into Yes. end on John comment. what of ask you good pricing, in not Hollatz but year we're shaping touch picture

question. this again Carlos, Yes. John. is for the Thanks

third nearly Our downstream quarter. even were the they with backlogs what in are

all will I'm quarter fourth see the that move a the that us we'll we into have reduction of into fourth in expect We in do we -- we quarter mind sorry, geographically, seasonality. to across the carry due XXXX. just keep through the quarter expect first shipments do America. coverage North as So And

think the some the our one be of as mentioned to emphasize just we that important market remains opening impact segments, Nucor due margin in as there weather our that. is of to in some we I And moderation comments. And changes, a thing demand own our compression load it's feel of more uniquely our other will to the to earnings downstream addition generated XX% our competitors that our that of pull our as positioned creates from have don't a downstream in than lot them. businesses mills through by of businesses overall base available steelmaking So output,

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

question, is give And that exclusively of of that in first million to the a in the Mill much can costs guess us you relates segment? how start-up sense I $XXX of Brandenburg? quarter, the

to over in $XXX of Brandenburg, cost the X/X that, X steelmaking, the the the may question. to it the account for single thanks capital And it divisions not relate quarter. surprise I And is West number preponderance spending. those specific a Brandenburg, Brandenburg, won't but there and that's the does Alex, the to there. surprises Between you for driver million majority, are largest quarter. in of correlates having just give and Steve. Yes. you completed the No know the Virginia This overwhelming -- for for number vast

but as if just demand, then onshore lot to And apologize plate do this we earlier, are I kind And is I what a stronger. when a you XXXX? target going any for on Okay. know On have missed follow-up breakeven? have appears of farm I offshore, into that. I you we're on seeing Brandenburg be wind but on head the of side cancellations seeing to

tell have has is Yes, mentioned yes, earlier, I What have you don't I Brandenburg targets. you think shared we've EBITDA absolutely this which none absolutely Alex, publicly. positive. achieved more, targets, would we of But and add and we Brad some can

to for that, additions we'll mills and looking we to incredible of really again, add? an broader. a Tuscaloosa as you'd And well continue terms that our and smaller mill anything in again, increase. Brad, the look of as that capability County pull-through both of provides are sections volumes So backdrop the the strong But, thickness provide as the Hertford

Yes.

we've Just from in EBITDA we that we perspective, achieved actually said rate for a clarity, end rolling by run call, last perspective, From and the breakeven woudl the September. the melt a on year. achieve of cast

still So in that sustainable are year-end. more we confident by achieving

of was wind. part other on your question think I

producers coating seeing European received out for that offshore from in we in the step-up for first decent plate supply as for and fact, Elcyon in monopile we yet. pretty U.S. activity seeing onshore said, are interest our you know, order are hasn't Brandenburg, and activity wind, order QX. of Offshore chain That wind. wind We in materialized

until So supply we're chain the to about the built producers excited that opportunity in up the supply U.S. European gets

next Your of Jancic Katja comes from Markets. question line the BMO with Capital

the CapEx. on Starting

-- Or that billion. CapEx that mentioned about Is quarters think ago, will still should I in your stay spending few 'XX, $X CapEx we does how think year? above next a that you hold?

We we'll do which -- right do that this more give that I at capital you is have, do, of the which Thanks now. projects that think for in the the every call. can what detailed just maybe the budget is we look publicly guidance that that Katja, if large year in we somewhere precise we're QX And we're Steve. the the annual year because you give But or question. always X. been larger in to quantitative process have $X on more little that projects. or we'll But announced very in pencil a level, for you color that's of earnings around next certainly function that call. going And a billion bit openly that about, talked we it that remain above at around

given And growth to within some then of have you are -- of projects couple fair. are there any reduce a opportunities your the That's capacity? maybe that the you older maybe portfolio, footprint, optimize

you tell always we're is would doing I What Leon. it's Katja, Well, that.

sets when what capability needs needs, of an have We the breadth incredible it market it provide that it.

West it's our not strategy mindset. have? a always save is long-term frame value-added the But customer plant. watching don't Virginia Where think certain the build supply thinking markets. But the so moves, we're freight? differentiator into not one because that's products, close mills we And but That's the the never in of growth. execute that that's get to smaller the have always do. we to plant idle, the produce on we're will were footprint internally X -- those it's not where How located? we're years we about we best going we sheet to to best Y do It's that we can the monitoring rationalizing what where we're that is how is -- we yes, and of on product? in is capability never Do produce So something we in to it come, best trends adding

the Your next Peterson line with question JPMorgan. comes of from Bill

come back the pauses and the some Mills of We're fourth outlined Products, before. both considering you for to going to quarter seasonality

years, last be down X% maybe XX for Products. ex maybe would Mills, I like XX% think seasonality in for COVID the down

isn't larger your environment about could better entry, fundamentally? magnitude the you that assume in we we positives, the had be so, of first maybe looking at these can comments order seasonal that the demand bad the quarter that given sort than if than really we're Given that? given think holding in, pattern then that And

it. this see ago. to it and did you'd on got predicting touch certainly, gets share. to to Brad, commentary we predicting we're to speculate and so not I is, if no, a some office, want Randy, I'll to be like to But want relief John, seasonality we you policy. Bill, so tax if I But I I don't begin look, answer there's your would that question, speculate. year well and an for any What trade more tell severe than don't

see I into that, through. we're think that? we to you on you'd that of of Timing are Guys, XXXX. And likely, speculate then there QX, anything want again, to don't tailwinds percentages would see year half again, the that's anticipate. part the early come we late year And and of or a I I to volumes spending do to more in yet some normalized see the is going again, know packages rates response the that the QX to would you When speculate. for with and seasonal continue have see to easing spending? I books? just through do insignificant. what we Fed are again, that When spending do back order do speculate. not more into IRA but think I that I flowing we add tell And those come. elicit to meaningful infrastructure And meaningful don't we want more

Yes, this Deck entry have rates in last our a of stability market quarters one indicator specific John to across been the consistent. Hollatz. that's for is businesses & X Maybe the industry Joist row very or Bill,

some continue speculation is that indicators that are far to us to So again, now. well moving which give levels we feel in Leon's things right confidence that want like that as to comments, get a some into that remain But consistent should don't you spot, we forward. of stable out market quote as see gives

an of footprint, your plant, efforts. update center in if seen it's earlier operators. projects? on CCS nuclear guess from on a program especially investment of own Yes. the the you've What's energy, in from especially that Maybe with But since We've your carbon energy, update of could push things imports. DRI data provide just nuclear I maybe your had to tying an question status on of nature, carbon from decarbonization and an sort low you longer-dated for other forms been the NuScale you these while context a of

to again, in earlier lead referenced X Nucor as and Yes, transparency. carbon lead way specifics. certainly we maybe front. look, a We've from to and in from the that. some shows Bill, the today least again, of ask a where is not got it leader, we've sits having standpoint. with the kick that to to got emissions We've of administration. with that Greg several terms thanks the But [world] that do footprint to got backdrop CBAM the advantage But X fold, I'll we also for recognize and that that talk in our of Scope working against with X, best-in-class off are the transparent that. Greg it a which is And

field, integrated knowledge You no with EAFs, the a and processes that look to there adjustment, playing got level want be we to it you apply want is can't it do of steelmaking meaningful to somehow the to comparison. you've border at

that, is data be center investments economy. we carbon green many the Energy of and small about a piece Helion want, a into look again, future this The such market think the this to end-use energy. rebuild of demand our what customers have of going nation to desire drew pull-through footprint backdrop that the of you will the required Nucor terms economy, breathtaking. as to We is our in and continue. But NuScale other in advantage and to absolutely digitalize to is if

more get along just to solar wind nuclear And And so be to and with we've me we got solar. need wind wrong, do need than and just We don't successful. that.

that already nuclear All commercialized investment from stations other to more within here with to behind we're excited bring what United the in parts fusion, us tomorrow. plants. of of are watching be and And that. what reactor so small and the States. Again, in those they're That is enable doing world meter them can need the again be backing order the they couldn't is are NuScale our build Helion about their and to say technologies of well, in how modular they again, commercialized technology, think technology, investments our new that quickly advanced

a going want moving. the really where again, while to don't we're the opportunity The So we the Nucor. consume for creates never be electrons, those grid to then enviable using to not that's energy make to back and position export we're

of we're to that they're you're again, Constellation stay it's restart watch the reason very The some going going to and close on be like specifics? to and Island. do is future a the continues so you're energy to Mile to investments why things want the to touch going the to in those Greg, see seeing going in But future. more to develop. think announcing demand We're insatiable that. But going I how lot of you So Three Microsoft

It's in the really covers average has X of greenhouse very our with a Yes. much No, Nucor's gas intensity of start about well think approach I multifaceted in terms scopes. been the that it integrated all We global strategy. X/X for approach. steelmaking. always

So opportunities strategies lie in real raw then us our strategies. for our also material in energy and do the

in and also it hyperscalers need technology exciting as form need is technologies NuScale to really announcements reactor Helion but some certainly small advancing, to nation what with that of the because invest with we are other projects is recently Our modular we by a whatever in advance takes.

The our needs be nuclear I think of power part thing future. definitely large-scale is, other energy to a

a learned reliable the and our because sort to moving in you then ahead. And to bring facility, available reduced the We're performing all plants direct And get scale take those the take forward asked with the ExxonMobil. very reactor functionally out I carbon steam last and to low lowest really begin important. The today. supply we'll COX Louisiana. to other at when are still efforts full the a things with to plants we're build was power iron about would where our anywhere of have we embodied and metallic of thing injecting develop them going be well online, already excited in and mention materials nuclear so ability project that chain, that are to the back carbon we capture our lessons from DRI power we'll nuclear curtail high-quality from very then do We're point facility where carbon world that, point reach the some actually raw large-scale

I add But more could that. on one just comment

we're moving update. or you where an that about asked You with wanted

We at lot -- have fires, irons point, talk not of a and those. and about can we just we this

pushing are to certainly grid. doing what green can So forward we into we the

And that back for Topalian, remarks. I the all questions. for to Leon have is closing CEO, we it to turn would time like our

America circumstances, that in growth-focused an all with trust time is with incredibly to out dynamic cycle. of through morning. us I operating to Nucor built want connecting strong, the keep Thank [indiscernible] to I what us this, We which and the generated proceed thank look when maintained we're producer We place thanks come. soon. customers phase you response every resilient, will us what be to shareholders the continues changing you especially to keep leave team, you questions into necessary in pulse hour. long fingers so Nucor for make front forward Closing, changes project the continue steel of capital largest allows our to to run. and for in and to taking to last join much built this our the and again industry for our not for prudent balance a us company for on to diversified in most and blinders North the this sheet, comes decades strong But Nucor it allocation. That's want the off, the

all Thank ladies concludes conference this Thank and for participating. gentlemen, you. And you call. today's

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