Q2 2025 Nucor Corp Earnings Call

Unknown Executive: Welcome to Nucor's second quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise, and today's call is being recorded.

Good morning and welcome to New course second quarter, 2025 earnings call.

Unknown Executive: After the speaker has prepared remarks, I will provide instructions for callers wishing to ask any questions.

Jack Sullivan: I'd now like to introduce Jack Sullivan, Vice President, Treasurer, and General Manager of Investor Relations to begin your call. Thank you and good morning everyone. Welcome to Nucor's second quarter earnings review and business.

Hold on some place on mute to prevent any background noise. And today's call is being recorded after the speakers have had remarks. I'll provide instructions for callers, wishing to ask, any questions? And I'm about to introduce Jack. Sullivan, vice president Treasurer and general manager of investor relations to begin your call.

Jack Sullivan: Leading our call today is Leon Topalian, Chair, President, and CEO, along with Steve Laxton, 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.

Thank you and good morning, everyone. Welcome to the new course, second quarter earnings review and business update. Leading our call today is Leon Topalian, Chair, President, and CEO, along with Stephen Laxton, Executive Vice President and CFO.

Jack Sullivan: Yesterday, we posted our second 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 Today's discussion will include the use of non-GAAP financial measures and forward-looking information within the meaning of securities.

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

Yesterday we posted our second quarter earnings release and investor presentation to new cores IR website.

We encourage you to access these materials, as we will cover portions of them during the call.

Jack Sullivan: Actual results may be different than forward-looking statements and involve risks outlined in our Safe Harbor Statement and disclosed in Nucor's SEC file. The appendix of today's presentation includes supplemental information and disclosures, along with a reconciliation of non-GAAP financial measures.

Today's discussion will include the use of non-gaap financial measures and forward-looking information within the meaning of Securities laws.

Actual results may be different than forward-looking statements and involve risks outlined in our Safe. Harbor statement and disclosed in new cores SEC filings.

Leon Topalian: So with that, let's turn the call over to Leon. Thanks, Jack. Now I want to begin by thanking our 33,000 Nucor teammates for delivering a solid quarter, both in terms of financial results and our safety performance. Amid all the uncertainty and distractions, you have remained focused on executing our growth strategy and creating value for our shareholders, customers, and communities. And you did it all while setting another all-time safety record for the first half of any year. Thank you for your vigilance and focus and never losing sight of our most important value. Let's continue to carry that momentum into the back half of the year.

The appendix of today's presentation, includes supplemental information and disclosures along with a Reconciliation of non-gaap financial measures.

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

Thanks, Jack. Now, I want to begin by thanking our 33,000, new court teammates for delivering a solid quarter both in terms of financial results and our safety performance amid, all the uncertainty and distractions, you have remained focused on executing our growth strategy and creating value for our shareholders customers and communities. And you did it all while setting, another all-time safety record for the first half of any year.

Leon Topalian: To recap some of the second quarter financials, Nucor generated EBITDA of approximately $1.3 billion and earned $2.60 per diluted share. This represents a significant improvement over our first quarter results, driven by higher average selling prices in our steel mill segment and stable realized pricing in higher volumes in our steel product segment. During the quarter, we returned $329 million to Nucor shareholders through dividends and buybacks, bringing our total capital return to shareholders for the first half of the year to $758 million. Capital expenditures for the quarter totaled $954 million, and we remain on track to deploy approximately $3 billion in CapEx for the year.

Thank you for your vigilance and focus and never losing sight of our most important value. Let's continue to carry that momentum into the back half of the year.

Did ibida of approximately 1.3 billion and earned $2.60 per diluted share.

This represents a significant improvement over our first quarter results, driven by higher average selling prices in our steel mill segment and stable realized pricing and higher volumes and our steel product. Segments. During the quarter, we returned 329 million dollars to new course, shareholders through dividends and BuyBacks bringing, our total Capital return to shareholders for the first half of the year to 758 million.

Leon Topalian: Our team continues to execute well, and I'd like to highlight just a few of our accomplishments for the quarter. Production levels and shipments at our Brandenburg plate mill trended higher for a sixth consecutive quarter. Shipments in June reached another record, helping Brandenburg achieve positive EBITDA for the quarter. Meanwhile, Brandenburg's product development team continues to strengthen its market position with key customers for complex grades of steel plate that we've not been able to produce prior. I'd also like to recognize our entire sheet making group for shipping nearly 3.1 million tons during the second quarter, marking the second consecutive quarter where the sheet group has set a new shipment record.

Capital expenditures for the quarter totaled 954 million and we remain on track to deploy approximately 3 billion in capex for the year.

Our team continues to execute well and I'd like to highlight just a few of our accomplishments for the quarter.

Production levels and shipments at Brandenburg Plate Mill trended higher for a sixth consecutive quarter. Shipments in June reached another record, helping Brandenburg achieve positive EBITDA for the quarter. Meanwhile, Brandenburg's product development team continues to strengthen its market position with key customers for complex grades of steel plate that we have not been able to produce prior.

Leon Topalian: In particular, I'd like to congratulate our team at Gallatin Sheet Mill in Kentucky for setting a new monthly shipping record during the quarter. On our first quarter earnings call, I mentioned our structural steel backlog reaching historically high levels, and that set us up nicely for strong shipments in the second quarter. Nucor's beam team delivered, shipping over 630,000 tons and generating the highest quarterly earnings for this business since 2022, and the fourth highest of all time.

I'd also like to recognize our entire sheet making group for shipping nearly 3.1 million tons during the second quarter marking the second consecutive quarter where the sheet group has set a new shipment record in particular. I'd like to congratulate our team at Gallatin sheet Mill in Kentucky for setting a new monthly shipping record during the quarter.

On our first quarter earnings call, I mentioned our structural steel backlog, reaching historically, high levels, and that set us up nicely for strong shipments in the second quarter.

Leon Topalian: On the growth front, our construction teams continue to make great progress as we near completion of several important capital projects. A rebar micromill in Lexington, North Carolina, recently rolled its first heat and is now in the early stages of ramping up production. And the team in Kingman, Arizona, has successfully melted, cast, and rolled several heats out of its new melt shop, and it will be ramping up production throughout the third quarter. For Nucor towers and structures, pole production and galvanizing operations in Alabama are set to begin by September, with customer shipments beginning in the fourth quarter.

Nucor's Beam Team delivered shipping over 630,000 tons, generating the highest quarterly earnings for this business since 2022 and the fourth highest of all time.

On the growth front, our construction teams continue to make great progress. As we near completion of several important capital projects, a rebar micro mill in Lexington, North Carolina, recently rolled its first heat. It is now in the early stages of ramping up production.

and the team in Kingman Arizona has successfully melted cast enrolled. Several Heats out of its new Melt Shop and it will be ramping up production throughout the third quarter.

Leon Topalian: Our Indiana Greenfield project is set to commence full operations by the spring of 2026, with customer shipments beginning in the second quarter. Within sheet, we remain on schedule to complete our coding complex in Crawfordsville, Indiana, by the end of 2025, and our galvanizing line in Berkeley, South Carolina, by the middle of 2026, and the construction of our new West Virginia sheet mill is nearly 60% complete and remains on track for completion by the end of 2026. The key driver of our quarterly results came from the strong performance of our steel products group. We have grown this business to become the broadest and most diverse portfolio of downstream steel products in North America, allowing Nucor to offer a wide variety of solutions for our customers.

For new core towers and structures pole production. In galvanizing operations. In Alabama, are set to begin by September with customer shipments beginning in the fourth quarter.

Our Indiana Greenfield project is set to commence full operations by the spring of 2026 with customer shipments beginning in the second quarter.

Within sheet, we remain on schedule to complete our coding complex in Crawfordville. Indiana by the end of 2025 and our galvanizing line in Berkeley South Carolina by the middle of 2026. In the construction of our new West Virginia sheet Mill, is nearly 60% complete and remains on track for completion by the end of 2026.

A key driver of our quarterly results came from the strong performance of her steel products group.

Leon Topalian: For the entire segment, second quarter pre-tax earnings were $392 million, a 28% increase over the adjusted results of the previous quarter. In fact, pre-tax earnings for each of the main product groups comprising this segment were in line with or above Q1 levels. On an LTM basis, the steel product segment accounted for 45% of Nucor's total pre-tax segment earnings, with EBITDA margins of approximately 16%. Both of these metrics remain significantly higher than their respective pre-pandemic averages. Tariff policy continues to evolve, but has been positive for the steel industry overall. We support the administration's recent actions to strengthen the Section 232 program by increasing the tariffs to 50 percent.

We have grown this business to become the broadest and most diverse portfolio of downstream steel products in North America, allowing New Core to offer a wide variety of solutions for our customers.

For the entire segment. Second quarter pre-tax earnings were 392 million a 28% increase over the adjusted results of the previous quarter. In fact, pre-tax earnings for each of the main product groups. Comprising, the segments were in line with or above q1 levels.

on an LTM basis, the steel product segment accounted for 45%

Of new course, total pre-tax segment earrings with ibida margins of approximately 16%.

Both of these metrics remain significantly higher than their respective pre-pandemic averages. Tariff policy continues to evolve, but has been positive for the steel industry overall.

Leon Topalian: We also applaud the Commerce Department's decision earlier this year to expand the review of steel derivative products covered by the Section 232 tariffs and for implementing a transparent inclusions process. These steps will help to curb the volume of unfairly traded imports and protect our national security. However, dumped and subsidized imports continue to persist, and the vigorous enforcement of our trade laws is needed now more than ever. Nucor and other domestic producers have been injured by elevated levels of unfairly traded, corrosion-resistant imports in recent years, and filed trade positions on core imports from 10 countries last September.

We support the administration's recent actions to strengthen the Section 232 program by increasing the tariffs to 50%.

We also applaud the Commerce Department's decision earlier this year, to expand the review of Steel. Derivative products covered by the section 232 tariffs. And for implementing a transparent inclusion process. These steps will help to curb the volume of unfairly traded Imports and protect our national security.

However, dumped and subsidized Imports. Continue to persist in the vigorous enforcement of our trade laws is needed now more than ever,

Leon Topalian: Nucor is pleased with the preliminary determinations from the U.S. Commerce Department and U.S. International Trade Commission in these investigations, and we anticipate affirmative final determinations from both agencies later this summer and fall. The Commerce Department and ITC have also initiated investigations into rebar imports from four countries, with the ITC issuing an affirmative preliminary injury determination earlier this month. Affirmative determinations in these cases and other trade proceedings are critical to ensuring a level playing field for the steel industry in America. We are optimistic that the administration's vigorous enforcement of our trade laws and the strengthened Section 232 program will result in a sustained reduction of imports into our market.

Have been injured by elevated levels of unfairly traded corrosion resistant Imports in recent years and file trade positions on core imports. From 10 countries last September.

New core is pleased with a preliminary determination from the US Commerce department and US International Trade Commission and these investigations. And we anticipate affirmative final determinations from both agencies later this summer and fall.

the Commerce Department in ITC of also initiated investigations into rebar imports from 4 countries with the ITC issuing an affirmative preliminary injury determination earlier this month

Affirmative determinations in these cases and other trade proceedings are critical to ensuring a Level Playing Field for the steel industry in America.

Leon Topalian: We're also monitoring the evolving country-specific tariff negotiations and their impact on raw material costs. Nucor's raw material supply chain is advantaged by having a broader set of capabilities than any other steel producer in North America. That diversity, along with our world-class sourcing and logistics teams, give us flexibility to source raw materials in a way that optimizes our cost structure and adapt to this highly dynamic situation.

We are optimistic that the administration's vigorous enforcement of our trade laws and the strengthened section, 232 program will result in a sustained reduction of imports into our Market. We're also monitoring the evolving country specific tariff negotiations, and their impact on raw material costs, new cores raw material. Supply chain is Advantage by having a broader set of capabilities than any other steel producer in North America that diversity along with our world-class sourcing and Logistics teams. Give us flexibility to Source raw materials in a way that optimizes our cost structure and adapt to this highly dynamic system.

Leon Topalian: Beyond trade policy, we were pleased to see the tax provisions and manufacturing incentives contained in the new legislation signed into law earlier this month. We expect the bill will lead to further economic growth and boost our competitiveness as a nation. It will unleash new investments in steel intensive projects and promote the restoring of vital manufacturing while enhancing our national security. and as North America's largest and most capable steel products company, Nucor is incredibly well positioned to support this growth.

Situation.

Beyond trade policy, we were pleased to see the tax provisions in manufacturing incentives contained in the new legislation signed into law earlier this month.

We expect the bill will lead to further economic growth and boost our competitiveness as a nation. It will unleash new investments in steel, intense projects, and promote the restoration of vital manufacturing while enhancing our national security.

Stephen Laxton: With that, let me turn it over to Steve, who will share additional details about our second quarter performance, the current demand environment for steel, and our outlook for the third quarter. Thank you, Leon, and thank you all for joining us on the call today. During the second quarter, Nucor generated net earnings of $603 million, or $2.60 a share, right at the midpoint of our earnings guidance. This represents a substantial improvement over the prior quarter adjusted earnings per share of $0.77, and is similar to the reported $2.68 earnings per share during the second quarter of last year.

And is North America's largest and most capable steel Products Company. New cor is incredibly well, positioned to support this growth.

With that, let me turn it over to Steve, who will share additional details about our second quarter performance. The current demand environment for steel and our outlook for the third quarter, Steve

Thank You, Leon and thank you all for joining us on the call this morning. During the second quarter, new core. Generated net earnings of 603 million or $2.60 a share right at the midpoint of our earnings guidance range,

Stephen Laxton: Year-to-date, Nucor's adjusted earnings. $782 million or $3.37 a share. Our second quarter results included pre-operating and startup costs of approximately $136 million or $0.45 per share. This is down $34 million compared to the prior quarter and in line with the prior year's second quarter. Turning to the segment-level results for the quarter, the steel mill segment generated $843 million of pre-tax earnings, more than triple that of the prior quarter. Higher average selling prices, particularly in our sheet and plate operations, were the largest drivers of the change in profitability. Total volume for the steel mill segment was in line with prior quarter, as increases in sheet, plate, and beam shipments were offset by lower bar We continue to see solid and steady booking rates, and our steel mills backlog at the end of the second quarter was up nearly 30% over this time last year.

This represents a substantial improvement, over the prior quarter adjusted, earnings per share of 77 cents is and a similar to the reported $2.68 earnings per share during the second quarter of last year.

Year to date. New quartz adjusted earnings.

Were 782 million or 3.37 cents a share, our second quarter results, included pre-operating, in startup cost of approximately 136 million or 45 cents per share. This is down 34 million compared to the prior quarter, and in line with the prior year, second quarter.

Turning to the segment-level results for the quarter, the steel mill segment generated $843 million of pre-tax earnings, more than triple that of the prior quarter.

Higher average selling prices, particularly in our sheet and plate operations, were the largest drivers of the change in profitability.

Stephen Laxton: To comment briefly on the pricing environment, we would describe it as broadly stable. Our published consumer spot price for HRC has been within 5% band of either side of $900 a ton for the past 16 weeks. During this period, we shipped record sheet volumes, and our sheet backlog at the end of the second quarter was 15% higher than the same time last year. Ask for Rebar and MBQ products. We've recently announced price increases that take our average selling price for both products above the respective 13 and 52 week average. We continue to see healthy overall demand for long products, and we expect lower rebar imports during the second half of the year.

Total volume for the steel mill segment was in line with prior quarter, as increases in sheet plate in BeamNG. Shipments were offset by lower bar shipments. We continue to see solid and steady booking rates and our steel mills backlog. At the end of the second quarter was up nearly 30% over this time last year.

To comment briefly on the pricing environment. We would describe it as broadly stable.

Our public consumer spot price for HRC has been within a 5% band on either side of $900 a ton for the past 16 weeks.

During this period, we shipped record sheet, volumes and our sheet backlog at the end of the second quarter was 15% higher than the same time last year.

As for rebar and MBQ products.

Stephen Laxton: Turning to steel products, as Leon mentioned earlier, we saw another strong performance in this segment. During the second quarter, steel products generated pre-tax earnings of $392 million, up 28% over the prior quarter's adjusted base. Results were driven by stable realized pricing and higher volumes, leading to our best earnings quarter for this segment since the second quarter of 2024. Similar to steel mills, our backlog levels for the steel product segment remain healthy, up approximately 20% from a year ago and extending into 2026 for some products. We continue to see strong demand as evidenced by robust quoting activity and believe this reflects improved business confidence among our customers servicing the construction and infrastructure markets.

We've recently announced price increases that. Take our average selling price for both products above the respective 13 and 52 week. Averages, we continue to see healthy overall demand for long products and we expect lower rebar Imports. During the second half of the year.

Turning to steel products, as Leon mentioned earlier.

We saw another strong performance in this segment during the second quarter. Steel products generated pre-tax earnings of $392 million, an increase of 28% over the prior quarter's adjusted basis.

Results were driven by stable realized pricing and higher volumes, leading to our best earnings quarter for this segment since the second quarter of 2024.

% from a year ago and extending into 2026 for some products.

Stephen Laxton: In Joyston Deck, we're now seeing pricing for new orders at levels that are approaching our average backlog pricing. As a result, prices and margins in this business are expected to stabilize above pre-pandemic levels by end of the year.

We continue to see strong demand as evidenced by robust quoting activity and believe this reflects improved business confidence. Among our customers servicing the construction and infrastructure markets.

In joist and deck, we are now seeing pricing for new orders at levels that are approaching our average backlog pricing. As a result, prices and margins in this business are expected to stabilize above pre-pandemic levels by the end of the year.

Stephen Laxton: Turning to raw material segment. We realized pre-tax earnings of approximately $57 million for the quarter, an increase of approximately 95% over the first quarter. Results were in line with expectations with stable volumes in pricing and lower operating expenses.

Turning to raw material segment.

We realize pre-tax earnings have approximately 57 million for the quarter and increase of approximately 95% over the first quarter.

Results were in line with expectations, with stable volumes and pricing, and lower operating expenses.

Stephen Laxton: Moving to the balance sheet, Nucor remains committed to maintaining a strong investment-grade credit profile. Nucor's credit ratings are the highest of any North American steel producer, and we have long believed that our financial strength is a competitive advantage, allowing us to execute our strategy through various phases of the economic cycle. During the quarter, we retired $1 billion in long-term debt with proceeds from our senior notes issued in March. We ended the second quarter with a total debt-to-capital ratio of approximately 24% in cash of approximately $2.5 billion. Our next substantial maturity is not until 2027, and more than 80% of our long-term debt maturities are after 2030.

Moving to the balance sheet, Nucor remains committed to maintaining a strong investment-grade credit profile. Nucor's credit ratings are the highest of any North American steel producer. We have long believed that our financial strength is a competitive advantage, allowing us to execute our strategy through various phases of the economic cycle.

During the quarter, we retired, 1 billion dollars in long-term debt with proceeds from our senior notes issued in March.

We entered the second quarter with a total debt to Capital ratio of approximately 24% in cash of approximately 2 and a half billion dollars.

Stephen Laxton: In addition to maintaining a strong balance sheet, a cornerstone of Nucor's capital allocation framework is to provide a meaningful direct return to shareholders. During the second quarter, we returned $329 million to shareholders in the form of dividends and share repurchase. When combined with the first quarter, we've returned $758 million of cash to shareholders, representing nearly 100% of Nucor's year-to-date net earnings. During this same period, we've repurchased approximately 4 million shares at a weighted average value of approximately $124 a share.

Our next substantial maturity is not until 2027, and more than 80% of our long-term debt maturities are after 2030.

In addition to maintaining a strong balance sheet, a Cornerstone of new quartz Capital, allocation framework, is to provide a meaningful direct return to shareholders.

During the second quarter, we returned 329 million to shareholders, in the form of dividends and share repurchases.

When the first quarter we've returned, 758 million of cash. To shareholders representing nearly 100% of new course year-to-date net earnings.

During this same period, we've repurchased, approximately 4 million shares at a weighted average value of approximately 124 dollars a share.

Stephen Laxton: Leon covered some of the factors impacting our markets, but now I'd like to touch on four of the larger macro themes that are driving demand. First, technology and advanced manufacturing. Since the passage of the CHIPS Act in 2022, we've seen announcements of over 90 technology and advanced manufacturing projects, totaling over $450 billion in private investment. And that momentum has accelerated in 2025. These projects take time to move from announcement to construction, but we're seeing increased bidding and new order activity. We're currently supplying steel to eight large semiconductor facilities now under construction, which all require beam, rebar, joist and deck, and other downstream products.

Leon covered some of the factors impacting our markets. But now I'd like to touch on four of the larger macro themes that are driving demand.

First, technology and advanced manufacturing. Since the passage of the CHIPS Act in 2022, we've seen announcements of over 90 technology and advanced manufacturing projects totaling over $450 billion in private investments.

And that momentum is accelerated in 2025.

These projects take time to move from announcement to construction, but we're seeing increased bidding in New Order activity.

Stephen Laxton: Second, infrastructure demand remains strong, driven by funds allocated and now flowing to projects under the IIJA. We've seen notable increases in public transit, highway, bridge and tunnel contract awards, and our bar and plate teams are responding to this demand. Nucor's bar shipments were 13% higher in the first half of the year, while Nucor's plate shipments to the bridge market hit a record in the second quarter and rose 35% for the first half of 2025. We also anticipate higher steel tube demand later this year as contracts progress for unfinished sections of the border wall.

We're currently supplying steel to 8, large semiconductor facilities. Now under construction, which all require beam rebar, joist and deck, and other Downstream products.

Second infrastructure demand remains strong, driven by funds allocated and now flowing to projects under the IIJA.

We've seen notable increase in public transit highway bridge and tunnel contract Awards. And our bar and plate teams are responding to this demand. New course, bar shipments were 13% higher in the first half of the Year. While new course, plate, shipments to the bridge Market, hit a record in the second quarter and Rose, 35% for the first half of 2025.

We also anticipate higher steel tube demand later. This year as contracts progress for unfinished sections of the border wall.

Stephen Laxton: Third, energy. In the energy sector, Nucor is seeing exceptional growth in power transmission, with the first half shipments to this market up 88% year-over-year. We've also seen significant increases in steel shipments related to solar and onshore wind projects, and the recently enacted tax policy will likely lead to some incremental pull-ahead tons over the coming year. Additionally, our Brandenburg facility has been certified to supply line pipe for both LNG and oil pipeline projects, opening up new opportunities in this expanding market.

Third energy, in the energy sector. New cores. Seen exceptional growth in power transmission. With the first half shipments to this market up 88% year-over-year. We've also seen significant increases in steel shipments related to solar and onshore wind projects. And the recently enacted tax policy will likely lead to some incremental. Pull ahead, tons over the coming year. Additionally our brandenberg facility has been certified to supply line pipe for both LG and oil pipeline projects opening up new

Opportunities in this expanding Market.

Stephen Laxton: Last but not least, data centers. Construction in this market remains particularly strong. According to the Dodge Construction Network, spending from construction starts is projected to grow 18% this year and an additional 26% in 2026. Our beam orders for this segment have increased significantly and serve as a precursor to incremental demand for a variety of downstream products that Nucor supplies. We expect these growing market segments will continue to drive demand for steel and steel products for the foreseeable future.

Last but not least, data centers.

Construction of this Market remains particularly strong.

According to a Dodge construction Network spending from construction, starts is projected to grow 18% this year and an additional 26% in 2026.

Our beam orders for this segment have increased significantly and serve as a precursor to incremental demand for a variety of Downstream products that new core supplies. We expect these growing market. Segments, will continue to drive demand for steel and steel products for the foreseeable future.

Stephen Laxton: Turning to the third quarter outlook, we expect Nucor's consolidated earnings to be nominally lower than in the second quarter. In the steel mill segment, despite resilient backlogs and stable demand, we expect modest margin compression compared to the second quarter. In both the steel products and raw material segments, earnings are expected to be similar to the second quarter. For steel products, we expect slightly lower profitability in tubular and joist and deck offset by improved performance and other business. As we look ahead to the second half of 2025, our expectation is that domestic steel demand will be higher than it was in the second half of 2024, and with the broadest range of capabilities in the North American steel market.

Turning to the third quarter Outlook, we expect new cores Consolidated earnings to be nominally lower than in the second quarter.

In the steel mill. Segment despite resilient backlogs and stable demand we expect modest margin compression compared to the second quarter.

In raw material segments, earnings are expected to be similar to the second quarter for Stihl products. We expect slightly lower profitability in tubular and joist and deck, offset by improved performance in other business lines.

Stephen Laxton: We are confident in our ability to create value for our customers and shareholders as we capture a healthy share of that demand.

As we look ahead to the second half of 2025, our expectation is that domestic steel demand will be higher than it was in the second half of 2024, with the broadest range of capabilities in the North American steel market.

Unknown Executive: And with that, we'd like to hear from you and answer any questions you may have. Operator, please open the line for questions. Thank you very much. We now have open lines for Q&A. If you'd like to ask a question, please signal by pressing star followed by 1 on your telephone keypad now. And if you'd like to remove yourself without questioning, it will be star followed by 2. As a reminder to raise a question, we'll be staffed followed by one.

We are confident in our ability to create value for our customers and shareholders as we capture a healthy share of that demand.

And with that, we'd like to hear from you and answer any questions you may have. Operator, please open the line for questions.

Thank you very much. We know it's open line for Q&A. If you'd like to ask a question, please signal by pressing star, followed by 1 or to the fan keypad now. And if you'd like to remove yourself without any questioning will be stuffed by 2.

Bill Peterson: Our first question comes from Bill Peterson from JP Morgan. Bill, your line is now open. Good morning. Thanks for taking my question. On steel products, you mentioned the margin compression. Can you break that down for us? Is that a statement of higher input cost? I guess, how should we think about pricing directionally?

As a reminder to raise a question, we'll be star followed by 1. Our first question comes from Bill Peterson, JP Morgan Bill. The Line is now open.

Good morning and thanks for taking my question. Um, I'm still products. You mentioned the margin compression?

Bill Peterson: You know, kind of flattish on a blended basis from the second to the third quarter, trying to get a sense before the margin expands in the fourth quarter on how we should think about the puts and takes.

Can you break that down for us? Is that a statement of higher input cost, I guess? How should we think about pricing directionally? I, you know, kind of flat on the blended basis.

From the second to the third quarter. Um, trying to get a sense before the margin expands in the fourth quarter on on how we should think about the puts and takes.

Leon Topalian: Yeah, Bill, let me kick it off, and then maybe I'll ask John Hollatz, our EVP over that group, to touch on a few things.

Leon Topalian: But I want to begin with thanking the men and women of the Nucor family. This is the safest start to the first half of any year in the history of our company, and I couldn't be more proud of how our team continues to generate and take care of one another and our most important value. Every metric, every result that we will talk about today and moving on are generated through those team members. And again, to see that value exemplified as the safest first half of any year is an incredible, incredible achievement. So thank you for that.

Yeah, Bill. Let me, uh, take it off, and then maybe I'll ask John Holland, our EVP over that group, to touch on a few things. But I want to begin by thanking the men and women of the new Nucor family. This is the safest start to the first half of any year in the history of our company, and I couldn't be more proud of.

Leon Topalian: The second, you know, to your question specifically, Bill, look, it's a great question. And, you know, we were talking earlier this morning before we got on the call, if we think about the resiliency of non-res construction and the construction market in general, that took off really post-COVID, and it has remained robust for a long period of time, and we anticipate that remaining robust. Twenty-four was not a particularly great year, but as we look at the strength of their backlog, you're pushing six to nine months out. So really what the nominal adjustment that we see in pricing isn't because the demand drivers are weak, it's the lag effect that many of those orders were taken in late Q4, early Q1 of this year are now being realized and sold under that, under those pricing.

Our team continues to generate and take care of 1, another in our most important value, every metric, every result that we will talk about today and moving on our generated, through those team members and again to see that value exemplified as the safest, first half of any Year's uh is an incredible, incredible achievement. So thank you for that the second um you know to your question specifically bill look it it's a great question and and you know, we're talking earlier this morning before we got on the call. If we think about the resiliency of non-res, construction of the construction Market in general, that took off really postco and it has remained robust for a long period of time. And we anticipate that remaining robust 24 was not particularly great year. Um, and but as we look at the strength of their backlog, if you're pushing 6 to 9 months out, so really what the nominal adjustments

John Hollatz: And so in fact, we've just recently announced a price increase last week. So again, the demand drivers for this segment are really robust, and we expect them to remain that way again throughout the rest of this year, and quite frankly, beyond. And so again, it's an incredibly important, strong contributor to our business segment. We're proud of all the groups that make up that family. But again, as we move forward, we see strength in that market.

John Hollatz: Yeah, Bill, this is John Hollatz. Again, it's very normal for us to have margin expansion and contraction as we have movements and steel prices. Steve pointed to the joist and deck market and what we expect out of that in the second half of the year. You got to remember we have a dozen different businesses in our downstream portfolio. Some of those backlogs are nine months out, so we have good visibility as to what those margins would look like. Some of those backlogs Yeah, thanks for that. And also thanks for highlighting the safety performance, strong results on that.

That we see in pricing isn't because the demand drivers are weak. It's the lag effect that many of those orders were taken in the aq4 early, q1 of this year are now being realized and, and sold under that, um, under those pricing. And so, in fact, we've just recently announced a price increase last week. So again, the demand drivers for this segment are really, uh, robust and we expect them to remain that way again throughout the rest of this year and quite frankly Beyond. And so, again, it's a incredibly important, strong contributor or business segment. We're proud of all the groups that make up that family. But, um, again, as we move forward, we see strength in that market.

Yeah, bill, this is John Holland again, it's very normal for us to have margin expansion and contraction as as we have movements and steel prices, Steve pointed to the, the joist and deck market. And what we expect out of that, in the second half of the Year, some of our down, you got to remember, we have a dozen, different businesses and our Downstream portfolio. Some of those backlogs are 9 months out so we have good visibility as to what those margins would look like some of those backlogs.

Are are 6 weeks out so there's a lot of variation in that but I think it's important to note that many of these Downstream businesses are Custom Engineered products that have value added Solutions and our teams have have done an excellent job of separating pricing from movements and raw materials and really redefine the earnings profile of these businesses and Leon as Leon mentioned demand remains solid and we're optimistic about the future of of Downstream products.

Leon Topalian: My second question is on the steel mills. And, you know, nice to see utilization trends in the first half of the year, but among the steel products, which are running a relatively lower utilization or said another way, what is your biggest or best opportunities to displace imports as we look ahead to the second half of the Yeah, look, I tell you that that really sits across the board, our capability set is the most diverse within all North American steel producers. So whether we're talking tubular, joist deck, rebar, but there are some opportunities, right, we're running roughly 85% utilization rates across the steel mill segment.

Thanks for that and also thanks for highlighting the safety performance. Uh, strong results on that. My second question is on the steel mills and um, you know, nice to see utilization Trends in the first half of the year. But among the steel products which are running a relatively lower utilization or set another way, what what is your biggest or best opportunities to displace Imports as we look at to the second half of the year?

Leon Topalian: So, again, there's more opportunities in sheet, there's more opportunities in our plate group, we have more opportunities in rebar and some of our long products. But again, we're, we're well positioned to to supply those. And again, we, we don't just simply produce to stack backlogs up, we're producing the orders in most every case. And so we're meeting the demand where it's at, and, again, have the flexibility to adapt and adjust very quickly.

Leon Topalian: While we're pleased to see what import levels are doing and coming down in that 20-21%, they're still too high, we need to be in the low teens. And quite frankly, the North American steel industry can supply the needs of what's being required without having those imports come into the United States. So we're going to continue to advocate for strong, fair trade, and balanced trade for again, illegal imports being dumped and subsidized on the shores of the US.

He said is the most diverse within uh, all North American Steel producers, so whether we're talking to you or joist deck rebar. Um, but there are some opportunities, right? We're running roughly 85% utilization rates across the, uh, the steel mill segment. So, um, again, there's more opportunities in sheet. There's more opportunities in our, our play group, we have more opportunities and rebar, and some of our long products. But again, we're we're well, positioned to to supply those. And again, we, we don't just simply produce to to stack backlogs up. We're producing the orders in, in most, every case. And so, we're meeting the demand where it's at and, uh, again how the flexibility to adapt and adjust very quickly while we're, um, pleased to see what import levels are doing and and coming down, and that 2021 percent, they're still too high. We need to be in the low teens and quite frankly, the North American steel industry, can supply, the needs of what's being required without having those Imports committed in

the United States. So we're going to continue to Advocate uh for um, strong fair trade and balanced trade for again, illegal Imports being dumped and subsidized on the shores of the US.

Bill Peterson: Thanks, Leon, and congrats on the strongest Appreciate it, Bill. Thank you very much.

Thanks, Leon. Congrats on the strong execution.

Appreciate it. Bill.

Lawson Winder: Our next question comes from Lawson Winder from Bank of America Securities. Lawson, your line is now open. Thank you, operator. Good morning, Leon. Good morning, Steve. Thank you for today's update.

Thank you very much.

Our next question comes from Lawson, with Bank of America Securities. Lawson, your line is now open.

Lawson Winder: If I could ask about Lexington and Kingman and those ramp ups, congratulations on getting those to the cusp of being fully operational. Could you speak to the pre-operating startup costs and the period by period outlook for those assets as they start contributing to EBITDA positively? Yeah, Lawson, look, I'm going to touch on a couple things and then let Steve kick off into the pre-operating a startup cost as they as they move through that startup. But I want to begin with thanking our Lexington, North Carolina team and that MicroMill and their startup and congratulating them on their safety and how hard they've continued to focus on our customers and bring that mill up.

Thank you, operator, and good morning Leon. Good morning, Steve. Um, thank you for today's update. If I could, uh, ask about Les Lexington in Kingman and those ramp Ops. Congratulations, on getting those to the cost of being, uh, fully operational. Could you speak to, uh, the pre-operating startup costs and, and the period by period outlook for those assets as they start contributing to Eva positively?

Leon Topalian: We're excited about what this mill is going to do. It's our third MicroMill in the fleet, alongside Frost Proof, and Sedalia. And again, it's a market segment we know really well. We're excited about where that's geographically located as well in the Atlantic Corridor. And so again, we look for great things to come from them as they continue their startup in the Q3 and Q4. And as well at Kingman, Arizona, we're proud of the team that they've started their mill shop up now and will continue to ramp up in that asset. Again, it's geographically positioned incredibly well also.

Yeah, well, I'll soon walk out. I'm going to touch on a couple of things and then let Steve um, kick off into the pre-operating of startup costs as they uh as they move through that startup. But I want to begin with thanking, um our Lexington, North Carolina team and, and that micro Bill and their startup and congratulating them on their safety. And how hard they've continued to focus on our customers and bring that Mill up. We're excited about what this Mill is going to do. It's our third micro Mill in the fleet uh alongside Frost Proof in Sedelia. And again, it's a a market segment. We know really well. It we're excited about where that's geographically located as well in the Atlantic Corridor. And so again, we we look for great things to come uh, from them as they continue their start.

Leon Topalian: And I think it's a market that's growing and continues to grow. You know, the other point I'll mention maybe before Steve or Randy may want to share a few additional comments is you're starting to see the move into Nucor's bottom lines throughout the segment of contributors like our team and Nucor Brandenburg and the plate mill and the things that they've done there in ramping up. Nucor Gallatin and our sheet mill and their delivery. But we've got yet to fully realize the impacts of all of that to the bottom line.

Up into Q3 and 4. And, as well, in Kingman Arizona, we're proud of the team that they've, uh, started their Melt Shop up now and we'll continue to, uh, to ramp up in, in that asset again. It's, it's geographically positioned, incredibly well, also, in a market that's growing and continues to grow, you know, the other point I'll mention maybe before, Steve, or Randy may may want to share a few additional comments is you're starting to see the move into new course bottom lines throughout the segment of contributors like our team and new core Brandenburg and the plate Mill and the things that they've done, um, there and ramping up new core Gallatin and our sheet Mill and their delivery. Um, but we've got

Leon Topalian: So Brandenburg is going to continue to ramp, Gallatin, Lexington, North Carolina, Kingman, Arizona, our towers and structures plants in Alabama, Indiana, that will start up later this year in the spring of next, as well as the Utah towers plant that will begin late next year, the galvelines at Crawfordsville and Nucor Berkeley, and finally, West Virginia. So you're seeing the start of the bottom line being impacted today, which again, will decrease the overhang of the pre-operating and startup cost. But the momentum and the pent-up earnings power of Nucor is just now coming online. And so over the next months and years, I love our strategy, our positioning, the customers and capability sets we're going to be able to serve, and how that's going to position Nucor to achieve the highest highs we've ever achieved and the highest lows.

yet to fully realize the impacts of all of that to the bottom line. So brandenburg's going to continue to ramp Gallatin Lexington, North Carolina, Kingman Arizona, or towers and structures plants in Alabama, and Indiana that will start up later this year in the spring, um, up next, as well as the Utah Towers plant. That'll begin late next year, the gal lines at Crawfordville in Newport Berkeley and finally in West Virginia. So, you're seeing the start of the bottom line being impacted today, which again will decrease the overhang of the pre-operating and startup cost. But the momentum in the pent up earnings power of new core is just now coming online. And so over the next months and years, I love our strategy, our positioning, um, the customers and capability sets, we're going to be able to serve and how that's going to position.

Stephen Laxton: So with that, Steve, maybe make a few comments on our pre-operating costs. Yeah, hey, Lawson, how are you doing? The pre-op startup cost came down quite a bit quarter over quarter. And the real driver on that is, is, is the Brandenburg team getting to break even more so than some of the bar mills, although they're doing an excellent job as well, just the sheer size of it, that's the one that's impacted the most. And I think if you're thinking about what to what to model out for the second half of the year. You know, you're probably going to be in that 140 to 150, 140 to 150 million a quarter range for the back half of the year.

Newport to achieve the highest highs we've ever achieved in the highest lows. So with that, Steve, maybe make a few comments on our pre-operating costs.

Yeah. Hey. Hey Lawson, how are you doing the? Uh, pre-op startup cost came down quite a bit quarter over quarter and um, uh, the real driver on that is is, uh, is is the Brandenburg team getting to break even, uh, more so than some of the bar Mills, although they're doing an excellent job as well, just the sheer size of it. That's the 1 that's impacted the most

And I think if you're thinking about,

Stephen Laxton: And, and Leon highlighted where we are, we're, you know, we're, we're marching through, we're about three fourths of the way through this major capital investment plan that we've had to reposition our company. So he alluded to it, but you'll see those figures start to come down a little bit later, it'll lag our capital spending plan.

50, 140 to 150 million a quarter range for the back half of the year and, and Leon highlighted where we are. We're you know, we're, we're, we're marching through. We're about 3/4 of the way through this major capital investment plan that we've had to reposition our company. So uh, he alluded to it, but you'll see those figures start to come down a little bit later. It'll lag our Capital spending plans.

Lawson Winder: Thanks for that. That's fantastic, guys.

Brad Ford: But if I could follow up on Brandon Berg, what utilization rate is the asset now currently operating? And then just how do you see that trending for Q3 and Q4?

Thanks for that. That's fantastic, guys. But if I could follow up on Brandenburg, what utilization rate is the asset currently operating at? And then, just how do you see that trending for Q3 and Q4?

Brad Ford: Yeah, Lawson, this is Brad Ford. I'm happy to take that one. First, I'd like to congratulate that Brandenburg team, and really the entire play group for the major step forward in Q2. Record production, record shipments. The team achieved some pretty significant reductions in operating expenses and efficiencies. And then we also have some key achievements in product development all contributing to that that even a positive Q2. Those are all records we expect to continue to break every quarter going forward, right? Specifically in Q3 and again in Q4. So we're very proud of that team. You know, one of the things we talk about at Brandenburg versus you talk about capacity utilization is really the story is around the capabilities of that mill and what that brings to the playgroup.

This is Brad.

I'm happy to take that 1. Um, first of all, I just want to congratulate the Brandenburg team and really the entire play group for the major step forward in Q2. Um, you know, we had.

record production record shipments.

Um,

The team achieved some pretty significant reductions and and operating expenses and efficiencies.

And then, we also had some key achievements and product development, all contributing to that that EBA positive Q2. Um,

Those are all records. We expect to continue breaking every quarter going forward, specifically in Q3 and again in Q4. We're very proud of that team.

Brad Ford: And we saw that play out in some key end-use markets in Q2, specifically in the bridge side. You know, bridge demand has been very, very strong, and over 20% of our plate group shipments in Q2 were only Brandenburg sizes. So prior to Brandenburg, tons that we couldn't participate in, customers we couldn't participate with. On the energy side, we saw onshore wind, power transmission, and line pipe all very robust. As we mentioned in the opening comments, Brandenburg was approved by some large line pipe manufacturers. We expect this to be a larger part of our order book in the quarters ahead.

Um, you know, 1 of the things we talked about at Brandenburg versus you talk about capacity, utilization is really, the story is around the capabilities of that male, um, and what that brings to the play group. And we saw that play out in some some key end use markets in Q2 uh specifically in the bridge side.

You know, bridge demand is very, very strong, and over 20% of our playgroup shipments in Q2 were only Brandenburg sizes. So, prior to Brandenburg.

tons that we couldn't participate in customers, we couldn't participate with

Brad Ford: So really, it's a story of capability over capacity, and the addition of Brandenburg's capabilities has us extremely well positioned to really be the supplier of choice, and we're pretty excited about the balance of this year as we roll into 2026.

On the energy side, we saw onshore wind power transmission and line pipe, uh all very robust. As we mentioned in the opening comments of Brandenburg was approved by some large lime pipe. Manufacturers, expect us to be a larger part of our, uh, our order book in the quarters ahead. Um, so really, it's, it's a story of capability over capacity and and the addition of brandenburg's capabilities, uh, has us extremely well positioned, to to really be the supplier of choice, and we're pretty excited about the balance of this year. And as we roll into 26,

Unknown Executive: Thank you very much for that. I appreciate it. Best of luck to you all. Thanks, Ross. Thank you very much.

Thank you very much for that, appreciate it, best of luck to you all.

Unknown Executive: As a reminder to raise a question, we start followed by one on your telephone keypad.

Katja Jancic: Our next question comes from Katja Jancic from BMO Capital Markets. Katja, your line is now open. Hi, thank you for taking my questions. Maybe going back to the 3Q outlook, specifically to the mail segment. So you expect volumes and pricing to be relatively stable, but also are calling for margin compression. Can you talk a bit more about what's driving that margin compression expectation? Yeah, Katja, I'll touch on that. Look, it's a few things. One, if we step back and look at the entire terrorist picture, you know, we've certainly looked at that and put some of that into our forecast.

Thank you very much. As a reminder, to raise a question. We'll be startled by 1 on your telephone keypad.

Our next question comes from catcher Janke from BMO Capital markets, catcher your line is now open.

So the 3Q Outlook specifically to the mail segment. So you expect volumes and pricing to be relatively stable but also our calling for margin compression. Can you talk a bit more about what's driving that margin compression expectation.

Katja Jancic: So as we think about the impact to slabs, the impact to raw materials, if the impact of the terrorists to Brazil come into effect on Friday, that still remains to be a significant impact. However, I'll touch on that in a moment. But, you know, that's a part of it. And the second, you know, part of that forecast is really around, again, the lag effect. We touched on that a few minutes ago with the impact to our product segment, where they're realizing, you know, that pricing delta that's now flowing through the system that is at lower pricing levels.

Yeah, country. I I I'll touch on that. Look, it it's a few things 1. Um, if we step back and look at, uh, the, the entire terrorist picture, you know, we've certainly looked at that and, and put make some of that into our forecasts. So, as we think about the impact to slabs the impact of raw materials, if, uh, the impact of the terrorists to Brazil, come into effect on Friday and that Still Remains to be seen. That could have some impact. Um, however, I I'll touch on that and in in a moment but you know that that's a part of it. And the second, you know, part of that forecast is really around again, the lag effect. We touched on that a few minutes ago with the uh, the impact to our product segment. Where

Leon Topalian: But again, the drivers and the demand drivers beyond that remain incredibly robust. As we move into Q3 and beyond, we're going to start realizing those higher selling prices. And again, that will adjust. But those are the two drivers that are impacting why we potentially see nominal adjustment. But again, there's some upside as well if certain things happen. But, you know, I don't want to just leave that overhang there with a comment around the tariffs. You know, as we think about the raw material flexibility that we have, it's as broad and vast as any steel maker in North America.

Allen Behr: And so I'll maybe just touch on a few of the things that we're doing, the flexibility of our raw materials. And why, if again, Katia, the terrorists go into effect on Friday, why we will not feel the full impact of those to our bottom line.

Allen Behr: Sure, Leon, I'd be happy to. Katja, it's Al Behr. So to unpack a bit what Leon is mentioning there, I'd start with those comments about our raw materials team having the broadest capability of any steel producer in North America. In simple terms, we're built for this. This is why we stay in game day shape, and we're ready to play right now. And that team is getting it done. This is their time to shine, and they are really performing. When we think about Brazil, there's really two key inputs that we buy from Brazil. One is DRI pellets, and the other is pig iron.

Going to affect on Friday, why we will not feel the full impact of those to our bottom line.

Sure, Leon. I'd be happy to help you. It's Albert. Um,

Allen Behr: And so when we think about DRI pellets, we've already taken the steps needed to mitigate that 50% tariff from Brazil. And so we've done that through changes to our supply, our global sourcing for those pellets, and through the mix that we feed those DRI plants. So the DRI issue is largely taken care of. When we shift to pig iron, then I think it's helpful to first put our usage into perspective. So today, Katja, pig iron represents 7% to 8% of our melt across the enterprise. If you look back five years or so, that would be double that.

so to to unpack a bit, what Leon is is mentioning there. I start with those comments about our raw materials team. Having the broadest capability of any steel producer in North America. In simple terms, we're built for this. This is why we stay in game day shape and we're ready to play right now and that team is getting it done. Uh, this is their time to shine and and they are really performing when we think about Brazil. There's really 2 key inputs that we buy from Brazil. 1 is the ri pellets and the other is pig iron. And so as we think about dri pellets, we we've already taken the steps needed to mitigate that 50% tariff from Brazil. And and so we've done that through changes to our supply, our Global sourcing for those pellets and through uh the mix that we feed those dri plants. So the dri issue is is largely taking care of

Allen Behr: And so one example of this flexibility was the invasion of Ukraine. At that time, Russia and Ukraine were 50% of our pig supply. And we pivoted very quickly in a very agile fashion, and never missed a quality spec, and never missed a customer commitment, and shifted our supply, pulling the levers we have to pull to react and respond. As we sit here today then with Pig Iron, we would expect to do largely the same thing and pivot our supply and pull the levers that we have to pull. Some of those are shifting to alternate supply like DRI, like low-copper shred.

1 of these shift to pig iron then I think it's helpful to first. Put our usage in a perspective. So today, gotcha, uh, Big Iron represents 7 to 8% of our me across the Enterprise. If you look back 5 years or so. That would be double that. And so 1 example of this flexibility was the the invasion of Ukraine. You know at that time Russia and Ukraine were 50% of our Pig Supply

And we pivoted very quickly in a very agile fashion and never missed a quality spec and never missed a customer commitment. We shifted our supply, pulling the levers we have to pull to react and respond. So, um...

as we sit here today, then with with uh pig iron, we would expect to do the same thing um and and if at our supply and and pull the levers that that we have to pull,

Allen Behr: You think about our DRI supply, it's internal, it's stable. Both of our DRI plants are world-class amongst their peers, absolutely world-class. and have become a top performer for the supply chain for steel mills. The other is low copper shred. That's that's not directly an HQ, a high quality metallic substitute, but it's part of that picture. And we've grown significantly in low copper shred production and we expect to grow more into the future.

Some of those are shifting to alternate Supply, like, dri like low copper shred. You think about our dri, uh, Supply is internal. It's stable. Both of our dri. Plants are world-class amongst their peers absolutely world class.

and uh,

Katja Jancic: So I just summarize our positioning in this way, that this environment, it's very challenging and it's very fluid, but it's exactly the type of environment that we've built this team to handle. And they're executing that strategy with skill and precision. And it just gives us other options that other producers don't have. That's super helpful. And just to confirm, basically, what I'm hearing is that you're preparing for the 50% tariffs from Brazil to go into effect on August 1. So if they don't, if they actually do not go into effect, there's upside to your current expectations.

and and and have become a top performer for the supply chain for a steel mills. The other is low copper shred. That's, that's not directly an HQ, a high quality metallic substitute, but it's part of that picture. And we've grown significantly in low, copper shred production and we expect to grow more into the future. So I, I, I just summarized our positioning and, and this way that this environment is very challenging and it's very fluid, but it's exactly the type of environment that we've built this team to handle and, and they're executing that strategy with skill and precision. And it, it just gives us up other options that that other producers don't have.

That's super helpful and just to to confirm, basically, what I'm hearing is that you're preparing for the 50% errors, from Brazil to go into effect on August 1st.

Katja Jancic: Is that fair? Yeah, look, I think there's a lot of variables that could create some upside. But again, what our jobs are to make sure we provide a realistic forecast for you to estimate what we think the earnings are going to be. And so, again, let's talk in a week, and we'll let you know whether or not those things come to pass. So until that time, yeah, I don't want to speculate on what would be, but we've built our models to accordingly and again, to put the risk mitigators there in place so that again, we can pivot very quickly should they come to pass.

So if they don't, if they actually do not go into effect, there's upside to your current expectations. Is that fair?

Yeah, look, I I think there's a lot of variables that could create some upside, but again, what what our jobs are to make sure we provide a realistic forecast for you to estimate what we think the earnings are going to be. And so again, what, let's talk in a week and we'll, we'll let you know whether or not those uh, those things come to pass. So until that time, yeah, I don't want to speculate on what could be, but we've built our models to um uh accordingly and again to uh put the risk mitigators there in place. So that again we can pivot very quickly. Should they come to pass?

Katja Jancic: Perfect. Thank you. I'll hop back into the queue. Thank you, Katja. Thank you so much.

Perfect. Thank you. I'll, I'll, I'll back into the queue.

Thank you. Got you.

Tristan Gresser: Our next question comes from Tristan Gresser from BNP Paribas. Tristan, your line is now open. Yes, hi. Thank you for taking my questions. Just a quick follow up on the raw material cost. Have you seen any tariff-led cost already in Q2 on the DRI buying or price curve or anything? Was there anything in the average cost in Q2? No, no, we did not, Tristan, no. All right, that's here.

Thank you so much. Our next question. Concentration aggressor from BMP power. Tristan, your line is not open.

Yes. Hi, thank you for taking my questions. Just a quick. Follow up on the raw material, Costa. Have you seen any tariff flat cost already in Q2 on on the dri buying or right or anything? Was there anything in the average cost uh in Q2?

No, I I know not we we did not Tristan know.

Tristan Gresser: And then my second question, I think in your presentation, you talk about the beautiful bill, potential impact. Could you maybe go a bit more in detail than if you've been able to quantify it and time those impacts that would be appreciated? And maybe just the last question on the working capital. Well, look, you had a big build in H1. I'm not sure if that's also some raw material inventory strategy ahead of the tariff. So, if you can share any type of outlook into H2 for your working capital, that'd be great as well. Thank you.

All right, that's clear. Um, and then my second question, I think in your presentation you talked about the beauty for beer, uh, potential impact. Uh, could you maybe go a bit more in detail and if you've been able to quantify it and time those impacts? That would be appreciated. And maybe just a last question on the working capital located, you had a big um,

Ahead of the terrorists. If you can share any type of look into H2 for your working capital, that'd be great as well. Thank you.

Leon Topalian: Hey, I certainly got the front end of the question. I'm not sure I got the back end, but I'll let Steve answer that. Look, if I begin from the macro of the one big beautiful bill, I think certainty certainly comes into play, certainty of what the corporate tax rate's going to be. And again, now we can begin building certain things out. I think the other incentives for reshoring are certainly there. And again, when you think about reshoring, Nucor sits at the tip of the spear of all of that. We're the best, most diverse, well-positioned steel company to provide everything that's going in the ground and above.

okay, I

I certainly got the

Front end of the question, I'm not sure. I I got the the back end but I'll let Steve answer that if look if I I begin from the macro or the 1 big, beautiful Bill, uh I think

Leon Topalian: And so again, our diversity of range of capabilities offers incredible opportunities. I don't know if Brad mentioned it a few minutes ago, but when you think about Brandenburg and its offering today, it is the widest, heaviest, broadest range of plate-capable products in the United States. And so now as we think about long-term partnerships with defense, military applications and beyond, it offers great exposure and again, pull through for other products. So within that bill, you see $47 billion for funding for the border wall that we again sit at the ready poise, not only because we have it, but because we did it prior in the first administration.

Certainty certainly comes into play, certainly of what the corporate tax rate is going to be. And, and again, now we can begin building, you know, certain things out. I think the other incentives for um, reassuring, our, our certainly there. And again, when you think about reassuring, new core sits at the tip of the Spear of all of that, where the best most diverse, well, positioned Steel company to provide everything that's going in the ground in above. And so, again, our diversity of range of capabilities offers incredible opportunities. Um, you know, I, I don't know if Brad mentioned it, a few minutes ago. But when you think about Brian and Berg and it's offering today, it is the widest heaviest, um, broadest range of plate, capable products in the United States. And so now, as we think about long-term, uh Partnerships with defense military applications, and Beyond it offers great, um, exposure and again, pull through for other products. So within that

Leon Topalian: We've got $29 billion slated for shipbuilding. Again, back to Brandenburg and the capability set in our plate ranges, $150 billion in defense spending that again, we see sit in a very enviable position to be poised to supply all of that. And then again, if I pull back one layer, one level higher from the Over the last six months, you've seen commitments from companies that are in the top Fortune 50 of this nation that have announced $2 trillion of investment into the United States of America. Again, Nucor sits incredibly well positioned to do everything from the data centers, the energy, the markets, the clean manufacturing, the advanced manufacturing.

Bill you see 47 billion dollars for funding for the border wall that we again sit at the ready. Poise not only because we have it but because we did it prior in the first Administration we've got 29 billion slated for ship building again back to Brandenburg and the capability said in in uh our plate ranges um 150 billion in defense spending that again. We see um

I sit in a very enviable position to be poised to supply all of that. And then again, if I pull back, 1 layer or 1 level higher from the bill itself.

Leon Topalian: All of those areas, again, from shipbuilding to bridges to defense and military, again, I think are wonderful pull-throughs, and again, I think this bill is going to be very advantageous for the steel industry, but quite frankly, manufacturing as a whole.

Over the last 6 months, you've seen commitments from companies. Um, that are in the top Fortune 50 of this nation that have announced 2 trillion dollars of investment into the United States of America. Again, new course sits incredibly well positioned, uh, to to do everything from the data centers, the energy, the markets, the clean, um, and, and uh, plain manufacturing. The advanced manufacturing, uh, all of those areas again from ship building to Bridges to defense and Military. Again, I I think our wonderful pull throughs and again I think this bill is going to be very um, advantageous for the steel industry. But quite frankly, manufacturing as a whole

Stephen Laxton: Yeah, hey, Tristan, this is Steve. And just to address the last part of your question about working capital changes, and it ties in with Leon's response about some positive demand trends, but it was a large factor. Working capital build is a large factor of why we had negative free cash flows for the first half of the year. You know, we, we had roughly six, a little north of $620 million of capital usage in our operating working capital bill just in the second quarter alone. That's not abnormal, given the price trends and the volume trends we've seen.

Stephen Laxton: So that's not all that surprising.

Stephen Laxton: But I think what that sets up really well is a very constructive pivot toward the second half of the year where we expect a dramatic change in free cash flow, free cash flow profile in the back half of the year compared with the first half of the year. And that's driven in part by the working capital usage in the first half, but also capital spending was very, very high in the first half of the year. So it really sets up a very nice, the market conditions along with our position in the market set up a very nice free cash flow outlook for the second half.

Yeah. Hey, hey Tristan. This is Steve and just to address the last, uh, part of your question about working capital changes, and it ties in with, um, Leon's response about some positive demand Trends. But, um, it was a large Factor working. Capital build is a large factor of why we had negative free cash flows for the first half of the year. Um, you know, we we had roughly 6, a little north of 620 million dollars of capital usage in our operating working capital field, just in the second quarter of the loan, um, that's not abnormal, given price trends and the volume Trends we've seen. So that's not all that surprising, but I think what that sets up uh really well is a very constructive pivot toward the second half of the year. We we we expect a dramatic change in free cash flow, free cash flow profile and the back half of the year compared with the first half of the year and that's driven in part by the working capital usage in the first half but also uh capital.

Spending was very, very high in the, in the first half of the year. Uh, so, uh, it really sets up a very nice. Uh, the market conditions, along with our positioning, in the market. Set up a very nice, uh, free cash flow outlook for the second half.

Tristan Gresser: All right, that's it. Thank you. Thank you so much.

All right, that's fair. Thank you.

Unknown Executive: As a reminder to raise a question, it will be star followed by one on your telephone keypad now, and if you'd like to remove yourself on line of questioning, it will be star followed by two.

Phil Gibbs: Our next question comes from Phil Gibbs from KeyBank. Phil, your line is now open. Hey, good morning. Good morning, Phil.

Thank you so much as a reminder, to raise a question, but we start follow up by 1 on a telephone keypad now. And if you'd like to remove yourself, or any questioning would be staff followed by 2.

Our next question comes from Phil Gibbs from KeyBank, Phil, your line is now open.

Hey, good morning.

Good morning. Phil

Phil Gibbs: Sticking with the big beautiful bill question, Stephen, are there any direct tax benefits to you all in the back half of the year for 2026? Yeah, hey, Phil. Actually, it's relatively limited. The construct of that bill is a little bit forward facing, if you will, in that many of our projects are already underway. Some of the largest spend we've got, it does probably have the most pronounced effect for us in R&D spending, and the ability to accelerate that into, you know, expensing that right up front rather than advertising it over seven years. So we'll have some very positive net present value benefits with that regard, but maybe not as large as you might expect, given the capital spending that we're undertaking.

Speaking with the big, beautiful Bill question, uh, Steve, are there any direct tax benefits to you all in the back half of the year or 2026?

Some of the largest spin we've got. It does probably have the most pronounced effect for us in, uh, in R&D spending and the ability to accelerate that into, um, you know, expensing that right up front rather than advertising it over 7 years. So it will have some very positive, uh, Net Present, Value benefits, uh, with that regard, but, but maybe not as large. As you might expect given the capital spending that that uh, that we're undertaking.

Phil Gibbs: Okay, and then I have one follow up just on the cost side. So The slab piece, I think you buy foreign slab for CSI in that business on the West Coast. So my my baseline assumption is that business starts to see some some higher cost in in the third quarter. I think that's what you may have been alluding to on on on the earlier comments.

Okay. Um and I have 1 follow up just on the cost side. So

The the slab piece you buy, I think you buy foreign slab for for CSI, in that in that business on the West Coast.

Leon Topalian: And then secondly, just maybe maybe give us a view of what you're seeing on just your own energy and electricity cost side and how those things are trending overall. Thank you. Yeah, look, Phil, a few things. And yes, is the short answer. The terrace on slabs have already been taken, you know, already are in effect. And so that that change is already upon us. But again, Noah Hanners and the sheet group continue to do a great job. We have not unlike our raw materials, the incredible flexibility to pivot in against self supply if we chose, but no, you want to just based on a few of the things that you and your teams are doing there to, again, mitigate some of this impact.

So my, my Baseline assumption is that business starts to see some some higher cost and in the third quarter, I think that's what you, you may have been alluding to on on, uh, on the earlier comments. And then secondly to just uh, maybe maybe give us a a view of what you're seeing on, just your own energy and electricity cost side and how how those things are trending overall. Thank you.

Yeah, look Phil a few things and yes is is the short answer. The, the terrorists on slabs have already been taken, you know, already are in effect. Um, and so that that

Stephen Laxton: Yeah, just just a couple of small things to add here. One, we have, as Leon mentioned, and as you see in our raw material strategy, we have the ability to go source anywhere in the world and domestically and our team exercises that that ability and in there, they're really adept at finding us the lowest cost solution. So while we do have some exposure to the Brazilian tariff, and you see a little bit of that compression in the in our outlook on third quarter is due to that tariff impact to Brazil. We also have the ability to self supply, we're shipping their internal finished hot roll tons, that that CSI is then able to transform at very competitive cost.

Change is already upon us but again, Noah hanners. And the Sheep group continue to do a great job. We have not unlike our raw materials, the incredible flexibility to to Pivot and again self-supply if we chose. But no you want to just touch base on a few of the things that you and your teams are doing there to uh again mitigate some of the impact. Yeah. Just a just a couple small things to add here 1 we as as Leon mentioned and as you see in our raw material,

Stephen Laxton: And and then we we are able to source from other international, you know, other other sources internationally and very competitive costs. So our team's doing an awesome job managing, managing the impact of the tariffs. And we're able to continue to serve the West Coast market properly. Yeah, Phil, just to round out your question on energy, energy costs are up a little bit year over year, they're, you know, they're down quarter over quarter, but they're, for us, they're a little over $40 a ton in our steelmaking. And in terms of outlook, we put that relatively, you know, relatively flat in the next couple quarters going ahead.

Ability to go Source anywhere in the world and domestically in our team exercises, that that ability in in their, their really Adept at finding us the lowest cost solution. So while we do have some exposure to the Brazilian tariff and you you see a little bit of that compression in the in our outlook, on third quarter, is due to that tariff impact of Brazil. We also have the ability to self-supply, we're shipping their internal finished Hot Roll, tons. That, that CSI is then able to transform at very competitive costs.

And uh, and then we, we are able to Source from other International uh uh, you know, other other sources internationally and very competitive costs. So our teams doing an awesome job managing, um, managing the impact of the tariffs. And we're we're able to uh continue to serve the West Coast Market profitably.

Yeah, Phil just to round out your question on energy, um, energy costs are are up a little bit year-over-year. They're, you know, they're down quarter over quarter, but they're for us, they're a little over 40 dollars, a ton in our steel making. And uh, in terms of Outlook, we'd put that relatively, you know, relatively flat in the next couple quarters going ahead.

Phil Gibbs: Thanks very much. Good work. Thanks, Phil. Thank you very much.

Thanks very much. You're welcome.

Thanks, Phil.

Mike Harris: Our next question comes from Mike Harris from Goldman Sachs.

Mike Harris: Mike, your line is now open. Good morning. Thanks for taking my question. As we look at the steel products, you know, segment. What would you guys call out as a potential gaps in that portfolio and maybe speak to, you know, some examples of what type verticals could bring up material center. Yeah, Mike, look, again, as John had mentioned earlier, that that group is comprised of about 12 different businesses from overhead doors or insulated metal panels or joists and deck or building systems. And I would tell you, almost across the board, we're seeing either flat or improving conditions.

Thank you very much. Our next question comes from Mike Harris from Goldman Sachs. Mike, you’re on. This is not open.

Good morning. Thanks for uh, taking my questions. Um,

as we look at the steel products, uh, you know segment what would you guys call out as uh potential uh gaps in that uh portfolio and maybe speak to, you know, some examples of what type verticals could bring up material synergies to the table.

Leon Topalian: So again, I would tell you, there's really not a lot or there's no low spots to call out. Again, there's some lag in, in terms of realized margins in net earnings that we're going to see flow through into Q3 and beyond. But again, if we go back 6, 7, 8 years, that group, as a whole, represented about 15% of Nucor's overall net earnings. Today, that's pushing closer to 45, 46% of overall overall net earnings. And again, as you think about the core build out of our steelmaking capacity, those dollars are going to continue to shift into our adjacencies, expand beyond and all those sit under this products bucket as well.

Yeah, Michael. Again, it's John had mentioned earlier that, that group is comprised of about 12 different businesses, from overhead doors or insulated metal panels to choice and deck are building systems. I would tell you, almost across the board, we're seeing either flat or improving conditions. So again, I would tell you, there's really not a lot—there are no low spots to call out again.

Some lag in terms of realized margins in net earnings that we're going to see flow through into Q3 and beyond. But again, if we go back 6, 7, 8 years, that group as a whole...

Stephen Laxton: So that, that that growth for Nucor is going to continue to grow in that area. So I would tell you, we're excited about that, our internal as well as the external forecast in almost every one of those segments are showing improving conditions.

Stephen Laxton: Yeah, Mike, maybe I'll add just a little bit to what Leon said there. If you go back to pre-COVID levels of EBITDA margins for the downstream segment, you know, we're doing 9 or 10% EBITDA at that time. And we're now we're doing, you know, 16, 17%, depending on whether you want to talk first half or quarter. And I think that speaks to what Leon's really hitting that with where we will allocate capital going forward, which is kind of the heart of your question about what gaps are in the product. We, we continue to find ways to add to our portfolio that improve our margins, improve free cash flows, and offer a wider range of solutions in the marketplace and fit our business model.

Mike Harris: That's, that's probably the most important aspect. We fundamentally create incremental value with these businesses when we add them and fold them into our portfolio. So we're not going to ever tell you the specific targets, but we will keep marching in the same direction that we have. You've seen us do in the past. No, that's very helpful.

In almost every 1 of those segments are showing improving conditions. Yeah, Mike. Maybe, I'll add just a little bit to what Leon said there. If you go back to preco levels of Evita margins for the downstream segment, you know, we were doing 9 or 10% even, uh, at that time. And we're now we're doing, you know, 16, 17 percent depending on whether you want to talk first half or fourth quarter. And I think that speaks to what Leon's really hitting at with, where we will allocate Capital going forward, which is something kind of the heart of your question. About what gaps are in the product product Suite? Um, we continue to find ways to add to our portfolio. That improve our margins improve free cash, flows and offer, a wider range of Solutions in the marketplace and fit our business model. That's that's probably the most important aspect. We fundamentally create incremental value with these businesses when we add them in, fold them into our portfolio. So we're not going to ever tell you the specific targets, but, uh, we will keep

Marching in the same direction that we have, uh, you've seen us do in the past.

Mike Harris: I guess, in the spirit of full disclosure, I was looking at slide number six, where you talked about the evolution of the business. And I was just trying to make sure I understood that future. Was that because, you know, you were just making the, you know, the best better? Or did you not feel you had enough to fight with already? And it sounds like it was the former. That's really all I had, guys. I mean, you've answered a lot of my questions already. So I'll get Thank you, Mike. Appreciate that. And yes, your your comment about the former is accurate.

No that, uh, that's very helpful, though. I guess the, in the spirit of full disclosure I was looking at slide number 6, where you talked about the evolution of the, uh, the business. And I was just trying to make sure I understood that future was that because, you know, you were just making the, you know,

The best? Better? Or did you not feel you had, uh, enough to fight with already in? It sounds like it was the, uh, the former. Uh, that's really all I had, guys. I mean, you've answered a lot of my questions already. So I'll, uh, I'll get back in the queue.

Mike Harris: It is continuing to form more arrows in our quiver to deliver more capabilities for our customer sets. Thank you very much.

Thank you, Mike. I appreciate that. And yes, your comment about the former is accurate. It is continuing to provide more arrows in our quiver to deliver more capabilities for our customer sets.

Unknown Executive: As a reminder, to raise a question, we'll be staffed up by one on your telephone keypad.

Thank you very much.

Carlos de Alba: Our next question comes from Carlos de Alba from Morgan Stanley. Carlos, your line is now open. Yeah, thank you. Good morning, everyone. Just wanted to explore a little bit more the margin compression expected in the steel mills in the third quarter. Can you provide maybe some color by different product sheet, plate, bars, beams? Are there any of those products that you would highlight where you expect the biggest margin compression? Maybe you see some margin expansion in some of them. That'd be great. Yeah, Carlos, look, we touched on that a little bit a few moments ago.

As a reminder and keypad. Our next question comes from Carlos diaba from Morgan Stanley, Carlos. Your line is not open.

Yeah, thank you. Good morning everyone. Uh, just wanted to uh, explore a little bit more, the margin compression and expected in the steel mills and in the third quarter, um, can you provide maybe some color by different products, uh, sheet played bars, beams, uh, are, are there any of those products where use, uh, that you would highlight, uh, where you go? You expect, the, the biggest margin compression, maybe you, you see some margin expansion, if some of them, that would be great.

Carlos de Alba: I think the potential for some pressure in flats, sheet in particular, could impact the earnings segment in Q3. And that's why, again, we've highlighted that, we touched on that. Part of that is what Noah just mentioned a few moments ago regarding the slabs coming in from Brazil. So again, we have some mitigation strategies already being worked and put in place, which could mean we supply, self-supply there through our own sheet mills. And again, we have a very adaptive capability set. But again, that's one area. But as we talk about that, yeah, I think there's a ton of upside as we think about the potential continued growth and what Brandenburg's doing in the play group, what John and the team are doing in products, what Randy and his group are doing in our long products and Rebar and MBQ.

Leon Topalian: You know, we didn't talk about it on this call, but our Our bean mills in both Arkansas and Berkeley are performing at near historic highs. Their backlogs are at near historic highs. And all of that backlog, like hundreds of thousands of tons, is actual orders. They don't produce anything for stock. Every one of those are direct, quotable, and billable order. And so that's going to continue to fuel Nucor's earnings power. And so there's a lot of segments that we're very excited about. Again, the megatrends across the U.S., the startup next month of our Towers and Structures plant gives us incredible excitement, again, to be able to move into that market.

Yeah, Carlos look, we we touched on that a little bit, a few more months ago. I, I think the potential for, uh, some pressure in Flats sheet in particular, uh, could impact those, the the earnings segment in in Q3. And that's why again, we we've highlighted that we've touched on that, uh, part of that is what Noah just mentioned a few moments ago, regarding the slabs, coming in, from Brazil. So again we have some uh, mitigation um, strategies already being worked and and put in place which could be. We Supply self-supply there through our own sheet Mills and again, we have uh, a very adaptive uh, capability set. But again, that's that's 1 area. But as we talked about that, yeah, I think there's a a ton of upside as we think about the potential continued growth and what brandenburg's doing in the play group. Um, what? John and the team are doing in in products. What Randy and his group are doing in in our long products and

and rebar and MBQ, you know, we didn't talk about it on this call but our, um,

Are being Mills in both Arkansas. And Berkeley are performing at near historic highs, their backlogs are at near historic highs and all of that backlog. Like hundreds of thousands of tons is actual orders. They don't, they don't produce anything for stock. Every 1 of those are a direct

Leon Topalian: And then by early spring, the second plant, and late next year, the third. So again, there's a number of different elements here that our investment strategy that we deliberately and focused on five years ago, we're beginning to pay those dividends today. And the investments that are just beginning to start up now are going to continue to pay for the next 20, 30, 40 years.

Uh, quotable in billable order and so that that's going to continue to fuel new cores earnings power. And again. So there's uh, there's a lot of segments that we're we're very excited about getting the mega Trends is across the US. The the startup next month of our towers and structures planned gives us um incredible excitement again to be able to move into that market and then bye.

Spring the second plan in late next year, that the third. So, again, there are a number of different elements here that, um, are an investment strategy that we deliberately focused on 5 years ago, which are beginning to pay dividends today. The investments that are just beginning to start up now are going to continue to pay for the next 20, 30, or even 40 years.

Randy Spicer: Great, thank you, Leon. Maybe just to, if we zoom in on bars and maybe beams, but on bars, you mentioned the price increases, MBQ and rebar. Would you expect margin expansion in the bar business and maybe in the beams as well? I'll touch on BEAMS and then let Randy touch, Randy Spicer, our EVP over our bar products, touch on the look, as we think about the opportunity for Long's, man, it's significant. Again, it's an area we've played in for a long time. We have a great customer base there. We have an incredible market share as well in BEAMS. But that mill is run, you know, at 70-ish percent of capacity for a long time, Carlos.

Bars and, and, and maybe beams. But Mars, you you mentioned the price increases MBQ and rebar, would you expect, um, margin expansion in, in, in, in, in the bar, uh, business and maybe in the beams as well?

I'll touch on beams and then let Randy, uh, touch Randy Spicer or EVP over our our, our products touch on. But look, as we think about the opportunity for uh, Longs man. It it's it's significant again, it's an area we've played in for a long time. We have a great uh customer base there we have an incredible Market. Um,

Randy Spicer: So we have a lot of opportunity and upside there. At the same time, it is one of the strongest profit generators in the entire company and has been consistently for a long period of time. And so we couldn't be more excited about the work that they're doing, how they look to continue to expand those margins. And again, yes, I do think there's opportunity in the BEAMS side. Randy, why don't you touch on the Long's and BAR and MBQ? Yeah, thank you, Leon, Carlos. Thank you for the question. Definitely the same, I would say, on the BAR side.

Randy Spicer: The momentum is very strong. We have continued to see robust order entry across all of our regions. As we start looking in the key end markets, as we've talked about several on the call, you know, the infrastructure work, again, continued big projects with the chip plant, warehouses and data centers. The support that we get from our downstream businesses has been just tremendous. When you look at the macro signals, the momentum index is showing up 20% on a year, which, again, is letting us know there are even more projects that are coming into the planning phases.

Share as well and and, and beams, but that Mill is run, you know, at 70% of capacity for a long time, Carlos. So we have an a lot of opportunity and upside there at the same time. It is 1 of the strongest um, profit generators in the entire company and has been consistently very long period of time. And so we couldn't be more excited about the work that they're doing, how they look to continue to expand those margins. And again, yes, I do think there's opportunity, uh, in in the beam side, or any wanting to touch on the Longs and bar and MBQ. Yeah. Thank thank you Leon, Carlos. Thank you for the question. Uh, definitely the same. I would say on the bar side, uh, the the momentum is, is, is very strong. Uh, we we have continued to see robust order entry, uh, across all of our

Randy Spicer: So when we look at our long products, our backlogs are at multi-year highs, and our lead times continue to extend. So we are very confident in a very strong second half.

Regions. Uh, as we start looking in the key in markets, as we've talked about, several on the call, um, you know, the infrastructure work, uh, again continued, big projects with the chip plant, uh, warehouses and data centers. Uh, the support that we get from our Downstream businesses, uh, has been just just tremendous. Uh, when you look at the, uh, the macro signals, um, that, you know, the diagnal. Momentum index is showing up 20%, uh, on a year which again is letting us know. There are even more projects that are coming into the the planning phases. So when we look at our long products, uh, our, our backlogs are at multi-year highs, uh, and our lead times continue to extend. So we are very confident, uh, in a very strong second half.

Carlos de Alba: Great. Thank you very much. All the best. Thanks, Carlos. Thank you very much.

Right. Thank you very much for the best.

Thanks Carlos.

Alex Hacking: Our next question comes from Alex Hacking from Citi. Alex, your line is now open. Yeah, good morning, Leon and Tim. I apologize, I missed the first couple of minutes of the call, but just wanted to check the CAPEX guidance is unchanged at $3 billion. And therefore, we should expect a pretty significant decline in 2H. And then just as a follow up, if I look at slide five, all the projects nearing completion, you know, beyond that, you've got the sheet mill, you've got the Utah Towers, The Pacific Northwest Rebond Mill.

Thank you very much. Uh, next question comes from Alex hacking from City. Alex, your line is now open.

Yeah, good morning. Uh, Leon and see you apologize. I missed the first couple of minutes of the call, but just wanted to check the capex guidance is is unchanged at 3 billion and therefore, we should expect, um, a pretty significant decline in 2 H. And then just as a follow-up, if I look at slide 5, all the projects nearing completion, you know, beyond that, if you've got the sheet mail, you've got the Utah Towers.

Leon Topalian: Is there anything else that I'm missing that's kind of coming beyond what's on slide five?

The Pacific Northwest Reba Mill.

Leon Topalian: Yeah, Alex, it was a riveting couple of minutes. And so we'll, we'll catch you up very quickly. But yeah, you touched on most of them. A couple that I would add to that list are our two galvanizing lines at Crawfordsville, Indiana, as well as Nucor Berkeley that will come online next year. You know, the Third Towers plan in Utah as well next year. And so, again, we're starting to see the contributions from the investments that were made several years ago, like Brandenburg, Gallatin, and now Kingman in Lexington are in startup mode now, commissioning is done.

Is there anything else that I'm missing? That's kind of coming Beyond. What's on slide 5? Thanks.

David Sumoski: And now their, their quest is to ramp those facilities up, serving our customer base to continue to generate stronger, sustainable, less volatile earnings for our shareholders and, you know, for, for the future. So yeah, as we see that pent up earnings power is starting to flow through, and will continue over the next couple years.

David Sumoski: But those were the couple I would add that, that you didn't call out.

Yeah, Alex. And, uh, it was a riveting, couple of minutes. And so, we'll, uh, we'll catch you up very quickly. But yeah, you you touched on most of them, a couple that I would add to that list are, are 2. Um, galvanizing lines that Crawfordsville Indiana, as well as new core Berkeley that will come online next year. Um, you know, the third Tower is playing in Utah as well next year. And so again, we're, we're starting to see the contributions from the Investments that were made several years ago, like Brandon, Berg Allen and now, Kingman Inn in Lexington, are in startup mode. Now, commissioning is done and now they're, uh, their Quest is to, uh, ramp those facilities up serving our customer base to continue to generate stronger. Sustainable less, volatile earnings for our shareholders and, uh, you know, for for the, the the future. So, yeah, as we see that pent up earnings power is starting to flow through, and we'll continue over the next couple of years. But those with a couple, I would add that uh, that you didn't

David Sumoski: Hey, Alex, this is David Sumoski, also at CSI Galvine, late 27, start. Yeah, and Alex, your math exercise is correct. We do expect lower capital spending in the second half of the year, and combined with a little bit less working capital use, we should see pronounced change in free cash flow in the back half compared with the first half of the year. Thank you.

Call out.

Hey Alex, this is Dave Smith, also at CSI Galpin, TrueLate, 27 startup.

Yeah, and and Alex your your your math, your math. Exercise is correct. We do expect lower Capital spending in the second half of the year.

That, combined with a little bit less working capital use, should see pronounced change in free cash flow in the back half compared with the first half of the year.

Thank you.

Unknown Executive: Thank you very much.

Leon Topalian: We currently have no further questions in the queue, so I'd like to hand back to Leon Topalian for any further remarks. Thank you for joining us again today. And I'd like to thank our Nucor team for delivering an incredible first half of the year regarding safety, as well as our solid financial performance. I'd like to thank our customers for the trust that you place in us with each and every order. And finally, thank you to our investors for the trust that you place in us with your valuable shareholder capital. Thank you for your interest in Nucor and have a great day.

Thank you very much. We currently have no further questions in the queue, so I'd like to hand it back to Leon Topalian for any further remarks.

Thank you for joining us again today. I would like to thank our new core team for delivering an incredible first half of the year regarding safety, as well as our solid financial performance.

Customers, thank you for the trust that you place in us with each and every order. Finally, thank you to our investors for the trust that you have placed in us with your valuable shareholder capital. Thank you for your interest in Nucor, and have a great day.

Unknown Executive: As we conclude today's call, we'd like to thank everyone for joining, you may disconnect your lines.

As we conclude today's call, we'd like to thank everyone for joining. You may disconnect your lines.