Q3 2025 Nucor Corp Earnings Call

October 28, 2025

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Thank you and good morning, everyone I'm excited to join you. This morning as the newest member of the Nucor IR team and welcome you to our third quarter earnings review and business update leading our call today is Leon Topalian Chair, President and CEO, along with Steve Blackstone Executive Vice President and CFO.

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

Yesterday, we posted our third quarter earnings release, and Investor presentation to Nucor's IR web site.

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

Today's discussion will include the use of non-GAAP financial measures and forward looking information within the meaning of securities laws actual results may be different than forward looking statements and involve risks outlined in our safe Harbor statement and disclosed in Nucor's SEC filings. The appendix of today's presentation includes supplemental information and disclosures along with a.

<unk> of non-GAAP financial measures with that let's turn the call over to Liam.

Thanks, Chris I want to begin by thanking our 33000 Nucor teammates for their continued commitment to safety.

Our team has been lowering our injury and illness rate every year since 2017, and we are on track to do it again in 2025. This level of performance would be impressive at any point, but to do it through a period of significant growth is an amazing accomplishment.

Congratulations to the entire Nucor team and let's make the last two months of 2025, the safest in Nucor's history.

Turning to Nucor's third quarter financial performance, we generated EBITDA of approximately $1 3 billion and earned $2 63 of EPS. These results exceeded our third quarter guidance driven by stronger than expected shipments from our steel mills and favorable corporate adjustments, Steve will provide more details.

His financial update we remain committed to prudent capital management on behalf of our shareholders balancing long term growth with meaningful shareholder returns, while maintaining our industry leading credit profile during.

During the third quarter, we reinvested $807 million into the company with the majority of this capital related to growth projects that are nearing completion.

We've also returned approximately $230 million to nucor shareholders through dividends and share buybacks, bringing our year to date returns to nearly $1 billion.

Or 72% of net earnings. We also saw our long term credit ratings upgraded to <unk> by Moody's following the Moody's upgrade we are now rated a minus or a three by all three ratings agencies, making us the only major north American steel producer to hold that distinction.

Creating value for our stakeholders requires a relentless focus on execution and I am proud of the work our team has done to advance our long term mission to grow the core expand beyond and live our culture.

We are in the final phase of our multi year capital investment campaign and will complete four major projects by the end of this year.

Milestones include the commissioning of two bar mill projects and the commencement of pulp production and galvanizing operations at our Alabama towers and structures facility.

Our two new sheet coating facilities at Crawfordsville, and Berkeley County remain on track and the team in Crawfordsville recently processed the first coil through their new galvanizing line and.

And construction of our new sheet mill in West Virginia is two thirds complete and remains on schedule to begin ramping up by the end of next year.

Even as we invest to grow our capabilities, we remain focused on leveraging our existing asset base to generate attractive returns for our shareholders. For example in steel products, we've taken steps to repurpose to existing steel products facilities to support our faster growing nucor data systems businesses and.

Within the steel Mills, we have recently decided to no longer pursue a new rebar micro mill project in the Pacific Northwest region with the recent investments we've made in the bar group, we can serve the western U S and Canadian markets from our current footprint with superior cost and supply chain advantages.

We will continue to monitor market developments to ensure the best use of our shareholder capital.

As I've said in the past our growth strategy is not about growing our capacity, it's about providing more capabilities for our shareholders customers and team the.

The investments, we're making now to grow our core steelmaking capabilities and expand into downstream steel adjacent businesses will better position Nucor to offer comprehensive integrated solutions unmatched by any of our competitors.

And by optimizing our full portfolio to operate as one team we make it easier for our customers to buy build and succeed.

Let me now take a few minutes to highlight a couple of the areas, where nucor's improving its position as the supplier employer and investment of choice within the steel industry. One of these is nucor's bar Mill group as many of you know Nucor entered the steelmaking business in 1969, when we began operating our first bar mill.

<unk> and Darlington South Carolina.

Over the following five decades, we've harnessed the inherent advantages of scrap as steelmaking and Nucor's performance driven culture to grow our bar mill group into the nationwide powerhouse that it is.

The bar mill team has delivered strong results in 2025 fueled by increased demand in the non res construction markets and infrastructure markets.

With our broad geographic coverage and capabilities <unk> is well positioned to optimize both product mix and volume regionally. In fact, the team is set quarterly rebar shipment records twice. So far this year first in Q1, and then again in Q3.

We also began ramping production in the third quarter at our new melt shop in Kingman, Arizona, and our new rebar micro mill in Lexington, North Carolina.

Both facilities are strategically located in high growth regions with reliable access to local scrap supply enhancing our existing footprint in the western and southeast markets.

We will continue ramping up operations over the coming months with both projects on track to be EBITDA positive by the first quarter of 2026.

While we build our leadership in steelmaking. We are also positioning nucor as a key supplier to high growth markets like data center construction.

The Dodge construction network is forecasting 60 million square feet of data center construction in 2025% to 30% increase over 24 and the state of Virginia alone has seen 54, new datacenter permit applications in the first nine months of the year underscoring the sector's momentum and long term.

<unk> growth potential.

With our comprehensive portfolio of products Nucor is uniquely equipped to partner with leading developers and hyper scaler, who increasingly value speed and certainty of execution, we now supply over 95% of all steel products that go into a data center from the building envelope to the interior infrastructure.

For example, we are the only provider capable of supplying steel for both conventional structures and pre engineered buildings at scale inside of data centers, we're accelerating growth in our new core data systems businesses implementing domestic production of server cabinets and increasing capacity for hot aisle containment.

<unk> and data center support structures.

This unlocks powerful cross selling opportunities for our diverse product portfolio, creating better outcomes for our customers and driving shareholder value.

Turning to trade policy, we've seen meaningful federal action this year supporting the American steel industry.

Section 232 measures and ongoing trade enforcement are curbing imports with finished steel imports down nearly 11% year to date through August <unk>.

Since the broader section 232 tariffs were implemented we have seen larger month over month reductions and imports and expect that trend to continue.

While imports have decreased since the comprehensive 50% steel tariffs went into effect they continue to be a necessary tool to counteract the massive amounts of overcapacity that persist in the global steel sector.

We believe that tariffs must stay in place with no exceptions or loopholes until there are fundamental changes in the global steel industry.

Ongoing trade cases continue to provide another important defense against unfairly traded imports in September the ITC Commission ruled that American steel producers were materially injured by imports of corrosion resistant steel from 10 countries. Nucor is pleased with the decision, which clears the way for the <unk>.

<unk> of Commerce to issue final anti dumping and countervailing duty orders in the coming weeks. We are also following the commerce department's investigations into rebar imports from four countries and expect to see the preliminary determination later this quarter.

Overall, we are encouraged by the administration's actions to help level, the playing field for the American steel industry.

And as North America's largest and most capable steel products company Nucor is well positioned to create value for our customers and shareholders with that let me turn it over to Steve who will share additional details about our third quarter financial performance Steve.

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

For the third quarter Nucor generated net earnings of $607 million or $2 63 per share.

Earnings were in line with the second quarter's adjusted earnings per share of $2 60, and above adjusted earnings per share of $1 49 for the third quarter of last year.

Year to date <unk> adjusted net earnings were approximately $1 4 billion or $5 98 a share.

Earnings for the third quarter exceeded the midpoint of our guidance range by approximately 50.

The guidance beat was driven by two main factors better than expected shipments and lower pre operating and startup cost.

In September the ITC Commission ruled that American steel producers were materially injured by imports of corrosion resistant steel from 10 countries. Nucor is pleased with the decision, which clears the way for the department of Commerce to issue final anti dumping and countervailing duty orders in the coming week.

Our steel mill segment realized higher than expected shipments in sheet bar and structural in September our Berkeley Division set an all time production record and as Leon mentioned earlier, the bar group achieved another quarterly record for rebar shipments.

The steel Mills group also saw stronger than expected shipment levels from several mills coming out of the third quarter planned outages.

We are also following the commerce department's investigations into rebar imports from four countries and expect to see the preliminary determination later this quarter.

Additionally, the steel products segment exceeded volume expectations contributing further to overall outperformance.

Overall, we are encouraged by the administration's actions to help level, the playing field for the American steel industry, and as North America's largest and most capable steel products company Nucor is well positioned to create value for our customers and shareholders.

Several of our newer operations progressed through startup activities more rapidly than anticipated, resulting in lower than expected pre operating and startup cost.

Pre operating and startup costs for the third quarter were $103 million.

With that let me turn it over to Steve who will share additional details about our third quarter financial performance.

Favorable corporate and administrative impacts also contributed to the outperformance. These.

Steve.

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

These included lower inventory eliminations, due primarily to lower than expected inventories in our downstream steel products segment.

For the third quarter Nucor generated net earnings of $607 million or $2 63 per share.

As well as lower overall corporate and administrative costs.

Our earnings were in line with the second quarter's adjusted earnings per share of $2 60, and above adjusted earnings per share of $1 49 for the third quarter of last year.

Turning to the segment level results for the third quarter. The steel Mills segment generated $793 million of pre tax earnings a decrease of 6% from the prior quarter. We saw improved results across our bar and structural steel groups, but lower profitability in sheet and plate more than offset the gains in longs.

Year to date <unk> adjusted net earnings were approximately $1 4 billion or $5 98 a share.

Earnings for the third quarter exceeded the midpoint of our guidance range by approximately 50.

We continue to see strong demand for long products and more subdued but stable demand for flats.

The guidance beat was driven by two main factors better than expected shipments and lower pre operating and startup cost.

That said, we're gaining market share and are encouraged by the recent operating performance of our steel mills.

Sheet shipments nearly matched our record volumes set in the prior quarter with.

With sheet backlog tons of 13% year over year, and our bar products backlog at the end of the third quarter was 35% higher than the same time last year.

The steel Mills group also saw stronger than expected shipment levels from several mills coming out of the third quarter planned outages.

Turning to steel products, we generated pretax earnings of $319 million down from $392 million in the second quarter.

Additionally, the steel product segment exceeded volume expectations contributing further to overall outperformance.

Despite the sequential decline volumes held up better than expected with external shipments increasing 4% quarter over quarter.

Several of our newer operations progressed through startup activities more rapidly than anticipated, resulting in lower than expected pre operating and startup cost.

However, operating profit was impacted by less favorable product mix higher substrate pricing and planned outage cost.

Pre operating and startup costs for the third quarter were $103 million.

Our steel products backlog has moderated alongside typical seasonal ordering trends, but ended the third quarter of 2014% higher year over year.

Favorable corporate and administrative impacts also contributed to the outperformance.

These included lower inventory eliminations, due primarily to lower than expected inventories in our downstream steel product segment.

The backlog extends well into the second quarter of 2026 for some of our more custom engineered product lines' quoting.

Quoting activity remains robust and we believe this reflects business confidence among our customers servicing the construction and infrastructure markets as well as their confidence in nucor as a reliable provider of high quality solutions.

As well as lower overall corporate and administrative cost.

Turning to the raw materials segment, we realized pre tax earnings of approximately $43 million compared to $57 million for the prior quarter.

The primary driver of the sequential decline was lower pricing, partially offset by lower operating costs.

We continue to see strong demand for long products and more subdued but stable demand for flats.

Moving to the balance sheet Nucor continues to have a differentiated position of strength and flexibility and our industry.

That said, we are gaining market share and are encouraged by the recent operating performance of our steel mills.

Sheet shipments nearly matched our record volumes set in the prior quarter with.

An example of this was on display in the past quarter as evidenced by our recent ratings upgrade by Moody's.

With sheet backlog tons of 13% year over year, and our bar products backlog at the end of the third quarter was 35% higher than the same time last year.

And we remain committed to maintaining a strong investment grade credit profile.

We ended the third quarter with a total debt to capital ratio of approximately 24% and cash of approximately $2 7 billion.

Turning to steel products, we generated pretax earnings of $319 million down from $392 million in the second quarter.

We generated $1 3 billion in operating cash flow during the quarter, a testament to nucor's cash generating operating model.

Despite the sequential decline volumes held up better than expected with external shipments increasing 4% quarter over quarter.

Capital expenditures totaled $807 million for the quarter, bringing our year to date total to $2 6 billion.

However, operating profit was impacted by a less favorable product mix higher substrate pricing and planned outage cost.

We now expect full year capex to be $3 3 billion for 2025. Some project spending was pulled forward from 2026.

Our steel products backlog has moderated alongside typical seasonal ordering trends, but ended the third quarter, 14% higher year over year.

We will provide more detail on our capex budget for 2026 on our year end earnings call in January but.

The backlog extends well into the second quarter of 2026 for some of our more custom engineered product lines' quoting.

But we expect overall expenditures to decline by more than $5 billion compared with 2025.

The cornerstone of Nucor's capital allocation framework is providing meaningful cash returns to shareholders. During the second quarter, we returned $227 million to shareholders in the form of dividends and share repurchases.

Turning to the raw materials segment, we realized pre tax earnings of approximately $43 million compared to $57 million for the prior quarter.

Through the end of the third quarter, we've returned nearly $1 billion, representing 72% of nucor's year to date net earnings.

The primary driver of the sequential decline was lower pricing, partially offset by lower operating cost.

During the same period, we repurchased approximately four 8 million shares at a weighted average price of approximately $126 per share.

Moving to the balance sheet Nucor continues to have a differentiated position of strength and flexibility and our industry.

Turning to our near to medium term demand outlook.

Take a closer look at the distinct demand drivers shaping our flats and longs and steel products markets.

An example of this was on display in the past quarter as evidenced by our recent ratings upgrade by Moody's.

While we are seeing varying levels of demand across these products. We expect each will continue to benefit from further further declines in imports.

And we remain committed to maintaining a strong investment grade credit profile.

We ended the third quarter with a total debt to capital ratio of approximately 24% and cash of approximately $2 7 billion.

The effects of tariffs and trade cases are realized.

Beginning with our flat products, we expect strong demand from energy data centers and advanced manufacturing at the same time, we're monitoring softer conditions in areas like residential construction consumer durables heavy equipment and agricultural machinery. Additionally.

We generated $1 3 billion in operating cash flow during the quarter, a testament to nucor's cash generating operating model.

Capital expenditures totaled $807 million for the quarter, bringing our year to date total to $2 6 billion.

Additionally, new domestic supply is still being absorbed in the market.

We now expect full year capex to be $3 3 billion for 2025. Some project spending was pulled forward from 2026.

Turning to long products, our bar and structural mills continued to benefit from a number of demand drivers underpinning a more constructive near term outlook.

We will provide more detail on our capex budget for 2026 on our year end earnings call in January but.

We remain mindful of typical seasonal purchasing trends.

Infrastructure spending remains elevated the American Road Transportation Builders Association reports that bridge and tunnel contract awards are up nearly 20% year over year.

But we expect overall expenditures to decline by more than $5 billion compared with 2025.

A cornerstone of Nucor's capital allocation framework is providing meaningful cash returns to shareholders. During the second quarter, we returned $227 million to shareholders in the form of dividends and share repurchases.

And 60% of total funds allocated AI JA highway projects remain unspent.

As Leon mentioned data centers and energy infrastructure needed to power them, we'll continue to drive pronounced demand for nucor's long products. We also see good demand from institutional construction stadiums warehouses and chip facilities.

Through the end of the third quarter, we've returned nearly $1 billion, representing 72% of nucor's year to date net earnings.

During the same period, we repurchased approximately $4 8 million shares at a weighted average price of approximately $126 per share.

In addition, we expect it to capitalize on our strong regional demand and gain market share as our North Carolina Micro mill, and new melt shop in Arizona ramp up.

Turning to our near to medium term demand outlook.

Finally in our steel products segment, many of our business lines are benefiting from pockets of strength in nonresidential construction as.

Take a closer look at the distinct demand drivers shaping our flats and longs and steel products markets.

As the market leader in custom engineered building products like joist and deck metal buildings in insulated metal panels, we're seeing strong customer interest in our capabilities, particularly from those prioritizing speed quality and certainty of execution. We also expect healthy demand for our rebar fabrication business and incremental demand for tubular.

While we're seeing varying levels of demand across these products. We expect each will continue to benefit from further further declines in imports.

The effects of tariffs and trade cases are realized.

Products.

That said, we are closely monitoring the impact of evolving trade policy higher construction cost and persistent softness among residential construction activity.

Additionally, new domestic supply is still being absorbed in the market.

Turning to our fourth quarter outlook, we expect nucor's consolidated earnings to be lower than the third quarter.

Turning to long products, our bar and structural mills continued to benefit from a number of demand drivers underpinning a more constructive near term outlook.

We expect lower total volumes across all operating segments due to a combination of factors, including seasonal effects nucor's fiscal quarter containing five less shipping days.

We remain mindful of typical seasonal purchasing trends.

Infrastructure spending remains elevated the American road in Transportation Builders Association reports that bridge and tunnel contract awards are up nearly 20% year over year.

And two scheduled outages at our <unk> facilities during the fourth quarter.

We anticipate decline in realized pricing within our steel Mills segment, primarily driven by sheet and contrast pricing in our steel products segment is expected to remain stable.

And 60% of total funds allocated to the Iga a highway projects remain unspent.

Looking ahead to 2026, we expect stable domestic steel demand.

With the broadest range of capabilities in the North American steel market Nucor's confident in our ability to create value for our customers and shareholders as we capture a healthy share of that demand.

In addition, we expect to capitalize on our strong regional demand and gain market share as our North Carolina Micro mill, and new melt shop in Arizona, a ramp up.

And with that we'd like to hear from you and answering any questions. You may have operator, please open up the line for questions.

Thank you very much.

Finally in our steel products segment, many of our business lines are benefiting from pockets of strength in nonresidential construction as.

Your lines for the Q&A.

Thats asked question. Please signal now by pressing star one telephone keypad.

There would be a separate line of questioning staphylococci.

It's always a question star flip a one man.

Our first question comes from Alex hacking from Citi. Your line is now open.

Yes. Good morning, Thanks for the call congrats on the strong results.

It seems like Nucor shipments are growing faster than the industry and you referenced that are gaining share could you maybe give more color or other kind of specific.

Products.

That said, we are closely monitoring the impact of evolving trade policy higher construction cost and persistent softness among residential construction activity.

Products, where you're gaining share or any change in strategy that you're gaining share. Thanks a lot.

Turning to our fourth quarter outlook, we expect nucor's consolidated earnings to be lower than the third quarter, we expect lower total volumes across all operating segments due to a combination of factors, including seasonal effects nucor's fiscal quarter containing five less shipping days.

Yes, Thanks Allison.

We begin Alex with our most important value and that is the value of safety.

We're on track for a historic eight year in a row of lowering our ini rage and creating the safest year in the history of our company and so I just wanted to take a moment and 33000 team members that execute.

And two scheduled outages at our <unk> facilities during the fourth quarter.

We anticipate decline in realized pricing within our steel Mills segment, primarily driven by sheet and contrast pricing in our steel products segment is expected to remain stable.

At incredible value each and every day across.

40 stage 300 locations in <unk>.

Looking ahead to 2026, we expect stable domestic steel demand.

Multiple countries. So again, we begin there, but specifically to address your question Alex Yeah. We continue to stay very focused and being in the market. Later means that we've got to do things to stay out in front and so as we think about how we restructure it in position to play group is a great example of that where branded brokers continue to run.

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

Bob.

Steve mentioned earlier.

Thank you very much.

In his prepared remarks, the pre operating startup cost reduction.

All lines for the Q&A.

Ask a question. Please signal now by pressing star flipped one telephone keypad.

The reduction means that Brandenburg is ramping up faster than we had anticipated and theyre doing a great job you'll hear more about that in.

There'd be a separate line of questioning staphylococci.

In a few moments I'm sure as we get into place later in the call, but it is another.

Mind it to raise your question stuff slipped by one man I.

Our first question comes from Alex hacking from Citi. Your line is now open.

Broad example, where we're focused on that long products. There's another aware and of course going to continue to look for the opportunities too.

Yeah morning, Thanks for the call congrats on the strong results.

Grow.

It seems like nucor shipments to growing faster than the industry and you referenced that are gaining share.

And bar and beans in that segment.

Ultimately.

What I think the strategy that youre seeing.

Can you maybe give more color on that kind of specific.

Playing out over the last few years is really wrapped around our commercial and construction solutions group that are looking to attach these major.

Products, where you're gaining share or any change in strategy that you're gaining share. Thanks a lot.

Yes, Thanks Allison.

Developers major hyperscale or is that are looking for speed and a capability set that nucor now has in bringing that to the market. So we're getting a ton of pull through effect in our products troops from the upstream mills from sheet.

Begin Alex with our most important value and that is the value of safety and we're on track for a historic eight year in a row of lowering our ini rage and creating the safest year in the history of our company and so I just wanted to take a moment and 33000 team members that execute.

Plate.

Our engineered bar all the way through the downstream adjacent segments that we're seeing.

At incredible value each and every day across.

A lot of that play out which is increasing our market share and again the capability set.

40 stage 300 locations in <unk>.

Multiple countries so.

You heard me say in my prepared remarks, as well Alex you can think about how white hot the datacenter trend is today.

Again, we begin there, but specifically to answer your question Alex Yeah, We continue to stay very focused and being in the market. Later means that we've got to do things to stay out in front and so as we think about how we restructure it in position to play group is a great example of that where branded Burbs continue to ramp up and as you heard Steve mentioned earlier.

With our southwest data products acquisition, with our racking group, where the insulated metal panels as well as the breadth is steel.

Products that we make we are now capable of making 95% of all steel components within the framework building and not in the hot idle contained within that data center. So again it offers a very unique.

<unk>.

In his prepared remarks, the pre operating and startup cost reduction.

The reduction means that Brandenburg is ramping up faster than we had anticipated theyre doing a great job you'll hear more about that in.

Solution set for again, these developers and hyper scaler.

In a few moments I'm sure as we get into play later in the call, but there's another.

Thanks, Liana I guess, just a follow up on that point.

Broad example, where we're focused on that long products is another aware and of course going to continue to look for the opportunities too.

On the data centers.

Other.

Specific products at Nucor, selling that are particularly exposed to data centers I mean, I know that joist and deck shipments are up over 20% like this year versus last year.

Grow.

And bar and beans in that segment.

Ultimately.

I think the strategy that you've seen.

They are an obvious beneficiary from this.

Playing out over the last few years is really wrapped around our commercial and construction solutions group that are looking to attach these major.

Yes, Alex it's really the gamut, so insulated metal panels, Joyce grading decking fasteners.

Sprinkle or condo.

The foundations of rebar in the foundations of the civil side.

The shading on the outside of the building the overhead doors from CACI right Tech and so it really is.

The full purview, but John anything else you'd add to that Alex so on the on the joist and deck side, we're definitely feeling the benefit of the data center build out as well as E Commerce, and we're just well positioned.

Plate bar engineered bar all the way through the downstream adjacent segment. So we're seeing I think a lot of that play out which is increasing our market share and again the capability set.

Stay in my prepared remarks, I did as well Alex.

These end use markets because of our industry, leading capabilities the breadth of our product offering our nationwide coverage.

About how white hot the datacenter trend is today.

With our southwest data products acquisition, with our racking group with insulated metal panels as well as the breadth of steel.

Right now our joist and deck backlogs are about 25% higher than what they were a year ago. At this time, they extend well into 2026 and we're optimistic about next year is going to Brian.

Products that we make we are now capable of making 95% of all steel components within the framework building.

Thanks, Sean.

And the hot idle contained within that data center. So again it offers a very unique solution.

Thank you.

Yeah.

Thanks, Alex.

Solution set for again, these developers and hyper scaler.

Thank you very much.

Our next question comes from Bill Peterson from Jpmorgan. Your line is now open.

Thanks, Liana I guess just to follow up on that point.

Yeah.

Yes, congrats on the quarter. Thanks for taking my questions maybe.

On the data center.

Are there.

Maybe to follow up on this data center opportunity, but maybe to contextualize relative to what I think so a larger market, but much larger larger now wishes.

Specific products that nucor selling that are particularly exposed to data centers I mean, I know joist and deck shipments are up over 20% like this year versus last year.

As warehouses I guess based off of your backlog, how should we think about square foot growth beyond 2025, maybe from a market perspective as well as your own opportunity and is there a way you can I guess help quantify or provide any anecdotes on how you are gaining share in the market with like southwest data products compared to industry growth average.

Are they an obvious beneficiary from this.

Yes, Alex it's really the gamut, so insulated metal panels, Joyce grading decking fasteners.

Sprinkle or condo at the foundations, the rebar and the foundations of the civil side.

The shading on the outside of the building the overhead doors from CACI right Tech and so it really is.

I was just trying to get more.

Context on this on this opportunity relative to the larger ones such as warehouse.

It's the full per view, but John anything else you'd add to that Alex on the on the.

Okay.

Yes, Bill let me, let me start with <unk>.

Your point, the larger segment, which is the warehousing looked at that.

<unk> side, we're definitely feeling the benefit of the data center build out as well as E Commerce, and we're just well positioned.

It is probably flat year over year and expected to be about the same in 2006, and so again that peaked I don't know 'twenty. One 'twenty two what are we saw massive.

These end use markets because of our industry, leading capabilities the breadth of our product offering our nationwide coverage.

Well it's from Amazon.

Others that we're putting in as fast as they could come so the shift has come in the last 12 to 18 months into the data center side, but again with the energy infrastructure is a big piece of that that nucor's again, tying into southwest data products enables us to do.

Now our joist and deck backlogs are about 25% higher than what they were a year ago. At this time, they extend well into 2026 and we're optimistic about next year, it's kind of Brian.

Thanks, John.

Things are not hot idle.

Thank you.

We werent able to do prior.

Thanks, Alex.

Nucor now has a new core.

Thank you very much.

Warehouse and data systems coring that kind of provides that overarching.

Our next question comes from Bill Peterson from Jpmorgan. Your line is now open.

Yes.

Solutions shed for again these major developers and Joe maybe unpack that just a little bit further and how we how we use that go to market with that when you think about data center and it's on our slide seven in our presentation all of the different products that that new core suppliers into that market.

Yes, congrats on the quarter, thanks for taking my questions.

Maybe to follow up on this data center opportunity, but maybe to contextualize relative to what it takes a larger market, but much larger larger now wishes.

Which is warehouses.

Based off of your backlog, how should we think about square foot growth beyond 2025, maybe from a market perspective as well as your own opportunity and is there a way you can I guess help quantify or provide any anecdotes on how you are gaining share in the market with like southwest data products compared to industry growth averages just trying to get more.

We're the only company that can supply all of those products. Many of our competitors can put supply one of them. We have the ability to supply all and we work directly with a lot of these companies to guarantee their surety of their supply to meet their deliveries to get these facilities operational.

Context on this on this opportunity relative to the larger ones such as warehouses.

<unk> a long time, it's a big advantage that we have.

With that entire portfolio of products. In addition to that having run redundancy on our portfolio. We made mentioned we've converted a couple of facilities over the last several months.

Yes, Bill let me, let me start with <unk> and to your point the larger segment, which is the warehousing looked at that.

It is probably flat year over year and expected to be about the same in 2006, and so again that peaked I don't know 'twenty. One 'twenty two what are we saw massive.

The build out of these data centers, because we see that market so hot.

Well it's from Amazon.

Alright, thanks for the coming years.

Others that we're putting in as fast as they could come so the shift has come in the last 12 18 months into the data center side, but again with the energy infrastructure is a big piece of that Nucor's again, tying into southwest data products enables us to do things that not at all.

Hey, Bill this is Steve I would like to just add one thing thats implicit in.

The questions that you and Alex both ask.

If a commentary on the flexibility of Nucor's overall portfolio and so as you see different markets gets strong nucor has excelled over the years.

So we werent able to do prior.

Winning in a variety of different ways and right. Now you are focused in on data centers and we can capture as John and Leon described.

But nucor now has a new core.

Warehouse and data systems Corp debt.

<unk> provides that overarching.

Creston.

Unparallel with anyone in the space and the ability to gain and thats in that area, but it's not lost on us and shouldnt be on you that Nucor has has won at various times when different markets have been strong because of the product diversity and the flexibility that we have in supply in the market.

We're the only company that can.

Yes, no I appreciate that.

Can supply all of those products many of our competitors.

Color.

Yes, maybe just to follow up and maybe I missed I didn't hear it but you said data center flat for 2006 is there a sense for how we should think about the data center growth next year.

One of them, we have the ability to supply all and we work directly with a lot of these companies to guarantee their surety of their supply to meet their deliveries to get these facilities operational on time, it's a big advantage that we have.

Alright. Thanks.

Sorry, Bill no work Wearhouse traditional warehouse would be flat data centers are up double digit growth for the next five years to six years is what every.

With that entire portfolio of products. In addition to that having run redundancy in our portfolio. We made mentioned we've converted a couple of facilities.

A major category, where we're looking at is tracking so I think in my prepared comments that I opened with the forecast is for 60 million square feet of capacity in 2026. So it's incredibly fast growing segment, so not flat on the datacenter side.

Last several months to help the build out of these data centers, because we see that market being so hot.

Alright, thanks for the coming years.

Hey, Bill this is Steve I would like to just add one thing thats implicit.

Yes, well understood.

The questions that you and Alex both ask.

My second question, so scrap costs was down but conversion costs were up I guess can you speak to what contributed to the ladder or is this related to the new mill ramps or is there something else there and I guess more importantly, how should we think about this trend.

Is that a commentary on the flexibility of nucor's overall portfolio.

And so as you see different markets gets strong nucor has excelled over the years at at winning in a variety of different ways and right. Now you are focused in on data centers and we can capture as John and Leon described.

The fourth quarter.

Okay.

Thanks Bill this.

This is David Muskie, so, although our cost quarter over quarter.

So year over year down 5%.

Unprecedented.

Unparalleled with anyone in the space and the ability to gain and thats in that area, but it's not lost on us and shouldnt be on you that Nucor has has won at various times when different markets have been strong because of the product diversity and the flexibility that we have in supply in the market.

Specifically the items affecting the quarter over.

Quarter results are.

<unk> cost for CSI.

Consumables was up such as refractory and labor was slightly up due to some significant planned outages in the quarter.

Sure.

Yes, no I appreciate that.

Okay. Thanks for that congrats again on the quarter.

Color.

Yes, maybe just to follow up but maybe I missed I didn't hear it but you said data center flat for 2006 is there a sense for how we should think about the data center growth next year.

Thanks Bill.

Thank you very much as a reminder, if you would about securing the question. Please secret now by pressing star from about one telephone keypad.

Alright. Thanks.

Question comes from both some windows Banc of America loosen.

Yes, sorry, Bill no work Wearhouse traditional warehouse would be flat data centers are up double digit growth for the next five years to six years is what every.

Wilson Your line is now open.

Thank you very much operator, and good morning, Liana Good morning, Steve I appreciate the update today.

Major category, where we're looking at is tracking so I think in my prepared comments that I opened with the forecast is for 60 million square feet of capacity in 2026. So it's incredibly fast growing segment, so not flat on the datacenter side.

Could I ask about the <unk>.

I mean in the guidance for Q4, you're pointing to.

Lower volumes, just because of fewer shipping days I mean that all makes sense, but you also suggested there was some lower.

Lower realized chief pricing factored in.

Yet yesterday.

<unk> was $10 higher was that factored in and we also saw a competitor raised.

Yes, well understood.

And my second question, so scrap costs was down but conversion costs were up I guess can you speak to what contributed to the ladder or is this related to the new mill ramps or is there something else there and I guess more importantly, how should we think about this trend.

Their pricing by $50 yesterday, how should we think about the movement. We've just seen very recently in that.

Yes.

Great that question look most of Nucor's sheet.

The fourth quarter.

Yeah.

Thanks, Bill this is Dave Muskie, so, although our cost quarter over quarter were up costs year over year down 5%.

<unk>.

Deliveries are based on contracts. So while you see the moves today, what I would tell you is you are seeing that typical seasonality and a softer Q2 flow through the order book, which is our projection for Q4.

Specifically the items affecting the quarter over.

Quarter results are.

Slot cost for CSI.

Lower realized pricing, but again with the current price increases in that group, we anticipate Q1 will be.

Some of them are consumables was up such as refractory and flavor was slightly up due to some significant planned outages in the quarter.

Well, we will certainly realize those higher pricing. So it takes some time to flow through that but on the positive side. There is two factors I'd point out.

Okay. Thanks for that.

That's again on the quarter.

Thanks Bill.

In terms of.

How quickly that can move through one is the service center inventory side of things.

Thank you very much as a reminder, if you would about today has a question. Please secret now by pressing star one telephone keypad.

Pretty very well seasonally low in terms of that overall.

Our next question comes from both some Windows Bank of America.

Your line is now open.

Picture, but also internally the new quarter, we're not sitting on high volumes of inventory at our mills. So it's going to enable us that much faster realization of that pricing you. Just mentioned so again those two factors, we'll see that move through the the order books into the balance sheet for Q1.

Thank you very much operator, and good morning, Liana Good morning, Steve I appreciate the update today.

Could I ask about the <unk>.

I mean in the guidance for Q4, you're pointing to.

Lower volumes, just because of fewer shipping days I mean that all makes sense, but you also suggested there was some lower.

Okay.

Fantastic. Thank you Liana.

Lower realized chief pricing factored in.

And can I ask on acquisition.

Opportunities.

Yes yesterday.

When you look at the relevant.

Core <unk> was $10 higher was that factored in and we also saw a competitor raised.

Acquisitions.

For Nucor.

How would you characterize that in terms of product and region or segment upstream versus downstream appreciate any thoughts.

Their pricing by $50 yesterday, how should we think about the movement. We've just seen very recently in that.

Yes.

Great that question look most of Nucor's sheet.

Here's how I would tell you our mission statement is very simple Rite aid works that we launched in January one 2020, and just to grow the core expand beyond and one of our culture. The core is just that the core steelmaking capabilities, you're seeing that with the startups of electric fittings micro mill in North Carolina, the melt shop in Kingman, Arizona.

<unk>.

Deliveries are based on contracts. So while you see the the moves today, what I would tell you is you are seeing that typical seasonality and a softer Q2 flow through the order book, which is our projection for Q4.

Lower realized pricing, but again with the current price increases in that group, we anticipate Q1 will be.

The ramping up and then restart up at Crawford <unk> guideline, Berkeley next year, the startup of our first towers and structures facility in Alabama. The next two that will be next year.

Well, we will certainly realize those higher pricing so.

It takes some time to flow through that but on the positive side. There is two factors I'd point out in.

And then that will ultimately culminate with a startup of the largest investment in Nucor's history in Mason County, West, Virginia with the most state of the art sheet mill Thats going to offer a capability set.

In terms of.

How quickly that can move through one is the service center inventory side of things.

Unparalleled in our industry and so we're going to have the breadth of capabilities too.

Pretty very well seasonally low in terms of that overall.

Picture, but also internally the new quarter, we're not sitting on high volumes of inventory at our mills. So it's going to enable us much faster realization of that pricing you just mentioned so again those two factors, we'll see that move through the the order books into the balance sheet for Q1.

Provide our customers the steel they need today as well as what theyre going to need for tomorrow. So.

That's the core should we think about expand beyond it fits in the CA.

CACI and <unk> southwest data products, our summit, which is the first acquisition in the towers infrastructure as we made the insulated metal panels group that continues to.

Okay.

Fantastic. Thank you Liana.

Bring a really differentiated product mix to the new core offering so as we look to the future now as again, we don't anticipate building any more greenfield facilities at least in the near term.

And can I ask on acquisition.

Opportunities.

Look at the relevant.

Acquisitions.

For Nucor.

How would you characterize that in terms of product and region or segment upstream versus downstream appreciate any thoughts.

That capital is now going to get deployed into the adjacent space as well again right more we'll leave you that that ambiguous. If we think a little bit more about well where is that going to go it's going to go on the mega trends that we're seeing in the U S economy like towers and structure, so like energy energy infrastructure.

Yes.

The data center community. So what are the things that we're not providing or don't provide today that again here.

I had a few boxes right. So as we look for targets, it's going to be like.

The ramping up and free startup at Crawfordsville, Calpine, Berkeley next year, the startup of our first towers and structures facility in Alabama. The next two that will be next year.

Minded culturally that fits who we are it's going to be a converter model that we bring in terms of our competencies to that acquisition, sorry, it's going to be low capital intensity and 4445 high margins in <unk> sort of counter cyclical to the traditional cyclical.

And then that will ultimately culminate with the startup of the largest investment in Nucor's history in Mason County, West, Virginia with the most state of the art sheet mill Thats going to offer a capability said unparalleled in our industry and so we're going to have the breadth of capabilities too.

Calendar of steel so we want something that isn't.

<unk> is affected by the true steel cycles that we see over the last 60 years and we've been in this business and can Chr eyetech.

Provide our customers the steel they need today as well as what theyre going to need for tomorrow. So.

I'll provide a much more stable earnings platform growth throughout all of the sectors and highs and lows in both the financial crisis, Covid and whatnot there.

That's the core as we think about expand beyond it sits in the.

CACI and <unk> southwest data products, our summit, which is the first acquisition and then the towers and structures. We made the insulated metal panels group that continues to.

The return profiles are incredibly stable and so again ultimately our goal is to stabilize nucor's overall earnings to provide higher highs and higher lows.

Bring a really differentiated product mix to the new core offering so as we look to the future now as again, we don't anticipate building any more greenfield facilities at least in the near term.

Yeah.

That's very helpful. Thank you Leon.

Thanks, Paul.

Thank you very much.

Capital is now going to get deployed in the adjacent space as well again right more we'll give you that that ambiguous. If we think a little bit more about well where is that going to go it's going to go on the mega trends that we're seeing in the U S economy like towers and structure, so like energy energy infrastructure.

Our next question comes from Timna Tanners from Wells Fargo. Your line is now open.

Yeah, Hey, good morning.

Ask about my home state of Washington, and what's happening in Seattle, So I saw that announcement of not replacing the existing now can you just elaborate on that decision does that you said you can supply it from other mills, but with imports to the west coast are down I'm, assuming like is there enough supply on the West coast can you supply it from Kingman and.

The data center communities. So what are the things that we're not providing or don't provide today that again here.

I had a few boxes right. So as we look for targets, it's going to be.

Just not replacing the existing mill or are you just not shutting it down.

Minded culturally that fits who we are it's going to be a converter model that we bring in terms of our competencies to that acquisition, sorry, it's going to be low capital intensity and forward look for four and five high margins and fifth a sort of counter cyclical to the traditional cyclical.

Yes.

You kind of answered the question within that question as well Timna. So thank you for it.

We are agreeing relationship with the city of Seattle, and our team out there does an amazing job.

Connecting with our community being in that community and welcoming that committee with open arms and how we take care of our safety environmental sustainability side. So they do it.

Do you have steel so we want something that isn't.

<unk> is affected by the true steel cycles that we see over the last 60 years and we've been in this business and can Chr eyetech.

Really really nice job, but it is.

They all provide a much more stable earnings platform growth throughout all of the sectors and highs and lows in both the financial crisis, Covid and whatnot there.

As we step back and look at our prudent capital allocation where R. R.

Best spent and where is the best returns on those dollars going to be.

The investment of the melt shop in Kingman, Arizona, our Utah facility and the breath and exposure of our Seattle Mill, we are adequately covered for the.

The return profiles are incredibly stable and so again ultimately our goal is to stabilize nucor's overall earnings to provide higher highs and higher lows.

Yeah.

Western side of the United States as well as Western Canada. So again as we step back to really evaluate that.

It's very helpful. Thank you Leon.

Thanks Ross.

Thank you very much.

We were we feel really good about where the mill is in its capability set in Seattle, but couple that with the addition of Kingman melt shop, and we think we've got a very adequate coverage. There. So we're going to use those dollars elsewhere to think about growth in <unk>.

Our next question comes from Timna Tanners from Wells Fargo.

And it's not like.

Yeah, Hey, good morning.

Ask about my home state of Washington, and what's happening in Seattle, So I saw that announcement of not replacing the existing now can you just elaborate on that decision does that you said you can supply it from other mouse, but with imports to the west coast are down I'm, assuming like is there enough supply on the West coast can you supply it from Kingman and.

Again, how do we not just meet our cost of capital, but double our cost of capital how do we make sure that we're generating EBITDA for our shareholders for the long term and that's why that's where we're going to put that in again, if we don't have that home as you've seen over the course of the years and following us Timna. This year, we're at 72% return of our net earnings back to our.

Are you just not replacing the existing mill or are you just not shutting it down.

Orders in dividends or share buybacks and that will continue.

Yes.

You kind of answered the question within that question as well Timna. So thank you for it.

Great. That's my next question, but just to clarify that Seattle now keeps operating Youre, just not replacing it with the micro mill is that right.

We are agreeing relationship with the city of Seattle, and our team out there does an amazing job.

That's correct, yes, okay.

Connecting with our community being in that community and welcoming that committee with open arms and how we take care of our safety environmental sustainability side. So they do it.

Along the lines of the shareholder returns they are.

Third quarter buybacks at a 100 million is it is the smallest you've had I think since 2020. When you didn't have any buybacks is that correct and if so is that a statement of anything you have other uses of capital any anything you can elaborate on there.

Really really nice job, but it is.

As we step back and look at our prudent capital allocation where R. R.

Yes, I'll, let Steve answer that but I would remind you of the $13 billion that we've returned back to our shareholders over the last five years, but I think you're accurate exchange.

Best spent and where is the best returns on those dollars going to be.

The investment of the melt shop in Kingman, Arizona, our Utah facility and the breath and exposure of our Seattle Mill, we are adequately covered for the.

Hey, Timna and Youre correct that this is the lowest quarterly return we've had but we remain committed to giving back at least 40% of our earnings every every year.

The western side of the United States as well as Western Canada. So again as we step back to really evaluate that.

Every year, we don't necessarily do that every quarter and so of course of the year well ahead of that Mark in ethylene alluded to you over the last five years, we've given back.

We feel really good about where the mill is in its capability set in Seattle, but couple that with the addition of Kingman melt shop in and we think we've got a very adequate coverage. There. So we're going to use those dollars elsewhere to think about growth and again, how do we not just meet our cost of capital, but double our cost of capital how do we.

Around 60% just under 60% of their earnings.

We've continued to disappoint.

Balancing investment with our capital and growing the company while we also.

We maintain strong liquidity and a strong balance sheet position, we've actually improved that even getting the upgrade from Moody's This past September.

Make sure that we're generating EBITDA for our shareholders for the long term and that's where we're that's where we're going with that.

And give meaningful return so those three elements remain in place and thats not going to change going forward.

And again, if we don't have that home as you've seen over the course of the years and following us Timna. This year, we're at 72% return of our net earnings back to our shareholders in dividends or share buybacks and that will continue.

I wouldn't get too focused in on the quarter quarterly number.

Just to remind you that we remain very mindful and intentional about management of those three pillars of our capital allocation framework.

Great. That's my next question, but just to clarify that Seattle Mal keeps operating Youre, just not replacing it with the micro mill is that right.

Okay.

I appreciate it and that's clear thank you again.

That's correct, yes, okay Super.

Thanks Timur.

All lines of the shareholder returns here.

Thank you very much as a reminder, if you would like to raise a question on today's call. We signaled now by pressing star followed by one on your telephone keypad. Our next question comes from Phil Gibbs from Keybanc. Your line is now open.

Third quarter buybacks of 100 million is it is the smallest you've had I think since 2020. When you didn't have any buybacks is that correct and if so is that a statement of anything you have other uses of capital any anything you can elaborate on there.

Hey, good morning.

Yes, I'll, let Steve answer that but I would remind you of the $13 billion that we've returned back to our shareholders over the last five years, but I think you're accurate exchange.

Good morning, Phil.

Just wondering if you could give us the state of the state of the West Virginia sheet investment in terms of where you are in the spending.

Hey, Timna and Youre correct that this is the lowest quarterly return we've had but we remain committed to giving back at least 40% of our earnings every every.

And your expected startup timeframe.

Okay.

Yes, certainly.

<unk>, our EVP over sheet group to give you a more detailed update no. Thanks for the thanks for the question Phil It's a good opportunity to congratulate recognize the team on the progress there.

Every every year, we don't necessarily do that every quarter.

So over the course of the year and we're well ahead of that Mark in ethylene alluded to you over the last five years, we've given back around.

Around 60% in just under 60% of their earnings.

Well, you're worried about 75% on the bills and.

We've continued disciplined balancing investment with our capital and growing the company while we also.

In terms of capital spending we're about at the same point now most of the 25% we have remaining remains in the labor category.

Maintain strong liquidity and a strong balance sheet position, we've actually improved that even getting the upgrade from Moody's This past September.

So if you go there today it looks like a steel mill and say we have the world's best steelmaking team and you see you see the foundation of it starting there with that team in West Virginia, We have done an awesome job that West Virginia team has done an awesome job of bringing in some of the most talented people from across our sheet group from across Nucor to lead that.

And give meaningful returns so theres three elements remain in place and thats not going to change going forward.

I wouldn't get too focused in on the quarter quarterly number.

Just to remind you that we remain very mindful and intentional about management of those three pillars of our capital allocation framework.

That project.

We've done a great job of hiring an experienced and.

I get often asked about like how do you feel about this investment and we could not be more excited because we're taking this awesome team and we're giving them the world's best equipment theyre going to have assets capabilities. There that are the best in our market.

Okay.

I appreciate it and that's clear thank you again.

Thanks Timur.

Thank you very much as a reminder, if you would like to raise a question on today's call placebo now by pressing star followed by one on your telephone keypad. Our next question comes from Phil Gibbs from Keybanc. Your line is now.

And then we're turning them loose in a region.

<unk> been underserved, but where we have really strong customer demand when you stack those those things up we're going to be extremely successful with that investment and we're excited about what the future branch from Washington.

Yes.

Hey, good morning.

Good morning, Phil.

No.

Just wondering if you could give us.

Thank you and then just a question for Steve.

The state of the state of the West Virginia sheet investment in terms of where you are in the spending.

On.

On the tax side.

And your expected startup timeframe.

Is there a distinct difference between your cash tax rate in your book tax rate for 25 and 26, given the recent changes in tax legislation.

Okay.

Yes, certainly.

<unk>, our EVP over sheet group to give you a more detailed update.

Thanks for the thanks for the question, Phil It's a good opportunity to.

Okay.

No.

Congratulate recognize the team on the progress there I would tell you we're at about 75% on the build and.

<unk> not necessarily because of the way that.

Slashing what's written.

It accelerates things that start after.

In terms of capital spending we're about that at the same point now most of the 25% we have remaining remains in the labor category.

<unk> most of our spend has already been started so to give you a sense and a feel for that the deferred tax benefits the cash flow benefits. This year and 25 will be around $100 million.

If you go there today it looks like a steel mill and saying we have the world's best steelmaking team and you see you see the foundation of it starting there with that team in West Virginia, We have done an awesome job that West Virginia team has done an awesome job of bringing in some of the most talented people from across our sheet group from across Nucor to lead that.

And when do you when.

If you look out into 26 that gets.

It'll be smaller because of the nature of the bill So one big beautiful bill at relatively modest impacts for us on on that it does accelerate some of the R&D credits a little bit that's where some of the gains coming from.

Project.

Done a great job of hiring an experienced and.

I get often asked about like how do you feel about this investment and we cannot be more excited because we are taking this awesome team and we're giving them the world's best equipment theyre going to have assets capabilities. There that are the best in our market.

In terms of the capital spending maybe not as pronounced as you might expect given the dollars are spent any capital.

Thanks for the clarification, Steve I appreciate it.

Yes.

And then we're turning them loose in a region, where we've been underserved, but where we have really strong customer demand. When you stack those those things up we're going to be extremely successful with that investment and we're excited about what the future brings from Washington.

Thank you very much our next question comes from Ken <unk>.

From BMO capital Your line is now open.

Okay.

Hi, Thank you for taking my question.

Sure.

On the startup cost given that you have a couple of projects now that are ramping up how should we think about these costs over the next few quarters.

Thank you and then just a question for Steve.

On.

On the tax side.

Is there a distinct difference between your cash tax rate in your book tax rate for 25 and 26, given the recent changes in tax legislation.

Right.

Hey, Scott this.

This is Steve we would expect over the next quarter to be in line to a third quarter.

Sure.

Okay.

Give or take there going to be in that range.

No.

<unk> not necessarily because of the way that legislation what's written.

Into the first quarter as well so call it $100 million to $110 million a quarter.

It accelerates things that start after.

Going forward for the next couple of quarters.

Yeah.

Most of our spend has already been started so to give you a sense and a feel for that the deferred tax benefits the cash flow benefits. This year and 25 will be around $100 million.

And then I think.

The margin compression in the mill segment was tied to the slabs you purchase for the DSI.

Tsi operations.

And when do you when you.

If I'm not mistaking that mostly comes from Brazil is that correct and if so why not use more of the material produced internally.

You look at it on a 26 that gets.

It'll be smaller because of the nature of that bill.

One big beautiful bill at relatively modest impacts for us on that it does accelerate some of the R&D credits a little bit that's where some of the gains coming from.

Yeah. Catherine this is Noah I'll take that yes, mostly from Brazil, and we have been mostly flat serve there this year, but we have a team that looks at.

In terms of the capital spending maybe not as pronounced as you might expect given the dollars are spent in capital.

The decision about whether to supply with internal substrates, so coils from our own mills like Alexander Crawfordsville, or Tobias lab. Most of this year. It's made it made the most economic sense to buy slab enroll at hotmail.

Yeah.

Thanks for the clarification, Steve I appreciate it.

Yes.

Thank you very much. Our next question comes from Jim <unk> from BMO capital.

Hotmail.

There have been months, where we've where we supplied a lot more coil and I would tell you over the course of this year, we've leaned into more of our own internal substrates. So that team will continue to look at what makes the most economic sense and we'll go that way.

Jay Your line is now open.

Okay.

Hi, Thank you for taking my questions starting on the startup cost given that you have a couple of projects now that are ramping up how should we think about these costs over the next few quarters.

Okay. Thank you.

Okay.

Thank you.

Thank you very much. Our next question comes from Andrew <unk> from UBS. Your line is now live.

Right.

Hey, Scott this.

This is Steve we would expect over the next quarter to be in line to a third quarter.

Sure.

Yeah.

Thank you Steve.

Steve.

Couple of questions on.

Sure.

Give or take are going to be in that range.

Price hikes and festival <unk> aborted hikes in some of your peers.

Into the first quarter as well so call it $100 million to $110 million a quarter.

It sounds from your commentary like you didn't.

Going forward for the next couple of quarters.

Supported curious on reasons.

Then secondly on plates curious are you seeing the market environment obviously.

And then I think.

The margin compression in the mill segment was tied to the slabs you purchase for the.

<unk> had.

Some some relief from the impulse auto we should've done it doesn't seem like the Canada called out as coming anytime soon.

Tsi operations if I'm.

No mistaking that mostly comes from Brazil is that correct and if so why not use more of the material produced internally.

I'm curious how you're also thinking about <unk>.

Are you seeing state market.

In the coming months and play into that.

Yeah. Catherine this is Noah I'll take that yes, mostly from Brazil, and we have been mostly flat serve there this year, but we have a team that looks at.

So tighter supply side. Thanks.

Okay, Andrew we'll start off with the Barro group I'll ask Randy to just give you an update on your questions. There and then we'll kick it to Brad and thank you for the question.

The decision about whether to supply with internal substrates, so coils from our own mills like Alexander Crawfordsville or to buy slabs. Most of this year. It's made the made the most economic sense to buy slab enroll at hotmail.

Certainly, we're not going to comment on specific pricing actions, but what I can tell you is that the momentum across our bar products. It remains very strong.

Hotmail.

Seeing robust robust order entry fee across all regions and key end markets.

But there have been months, where we've where we supplied a lot more coil and I would tell you over the course of this year, we've leaned into more of our own internal substrates. So that team will continue to look at what makes the most economic sense and we'll go that way.

It's been mentioned driven by infrastructure projects chip plants warehouses and data centers.

That strength has been amplified by the continued growth of our downstream businesses Nucor rebar fab full craft and so forth. So.

Okay. Thank you.

Okay.

Thank you.

It's also worth, noting we have implemented and realized meaningful price increases in merchant bar throughout 2025.

Thank you very much. Our next question comes from Andrew <unk> from UBS. Your line is now live.

Sure.

Supported by our multi year high backlogs and extended lead time. So all of that gives us confidence as we move through Q4 and into 2026 at the market market is strong and ready for us to continue in that space.

Yeah.

Thank you Haley.

Okay couple of questions on <unk>.

Price hikes.

First of all the <unk> are bolted hikes in some of your peers.

It sounds from your commentary like you didn't.

Supporter curious on reasons for that.

Thanks.

Then secondly on plates curious, how you're seeing the market environment obviously.

Brian.

Yes, I'm happy to comment on the plate side.

No.

Plate market overall this year has been pretty good.

<unk> had.

Some some relief on the impulse auto we should've done it doesn't seem like the Canada carve outs is coming anytime soon.

ADC based on the last data, we got is trending up around 15% year over year, and we're starting to see the impact of tariffs on imports imports were pretty well.

I'm curious how you're also thinking about.

Are you seeing them state of the market.

We're up a little bit in the beginning of the year, but have come down pretty significantly over the last couple of months.

In the coming months and Pike.

So tighter supply side. Thanks.

Pockets of strength in place that you heard from from Randy and Leon and Steve around energy.

Okay, Andrew we'll start off with the Barro group I'll ask Randy to just give you an update on your questions. There and then we'll kick it to Brad Yes, Andy. Thanks. Thank you for the question.

Traditional and renewable.

Infrastructure, our bridge business has been very strong this year and then on the non res construction side.

Certainly, we're not going to comment on specific pricing actions, but what I can tell you is that the momentum across our bar products. It remains very strong.

As we sit today, our backlog is 58% higher at the end of Q3. Then we ended Q3 of last year. So we're pretty optimistic about where about where the plate market is going.

Seeing robust robust order entry fee across all regions and key end markets.

Brad why don't you touch on just that.

It's been mentioned driven by infrastructure projects chip plants warehouses and data centers.

Military applications and great development at Brandenburg as well.

A quick quick Brandenburg update.

That strength has been amplified by the continued growth of our downstream businesses Nucor rebar fab full craft and so forth. So.

<unk> team continues to make significant progress.

At the mill.

Announced last quarter.

It's also worth, noting we have implemented and realized meaningful price increases in merchant bar throughout 2025.

We achieved EBITDA of positive results, we achieve that again in Q3.

I had mentioned some some weekly or monthly records from last quarter, but honestly the team is already shattered those records.

So far here into Q4.

And then on the product development side, we've had some pretty notable achievements.

One being.

X 70, API grade for line pipe.

Thanks.

Brian.

We've achieved qualifications and certifications are in.

And I'm happy to comment on the plate side.

No.

Captured a very large order for Q4.

Blade market overall this year has been pretty good.

ADC based on the last data, we got is trending up around 15% year over year, and we're starting to see the impact of tariffs on imports imports were pretty well.

And into Q1.

And then on the military side were really encouraged by the early stage military armor trials.

Nucor is product breadth in place between our three plate mills.

We're up a little bit in the beginning of the year, but have come down pretty significantly over the last couple of months.

Really it's going to allow us to become the premier place supplier in the U S military.

Pockets of strength in place that you heard from from Randy and Leon and Steve around energy.

And then finally Brandenburg capabilities I know we've mentioned on prior calls that we are seeing opportunities.

Traditional and renewable.

Infrastructure, our bridge business has been very strong this year and then on the non res construction side.

With existing customers and we're really seeing that play out the capabilities of Brandenburg are allowing us to sell deeper with our current customer base and we're seeing that in our total plate volumes, where we've shipped nearly as much played through the first three quarters. This year as we did for all of last year.

As we sit today, our backlog is 58% higher at the end of Q3. Then we ended Q3 of last year. So we're pretty optimistic about where about where the plate market is going.

Hey, Brad why don't you touch on just that.

Brian.

Yeah that covers it.

Military applications and great development at Brandenburg as well.

Andrew.

Yeah.

Yes, just one follow up on the military side curious what the export markets like obviously, Europe with sort of the potential doubling trebling of defense spending is not a market you're focused on given I guess with these high high quality grades is more global market in the U S. What is that is that a target for newco.

A quick quick Brandenburg update.

<unk> team continues to make significant progress at.

At the mill.

<unk> last quarter.

We achieved EBITDA of positive results, we achieve that again in Q3.

I had mentioned some some weekly or monthly records from last quarter, but honestly the team is already shattered records.

Yeah.

Yes. Thanks for the question so certainly it's an opportunity.

So far here into Q4.

Again Brandenberger capability set is unique in the world market Theres only so few folks that can produce the qualities and size ranges engages in Brandenburg and so is.

Then on the product development side, we've had some pretty notable achievements.

Lending.

70, API grade for line pipe.

We've achieved qualifications and certifications there in.

Defense spending increases not just here in the U S, but across the world, we're well positioned to take advantage of that.

Captured a very large order for Q4.

Into Q1.

And then on the military side were really encouraged by the early stage military armor trials.

Okay. That's great. Thank you.

Yeah.

Thank you.

Nucor is product breadth in place between our three plate mills.

Thank you very much. Our next question comes interest increases from BNP Paribas first in your life.

Really is going to allow us to become the premier place supplier in the U S military.

Uh huh.

Yeah.

And then finally branded Bruce capabilities I know, we've mentioned on prior calls that we are seeing opportunities.

Yes, hi, thanks for taking my questions. The first one is just on your prepared remarks, you mentioned stable demand for next year.

With existing customers and we're really seeing that play out the capabilities of Brandenburg are allowing us to sell deeper with our current customer base and we're seeing that in our total plate volumes, where we shipped nearly as much played through the first three quarters. This year as we did for all of last year.

But in your presentation. It seems you have a lot of structural tailwind, especially on non res and impressive I'm just trying to understand what could be the pockets of weakness for next year that would offset that growth.

That stable demand outlook, if you could split that between longs and flats, there would be helpful as well.

Brian.

Yeah that covers it.

Andrew.

Yes Tristan.

Yes, just one follow up on the military side I'm curious what the export markets like obviously, Europe with sort of a potential doubling trebling of defense spending.

I'll touch on a couple of things.

Do you expect to be I guess relatively tepid next year, but it is factored into our.

Comments about next year being stable and it could be up a couple percent, but again, it's factored in with some softer markets like.

Our market you're focused on given I guess with these higher high quality grades is more global market in the U S. What is that there's been a target for newco.

Heavy equipment and AG right, we don't see that coming back we think the tariff impact.

Yeah.

Yes. Thanks for the question so certainly it's an opportunity.

That Scott.

Into those heavy equipment suppliers in agriculture, and we think residential construction.

Again <unk> capability set is unique in the world market Theres only so few folks that can produce the quality and size ranges engages in Brandenburg and so it is defense spending increases not just here in the U S, but across the world, we're well positioned to take advantage of that.

Again, probably not going to be great interest rates will certainly help that and we will see what the fed does over the next.

70, or 80 days.

<unk> finished 2025.

And then auto is there's probably another one that's not a huge.

Okay. That's clear thank you.

Market for us today, again about five or 6%, but.

Thank you.

Thank you very much. Our next question comes from Chris increases from BNP Paribas first in your mind.

One that we think we can continue to grow and because again, we're increasing our capability sets and.

Yes.

But again I think those are probably three areas that we see either flat or down in the 26.

Yeah.

Yes, hi, thanks for taking my questions. The first one is just on your prepared remarks, you mentioned stable demand for next year.

Alright.

That's clear and maybe just following up on that.

In your presentation. It seems you have a lot of structural tailwind, especially on non resi and impressive I'm just trying to understand what could be the pockets of weakness for next year that would offset that growth.

Consensus has external shipments for the steel me honestly I think below 21 million tonne.

And next year.

You see you have all those growth projects coming online and ramping up a different basis. So could you help us understand a little bit the moving pieces into volumes for next year, and what sort of utilization rates for the new projects do you expect in <unk>.

That's stable demand Luke if you could split that between longs and flats that would be helpful as well.

Yes Tristan.

I'll touch on a couple of things.

We expect to be I guess relatively tepid next year, but it is factored into our.

Consensus is.

Is conservative or pretty well calibrated at this point.

Comments about next year being <unk>.

Well okay.

Stable and it could be up a couple percent, but again, it's factored in with some softer markets like.

Appreciate the question.

We'll be careful on how much detail, we get into for obvious reasons Tristan look.

Heavy equipment and AG right, we don't see that coming back we think the tariff impact of that Scott.

I'm incredibly optimistic guy we're sitting on the safest year in the history of Nucor, We've returned $1 billion through the first nine months of the year, we're ramping up two of our projects today that we expect.

And to those heavy equipment suppliers in agriculture, we think residential construction.

Again, probably not going to be great interest rates will certainly help that and we will see what the fed does over the next.

Continuing with Carolina in Kingman, Arizona that we expect to be profitable in Q1 of 2006, we've been upgraded by Moody's to a story, we started up the first of three <unk>.

70, or 80 days.

Finish out 2025.

And then auto is there's probably another one that's not a huge.

Towers and structures facility in Alabama, and the other two next year continue to grow our capabilities and now make 95% of the data centers that steel that's in data centers, that's required starting up Crawfordsville galvanizing line in Barclays Galvanizing line, culminating in West Virginia startup next year.

Market for us today, again about five or 6%.

<unk>.

One that we think we can continue to grow and because again, we're increasing our capability sets and but again I think those are probably three areas that we see either flat or down.

The tsunami of earnings power, that's going to be brought to nucor's balance sheet is significant and so I couldnt be more optimistic about our future and do I think there is upside in our forecast absolutely, but look there's other external factors that we all wait but again the investments Nucor's made are for the long term now.

26.

Alright.

And maybe just following up on that.

Consensus has external shipments for the steel me honestly I think below 21 million tons next year.

Obviously you have.

Those gross project coming online and ramping up a different basis. So could you help us understand a little bit the moving pieces into volumes for next year.

With a quarter to quarter. That's 10, 12, 15, 20 year cycles and again I think we are as well positioned today as we've ever been in.

What sort of utilization rates for the new project do you expect you feel consensus is.

Our history.

Okay.

Alright.

Alright Thats fair.

As conservative or pretty well calibrated at this point.

And maybe just.

Last one on steel products.

Yeah, well okay welcome.

Is it fair to expect higher ASP.

Through 2026 have you seen rebar.

Appreciate the question.

I will be careful on how much detail, we get into for obvious reasons, Tristan look I'm, an incredibly optimistic guy we're sitting on the safest year in the history of Nucor, We've returned $1 billion through the first nine months of the year, we're ramping up two of our projects today that we expect.

Prices going up and joist and deck you mentioned good momentum.

And if you could also expand beyond was supposed to do $450 million of EBITDA for this year do you think it's achievable.

And lastly, if you could just remind us the timing an EBITDA contribution of the two new tower projects that would deal. So really helpful. Thank you.

Continuing with Carolina and came in Arizona that we expect to be profitable in Q1 of 'twenty six we've been upgraded by Moody's to <unk> three we started up the first of three.

Yes, I'll start with Alaskan if I forget the first either Steve can help me remember, but you can trust and but if we start with the last question you asked about the other two towers facilities, Indiana is expected to be up and running mid year of next year, and then Utah facilities should be end of 2006, so again by the end of <unk>.

Towers and structures facility in Alabama, and the other two next year continue to grow our capabilities and now make 95% of the data centers that steel thats in data centers into required starting up Crawfordsville Galvanizing line in Barclays Galvanizing line, culminating in West Virginia startup next year.

Next year, we will.

Rival some of the largest players in that space with a capability set that is truly differentiated interest in it.

The tsunami of earnings power, that's going to be brought to nucor's balance sheet is significant and so I couldnt be more optimistic about our future and do I think there is upside in our forecast absolutely, but there's other external factors that we all wait but again the investments Nucor's made are for the long term.

These facilities that are being built arent.

They are fully automated they are using the latest technologies and you can imagine that are making these the design.

Window for those from a cost and technology standpoint incredibly advantageous.

The quarter to quarter. That's 10, 12, 15, 20 year cycles and again I think we are as well positioned today as we have ever been in our history.

The products segment, though is also another area and I'll, let John comment here.

A little bit, but it's another area for us and we are incredibly optimistic about you think about the last 345 years of the products group, they've generated somewhere between 30% and 40% of Nucor's overall net earnings we have seen.

Yeah.

Alright.

And maybe just.

The last one on steel products.

Is it fair to expect higher ASP.

In a cyclical market that we're in is a steel company. The products group has reached a new high and we've seen the low in we're already climbing out our backlogs are up 25% to 30% year over year, we're seeing pricing stabilized and moving up and most of the segments within that group and so again do I think theres a lot of upside as we.

Into 2026 have you seen rebar.

Prices going up and joist and deck you mentioned good momentum.

And if you could also expand beyond was supposed to do $450 million of EBITDA for this year.

Think it's achievable.

Lastly, if you could just remind us the timing and the EBITDA contribution of the two new tower projects that would deal. So really helpful. Thank you.

Heading into the new year, and some tail winds that could make that better yes, I, absolutely believe that to be the case.

Yes Tristan.

Yes, I'll start with Alaskan if I forget the first either Steve can help me remember, but you can trust them, but if we start with the last question you asked about the other two towers facilities, Indiana is expected to be up and running mid year of next year, and then Utah facilities should be end of 2006. So again by the end of next.

John on the pricing side look the market is kind of dictate what what pricing is the one that we always get the question around as joist and deck pricing and as we mentioned last quarter.

We're expecting the trend and this is coming to reality, where our order entry is our joist and deck is matching our backlog pricing thats been the case for about <unk>.

At year, we will.

Rival some of the largest players in that space with a capability set that is truly differentiated Tristan it's these.

Nine months, we're still seeing a lot of stability, there and just echoing what.

Leon said this.

Cities that are being built arent.

The margins in the.

They are fully automated they are using the latest technologies and you can imagine that are making these the design window for those from a cost and technology standpoint incredibly advantageous.

Profit produced by these businesses are much stronger than what they were pre pandemic.

Important for our our downstream.

Performance.

Okay.

The products segment, though is also another area and I'll, let John comment here.

Alright, Thank you and just on the $450 million EBITDA target.

A little bit, but it's another area for us that we are incredibly optimistic about you think about the last 345 years in the products group, they've generated somewhere between 30% and 40% of Nucor's overall net earnings we have seen.

Four expand Dms.

Yes.

And thanks for that question expand is doing fine its hitting its quip and it's a mixed bag of things as Leon highlighting some of the progress we're making in towers keep in mind, that's let's say a bit of a build out of greenfield build out. So we still would point people to our long term run rate of $700 million.

The cyclical market that we're in is a steel company. The products group has reached a new high and we've seen the low in we're already climbing out our backlogs are up 25% to 30% year over year, we're seeing pricing stabilized and moving up and most of the segments within that group and so again do I think theres a lot of upside as we <unk>.

Target and.

We're not going to back off of that.

Okay.

Alright, thank you.

Thank you very much. We currently have no further questions. So I just thought to how about the Lynch for any further remarks.

In the new year, and some tailwind that could make that better yes, I, absolutely believe that to be the case.

Yes, Tristan this is John on the pricing side look the market is kind of dictate what what pricing is the one that we always get the question around as joist and deck pricing.

No.

As we mentioned last quarter.

We're expecting the trend and this is coming to reality, where our order entry is on joist and deck is matching our backlog pricing that's been the case for about.

Like to thank our team for delivering solid financial performance and for your unwavering commitment to become the worlds safest steel company.

To our customers for allowing us to serve you and to our shareholders for investing your valuable capital with us have a great day.

Nine months, we're still seeing a lot of stability, there and just echoing what Lee answer.

The margins and the.

Okay.

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

Profit produced by these businesses are much stronger than what they were pre.

Pre pandemic.

Which are important for our our downstream.

For months.

Okay.

Alright, Thank you and just under $450 million EBITDA target.

Four expand deal.

Yes.

And thanks for that question expand is doing fine its hitting its quip and it's a mixed bag of things as Leon highlighting some of the progress we're making in towers keep in mind Thats.

That's a bit of a build out of greenfield build out. So we still would point people to our long term run rate of $700 million as a target.

And we're not going to back off of that.

Alright, thank you.

Thank you very much. We currently have no further questions. So I'll hand back for any further remarks.

No.

Well, thank you for joining us for today's call and for your questions Nucor is continuing to execute on our strategy to grow our core steelmaking capabilities, while expanding into downstream steel adjacent businesses I'd like to thank our team for delivering solid financial performance and for your unwavering commitment to become the worlds safest steel come.

<unk>.

Thank you to our customers for allowing us to serve you and to our shareholders for investing your valuable capital with us.

Great day.

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

[music].

Q3 2025 Nucor Corp Earnings Call

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