Q4 2024 Nucor Corp Earnings Call

January 28, 2025

After the Speakers' prepared remarks, I will provide instructions for callers to ask questions.

I would now like to introduce Jack Sullivan, Vice President of Investor Relations you may begin your call.

Thank you and good morning, everyone welcome to Nucor's fourth quarter and year end 2024 earnings review and business update leading our call today is Leon Topalian Chair, President and CEO, along with Steve Blackstone Executive Vice President and CFO.

Other members of Nucor's executive team are also here with us today and May participate during the Q&A portion of the call.

Yesterday, we posted our fourth quarter earnings release, and Investor presentation to Nucor's IR website. We encourage you to access these materials as we will cover portions of them. During the call. Today's discussion will include the use of non-GAAP financial measures and forward looking information within the meaning of secured.

These laws actual results may be different than forward looking statements and involve risks outlined in our safe Harbor statement and disclosed in Nucor's SEC filings. The appendix of today's presentation includes supplemental information and disclosures along with a reconciliation of non-GAAP financial measures so with that.

Leon: Let's turn the call over to Leon.

Leon: Thanks, Jack and welcome everyone. We often begin these calls by highlighting our safety performance. We do this because safety is our most important value and we cannot truly be successful as a company. If we are not taking great care of one another that's why I'm pleased to report that 2024 was the safest year in Nucor's history.

Leon: Three we have the fewest number of recordable and reportable injuries on record and our injury and illness rate declined for the seventh consecutive year to my 32000 team members I am extremely proud of your safety performance, especially since it has occurred through all phases of the economic cycle and during a period of rapid <unk>.

Leon: Expansion for our company, but safety never rests and we must all remain vigilant to achieve our ultimate goal of becoming the worlds safest steel company, let's continue to work together and make 2025, our new safest year ever turning to our financial performance. We earned $1 22 per share in the fourth.

Leon: <unk> and $8 46 for the full year, we generated EBITDA of $751 million for the quarter on our way to nearly $4 4 billion for the year and our balance sheet remains quite strong with $4 1 billion of cash at year's end 2024 was a very active year on the capital allocation front.

Speaker Change: With approximately $3 2 billion and total capex and $760 million in acquisitions, and keeping with our commitment to investors Nucor has returned over $2 7 billion to shareholders through share repurchases and dividends for the year. When I became CEO of Nucor five years ago, we developed a three part.

Speaker Change: Mission statement to grow the core expand beyond and live our culture. It launched the company on a long term growth trajectory that will take nearly a decade to complete and will require more of our team than we've ever asked.

Speaker Change: I'm proud of the work we've accomplished so far and the plans we have over the next few years to reach our stated goals, but as I've said in the past. This is not about getting bigger. This is all about getting better for our shareholders our customers and our team members were about two thirds of the way into this journey in terms of the capital deployment, but we've.

Speaker Change: Yet to realize the earnings potential of the investments. We've made this is one of the primary reasons I'm, so optimistic about nucor's future.

Speaker Change: And keeping with our commitment to investors Nucor has returned over $2 7 billion to shareholders through share repurchases and dividends for the year. When I became CEO of Nucor five years ago. We developed a three part of mission statement to grow the core expand beyond and live our culture. It launched the company, adding long term growth.

Speaker Change: I'd like to take a moment to revisit our long term growth plans and how the investments we're making today are going to create value for our customers and shareholders for years to come.

Speaker Change: And raw materials, we are investing in new technologies to enhance our scrap segregation and recovery rates, while reducing our carbon footprint.

Speaker Change: Trajectory that will take nearly a decade to complete and will require more of our team than we've ever asked I am proud of the work we've accomplished so far and the plans we have over the next few years to reach our stated goals, but as I've said in the past. This is not about getting bigger. This is all about getting better for our shareholders are.

Speaker Change: In our steel mill segment, each investment is aligned with our broader strategy to increase nucor's product mix towards higher margin value added products that address specific customer needs in key markets.

Speaker Change: For steel products, we're investing in automation to drive efficiencies and create a safer work environment.

Speaker Change: Our customers and our team members were about two thirds of the way into this journey in terms of the capital deployment, but we've yet to realize the earnings potential of the investments. We've made this is one of the primary reasons I'm, so optimistic about nucor's future.

Speaker Change: And we're developing new products and solutions that our customers value and finally, we're investing in new downstream platforms, where we identify steel adjacent businesses with growth prospects underpinned by strong secular demand drivers.

Speaker Change: Let's take a minute to provide an update on our largest growth initiatives, which collectively represent approximately 65% of our 2025 Capex budget.

Speaker Change: And raw materials, we are investing in new technologies to enhance our scrap segregation and recovery rates, while reducing our carbon footprint.

Speaker Change: In the <unk>, we're making good progress on our West Virginia sheet Mill, Nucor single largest capital investment, where nearly 40% of the way through the construction phase and remain on track to commission. The mill by the end of next year as this mill ramps up throughout 2027. It will begin shipping some of the cleanest and most advanced sheets deals in <unk>.

Speaker Change: In our steel Mills segment, each investment is aligned with our broader strategy to increase nucor's product mix towards higher margin value added products that address specific customer needs in key markets.

For steel products, we're investing in automation to drive efficiencies and create a safer work environment.

Speaker Change: North America targeting the automotive construction and industrial markets also within the <unk> group, we are adding new finishing capabilities, including a new galvanizing line and coding complex at Crawfordsville that will begin operation by late 2025, our second Galvo line at our Berkeley County Mill by mid 2020.

Speaker Change: Six and a construction grade galvanizing line at our CSI joint venture by the end of 2027 within the Bar Mill Group. We're on track to complete construction of two key projects in 2025, including our new rebar micro mill in Lexington, North Carolina, and our new melt shop bar mill in Kingman, Arizona. These.

Speaker Change: So, let's take a minute to provide an update on our largest growth initiatives, which collectively represent approximately 65% of our 2025 Capex budget.

Speaker Change: New operations will allow nucor to better serve infrastructure and construction markets and some of the fastest growing regions in the nation and.

Speaker Change: And steel products will complete construction on two highly automated tower manufacturing plants. This year and will break ground on the third site in Utah, which will be completed in 2027.

Speaker Change: These will serve the high end growth powertrains mission and telecommunication markets.

Speaker Change: Each of these investments address critical customer needs and advances us towards our objective of doubling nucor's through cycle earnings are mission also includes living our culture Nucor's culture is one of our greatest competitive advantage and while it will continue to evolve its core values I Trust open communication teamwork.

Speaker Change: Second Galvo line at our Berkeley County Mill by mid 2026, and a construction grade galvanizing line at our CSI joint venture by the end of 2027 within the Bar Mill Group. We're on track to complete construction of two key projects in 2025, including our new rebar micro mill in Lexington, North Carolina.

Speaker Change: <unk> remained constant this is what enables the company to harness the collective strength of the 32000 men and women, who make up the Nucor family, our mission and the way in which we executed has created significant shareholder value.

Speaker Change: And our new melt shop bar mill in Kingman, Arizona. These new operations will allow nucor to better serve infrastructure and construction markets and some of the fastest growing regions in the nation.

Speaker Change: And steel products will complete construction on two highly automated tower manufacturing plants. This year and we will break ground on the third site in Utah, which will be completed in 2027. These will serve the high end growth power transmission and telecommunications markets.

Speaker Change: Over the last five years Nucor has returned over $12 billion of capital to shareholders and we've reinvested approximately $16 billion through Capex and strategic acquisitions. During the same period, we've maintained our industry, leading credit profile and have advanced our sustainability journey.

Speaker Change: I am proud of all we've accomplished during the first half of this decade, but make no mistake Nucor's greatest days are still in front of us as we continue to ramp up recently completed projects and finalize several more over the next few years with the inauguration last week, we look forward to working with President Trump and members of his administration.

Speaker Change: Australia as they advanced the President's fair trade and pro growth economic agenda.

Speaker Change: Unfairly traded imports continue to be a challenge for the domestic steel industry with earnings negatively affected by rising global steel overcapacity and surges of unfairly traded imports, including corrosion resistant steel.

Speaker Change: Over the last five years Nucor has returned over $12 billion.

Speaker Change: Of capital to shareholders, and we've reinvested approximately $16 billion through Capex and strategic acquisitions. During the same period, we've maintained our industry, leading credit profile and have advanced our sustainability journey.

Speaker Change: More needs to be done to ensure that these illegally dumped and subsidized imports do not continue to distort the American market and a road profitability.

Speaker Change: <unk> 232 measures have been critical in providing support for our domestic steel industry, but they've been weakened over time.

Speaker Change: Proud of all we've accomplished during the first half of this decade, but make no mistake Nucor's greatest days are still in front of us as we continue to ramp up recently completed projects and finalize several more over the next few years with the inauguration last week, we look forward to working with President Trump and members of his administration.

Speaker Change: Tree exemptions and quota arrangements, including with Mexico, and Canada, and the EU should be replaced with tariffs and the section 232 measures should be extended to downstream steel products such as fabricated structural steel.

Speaker Change: Even as they advance the President's fair trade and pro growth economic agenda.

Speaker Change: We also need the new Congress surpassed the leveling the playing field Act too quickly it's been roughly a decade since the last overhaul of our trade laws. In this bill would help to ensure that domestic industries injured by unfairly traded imports can obtain critical relief.

Speaker Change: Over the last few years, we've seen significant investment in American based manufacturing. We expect this trend to continue given the new administration's desire to strengthen America's industrial base and supply chains for National Security and energy independence.

Speaker Change: More needs to be done to ensure that these illegally dumped and subsidized imports do not continue to distort the American market and a road profitability section.

Speaker Change: Section 232 measures have been critical in providing support for our domestic steel industry, but they've been weakened over time.

Speaker Change: America is home to the cleanest and most advanced steel industry anywhere on the globe and we look forward to working with the administration to ensure that we strengthen our steel industry.

Speaker Change: Entry exemptions and quota arrangements, including with Mexico, and Canada, and EU should be replaced with tariffs and the section 232 measures should be extended to downstream steel products such as fabricated structural steel.

Speaker Change: As we look ahead into 2025, we believe steel demand is poised for modest growth in the first half of the year and we'll gain more momentum as we get further into the second half consumer confidence has been resilient inflation has moderated and unemployment remains low with respect to our primary markets infrastructure construction.

Speaker Change: We also need the new Congress to pass the leveling the playing field Act too quickly it's been roughly a decade since the last overhaul of our trade laws. In this bill would help to ensure that domestic industries injured by unfairly traded imports can obtain critical relief.

Speaker Change: <unk> continues to be strong as does institutional construction, we expect a resumption of growth in residential and commercial construction this year as well, especially if we see looser lending conditions and a more supportive regulatory permitting environment under the new administration.

Speaker Change: Manufacturing construction starts have slowed but we will continue to see demand for steel products from these complex projects for several years to come.

Speaker Change: On the globe and we look forward to working with the administration to ensure that we strengthen our steel industry.

Speaker Change: Overall, we are encouraged by the pro growth and fair trade philosophy of the New administration. These policies are well aligned with the rebuilding repowering and reassuring of the U S economy, which should continue to drive demand for steel and as America's largest and most diversified steel producer Nucor is well positioned to supply.

Speaker Change: As we look ahead into 2025, we believe steel demand is poised for modest growth in the first half of the year and we will gain more momentum as we get further into the second half consumer confidence has been resilient inflation has moderated and unemployment remains low with respect to our primary markets infrastructure construction.

Speaker Change: Those needs.

Speaker Change: With that I'll turn it over to Steve <unk>, who will provide more detail about our fourth quarter and full year performance and our outlook for Q1.

Steve: Thank you Leon and thank you all for joining us on the call. This morning during.

Steve: During the fourth quarter Nucor generated net earnings of $287 million or $1 22, a share.

Steve: For the full year <unk> net earnings were approximately $2 billion or $8 46, a share earnings for the fourth quarter exceeded the midpoint of our fourth quarter guidance range by about 62, there were several factors contributing to RB but they fit into two primary categories first stronger than expected operating performance.

Speaker Change: Manufacturing construction starts have slowed but we will continue to see demand for steel products from these complex projects for several years to come.

Speaker Change: Overall, we are encouraged by the pro growth and fair trade philosophy of the New administration. These policies are well aligned with our rebuilding repowering and reassuring of the U S economy, which should continue to drive demand for steel and as America's largest and most diversified steel producer Nucor is well positioned to supply.

Steve: For about two thirds of the guidance feed and second favorable impacts from corporate administrative and discrete tax items accounted for the rest with respect to operations higher than expected shipments were the primary driver of our outperformance shipment volumes for steel and steel products segments were both higher than we anticipated in December solid.

Speaker Change: Those needs.

Speaker Change: With that I'll turn it over to Steve <unk>, who will provide more detail about our fourth quarter and full year performance and our outlook for Q1.

Speaker Change: Thank you Lee and thank you all for joining us on the call. This morning.

Steve: Fundamentals, coupled with less impact than anticipated during the holidays and drove these results. Additionally, operating margins were stronger for several of our products various items drove the favorable impacts from corporate administrative and tax and are more discrete in nature. These include lower compensation cost as well as unrealized gains on.

Speaker Change: During the fourth quarter Nucor generated net earnings of $287 million or $1 22, a share.

Speaker Change: For the full year <unk> net earnings were approximately $2 billion or $8 46, a share earnings for the fourth quarter exceeded the midpoint of our fourth quarter guidance range by about 62.

Steve: Investments due to changes in market valuations and onetime tax items, primarily related to state taxes, turning to segment level results for the quarter. The steel mill segments generated pretax earnings of $169 million, a decrease of roughly 45% from the prior quarter, while shipment volumes were roughly in line with that of the third.

Speaker Change: There were several factors contributing to RB, but they fit into two primary categories.

Speaker Change: Stronger than expected operating performance accounted for about two thirds of the guidance speed and second favorable impacts from corporate administrative and discrete tax items accounted for the rest with respect to operations higher than expected shipments were the primary driver of our outperformance shipment volumes for steel and steel products segments were both higher.

Steve: Quarter, both realized pricing and metal margins declined in the fourth quarter approximately half of the segment declines in the quarter are attributable to our sheet business. The steel product segment delivered pretax earnings of $329 million for the fourth quarter, a decrease of about 5% compared to the third quarter, excluding the third quarter's noncash impairment charge.

Speaker Change: Here than we anticipated in December solid demand fundamentals, coupled with less impact than anticipated during the holidays drove these results. Additionally, operating margins were stronger for several of our products various items drove the favorable impacts from corporate administrative and tax and a more discreet in nature. These include lower comps.

Steve: Volumes for the segment were 4% lower than the prior quarter and realized pricing declined about 1%, our joist and deck backlogs are stable and extend well into the second quarter. The nature of this business is longer duration backlog, meaning we expect to continue to see lower realized pricing in our financial results in the coming months from prior period price dip.

Speaker Change: <unk> cost as well as unrealized gains on investments due to changes in market valuations and one time tax items, primarily related to state taxes, turning to segment level results for the quarter. The steel mill segments generated pretax earnings of $169 million, a decrease of roughly 45% from the prior quarter while.

Steve: Clients importantly, the margins in this backlog remained well above their pre pandemic levels. We are cautiously optimistic that more favorable demand trends are emerging and some nonresidential construction markets, which may have positive impacts on our overall downstream businesses improving construction activity should also benefit our expand beyond platforms and we expect.

Speaker Change: Shipment volumes were roughly in line with that of the third quarter, both realized pricing and metal margins declined in the fourth quarter approximately half of the segment declines in the quarter are attributable to our sheet business. The steel products segment delivered pretax earnings of $329 million for the fourth quarter, a decrease of about 5% compared to the third quarter <unk>.

Steve: Double digit topline growth for each of our overhead doors, racking and insulated metal panels in 2025.

Steve: <unk> platform has generated a run rate EBITDA of approximately $400 million in 2024, when annualized for the partial year ownership of two of our acquisitions right Tech and southwest data products for 2025, we expect these platforms to generate over $450 million in EBITDA with further.

Speaker Change: <unk> the third quarter's noncash impairment charge volumes for the segment were 4% lower than the prior quarter and realized pricing declined about 1%, our joist and deck backlogs are stable and extend well into the second quarter. The nature of this business is longer duration backlogs mean, we expect to continue to see lower realized pricing in our financial results.

Steve: For additional growth in the years ahead, just to highlight a few of the catalyst fueling our growth with the acquisition of <unk> and further capability development, our door technologies platform should realized added growth by going to market with a more comprehensive offering of overhead doors and to a larger customer base a racking business is executing on numerous opportune.

Speaker Change: <unk> in the coming months from prior period price declines importantly, the margins in this backlog remained well above their prepaying deneke levels. We are cautiously optimistic that more favorable demand trends are emerging and some nonresidential construction markets, which may have positive impacts on our overall downstream businesses improving construction activity should also benefit.

Steve: <unk> to provide custom fabricated solutions for Datacenters and for warehouse customers looking for vendors, who can help them realize the benefits of automatic storage and retrieval systems insulated metal panels should continue to benefit from growing demand for climate control environments manufacturing and storage facilities and going to market alongside our <unk>.

Our expand beyond platforms, and we expect double digit topline growth for each of our overhead doors racking and insulated metal panels in 2025.

Speaker Change: B III platforms generated a run rate EBITDA of approximately $400 million in 2024, when annualized for the partial year ownership of two of our acquisitions right Tech and southwest data products for 2025, we expect these platforms to generate over $450 million in EBITDA with further.

Steve: Knowing racking business and market, leading and pre engineered metal buildings business and we continue to build out our capabilities and our towers and structures business.

Steve: We anticipate starting up our facilities in Alabama in Indiana in 2025, and our recently announced Utah facility. In 2027. These advanced manufacturing facilities are well positioned to serve our nation's growing needs in energy infrastructure for years to come turning to our raw materials segment, we realized pre tax earnings of <unk>.

Speaker Change: <unk> for additional growth in the years ahead, just to highlight a few of the catalyst fueling our growth with the acquisition of <unk> and further capability development, our door technologies platform should realize added growth by going to market with a more comprehensive offering of overhead doors and to a larger customer base a racking business is executing on numerous opera.

Steve: Approximately $57 million for the quarter, an increase of approximately $40 million from the third quarter, excluding the third quarter's noncash impairment charge, while pricing was relatively stable during the quarter DRA production increased by about 20% from the third quarter and we benefited from lower operating cost in our scrap processing facilities as Leon mentioned.

Speaker Change: <unk> to provide custom fabricated solutions for Datacenters and for warehouse customers looking for vendors, who can help them realize the benefits of automatic storage and retrieval systems insulated metal panels should continue to benefit from growing demand for climate control environments manufacturing and storage facilities and going to market alongside our.

Steve: Capital expenditures for 2024 totaled approximately $3 $2 billion for 2025, we are estimating capital spending to be approximately $3 billion as we continue to execute on our long term growth strategy growth oriented investments constitute about two thirds of our expected spend this coming year with our west Virginia sheet mill being.

Speaker Change: Growing racking business and market, leading and pre engineered metal buildings business and we continue to build out our capabilities and our towers and structures business we.

Speaker Change: We anticipate starting up our facilities in Alabama in Indiana in 2025, and our recently announced Utah facility. In 2027. These advanced manufacturing facilities are well positioned to serve our nation's growing needs in energy infrastructure for years to come turning to our raw materials segment, we realized pre tax earnings of <unk>.

Steve: Our largest single use of capital where more than one third of the way into construction phase at West Virginia with considerable headway <unk> made in 2024, we remain on track to complete construction and begin the startup of West Virginia by the end of 2026, as we construct and ramp up new mills, it's important to remind you that we will continue to incur.

Speaker Change: Approximately $57 million for the quarter, an increase of approximately $40 million from the third quarter, excluding the third quarter's noncash impairment charge, while pricing was relatively stable during the quarter DRA production increased by about 20% from the third quarter and we benefited from lower operating cost in our scrap processing facilities as Leon mentioned.

Steve: <unk> elevated levels of pre operating and startup cost, which were $594 million for 2024 as we progressed through this period of growth investments, we remain dedicated to our balanced capital allocation framework, we're committed to a strong investment grade balance sheet with a debt to capital ratio of about 25% and debt to EBITDA.

Speaker Change: Capital expenditures for 2024 totaled approximately $3 $2 billion for 2025, we are estimating capital spending to be approximately $3 billion as we continue to execute on our long term growth strategy growth oriented investments constitute about two thirds of our expected spend this coming year with our west Virginia sheet mill being.

Steve: Of one six times and ample liquidity with cash of more than $4 billion at the end of the year, our balance sheet as a reliable enabler of our ability to grow while providing meaningful direct returns to shareholders New core returned over $2 $7 billion back to shareholders in the form of dividends and share repurchases in 2024 alone and has returned approximately.

Speaker Change: Our largest single use of capital where more than one third of the way into construction phase at West Virginia with considerable headway <unk> made in 2024, we remain on track to complete construction and begin the startup of West Virginia by the end of 2026, as we construct and ramp up new mills, it's important to remind you that we'll continue to incur.

Steve: <unk> 12 $5 billion over the last five years, we plan to continue to return at least 40% of our annual net earnings through quarterly dividends and share repurchases. This past December our board of directors authorized an increase in our quarterly dividend to <unk> 55, a share we've not only paid but also increased our regular quarterly.

Speaker Change: <unk> elevated levels of pre operating and startup costs, which were $594 million for 2024 as we progressed through this period of growth investments, we remain dedicated to our balanced capital allocation framework, we're committed to a strong investment grade balance sheet with a debt to capital ratio of about 25% and debt to EBITDA.

<unk> for 52 consecutive years, that's a commitment to our shareholders that very few other companies can attest to turning to our first quarter of 2025 outlook. We expect nucor's operating results of the steel mills and steel products segment to be generally in line with prior quarter. The demand environment may be showing some early indications of strengthening in backlog.

Speaker Change: Of one six times and ample liquidity with cash of more than $4 billion at the end of the year, our balance sheet as a reliable enabler of our ability to grow while providing meaningful direct returns to shareholders Nucor returned over $2 $7 billion back to shareholders in the form of dividends and share repurchases in 2024 alone and has returned approximately.

Steve: <unk> increased 5% from the third quarter to the end of the year, but given the length of backlogs and the lag nature of some of our businesses realized pricing and margins for these segments may not exceed prior quarter's results and our raw materials segment, we expect to ship higher volumes to meet the demand growth of our mills ferrous scrap pricing has moved up slightly in the <unk>.

Speaker Change: <unk> 12 $5 billion over the last five years, we plan to continue to return at least 40% of our annual net earnings through quarterly dividends and share repurchases. This past December our board of directors authorized an increase in our quarterly dividend to <unk> 55, a share we've not only paid but also increased our regular quarterly.

Steve: Turning weeks of 2025, but the realized transfer price for our Dear is trending lower the net effect of this is likely to result in a lower contribution for the raw materials segment compared to the fourth quarter, while the fundamentals of our operating segments appear to be stable with a possibility of upside as we work further into the quarter, we must bear in mind that the discrete.

Speaker Change: <unk> for 52 consecutive years, that's a commitment to our shareholders that very few other companies can attest to turning to our first quarter of 2025 outlook. We expect nucor's operating results of the steel mills and steel products segment to be generally in line with the prior quarter. The demand environment may be showing some early indications of strengthening in backlog.

Steve: <unk> benefits, we saw from our corporate administrative and tax areas in the fourth quarter are not expected to reoccur as a result, this may cause our net earnings in Q1 to be slightly lower than the fourth quarter. As we look further into 2025, several positive trends seem to be emerging.

Speaker Change: <unk> increased 5% from the third quarter to the end of the year, but given the length of backlogs and the lag nature of some of our businesses realized pricing and margins for these segments may not exceed prior quarter's results and our raw materials segment, we expect to ship higher volumes to meet the demand growth of our mills ferrous scrap pricing has moved up slightly in the <unk>.

Speaker Change: And as the largest most diverse and most capable solutions provider in our industry Nucor is well positioned for the year ahead and with that we'd like to hear from you and answer any questions. You may have operator, please open the line for questions.

Speaker Change: Thank you and ladies and gentlemen, we will now begin the question and answer session to ask a question you May press star followed by the number one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing any keys.

Speaker Change: Turning weeks of 2025, but the realized transfer price for our Dear is trending lower the net effect of this is likely to result in a lower contribution for the raw materials segment compared to the fourth quarter, while the fundamentals of our operating segments appear to be stable with a possibility of upside as we work further into the quarter, we must bear in mind that the discrete.

A question you May press star followed by the <unk> one moment. Please for your first question.

Speaker Change: And your first question comes from the line of Timna Tanners with Wolfe Research. Please go ahead.

Speaker Change: <unk> benefits, we saw from our corporate administrative and tax areas in the fourth quarter are not expected to reoccur as a result, this may cause our net earnings in Q1 to be slightly lower than the fourth quarter. As we look further into 2025, several positive trends seem to be emerging.

Timna Tanners: Hey, good morning, I wanted a little more granularity please on your.

Timna Tanners: Payout ratio that you said you wanted to keep about 40%, but we calculate shareholder returns as a percentage of net income.

Speaker Change: And as the largest most diverse and most capable solutions provider in our industry Nucor is well positioned for the year ahead and with that we'd like to hear from you and answering any questions. You may have operator, please open the line for questions.

Timna Tanners: 135%, so given that you still have a pretty high capex number and the slow start to the year relatively.

Timna Tanners: Do you think it's possible to keep the same pace of buybacks year over year and any comment on kind of a pause actually after your mid corner guidance. Thanks a lot.

Speaker Change: Hey, Timna I'll kick it off.

Speaker Change: I wouldn't categorize the year's off to a slow start in fact I would tell you I think we're off to an amazing start.

Speaker Change: A question you May press star followed by the number one.

Speaker Change: Why in a moment, but I'd be remiss, if I didn't take an opportunity to thank every team member listening in right now for the safest year in our history in 2024 safest by in terms of recordable injuries reportable injuries illness and injury rates and in.

Speaker Change: One moment. Please for your first question.

Speaker Change: And your first question comes from the line of Timna Tanners with Wolfe Research. Please go ahead.

Timna Tanners: Hey, good morning wanted a little more granularity please on your <unk>.

Speaker Change: And it continues to trend in the right direction and when you have a company who values the safety health and well being of every team every resolved and everything that you.

Timna Tanners: Payout ratio that you said you wanted to keep about 40%, but we calculate shareholder returns and as a percentage of net income.

Timna Tanners: Slide 24% to 135% so given that you still have a pretty high capex number and the slow start to the year relatively.

Speaker Change: Do you want to discuss and we will discuss with every other analyst is the reason for the results that we achieve it is 32000 men and women choosing every moment of every day. So we're saying go home to their families their loved ones children grandchildren, and creating a better future for themselves. So again with that.

Timna Tanners: Do you think it's possible to keep the same pace of buybacks year over year and any comment on kind of a pause actually after your mid corner guidance. Thanks a lot.

Speaker Change: I'll shift gears, a little bit and again and as I think about the started the year.

Speaker Change: Hey, Timna I'll kick it off.

Speaker Change: I wouldn't categorize the year is off to a slow start in fact I would tell you I think we're off to an amazing start.

Speaker Change: I remain incredibly optimistic not just in terms of how nucor.

Speaker Change: <unk>.

Why in a moment, but I'd be remiss, if I didn't take an opportunity to thank every team members listening in right now for the safest year in our history in 2024 safest by in terms of recordable injuries reportable injuries illness and injury rates and.

Speaker Change: Unlevered and thinking about our future cash flow cash flows.

Speaker Change: And certainly in a very high period of Capex for for US, but we're also coming off three of the best years in the history of the company in 'twenty one to three combined we made more money in those three years than the previous 20, So we invested heavily for growth and while our free cash flow is it going to be down the future earnings potential.

Speaker Change: And it continues to trend in the right direction and when you have a company who values the safety health and well being of every team every resolved and everything.

Speaker Change: Thank you wanted to discuss and we will discuss with every other analyst is the reason for the results that we achieved it is 32000 men and women choosing every moment of every day. So we're safe and go home to their families their loved ones children grandchildren, and creating a better future for themselves. So again with that.

Speaker Change: It will be unlocked in the coming years, and so there's a lot of things to worry about and noise in the industry. The last thing I would tell you ever have to worry about is it returns by nucor to our shareholders. Our last five years as CEO, it's been over 60%. So we take great care of.

Speaker Change: I'll shift gears, a little bit and again and as I think about the start of the year.

Speaker Change: All of our shareholders returning that and so we will not get lever to the point, where that will ever ever come into question.

Speaker Change: I remain incredibly optimistic not just in terms of how nucor.

Speaker Change: Hey, Tim this is Steve.

Speaker Change: Remains.

Speaker Change: Kind of pick up there and absolutely offset we have absolute firm commitment.

Speaker Change: Unlevered and thinking about our future cash flow cash flows.

Speaker Change: Meaningful returns direct shareholders.

Speaker Change: Demonstrated that for years and.

Speaker Change: That target that you cited.

Speaker Change: Sort of a minimum threshold of at least 40% of earnings we clearly go above that when we get excess liquidity and and.

Speaker Change: So thats what you saw last year.

Speaker Change: In the prior year with more than $7 billion of cash and so we demonstrated an additional principal that we run the company by and have for years and years and that is if we can.

Speaker Change: That will be unlocked in the coming years, and so there's a lot of things to worry about and noise in the industry. The last thing I would tell you ever have to worry about is our returns by nucor to our shareholders. Our last five years as CEO, it's been over 60%. So we take great care.

Speaker Change: Can't find to use for the capital we return it back to the shareholder and so thats really what drove that percentage.

Speaker Change: Accurately side of it.

Speaker Change: If our shareholders returning that and so we will not get lever to the point, where that will ever ever come into question.

Speaker Change: 35% for last year.

Speaker Change: With regards to the pace as we head.

Speaker Change: Yes, Hey, Tim this is Steve.

Speaker Change: This coming year.

Speaker Change: I think I would say if you look toward last year S Guy.

Speaker Change: Kind of pick up there.

Speaker Change: That said, we have absolute firm commitment.

Speaker Change: Each quarter quarter over quarter to share buyback pace down and.

Speaker Change: Meaningful returns direct shareholders.

Speaker Change: That was a reflection of the liquidity and the alternative uses of that cash and so youll see us match the balance needs for the cash along with the law.

Demonstrated that for years and.

Speaker Change: That target that you cited.

Speaker Change: Sort of a minimum threshold of at least 40% of earnings we clearly go above that when we get excess liquidity and and so.

Speaker Change: Liquidity position, we have to frame up why don't we go above that 40% or not.

Speaker Change: So thats what you saw last year.

Speaker Change: And we're certainly committed to that over time.

Speaker Change: The prior year with more than $7 billion of cash and so we demonstrated an additional principal that we run the company by and have for years and years and that is if we can.

Speaker Change: I think you had a had a question in there as well about about a pause in the fourth quarter.

Speaker Change: Can't find to use for the capital we return it back to the shareholder and so thats really what drove that percentage.

Speaker Change: All right.

Speaker Change: I'd have to look back and I believe seven in the last eight quarters.

Speaker Change: We.

Accurately side of it.

Speaker Change: We ended our share buyback program.

Speaker Change: 35% from last year.

Speaker Change: We gave guidance otherwise nothing exceptional or different about the fourth quarter that most of that most of the times that we do our share buybacks.

Speaker Change: With regards to the pace as we head into <unk>.

Speaker Change: This coming year.

Speaker Change: I think I would say if you look toward last year S Guy.

Speaker Change: Each quarter quarter over quarter to share buyback pace down and that was a reflection of the liquidity and the alternative uses of that cash and so youll see us match the balance needs for the cash along with the liquidity position we have.

Tim: Okay. Thanks, Tim.

Speaker Change: Tim imply that youre off to a slow start nucor I, just meant like relative pricing year over year, it's slower.

Whether we go above that 40% or not.

Speaker Change: Obviously broadly speaking they assume tariffs are positive, but you do have some imports of slabs, California steel and you have some operations in Mexico. So just wondering how they might affect those operations and thanks again.

Speaker Change: And we're certainly committed to that over time.

Speaker Change: I think you had a question in there as well about about a pause in the fourth quarter.

Speaker Change: All right.

Speaker Change: Yes, Tim and I look at again I think the macro there is a lot happening I mean in the last seven days.

Speaker Change: Tim look back, but I believe seven in the last eight quarters.

Speaker Change: We.

Speaker Change: Theres been more signed by the President.

Ended our share buyback program.

Speaker Change: Before we gave guidance.

Speaker Change: Most can keep up with but relates to trade I think the macro environment.

Speaker Change: Nothing exceptional or different about the fourth quarter that most of that most of the times that we do our share buybacks.

Speaker Change: America first train agenda policy measures youre going to see continuing to move and so if we think back to 2018, when the 232 was applied.

Speaker Change: Okay. Thanks.

Timna Tanners: Tim imply that youre off to a slow start nucor I, just meant like relative pricing year over year, it's slower.

Speaker Change: It created some positive momentum and again, creating a.

Speaker Change: Just like pointing to the liquidity I think that was just discussed if I could sneak in one more just wanted to hear your thoughts on tariffs as it would apply to nucor's operations. Obviously broadly speaking the same tariffs are positive, but you do have some imports of slabs, the California steel and you have some operations in Mexico. So just wondering how they might affect.

Speaker Change: More level, playing field for the United States to compete we've seen both north and south of our borders.

Speaker Change: Terrorists move to tier twos that have been grossly.

Speaker Change: Abused and again that needs to get right sided 40% of the imports roughly 40% of the imports coming in to America. Today are from Canada, and Mexico that has got to come way down and so again I think in the coming hours and days, you're going to see broad sweeping tariffs that are going to come back and to create a much more level playing.

Timna Tanners: Those operations and thanks again.

Timna Tanners: Yes, Tim and I look again, I think the macro there is a lot happening I mean in the last seven days.

Timna Tanners: Theres been more signed by the President.

Timna Tanners: Most can keep up with but relates to trade I think the macro environment.

Speaker Change: Youre going to see those bad actor et cetera.

Speaker Change: Leading currency that are.

Timna Tanners: Erika first trade agenda policy measures youre going to see continuing to move and so if we think back to 2018, when the 232 was applied.

Speaker Change: Distorting how they price goods are going to be penalized and again I think thats going to be broad sweeping to include even those countries and nations that we have tier huge already in place with so the overall and again the macro does the balance you asked only about five or 6% of our product leaves the U S.

Timna Tanners: That created some positive momentum and again, creating a.

Timna Tanners: More level, playing field for the United States to compete we've seen false.

Timna Tanners: Both north and south of our borders.

Speaker Change: But most of that product, that's leaving as high value added products most of what's coming in from north and south of the border or commodity grades and again, that's got to stop.

Timna Tanners: Terrorists move to tier twos that have been grossly.

Timna Tanners: Abused and again that needs to get right sided 40% of the imports roughly 40% of the imports coming in to America. Today are from Canada, and Mexico that has got to come way down and so again I think in the coming hours and days, you're going to see broad sweeping terrorist come back and to create a much.

Speaker Change: Okay.

Operator: And your next question comes from the line of Carlos de Alba with Morgan Stanley. Please go ahead.

Speaker Change: Thank you very much good morning.

Timna Tanners: More level, playing field, you're going to see those bad actor et cetera are manipulating currency that are.

Speaker Change: Yes.

Speaker Change: Because even with the discussions on times.

Timna Tanners: Good morning, how they price goods are going to be penalized and again I think thats going to be broad sweeping to include even those countries and nations that we have tier huge already in place with so the overall and again the macro to the balance you asked man only about five or 6% of our product leaves the U S.

Speaker Change: Is it fair to say that the direct impact on nuclear will be negative.

Speaker Change: If there is important is on Mexico material because of these labs that you import.

And also when we looked into the numbers. The reality is that the U S is a net exporter of flat steel products to Mexico.

Speaker Change: Just wanted to understand what the impact would be on Nucor, and obviously indirectly if prices went up here.

Timna Tanners: But most of that product, that's leaving as high value added products most of what's coming in from north and south of the border or commodity grades and again, that's got to stop.

Speaker Change: That will be positive.

Speaker Change: If you can provide a little bit more details on the specific impact of nuclear that that'll be great.

Timna Tanners: Okay.

Speaker Change: So I want to make sure I understand that the heart of your question and so look we have a joint venture in Mexico and GSM in the galvanizing on there that we share substrate, but again in terms of the overall mixture nucor.

Timna Tanners: Okay.

Speaker Change: And your next question comes from the line of Carlos de Alba with Morgan Stanley. Please go ahead.

Speaker Change: Thank you very much good morning.

Yes.

Speaker Change: Because even with the discussions on times.

Speaker Change: That volume is very very low and so while that may have an impact.

Speaker Change: Is it fair to say that the direct impact on nuclear will be negative.

Chris: Chris are applied.

Chris: Well, we'll find and look for ways to continue to supply that in feed that unit, but again against the backdrop of nucor's overall mix, it's a very small.

Speaker Change: If there is <unk>.

Speaker Change: On Mexican material because of these labs that you import.

Speaker Change: And also we're looking to the numbers. The reality is that the U S is a net exporter of flat steel products to Mexico.

Chris: Now thats being shipped from the us into from Nucor into inter Mexico, no any any comments you'd add to that maybe maybe two points and kind of goes back to Tim in his comments as well about CSI and our joint venture with JMP.

Speaker Change: Just wanted to understand what the impact would be on Nucor, and obviously indirectly if prices went up here.

Speaker Change: It will be possible.

Speaker Change: If you can provide a little bit more details on the specific impact of nuclear that that'll be great.

Chris: In Mexico. The first is on the flat side for CSI, we enjoy wide flexibility on how we fly that mill.

So I want to make sure I understand that the heart of your question. So look we have a joint venture in Mexico, <unk> salmon galvanizing on there that we should hear substrate, but again in terms of the overall mix for Nucor.

Chris: And it's similar to our raw material strategy.

Chris: Taken up over the past year, our supply of our own substrate from our mill at Mt.

Chris: We feel very confident that regardless of trade impact on flat.

Speaker Change: That volume is very very low and so while that may have an impact if the tariffs are applied.

Chris: Continue to operate CSI more than competitors.

Chris: Cost profile.

Speaker Change: Well, we'll find and look for ways to continue to supply that in fee that unit, but again against the backdrop of nucor's overall mix. It's a very small amount thats being shipped from the U S into from Nucor into and to Mexico, No any any comments you'd add to that maybe maybe two points in kind of a.

Chris: On the adjacent side.

Speaker Change: Thanks, Liana <unk> point about the fact that we supply high value added products in Mexico.

Speaker Change: Modest that's imported into the U S from Mexico is really important because our supply from.

Speaker Change: And I guess more directly into products that are that are bolted to a car that are part of a car. That's been moved by major automotive producers into the U S and we feel like the.

Speaker Change: It goes back to Jim's comments, as well about CSI and our joint venture with JMP.

Speaker Change: Thank you Shannon and Mexico.

Speaker Change: First is on the flat side for CSI, we enjoy wide flexibility on how we fly that mill.

Speaker Change: Options the potential of that being impacted directly by cure is just at a lower lower profile. So we certainly have developed contingencies for how we manage that but I'd say in both cases, we feel very comfortable with our position.

Speaker Change: Similar to our raw material strategy.

Speaker Change: We've taken.

Speaker Change: Last year, our supply of our own substrate from our mental stood at Mt.

Question would be given the robust the robust pipeline of projects that the company has.

Speaker Change: Feel very confident that regardless of trade impact on flat.

Speaker Change: Turning to operate CSI more than competitive.

Speaker Change: I mean do you guys still generate a lot of cash right, but is there any any room, what is the appetite to potentially participate in M&A, where you buy existing assets that would.

Speaker Change: Cost profile.

Speaker Change: On the NJ ASM side.

Speaker Change: <unk> point about the fact that we supply high value added products in Mexico.

Speaker Change: <unk>.

Speaker Change: Imported into the U S from Mexico is really important because our supply from.

Speaker Change: Obviously strengthened in the short term the company's position in the U S on the yes side.

Speaker Change: From an ASM is going directly into products that are that are bolted to a car that are part of a car. That's been moved by major automotive producers into the U S and we feel like the.

Speaker Change: Yes look Carlos.

Speaker Change: The answer short answer is yes of course, we have the largest steel company in North America of course, we're looking.

Speaker Change: Options the potential of that being impacted directly by cure is just at a lower lower profile. So we certainly have developed contingencies for how we manage that but I would say in both cases, we feel very comfortable.

Speaker Change: We're going to continue to look and so to date we are.

Speaker Change: About two thirds of the way through a $16 billion capital campaign between organic growth Greenfield and M&A and so.

Speaker Change: We haven't invested in.

Speaker Change: Question would be given the above the robust pipeline of projects that the company has.

Speaker Change:

Speaker Change: Committed a lot of our valuable shareholder capital to continue to grow this company.

Speaker Change: I mean do you guys still generate a lot of cash right, but is there any any room, what is the appetite to potentially participate in M&A, where you buy existing assets that would.

Speaker Change: And what you've seen in the last few months or 24 in early 'twenty five is again, a very disciplined approach to capital allocation that.

Speaker Change: We're not going to get over Levered, we are going to make sure we execute on the capital that we have.

Speaker Change: Arguably.

Speaker Change: <unk>.

Speaker Change: <unk> put out and are putting out in west, Virginia, and Lexington, North Carolina in Kingman, Arizona, Crawfordsville, Indiana, and CSI and Nucor steel Berkeley, So we have a awful lot of.

Speaker Change: In the short term.

Speaker Change: The company's position in the U S on the yes side.

Speaker Change: Yes look Carlos.

Speaker Change: The answer short answer is yes of course, we have the largest steel company in North America of course, we're looking.

Speaker Change: Not only capital being spent that value that's going to be created for the long term shareholders of new course, so again.

Speaker Change: We're going to continue to look and so to date we are about.

Speaker Change: Say again.

Speaker Change: About two thirds of the way through a $16 billion capital campaign between organic growth Greenfield and M&A and so.

Speaker Change: We have plenty of liquidity, if we wanted to do whatever we wanted to do in terms of M&A, our leverage as Steve mentioned, a few minutes ago, one six debt to EBITDA ratio. So those.

Speaker Change: We have invested in.

Speaker Change: Those metrics remain low we are still the highest investment grade credit rating in the industry.

Speaker Change: Committed a lot of our valuable shareholder capital to continue to grow this company.

Speaker Change: And what <unk> seen in the last few months or 24 in early 'twenty five is again, a very disciplined approach to capital allocation that.

Speaker Change: So stay tuned Nucor will stay on the forefront of thinking about growth, but we will not overpay for assets and we will be very disciplined in how we execute our capital.

Speaker Change: We're not going to get over Levered, we are going to make sure we execute on the capital that we have.

Speaker Change: Thank you.

Speaker Change: <unk>.

Speaker Change: Thank you. Your next question comes from the line of Bill Peterson with Jpmorgan. Please go ahead.

Speaker Change: Put out and are putting out in west, Virginia, and Lexington, North Carolina in Kingman, Arizona, Crawfordsville, Indiana, and CSI and Nucor steel Berkeley, So we have a awful lot of.

Bill Peterson: Yes, Thanks for taking my question and nice job on the quarterly execution.

Speaker Change: Not only capital being spent that value that's going to be created for the long term shareholders of new course, so again.

Speaker Change: On your downstream business is pricing for the new joist and deck orders I guess, that's entered the backlog is pricing bottomed and if not when do you expect it so and then how should we think about the trends in pricing for your other downstream products.

Speaker Change: We will stay and again.

Speaker Change: We have plenty of liquidity, if we wanted to do whatever we wanted to do in terms of M&A, our leverage as Steve mentioned, a few minutes ago is one six debt to EBITDA ratio. So again those.

Bill Peterson: More importantly, I guess are you seeing green green shoots in the.

Bill Peterson: Activities, such as warehouse or otherwise that would support pricing move higher later in the year.

Speaker Change: Those metrics remained low we are still the highest investment grade credit rating in the industry.

Speaker Change: So stay tuned Nucor will stay on the forefront of thinking about growth, but we will not overpay for assets and we will be very disciplined in how we execute our capital.

Sean: Good morning, Sean.

Speaker Change: Shawn Hall, it's I'll take let me start by saying.

Speaker Change: We're extremely proud of what our teams in our downstream businesses have done to really redefine the.

Speaker Change: Thank you.

Speaker Change: Earnings profile of tissue products keep in mind these are not.

Speaker Change: Thank you. Your next question comes from the line of Bill Peterson with Jpmorgan. Please go ahead.

Speaker Change: Commodity products. These are custom engineered solutions on our team.

Bill Peterson: Yes, Thanks for taking my question and nice job on the quarterly execution.

Speaker Change: <unk> really done a great job.

Speaker Change: Creating value for our customers and for our end users and we expect that to continue.

Bill Peterson: On your downstream business has pricing further joist and deck orders I guess et cetera, the backlog is pricing bottomed and if not when do you expect it so and then how should we think about the trends in pricing for your other downstream products.

Speaker Change: Sure.

Speaker Change: As far as.

Speaker Change: Pricing specific to joist and deck, we've been joining us for a really long time.

Bill Peterson: More importantly, I guess are you seeing green green shoots in the activities such as warehouse or otherwise that would support pricing move higher later in the year.

Speaker Change: Or why is enough to not call it peak or a trough in <unk>.

Speaker Change: And then given market market.

Speaker Change: Joist and deck market participation.

Bill Peterson: Good morning, Sean.

Speaker Change: Warehouse market, which is <unk>.

Bill Peterson: Shawn Hall, it's I'll take that one let me start by saying.

Speaker Change: Moderated off from the historic high as we've seen over the last three years thats heavily impacted by interest rates.

Bill Peterson: We're extremely proud of what our teams in our downstream businesses have done to really redefine the.

Speaker Change: That said, it's still a very healthy market. This is a very healthy business, we expect the warehouse market.

Bill Peterson: Earnings profile of tissue products keep in mind these are not.

Bill Peterson: Commodity products. These are custom engineered solutions on our team.

Speaker Change: Of course.

Speaker Change: The rest of the year.

Speaker Change: Margins have moderated from record highs, we're still performing well.

Bill Peterson: <unk> really done a great job.

Bill Peterson: Creating value for our customers and for our end users and we expect that to continue into the future.

Speaker Change: Pre pandemic levels, and our and our joist and deck business and many of our other downstream business. Our <unk> business has been very resilient.

Bill Peterson: As far as it was.

Bill Peterson: Pricing specific to joist and deck, what we've been doing this for a really long time.

Speaker Change: Last year, we actually saw improvement.

Speaker Change: After over core in our rebar fab business and in our doors business. So we feel really good about where we're starting the year and as mentioned in the opening comments, our backlogs are up assertion to carry us well into the second quarter.

Bill Peterson: Why is enough to not call it peak or a trough in <unk>.

Bill Peterson: Any given market market.

Bill Peterson: Joist and deck market participation.

Bill Peterson: Warehouse market, which is <unk>.

Bill Peterson: Moderated off from the historic high as we've seen over the last three years thats heavily impacted by interest rates.

Speaker Change: Thanks for that and then maybe shifting the mills and I guess, specifically plate, we saw the $60 per ton price hike yesterday. We also understand the inventories are running pretty lean I guess are you seeing anything in the market to support this price hike versus at least what appears to be still slow infrastructure spending.

Bill Peterson: So it's still a very healthy market. This is a very healthy business, we expect the warehouse market.

Bill Peterson: Of course.

Bill Peterson: The rest of the year.

Bill Peterson: While margins have moderated from record highs, we're still performing well.

Speaker Change: Potential risks the wind under under Trump 2.0, and I guess, how does this inform your view on how to operate Brandenburg and how we should think about.

Pre pandemic levels, and our and our joist and deck business and many of our other downstream business are building buildings business has been very resilient.

Speaker Change: The ramp and then eventually run rate profitability, one that can be achieved.

Bill Peterson: Last year, we actually saw improvement quarter over quarter in our rebar fab business and in our doors business.

Speaker Change: Yes. This is Brad ill tackle that one it sounds like a number of questions in there but.

Speaker Change: Part with the price increase.

Bill Peterson: Really good about where we're starting the year and as mentioned in the opening comments, our backlog scrap assertion to carry us well into the second quarter.

Speaker Change: We are constantly monitoring market conditions.

Like you mentioned, we see relatively lean inventory throughout the supply chain are bookings and backlogs are very strong.

Speaker Change: Thanks for that and then maybe shifting the mills and I guess, specifically plate, we saw the $60 per ton plate price hike yesterday. We also understand the inventories are running pretty lean I guess are you seeing anything in the market to support this price hike versus at least what appears to be still slow infrastructure spending or.

Speaker Change: They felt like the timing was right given the mentioned variables.

Speaker Change: Couple of lead times, just announced the increase overall I'm optimistic about plate demand in 'twenty five.

Speaker Change: So some of what Leon mentioned at the opening in his comments around Trump policy.

Speaker Change: Actual risk of the wind under under Trump to point.

Speaker Change: We see expect to see increases in military spending.

Speaker Change: How does this inform your view on how to operate Brandenburg and how we should think about.

Speaker Change: Continued infrastructure spending.

Speaker Change: Tax played for bridges, where we're a very large player, especially with the new capabilities at Brandenburg.

Speaker Change: The ramp and then eventually run rate profitability, one that can be achieved.

Speaker Change: And then on imports you know in addition to the $1 6 million tonnes.

Speaker Change: Yes. This is Brad ill tackle that one it sounds like a number of questions in there, but I'll start with the price increase.

Speaker Change: Heavy oil imported.

Speaker Change: Nearly $2 2 million tons of fabricated structural products, which are pretty played intensive.

Speaker Change: We are constantly monitoring market conditions.

Speaker Change: We are also imported in 'twenty, four which impacts our market. So any reduction in imports stands to be a very positive for the domestic market.

Speaker Change: Like you mentioned, we see relatively lean inventory throughout the supply chain are bookings and backlogs are very strong.

Speaker Change: So overall optimistic on plate demand and it shows in our backlogs, which are which are at multiyear highs.

Speaker Change: They felt like the timing was right given the mentioned variables.

Speaker Change: Couple of lead times, just announced the increase overall I'm optimistic about plate demand in 'twenty five.

Speaker Change: Yes.

Speaker Change: Switching gears to Brandenburg.

Speaker Change: And we are extremely optimistic and confident about the future Brandenburg and very very proud.

Speaker Change: So some of what Leon mentioned in the opening in his comments around Trump policy.

Speaker Change: <unk> has accomplished.

Speaker Change: We see expect to see increases in military spending.

Speaker Change: In Q4 really not excitement stems from the step change in performance of the Brandenburg team from Q3 to Q4.

Speaker Change: Infrastructure spending which impacts played for bridges, where we're a very large player, especially with the new capabilities of Brandenburg.

Speaker Change: Production was up over 100% conversion cost per tonne.

Speaker Change: And then on imports you know in addition to the $1 6 million tonnes of completeness, let me boil imported.

Speaker Change: It's down 30%.

Speaker Change: We produced nearly 150000 tonnes in Q4 and walk into January with a record backlog of Brandenburg.

Speaker Change: Nearly $2 2 million tons of fabricated structural products, which are pretty intensive.

Speaker Change: And as we've said in the past Brandenburg as a story of capability and capacity.

Speaker Change: We are also imported in 'twenty, four which impacts our market. So any reduction in imports stands to be a very positive for the domestic market.

Speaker Change: Our product development pipeline remains full.

Speaker Change: But if you made a lot of progress in Q4 were developing products for military oil and gas in shipbuilding industries.

Speaker Change: So we're optimistic on demand and it shows in our backlogs, which are which are at multiyear highs.

Speaker Change: Yeah.

Speaker Change: Pursuing the certifications and product development.

Speaker Change: Switching gears to Brandenburg.

Speaker Change: And approvals takes time.

Speaker Change: And we are extremely optimistic and confident about the future Brandenburg and I'm very very proud of that team.

Speaker Change: But it's going to open up new markets and customers that were unavailable due for prior to the Brandenburg.

Speaker Change: <unk> accomplished.

Speaker Change: The size ranges of Brandenburg in conjunction with other two plate mills in Alabama in Carolina.

Speaker Change: In Q4 really that excitement stems from the step change in performance.

Speaker Change: <unk> <unk> from Q3 to Q4.

Speaker Change: With the largest product growth offered by any play producer in North America.

Speaker Change: <unk> was up over 100% conversion cost per tonne.

Speaker Change: No. That's it given the recent pace of the ramp at Brandenburg, along with the progress in product development gives us great confidence, we will achieve consistent EBITDA positive results by the middle of 2025.

Speaker Change: 30%.

Speaker Change: Nearly 150000 times.

Speaker Change: In Q4 and walk into January with a record backlog of Brandenburg.

Speaker Change: And as we've said in the past Brandenburg as a story of capability and capacity.

Speaker Change: Okay. Thanks for sharing all the insights and good luck on the execution.

Speaker Change: Product development pipeline remains full.

Speaker Change: Thanks Bill.

Speaker Change: If you've made a lot of progress in Q4 were developing products for military oil and gas in shipbuilding industries.

Speaker Change: Okay.

Speaker Change: Thank you and your next question comes from the line of Jackie on switch with BMO capital markets. Please go ahead.

Speaker Change: Pursuing the certifications and product development.

Jackie: Hi, Thank you for taking my questions.

Speaker Change: And approvals takes time.

Jackie: You mentioned that shipments in <unk>, Oregon December were stronger than expected.

Speaker Change: It's going to open up new markets and customers that were unavailable to do more prior to the Brandenburg.

Speaker Change: Driven by real demand or is some of that potentially due to pre buying activity ahead of tariffs.

Speaker Change: The size ranges of Brandenburg in conjunction with the other two plate mills in Alabama and Carolina position.

Speaker Change: Position us with the largest product breath offered by any play producer in North America.

Jackie: Sure.

Jackie: Hey, guys. This is Steve.

Speaker Change: Given the recent pace of the ramp of <unk>, along with the progress in product development gives us great confidence, we will achieve consistent EBITDA positive results by the middle of 2025.

Jackie: Thank you for the question.

Jackie: I think the shipments.

Jackie: You're referencing is the shipments were stronger than our our guidance expected.

Jackie: And there are really two factors at play.

Play there one as demand was.

Speaker Change: Okay. Thanks for sharing all the insights and good luck on the execution.

Jackie: It was fairly stable.

Jackie: That certainly was the enabler, but also.

Bill Peterson: Thanks Bill.

Speaker Change: Okay.

Jackie: Because of the timing of the holiday the midweek timing of the holiday, we expected to ship less than we than we actually did some of that was good.

Speaker Change: Thank you and your next question comes from the line of Jackie <unk> with BMO capital markets. Please go ahead.

Jackie: Hi, Thank you for taking my questions.

Jackie: You can call that seasonality here, where the holiday happened to fall, where we expect it to actually get less out the door then we really did.

Jackie: You mentioned that shipments in <unk> or in December were stronger than expected.

Speaker Change: Driven by real demand or is some of that potentially due to pre buying activity ahead of tariffs.

Jackie: And then maybe just.

Jackie: In general about the inventory levels in the supply chain.

Jackie: Our view on that are they right size is there opportunity for restocking over the next few months or how are you looking at it.

Jackie: Yes.

Steve: Hey, guys. This is Steve.

Jackie: Thank you for the question.

Jackie: Yes.

Jackie: I think the shipments.

Jackie: Well I think as we go throughout the year and what I said in my opening comments.

Jackie: You're referencing is the shipments were stronger than our guidance expected.

Jackie: We're optimistic we think we're going to continue to see.

Jackie: And there are really two factors.

Jackie: Play there one as demand was.

Jackie: Policies, the deregulation tax relief Paris re shoring.

Charlie: Charlie It's now stable.

Charlie: And that certainly was the enabler, but also.

Jackie: And then again another pro economic drivers to reinsure energy independence.

Charlie: Simply because of the timing of the holiday the mid week timing of the holiday, we expected to ship less than we than we actually did some of that was just.

Jackie: The centers.

Jackie: The green.

Jackie: Data center.

Jackie: And so that's going to continue.

Charlie: You can call that seasonality here, where the holiday happened to fall, where we expect it to actually get less out the door then we really did.

Jackie: Of course sits at the epicenter of all of that so I would tell you as we move through the year.

Jackie: Sure.

Jackie: We remain very optimistic about.

Charlie: And then maybe just.

Jackie: The economic situation there.

Speaker Change: In general about the inventory levels in the supply chain. What's your view on that are they right size is there opportunity for restocking over the next few months or how are you looking at it.

Jackie: And continue to pull through demand.

Jackie: And ultimately deliver higher and higher performance.

Jackie: <unk> seen over the last six months to 12 months.

Charlie: Yes.

Jackie: Yeah.

Charlie: Well I think as we go throughout the year and what I said in my opening comments.

Jackie: Thank you.

Charlie: We're optimistic we think we're going to continue to see.

Speaker Change: Thank you and your next question comes from the line of Tristan <unk> with BNP Paribas. Please go ahead.

Charlie: Sure.

Charlie: Policies, the deregulation tax relief Harris re shoring.

Tristan: Yes, hi, Thank you for taking my questions.

Charlie: And then it came to other <unk>.

Charlie: Pro economic drivers to reach more energy independent.

Speaker Change: First one is just on M&A I mean, there have been reports of a potential partner a bit.

Charlie: Data centers.

Charlie: The green.

Speaker Change: The USDA asset then I think last year, you look at those assets, notably the EES and decided correct me if I'm wrong on that valuation was an issue there.

Charlie: Data center.

Charlie: Sure John It's just going to continue to.

Speaker Change: <unk> sits at the epicenter of all of that so I would tell you as we move through the year.

Charlie: <unk>.

Speaker Change: So now if those are correct and you are looking again at those asset has anything changed since last year.

Charlie: We remain very optimistic about.

Charlie: The economic situation there.

Charlie: And continue to pull through demand.

Speaker Change: When you look at those and also regarding to that can you comment a little bit on your sheet strategy.

Charlie: And ultimately deliver higher and higher performance.

Charlie: You have seen over the last six to 12 months.

Speaker Change: Organic growth, but also M&A.

Speaker Change: That's my first question.

Charlie: Thank you.

Speaker Change: Yes Tristan.

Speaker Change: I'll kick us off.

Thank you and your next question comes from the line of Tristan <unk> with BNP Paribas. Please go ahead.

Speaker Change: And as the largest steel producer in North America, where we're going to look at our core assets our strengths.

Speaker Change: We run it.

Speaker Change: Massive amount of Etfs in the largest producer in the continent. So again when things come available that fit.

Charlie: Yes, hi, Thank you for taking my questions.

Charlie: First one is just on M&A I mean, there have been reports of a potential partner a bit.

Speaker Change: US culturally that fit us technologically and we believe we can return value to our shareholders and we're going to execute and at that time and as I mentioned and you just shared and valuation is ultimately going to dictate whether or not we're going to move forward and so.

Charlie: The USDA asset then I think last year, you look at those assets, notably the Es and decided correct me if I'm wrong on that valuation was an issue there.

Charlie: So now if those are correct and you are looking again at those asset has anything changed since last year.

Speaker Change: To speculate on what May unwind and as things start up in the courts.

Charlie: When you look at those and also regarding to that can you comment a little bit on your sheet strategy.

Speaker Change: Pulled out and killed earlier, where again.

Speaker Change: Come to.

Speaker Change: It's Jeff and Jim I don't know and I don't know if those assets come back what I would tell you is the guiding principle of a very dish.

Charlie: Organic growth, but also M&A.

Charlie: That's my first question.

Charlie: Okay.

Excuse me disciplined capital allocation philosophy and strategy is going to remain so again the other piece of that is if you step back and thinking about.

I'll kick us off.

Charlie: And as the largest steel producer in North America, we're going to look at our core assets our strengths.

Charlie: We run it.

Charlie: Massive amount of Etfs in the largest producer in the continent. So again when things come available that fit.

Speaker Change: A lot of talk and Theres a lot of noise right now going on in that side of the business and a lot of new styles regarding U S steel over years.

Culturally that fit us technologically and we believe we can return value to our shareholders and we're going to execute and at that time and as I mentioned and you just shared and valuation is ultimately going to dictate whether or not we're going to move forward and so.

Speaker Change: Many years, but the reality is.

Speaker Change: Sure.

Speaker Change: <unk> got nothing to do with the workers at USD or the men and women who are making their products. Every day are working hard and doing the right things. It's the leadership that can invest to stay competitive and so what you see today versus 30, 40 50 years ago as a show of itself and again there are some assets that may be interested in again, if they come to fruition.

Charlie: To speculate on what May unwind and as things start up in the courts in well located pulled out and killed earlier again.

Jeff: It's Jeff.

Speaker Change: But if you want to talk about iconic companies over the last 60 years, It's nucor period full stop and we're going to continue to focus to grow our our company, we're going to continue to focus on maximizing shareholder value in and making our shareholders as much money as possible.

Jeff: I don't know and I don't know if those assets come back what I would tell you is the guiding principle of a very dish.

Jeff: Gives me disciplined.

Jeff: Capital allocation philosophy and strategy is going to remain so again the other piece of that if you step back and thinking about there's a lot of talk and Theres a lot of noise right now going on that side of the business and a lot of nostalgia regarding U S steel over years and years, but reality.

Speaker Change: The other question I think you asked was around our street strategy and again it's.

Speaker Change: Its framed up very simply is how do we create EMEA.

Jeff: Is.

Jeff: It's got nothing to do with the workers at USD, all the men and women who are making their products every day are working hard and doing the right things at the leadership that can invest to stay competitive and so what you see today versus 30, 40 50 years ago as a show of itself and again there are some assets that may be interested in again. Thank you.

Speaker Change: By providing a differentiated.

Speaker Change: <unk> makes it a higher value added mix.

Speaker Change: Graphic market, maybe we don't have as much leverage show the fastest growing and the largest she consuming region in the U S. As the Midwest and northeast and that is where our lowest market share of.

Speaker Change: Consumption is and so the west Virginia mill fits incredibly well suited.

Jeff: Fruition.

Jeff: But if you want to talk about icon companies over the last 60 years, It's nucor period full stop and we're going to continue to focus to grow our our company, we're going to continue to focus on maximizing shareholder value and in making our shareholders as much money as possible.

Speaker Change: Capability set of what's being built in West Virginia is going to enable us to make products and drive into some end markets.

Speaker Change: We've not done before and so we're really excited about those opportunities I think for another cost profile, that's going to be incredibly competitive in that region and so we're incredibly optimistic about the future of West, Virginia, and what that's going to mean for our shareholder base.

Jeff: The other question I think you asked was around our street strategy and again it's.

Jeff: Its framed up and very simply is how do we create EMEA.

Speaker Change: Okay.

Speaker Change: Alright, Thats very clear thank you.

Jeff: Providing a differentiated product makes it a higher value added mix.

Speaker Change: And my second question is just going back to the imports.

Jeff: Geographic market, maybe we don't have as much leverage so the fastest growing and the largest she consuming region in the U S. As the Midwest and northeast and that is where our lowest market share.

Speaker Change: So there is the ongoing review of section 232, and I would assume that youre in touch with the new administration on that.

Speaker Change: In your presentation, you mentioned determination of alternative arrangements can you elaborate on that and more specifically do you believe the quota deals we of.

Jeff: Consumption is in the West, Virginia mill fits incredibly well suited but the capability set of what's being built in west Virginia is going to enable us to make products and drive into some end markets.

Korea, Japan, Europe and Brazil.

Speaker Change: Need to be scrapped.

Jeff: We've not done before and so we're really excited about those opportunities I think we're gonna have a cost profile that is going to be incredibly competitive in that region and so we're incredibly optimistic about the future of west, Virginia, and what thats going to make for our shareholder base.

Yes, Chris.

Chris: I think it's a great question and it can be really clear as I answer. This I don't know, we havent been told and given the clear guideline what I would tell you. This.

Chris: And the macro comment of what we've talked to the administration about what we hear coming out what we ran in the memo last Monday.

Yes.

Jeff: Right.

Jeff: Alright.

Chris: The tariffs around steel and aluminum are going to be an American first.

Jeff: Very clear thank you.

Jeff: And my second question is just going back to the imports.

Chris: <unk> mindset and policy and so again my interpretation of that is that everything is going to be put back into the mix and I don't think there is.

Jeff: So there is the ongoing review of section 232, and I would assume that youre in touch with the new administration on that.

Chris: Any.

Jeff: In your presentation, you mentioned determination of alternative arrangements can you elaborate on that and more specifically do you believe the quota deals with <unk>.

Chris: Violators of tier twos or $2 32 that will not get re looked at again. So does that mean for sales of our core certainly Canada and Mexico, absolutely I think there is there going to be brought back into the mix.

Jeff: Arya, Japan, Europe and Brazil.

Chris: And again those are our personal views.

Jeff: Need to be scrapped.

Speaker Change: Yes, Chris I think it's a great question and to be really clear as I answer this.

Chris: Stating something that we've received.

Chris: Information from the White house signaling, what's going to be done the broad sweeping comments.

Speaker Change: No we haven't been told and given the clear guideline what I would tell you. This.

Chris: Again, it's going to be a create a level playing field and resurgence of manufacturing in America.

Speaker Change: And the macro comments of what we've talked to the administration about what we hear coming out well we ran in the memo writing last Mondays.

Speaker Change: Okay. That's very clear thank you and maybe just a quick follow up on plate.

Speaker Change: Tariffs around steel and aluminum are going to be an American first.

Speaker Change: Mindset and policy and so again my interpretation of that is that everything is going to be put back into the mix and I don't think there is any.

Speaker Change: You mentioned that the new towers facilities, Youre building and ramping up is going to consume some plate.

Speaker Change: How much.

Speaker Change: Do you believe too that would consume internally and how much could that help brand at birth.

Yeah.

Speaker Change: Violators of <unk> or $2 32 that will not get re looked at again, so does that mean, Brazil chorus, certainly, Canada and Mexico, absolutely I think there is youre going to be brought back into the mix.

Speaker Change: If it does and also on <unk>.

Speaker Change: On the wind situation are you looking at exports market at the moment could that be on that journey.

Speaker Change: I'll leave it there thank you.

Speaker Change: Yes Tristan.

Speaker Change: And again those are our personal views.

Tristan: Start with the last question Brandenburg was never build for simply the offshore wind market or waned at all or just all of energy.

Speaker Change: Stating something that we foresee inside information from the White house signaling, what's going to be done the broad sweeping comments.

Speaker Change: Brad mentioned, a few moments ago, and we're excited about the bridge markets the military application fee.

Speaker Change: Again, it's going to be a create a level playing field and resurgence of manufacturing in America.

Speaker Change: The product breadth and width and range of Brandon Burke is.

Speaker Change: Okay.

Speaker Change: That's very clear thank you and maybe just a quick follow up on plate I think you mentioned that the new towers facilities, Youre building and ramping up again to consume some plate how much.

Speaker Change: Really unrivaled in North America, so that poses in point puts us again at the epicenter of the nave said, we're going to continue to see and that plate market, you mentioned towers and structures and Thats. Another area as we think about M&A.

Speaker Change: Do you believe too that would consume internally and how much could that help brandenburg.

Speaker Change: Do we think about the mega trends that are happening in the United States right now energy wind data centers excuse me not wind energy data centers and transmission.

Speaker Change: If it does and also on <unk>.

Speaker Change: On the wind situation are you looking at exports market at the moment could that be on that journey.

Speaker Change: Thank you.

Speaker Change: The Gregory Heartening, well every one of those towers and structures is a unique engineered product and design by the specific utility. So there is no commodity it is all a value engineered product that we will have to start up this year break ground on our third and when we're in that position we will rival the top.

Speaker Change: Yes Tristan.

Speaker Change: Start with the last question Brandenburg was never built <unk> simply the offshore wind market at all or just all of energy.

Speaker Change: I had mentioned a few moments ago and we're excited about the branch markets the military application fee.

Speaker Change: Can the product breadth and width and range of Brandon Burke is.

Speaker Change: Towers and transmission companies out there so again that organic growth is.

Speaker Change: Really unrivaled in North America, so that poses in point puts us again.

Speaker Change: Credibly exciting for us.

Speaker Change: Don't have the exact finger on the exact tons of plate consumed by those three groups, but that's something we can follow back up and Jack can get you that information.

Speaker Change: At the center of the Nabe said, we're going to continue to see and that plate market, you mentioned towers and structures and Thats. Another area as we think about M&A.

I'll jump in this is Chad you should expect once we're fully up and running like Lee described with our new tower.

Speaker Change: Do we think about the mega trends that are happening in the United States right now energy wind data centers of excuse me not wind energy data centers and transmission.

Speaker Change: <unk> will be in excess of probably 130000 tons.

Speaker Change: Our playgroup strategically position.

Speaker Change: The Grand re heartening, well every one of those towers and structures is a unique engineered product and design by the specific utility. So there is no commodity it is all a value engineered product that we will have to start up this year break ground on our third and when we're in that position we will rival the top.

Speaker Change: <unk> plans to meet our needs. So we feel really good about the synergy Sir thanks Chad.

Speaker Change: Thanks, a lot.

Speaker Change: Thank you.

Speaker Change: And your next question comes from the line of Lawson Winder with Bank of America Securities. Please go ahead.

Speaker Change: Towers and transmission companies out there so again that organic growth is incredibly exciting for us.

Speaker Change: Yes.

Speaker Change: Yes, Thank you very much operator, and good morning, Liana and team.

Speaker Change: Don't have the exact finger on the exact tons of plate consumed by those three groups, but that's something we can follow back up and Jack can get you that information.

Speaker Change: Wanted to ask about the towers business. So at your last.

Speaker Change: Investor Day, you guys spoke to incremental EBITDA for towers at like $50 million.

Chad: I'll jump in this is Chad you should expect once we're fully up and running like Lee described with our new tower.

Speaker Change: With the recent investments announced there's been quite a few since the beginning of 'twenty four.

Speaker Change: How are you guys thinking about the incremental impact from that business now going forward.

Speaker Change: Facilities will be in excess of probably 130000 tons.

Speaker Change: Okay.

Chad: We are strategically positioned.

Speaker Change: Yes.

Speaker Change: Yes, I mean, very specifically Austin triple that so at least $150 million in EBITDA annually.

Chad: <unk> plans to meet our needs. So we feel really good about the synergy Sir thanks Chad.

Speaker Change: Again, we're excited about that market, we're excited about the opportunity and quite frankly, how those capex projects.

Chad: Thanks, a lot.

Chad: Thank you.

Speaker Change: And your next question comes from the line of Lawson Winder with Bank of America Securities. Please go ahead.

Speaker Change: Have been executed by our team.

Speaker Change: They are on track on budget and again just continue to.

Speaker Change: Doing an incredible job and look forward to competing in that market.

Chad: Yeah.

Chad: Okay.

Liana: Yes, Thank you very much operator, and good morning, Liana and team.

Speaker Change: John.

Speaker Change: Chad mentioned and this is a highly engineered product that.

Speaker Change: Wanted to ask about the towers business. So at your last.

We believe we bring an awful lot of value to the utilities and towers and structures consumers customers across the U S.

Speaker Change: Investor Day, you guys spoke to incremental EBITDA for towers at like $50 million.

Speaker Change: With the recent investments announced there's been quite a few since the beginning of 'twenty four.

Speaker Change: Liana.

Speaker Change: With that announcement that we made planned out west that's kind of give us a national footprint Austin.

Speaker Change: How are you guys thinking about the incremental impact from that business now going forward.

Speaker Change: Also these three plants, we build our best in class highly automated plant.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Yes, I mean, very specifically, los and triple that so at least $150 million in EBITDA annually.

Speaker Change: Cost reductions compared to traditional ways make it falls.

Speaker Change: Makes sense.

Speaker Change: Again, we're excited about that market, we're excited about the opportunity and quite frankly, how those capex projects.

Speaker Change: Well that's fantastic.

Speaker Change: We'd like to ask you about the rebar market, if I might to so with the recent confirmation of the new rebar facility in the Western U S.

Speaker Change: Have been executed by our team.

They are on track on budget and again just continue to.

Speaker Change: There is.

Speaker Change: There is some concern emerging and I guess the question would be is there some concern emerging within new core this market is heading to.

Speaker Change: Doing an incredible job and look forward to competing in that market.

Speaker Change: John.

Speaker Change: Chad mentioned and this is a highly engineered product that.

Speaker Change: A place of being oversupplied.

Speaker Change: We believe we bring an awful lot of value to the utilities and towers and structure as consumers and customers across the U S.

Speaker Change: If so is nucor reconsidering in any way its investment plans for the rebar business. Thanks very much.

Speaker Change: Yes, and I'll kick it off and then I'll ask Randy Spicer to.

Speaker Change: Liana.

Austin: With that announcement that we made was the plant out west that's going to give us a national footprint Austin.

Speaker Change: Sure a few more details of the overall rebar market, but I want to begin with the question about.

Austin: Also these three plants, we build our best in class highly automated plants with significant cost reductions compared to traditional ways make it falls pretty exciting.

Speaker Change: Now spend last year regarding the Pacific Northwest Mill, and what I would tell you is the diligence that continues to go on is not a resetting because again, we were worried about the market growth and where that's moving it's more.

Austin: Well that's fantastic.

Speaker Change: What I showed earlier about the execution of Nucor's capital outlay that we've got extended today and so.

Speaker Change: We'd like to ask you about the rebar market, if I might to so with the recent confirmation of the new rebar facility in the Western U S.

Speaker Change: The team in Seattle continues to do an incredible job.

Austin: There is.

Austin: There is some concern emerging and I guess the question would be is there some concern emerging within new core market is heading to play.

Speaker Change: Create incredible returns for our shareholders that market is one we know really well and so again, we get to be a little more disciplined in.

Austin: Place of being oversupplied and if so is nucor reconsidering in any way its investment plans for the rebar business. Thanks very much.

Speaker Change: Thoughtful about how and when we're going to execute that but that pause it's more.

Speaker Change: Round whats the right time in terms of our financial execution, rather than a a market.

Speaker Change: Yes, well I'll kick it off and then I'll ask Randy Spicer to share.

Speaker Change: Lori or we think that market might be shrinking or it's over saturated but for anyone who share a few details as well, thanks, Leon and loss and thank you for the question. We remain extremely excited about nucor's long product strategy.

Speaker Change: Sure a few more details of the overall rebar market, but I want to begin with the question about our announcement last year regarding the Pacific Northwest Mill and what I would tell you is the diligence that continues to go on is not a resetting because again, we were worried about the market growth and where that's moving it's more.

Speaker Change: The rebar market has evolved into a regional business. Thus we are focused on <unk>.

Speaker Change: What I showed earlier about the execution of Nucor's capital outlay that we've got extended today and so the.

Speaker Change: <unk> and.

Speaker Change: Large rebar consuming markets, where we have access to an abundant subscribe to feed these mills, putting us in a very favorable low cost position.

Speaker Change: The team in Seattle continues to do an incredible job.

Speaker Change: Create incredible returns for our shareholders that market is one we know really well so we get to be a little more disciplined and.

Speaker Change: Sure.

Speaker Change: We anticipate a majority of the new domestic supply will be absorbed by the sustained growth in rebar demand driven by continued infrastructure investment re shoring of manufacturing.

Speaker Change: Thoughtful about how and when we're going to execute that but that pause more.

Speaker Change: Round whats the right time in terms of our financial execution, rather than a a market.

Speaker Change: And the growth that's required to overcome the current housing shortage. Furthermore, in more of the supply will be absorbed as these domestic investments further displace unfairly traded imports with cleaner higher quality American made steel.

Randy Spicer: Okay, Randy great to hear from you, Thank you and nice.

Speaker Change: The rebar market has evolved into a regional business.

Speaker Change: Nice quarter guys. Thanks for the responses.

Speaker Change: We are focused on <unk>.

Randy Spicer: Thanks, Paul.

Michael Mills: Michael Mills.

Michael Mills: And large rebar consuming markets, where we have access to an abundant subscribe to feed these mills, putting us in a very favorable low cost position.

Speaker Change: And your next question comes from the line of Martin Engler with keyboard. Please go ahead.

Randy Spicer: Hello, Good morning, everyone.

Michael Mills: Sure.

Michael Mills: <unk>.

Randy Spicer: Sequential outlook for <unk> within the steel mill segment.

Michael Mills: We anticipate a majority of the new domestic supply will be absorbed by the sustained growth in rebar demand driven by continued infrastructure investment re shoring of manufacturing and the growth that's required to overcome the current housing shortage.

Randy Spicer: What's your underlying assumption for scrap raw materials costs quarter on quarter and what's your thoughts on February ferrous scrap move.

Randy Spicer: Yes look I think youre going to see that maybe go up slightly as we see an increase in demand backlogs order entry rates and again.

Michael Mills: Furthermore, and more of the supply will be absorbed as these domestic investments further displace unfairly traded imports with cleaner higher quality American made steel.

Randy Spicer: Maybe moving out a little bit of the noise of 2024.

Randy Spicer: Again, I think you can see that reflected in some some improvement in scrap pricing, but let me see that moderating into the quarter.

Michael Mills: Okay, Randy great to hear from you. Thank you.

Speaker Change: Nice quarter guys. Thanks for the responses.

Ross: Thanks Ross.

Randy Spicer: Finding footing here in the next few months.

Speaker Change: And your next question comes from the line of Martin Engler with Seaport. Please go ahead.

Randy Spicer: And then looking at the downstream volumes.

Randy Spicer: Specific products do you see sequential gains in <unk> versus <unk>.

Martin Engler: Hello, Good morning, everyone.

Speaker Change: Yes.

Speaker Change: Sequential outlook for <unk> within the steel mill segment, what's your underlying assumption for scrap raw materials costs quarter on quarter and what's your thoughts on February ferrous scrap move.

Randy Spicer: I am sorry, I missed that last part Martin what do we see in terms of I'm, sorry, I missed it.

Randy Spicer: Sure no worries.

Randy Spicer: Downstream products.

Randy Spicer: Volume gains quarter on quarter in <unk>.

Martin Engler: Yes, Marty look I think youre going to see that maybe go up slightly as we see an increase in demand backlogs order entry rates and again.

Randy Spicer: Pacific product lines, do you see increasing quarter on quarter.

Randy Spicer: So.

John Hall: Martin This is John Hall.

Martin Engler: Maybe moving out a little bit of the noise of 2024.

John Hall: I mentioned, our backlogs are up the biggest backlog.

Martin Engler: Again, I think you can see that reflected in some improvement in scrap pricing, but let me see that moderating into the quarter.

John Hall: The increase that we've seen is on the joist and deck side of the business.

John Hall: The rest of the downstream businesses will be very similar to what we've seen you will see some seasonality in there just because we cover.

Martin Engler: Finding finding some footing here in the next few months.

John Hall: National market as well as Canada I.

Martin Engler: And then looking at the downstream volumes.

John Hall: I think the biggest.

John Hall: The increase in backlog that we've seen that choice in that piece.

Martin Engler: Specific products do you see sequential gains in <unk> versus <unk>.

Speaker Change: Okay I appreciate the color and congratulations on the results.

Martin Engler: Im sorry, I missed that last part Martin what do we see in terms of I am sorry, I missed it sure.

John Hall: Yeah.

Thanks Mark.

Speaker Change: And we have a follow up question coming from the line of Timna Tanners with Wolfe Research. Please go ahead.

Martin Engler: Sure no worries.

Speaker Change: Downstream products.

Speaker Change: Volume gains quarter on quarter in <unk>.

Speaker Change: Yeah. Thanks, very much one more high level question. It just struck me yesterday, when President Trump said.

Speaker Change: <unk> product lines do you see increasing quarter on quarter.

Speaker Change: Do you want to start paying taxes attached you have to build your plant right here in America, I think that could apply for STL, because as you've probably seen there's there'll be ports at Hyundai scales looking to build and I think you probably could do the same thing as their bid is indeed scrapped for U S. Steel so any thoughts on foreign company is also building in the U S and what that.

Speaker Change: So.

Speaker Change: Martin This is John Hall is as I mentioned, our backlogs are up the biggest backlog.

Speaker Change: Increase that we've seen is on the joist and deck side of the business.

Speaker Change: The rest of the downstream businesses will be very similar to what we've seen you will see some seasonality in there just because we cover.

It can mean for the industry in the next couple of years.

Speaker Change: <unk> market as well as Canada.

Speaker Change: Yes.

Speaker Change: I think the biggest.

Speaker Change: Question <unk>.

Speaker Change: Increase in backlog that we've seen that choice in factories.

Speaker Change: We've heard the same rumors.

Speaker Change: Here's what I would tell you that.

Speaker Change: Okay appreciate the color and congratulations on the results.

Speaker Change: The basketball always win and so if you are the safest lowest cost highest quality and provide a differentiated.

Speaker Change: Yeah.

Speaker Change: Thanks Mark.

Speaker Change: And we have a follow up question coming from the line of Timna Tanners with Wolfe Research. Please go ahead.

Speaker Change: Products Youre going to win so again Nucor has had a long track record as you will know timna of waiting and so we've seen in the long products.

Speaker Change: Yeah. Thanks, very much one more high level question. It just struck me yesterday when President Trump said, if you want to start paying taxes or perhaps you have to build your plant right here in America, I think that could apply for STL, because as you've probably seen there should be ports at Hyundai scales looking to build and I think Nippon could do the same thing as <unk>.

Speaker Change: From the integrator and to the Eas again sound flat in both sheet and plate will continue to grow but.

Speaker Change: Again, there is not a.

Speaker Change: Okay.

Speaker Change: Our strategy is fix we're going to continue to make the investments. We believe are going to be best for our customers and our shareholders.

Speaker Change: Good.

Speaker Change: Scrap for U S steel so any thoughts on foreign company is also building in the U S and what that could mean for the industry in the next couple of years.

Speaker Change: Again, not going to shy away from any competition, but again, we'll see how that plays out in the coming years.

Eric: Yes, Eric.

Speaker Change: <unk>.

Speaker Change: We've heard the same rumors.

Speaker Change: Okay. Thanks, again, and maybe I'll just add.

Speaker Change: Here's what I would tell you that.

Okay.

Speaker Change: Maybe just add one nuance on the sheet side of that because we get a lot of questions about the capacity.

Speaker Change: The basketball always win and so if you are the safest lowest cost highest quality and provide a differentiated product.

Speaker Change: Especially around Honda.

Speaker Change: One thing to be.

Speaker Change: Product youre going to win so again nucor's had a long track record as you will know timna of waiting and so we've seen in the long products.

Speaker Change: Thoughtful up is it really substantiates the shift we're seeing in automotive demand.

Speaker Change: Yes supply and while the new capacity.

Speaker Change: Balancing in the near term, we expect in the longer term, we end with a healthier operating environment, we have more opportunities.

Speaker Change: From the integrator and to the Eas again sound flats, both sheet and plate will continue to grow but.

Speaker Change: For page sheet demand with our mill and even the new mills there. Thanks, so much.

Speaker Change: Again, there is not a.

Speaker Change: Okay.

Speaker Change: Got it thanks again.

Speaker Change: Our strategy to fix we're going to continue to make the investments. We believe are going to be best for our customers and our shareholders.

Speaker Change: Thanks Timna.

Speaker Change: Yeah.

Speaker Change: Thank you that is all the time, we have for questions I would like to turn it back to Paul.

Speaker Change: Again, not going to shy away from any competition, but again, we'll see how that plays out in the coming years.

Paul: With that thank you.

Speaker Change: Our closing remarks.

Speaker Change: Okay.

Speaker Change: And thank you for joining us for today's call and for your questions about our company's performance and feel great about our position in the steel industry, given our strong balance sheet broad product portfolio. We look forward to the year ahead and the opportunities we have before us to continue to thank our teammates to the amazing results that we achieved in 2024.

Speaker Change: Okay. Thanks, again, and maybe I'll just add.

Speaker Change: Okay.

Speaker Change: Maybe just add one nuance on the sheet side of that because we get a lot of questions about the capacity.

Speaker Change: Especially around Honda.

Speaker Change: One thing to be.

Speaker Change: Thoughtful or is it really substantiates the shift we're seeing in automotive demand.

Speaker Change: Yes supply and while the new capacity.

Speaker Change: We're going to achieve together in 2025, thank you to our customers.

Speaker Change: Balancing in the near term, we expect in the longer term, we end with the healthier operating environment, we have more opportunities.

Speaker Change: Your trust in US with every order that you gave us the shareholders that trust us with a valuable shareholder capital. Thank you have a great day.

Speaker Change: Okay.

Speaker Change: <unk> demand with our mill and even the new mills there. Thank you Mitch.

Speaker Change: Thank you presenters, ladies and gentlemen. This concludes today's conference call. Thank you all for participating you may now.

Ken: Got it thanks, Ken.

Speaker Change: Thanks Timna.

Ken: Yeah.

Speaker Change: Thank you that is all the time, we have for questions I would like to turn it back to Leon Topalian.

Leon Topalian: President and CEO for closing remarks.

Speaker Change: Okay.

Speaker Change: And thank you for joining us for today's call and for your questions about our company's performance, we feel great about our position in the steel industry, given our strong balance sheet broad product portfolio. We look forward to the year ahead and the opportunities we have before us.

Speaker Change: Continue to thank our teammates for their amazing results that we achieved in 2020 for what we're going to achieve together in 2025, Thank you to our customers.

Speaker Change: Place for your trust in US with every order that you gave us the shareholders that trust us with a valuable shareholder capital. Thank you have a great day.

Speaker Change: Thank you presenters, ladies and gentlemen. This concludes today's conference call. Thank you all for participating you may now disconnect.

Speaker Change: Yes.

Sure.

Speaker Change: Yeah.

Q4 2024 Nucor Corp Earnings Call

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