Q1 2026 Nucor Corp Earnings Call

April 28, 2026

Speaker #1: Is being recorded. After the speaker's prepared remarks, I will provide instructions for callers wishing to ask questions. I would now like to introduce Chris Jacobi, Director of Investor Relations, you may begin your call.

Speaker #2: Thank you, and good morning, everyone. Welcome to NUCOR's first quarter earnings review and business update. Leading our call today is Leon Topalian, Chair and CEO, along with Steve Laxton, President and COO, and Jack Sullivan, CFO.

Speaker #2: Other members of NUCOR's executive team are also here with us today. And may participate during the Q&A portion of the call. Yesterday, we posted our first quarter earnings release and investor presentation to NUCOR's IR website.

Speaker #2: 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.

Speaker #2: Actual results may be different than forward-looking statements, and involve risks outlined in our safe-harbor statement and disclosed in NUCOR's SEC filings. The appendix of today's presentation includes supplemental information and disclosures along with a reconciliation of non-GAAP financial measures.

Speaker #2: So, with that, let's turn the call over to Leon.

Speaker #3: Thanks, Chris. And as always, I want to begin by recognizing our 33,000 teammates across the company for their continued commitment to working safely. Safety is and will always remain our most important value.

Speaker #3: And at NUCOR, that means more than the physical safety of our team. It encompasses the mental health of all of our teammates as well.

Speaker #3: With May being mental health awareness month, it's a great time to reinforce that commitment. And as we move through 2026, we are firmly focused on making this the safest year in NUCOR's history.

Speaker #3: Before turning to our financial performance, I'd like to briefly highlight a few leadership updates. Effective March 1st, Jack Sullivan was promoted to Chief Financial Officer, Treasurer, and Executive Vice President.

Speaker #3: Since joining NUCOR in 2022, Jack has demonstrated strong leadership, deep financial acumen, and a clear understanding of NUCOR's culture and how to create long-term value for our shareholders.

Speaker #3: Congratulations, Jack. We also announced that Dan Needham, our Executive Vice President of Commercial, will retire in June after 26 years with NUCOR, I want to thank Dan for all his sacrifice and leadership during this time in which he and his family the very best in retirement.

Speaker #3: Turning to NUCOR's first quarter financial results, we generated EBITDA of approximately $1.5 billion and earned $3.23 per share. This is an excellent start to the year and a significant increase compared to the fourth quarter.

Speaker #3: Driven by strong performance across all three of our operating segments. Consistent with our capital allocation framework, we returned $254 million to NUCOR shareholders through dividends and share buybacks during the quarter, while also reinvesting $661 million into the business.

Speaker #3: Roughly 40% of CapEx in the quarter went towards our new sheet mill in West Virginia. Operationally, our team has performed incredibly well during the quarter.

Speaker #3: One of the clearest indications is the record shipments our steel mills achieved for the quarter. At $7 million tons, this was the highest quarterly shipment volume in NUCOR's history, reflecting strong execution across our 26 steel mills and growing contributions from recently completed projects.

Speaker #3: Equally encouraging is the momentum evident in our backlogs. At the end of the first quarter, our steel mills backlog was up to $4.7 million tons, a 20% increase from year-end, and the highest level we've seen since the second quarter of 2021.

Speaker #3: In steel products, our backlog grew 9% from year-end, with increases across all major product groups. I want to thank our operating and commercial teams for a strong start to 2026 and for putting NUCOR in a position to deliver even better second-quarter results for our customers and our shareholders.

Speaker #3: Turning to trade policy, the combination of Section 232, steel tariffs, and trade remedy orders have been effective at reducing imports, with that trend accelerating the second half of '25 and continuing in the first quarter of 2026.

Speaker #3: Import share of the U.S. finished steel market declined from over 22% in the first quarter of 2025 to approximately 15% this quarter. More recently, we were pleased to see the administration reaffirm the 50% to 32 tariff on steel and implement important changes to how derivative steel products are treated specifically applying tariffs to the full value of those products.

Speaker #3: This action simplifies administration and enforcement while closing a key loophole that had allowed for undervaluation and circumvention. Taken together with existing trade remedies, these measures are working to ensure a more level playing field for domestic producers.

Speaker #3: We appreciate the administration's recognition of the importance of a healthy and competitive American steel industry. That said, we remain vigilant and there is still work to be done, as USMCA discussions continue; there is an opportunity to address ongoing challenges, including steel subsidies provided by the Canadian government and the use of North American channels as back doors toward domestic markets putting U.S.

Speaker #3: manufacturers at a competitive disadvantage. We also continue to advocate for policies that prioritize the use of American-made steel in critical sectors such as energy infrastructure, defense, and shipbuilding.

Speaker #3: With that, I'll turn it over to Steve for an update on the growth initiatives and market outlook. Steve.

Speaker #2: Thank you, Leon. And thank you all for joining us this morning. Our team continues to make great progress on our new sheet mill project in West Virginia, and we'll see key milestones achieved in 2026.

Speaker #2: We're entering the final phases of construction and will be sequencing commissioning of operations throughout the year, beginning with the pickle line in the second quarter.

Speaker #2: By the end of the year, we expect commissioning inspecting and testing of all equipment across the mill to be complete. Following commissioning, our priority will be to operate safely and reliably as commercial shipments begin ramping up in early 2027.

Speaker #2: We will be increasing production and advancing product development throughout 2027 and '28. With capacity utilization and product offerings building steadily over time. Once fully ramped, NUCOR West Virginia will supply some of the cleanest and most advanced sheet steel in North America.

Speaker #2: With expanded capabilities to better service automotive and consumer durable markets. This positions NUCOR to grow market share in the Midwest and Northeast, two large sheet consuming regions where NUCOR's relatively underweighted today.

Speaker #2: In addition to West Virginia, we have several major capital projects under construction or ramping up. And we're making meaningful progress across all of them.

Speaker #2: Starting with projects under construction, in our towers and structures business, we're building two new utility towers facilities, one in Indiana and one in Utah.

Speaker #2: In Indiana, we expect to be fully operational in the third quarter of this year. And in Utah, we expect to reach full production by mid-2027.

Speaker #2: We're also advancing the construction of a second galvanizing line at our Berkeley County sheet steel mill in South Carolina. Once complete, this line will expand our ability to service automotive customers in the Southeast.

Speaker #2: Equipment commissioning is planned for the middle of the year, and we expect production to begin in the fall. In addition to projects under construction and commissioning, we have recently completed several growth projects that are advancing their strategic and commercial plans as expected.

Speaker #2: In the bar group, our new micro mill and Lexington, North Carolina, and our new melt shop in Kingman, Arizona, were both EBITDA positive in March.

Speaker #2: In the sheet group, our new galvanizing line at Crawfordsville, Indiana, was also EBITDA positive in March. And we expect to commission the paint line later this year.

Speaker #2: Finally, our Alabama towers and structures facility is expanding its customer base, improving production, and on track to reach EBITDA positive run rates by the end of the summer.

Speaker #2: Before I turn the call over to Jack, let me share how we're thinking about the current market environment and NUCOR's place in these markets.

Speaker #2: Already, the established industry leader producing roughly one out of every four tons of steel in the United States and having unparalleled range of product offerings in our downstream businesses NUCOR continues to find ways to grow.

Speaker #2: After achieving approximately 6% growth of shipments in 2025, we expect shipments to grow by more than 5% in 2026. A confluence of factors are enabling this.

Speaker #2: First, consistent with our comments on NUCOR's fourth quarter earnings call in January, overall demand remains relatively stable. There are pockets of strength, such as data centers, energy, border fence, and infrastructure.

Speaker #2: And there are some markets that have remained softer for now, including consumer cyclicals, traditional office, heavy equipment, and agriculture. Taken as a whole, we expect domestic steel consumption to be stable with overall demand remaining flat to up 2% for 2026.

Speaker #2: Second, as Leon highlighted, enforcement of trade laws has stabilized what might have happened in the past where patterns of flooding dumped imports shocked the supply picture.

Speaker #2: And third, execution by our team with the investments we've made. NUCOR's well-positioned with a portfolio we've developed to service market segments exhibiting particular strength right now.

Speaker #1: First. Assist with our comments on NUCOR's fourth quarter earnings call in January. Overall demand remains relatively stable. There are pockets of strength, such as data centers and energy order bills and infrastructure.

Stephen D. Laxton: First, consistent with our comments on Nucor's Q4 Earnings call in January, overall demand remains relatively stable. There are pockets of strength such as data centers, energy, border fence, and infrastructure. There are some markets that have remained softer for now, including consumer cyclicals, traditional office, heavy equipment, and agriculture. Taken as a whole, we expect domestic steel consumption to be stable, with overall demand remaining flat to up 2% for 2026. Second, as Leon highlighted, enforcement of trade laws is stabilizing what might have happened in the past where patterns of flooding dumped imports shocked the supply picture. Third, execution by our team with the investments we've made. Nucor is well-positioned with the portfolio we've developed to service market segments exhibiting particular strength right now.

Steve Laxton: First, consistent with our comments on Nucor's Q4 Earnings Call in January, overall demand remains relatively stable. There are pockets of strength such as data centers, energy, border fence, and infrastructure. There are some markets that have remained softer for now, including consumer cyclicals, traditional office, heavy equipment, and agriculture. Taken as a whole, we expect domestic steel consumption to be stable, with overall demand remaining flat to up 2% for 2026. Second, as Leon highlighted, enforcement of trade laws is stabilizing what might have happened in the past where patterns of flooding dumped imports shocked the supply picture. Third, execution by our team with the investments we've made. Nucor is well-positioned with the portfolio we've developed to service market segments exhibiting particular strength right now.

Speaker #2: A few examples include we can supply 95% of the steel needed to build a data center. We're the leading manufacturer of HSS structural tubing, that are the primary building materials for large sections of the border fence.

Speaker #1: And there are some markets that have remained softer for now, including consumer cyclicals, traditional office, heavy equipment, and agriculture. Taken as a whole, we expect domestic sales consumption to be stable, with overall demand remaining flat to up 2% for 2026.

Speaker #2: Our industry-leading pre-engineered metal buildings and insulated metal panels offering help to accelerate our customers' speed to market, which is increasingly valued in today's landscape.

Speaker #1: Second, as Leon highlighted, enforcement of trade laws has stabilized what might have happened in the past, where patterns of flooding dumped imports shocked the supply picture.

Speaker #2: And as the leading domestic producer of beams, plate, and bar, we are an essential material supplier and enabler for the construction of pipelines, LNG terminals, bridges, manufacturing facilities, and power generation and transmission infrastructure.

Speaker #1: And third, SBIR team with the investments we've made. NUCOR's well-positioned with a portfolio we've developed to service market segments exhibiting particular strengths right now.

Speaker #2: NUCOR's national reach, coupled with our strength in raw materials, steelmaking, and downstream products, provides supply chain integration, improved reliability, and operating efficiencies that no other North American producer can match.

Speaker #1: A few examples include we can supply 95% of the steel needed to build a data center. We're the leading manufacturer of HSS structural tubing.

Stephen D. Laxton: A few examples include, we can supply 95% of the steel needed to build a data center. We're the leading manufacturer of HSS structural tubing. They're the primary building materials for large sections of the border fence. Our industry-leading pre-engineered metal buildings and insulated metal panels offering help to accelerate our customers' speed to market, which is increasingly valued in today's landscape. As the leading domestic producer of beams, plate, and bar, we are an essential material supplier and enabler for the construction of pipelines, LNG terminals, bridges, manufacturing facilities, and power generation and transmission infrastructure. Nucor's national reach, coupled with our strength in raw materials, steelmaking, and downstream products, provides supply chain integration, improved reliability, and operating efficiencies that no other North American producer can match.

Steve Laxton: A few examples include, we can supply 95% of the steel needed to build a data center. We're the leading manufacturer of HSS structural tubing. They're the primary building materials for large sections of the border fence. Our industry-leading pre-engineered metal buildings and insulated metal panels offering help to accelerate our customers' speed to market, which is increasingly valued in today's landscape. As the leading domestic producer of beams, plate, and bar, we are an essential material supplier and enabler for the construction of pipelines, LNG terminals, bridges, manufacturing facilities, and power generation and transmission infrastructure. Nucor's national reach, coupled with our strength in raw materials, steelmaking, and downstream products, provides supply chain integration, improved reliability, and operating efficiencies that no other North American producer can match.

Speaker #1: We're the primary building materials for large sections of the border fence. Our industry-leading pre-engineered metal buildings and insulated metal panels offering help to accelerate customers' speed to market, which has increasingly valued in today's landscape.

Speaker #2: We have the right capabilities and team for this moment, and we're always looking ahead to assure NUCOR remains well-positioned as markets evolve. With that, I'll turn it over to Jack for a closer look at our first quarter financial results and our outlook for the second quarter.

Speaker #1: And as the leading domestic producer of beams, plate, and bar, we are an essential material supplier and enabler for the construction of pipelines, LNG terminals, bridges, manufacturing facilities, and power generation and transmission infrastructure.

Speaker #2: Jack?

Speaker #1: Thanks, Steve, and good morning, everyone. In the first quarter, NUCOR generated net earnings of $743 million. Or $3.23 per share. Exceeding the midpoint of our guidance range by nearly 50 cents.

Speaker #1: NUCOR's national reach, coupled with our strength in raw materials, steelmaking, and downstream products, provides supply chain integration and improved reliability and operating efficiencies that no other North American producer can match.

Speaker #1: The beat was largely due to higher volumes and higher margin product mix. After some weather-related shipping delays early in the quarter, the team delivered a very strong march, with our sheet, plate, and rebar groups all setting quarterly shipment records.

Speaker #1: We have the right capabilities and team for this moment, and we're always looking ahead to assure NUCOR remains well-positioned as markets evolve. With that, I'll turn it over to Jack for a closer look at our first quarter financial results and our outlook for the second quarter.

Stephen D. Laxton: We have the right capabilities and team for this moment, and we're always looking ahead to assure Nucor remains well-positioned as markets evolve. With that, I'll turn it over to Jack for a closer look at our Q1 financial results and our outlook for the Q2. Jack.

Steve Laxton: We have the right capabilities and team for this moment, and we're always looking ahead to assure Nucor remains well-positioned as markets evolve. With that, I'll turn it over to Jack for a closer look at our Q1 financial results and our outlook for the Q2. Jack?

Speaker #1: While structural steel shipments reached levels not seen since 2021. Turning to the segment-level results for the first quarter, the steel mill segment generated $1.1 billion of pre-tax net earnings, more than double the prior quarter.

Speaker #1: Jack.

Speaker #2: Thanks, Steve, and good morning, everyone. In the first quarter, NUCOR generated net earnings of $743 million, or $3.23 per share. Exceeding the midpoint of our guidance range by nearly 50 cents.

Jack Sullivan: Thanks, Steve. Good morning, everyone. In Q1, Nucor generated net earnings of $743 million or $3.23 per share, exceeding the midpoint of our guidance range by nearly $0.50. The beat was largely due to higher volumes and higher margin product mix. After some weather-related shipping delays early in the quarter, the team delivered a very strong March with our sheet, plate, and rebar groups all setting quarterly shipment records, while structural steel shipments reached levels not seen since 2021. Turning to the segment level results for Q1, the steel mill segment generated $1.1 billion of pre-tax net earnings, more than double the prior quarter. Volumes and average selling prices increased across all four product groups, with sheet and structural being the largest drivers. Metal spreads also expanded across all formats.

Speaker #1: Volumes and average selling prices increased across all four product groups, with sheet and structural being the largest drivers. Metal spreads also expanded across all formats.

Speaker #2: The beat was largely due to higher volumes and higher margin documents. After some weather-related shipping delays, early in the quarter, the team delivered a very strong march, with our sheet, plate, and rebar groups all setting quarterly shipment records.

Speaker #1: In steel products, we generated pre-tax earnings of $285 million. Up 24% from the fourth quarter. Volumes increased 13% on stable pricing, with our tubular group setting a new quarterly shipment record.

Speaker #2: While structural steel shipments reached levels not seen since 2021. Turning to the second level results, the first quarter, the steel mill segment generated $1.1 billion of pre-tax net earnings, more than double the prior quarter, volumes and average selling prices increased across all four product groups, with sheet and structural being the largest drivers.

Speaker #1: Strong demand related to the border fence was a significant contributor, and we expect that to continue for the next several years. We did see some margin compression due to higher steel input costs flowing through, but we expect this to ease as the year progresses and realized pricing catches up.

Speaker #2: Metal threads also extended across all formats. Steel products, we generated pre-tax earnings of $285 million, up 24% from the fourth quarter. Volumes increased 13% on stable pricing, with our tubular group setting a new quarterly shipment record.

Speaker #1: And in our raw materials segment, we generated pre-tax earnings of approximately $45 million. Compared to 24 million in the prior quarter, reflecting higher DRI production following two planned outages in the fall.

Jack Sullivan: In steel products, we generated pre-tax earnings of $285 million, up 24% from Q4. Volumes increased 13% on stable pricing, with our tubular group setting a new quarterly shipment record. Strong demand related to the border fence was a significant contributor, and we expect that to continue for the next several years. We did see some margin compression due to higher steel input costs flowing through, but we expect this to ease as the year progresses and realized pricing catches up. In our raw material segment, we generated pre-tax earnings of approximately $45 million compared to $24 million in the prior quarter, reflecting higher DRI production following two planned outages in the fall. Pre-operating and startup costs totaled $108 million for the quarter.

Speaker #1: Pre-operating and startup costs totaled $108 million for the quarter. As a reminder, we expect these costs to trend higher as we work our way further into 2026 and toward the completion of our West Virginia sheet mill.

Speaker #2: Strong demand related to the border fence was a significant contributor, and we expect that to continue for the next several years. We did see some margin compression due to higher steel input costs flowing through, but we expect this to ease as the year progresses and realized pricing catches up.

Speaker #1: Moving to the balance sheet, our strong investment-grade credit profile is the foundation of our capital allocation framework. It allows us to execute our strategy of disciplined investment to grow our business while still providing meaningful cash returns to shareholders.

Speaker #2: In our raw materials segment, we generated pre-tax earnings of approximately $45 million, compared to $24 million in the prior quarter, reflecting higher DRI production following two planned outages in the fall.

Speaker #1: We ended the quarter with approximately $2.5 billion in cash and liquidity of $3.2 billion. Total debt as a percentage of capital sits at 24%, and our credit ratings remain the strongest of any US-based steel producer.

Speaker #2: Pre-operating and startup costs, totaled $108 million for the quarter. As a reminder, we expect these costs to trend higher as we work our way further into 2026 and toward the completion of our West Virginia sheet mill.

Jack Sullivan: As a reminder, we expect these costs to trend higher as we work our way further into 2026 and toward the completion of our West Virginia sheet mill. Moving to the balance sheet, our strong investment-grade credit profile is the foundation of our capital allocation framework. It allows us to execute our strategy of disciplined investment to grow our business while still providing meaningful cash returns to shareholders. We ended the quarter with approximately $2.5 billion in cash and liquidity of $3.2 billion. Total debt as a percentage of capital sits at 24%, and our credit ratings remain the strongest of any US-based steel producer. Capital expenditures totaled $661 million for the quarter, and we remain on track with our $2.5 billion CapEx estimate for the full year.

Speaker #1: Capital expenditures totaled $661 million, for the quarter, and we remain on track with our $2.5 billion CapEx x estimate for the full year. While this level of investment remains elevated as we finish several remaining growth projects, it is moderating compared to recent years.

Speaker #2: Moving to the balance sheet, our strong investment-grade credit profile is the foundation of our capital allocation framework. It allows us to execute our strategy of disciplined investment to grow our business, while still providing meaningful cash returns to shareholders.

Speaker #1: And as our CapEx is trending down, our cash from operations is moving up. That combination produced a meaningful increase in free cash flow for the quarter and we expect this trend to continue.

Speaker #2: We ended the quarter with approximately $2.5 billion in cash and liquidity of $3.2 billion. Total debt as a percentage of capital sits at 24%, and our credit rating remains the strongest of any US-based steel producer.

Speaker #1: We also returned over $250 million to shareholders in the form of dividends and share repurchases, or roughly $34% of quarterly net earnings. Consistent with our long-term track record, we remain committed to returning at least 40% of net earnings to shareholders on an annual basis.

Speaker #2: Capital expenditures totaled $661 million, for the quarter, and we remain on track with our $2.5 billion CapEx estimate for the full year. While this level of investment remains elevated as we finish several remaining growth projects, it is moderating compared to recent years.

Jack Sullivan: While this level of investment remains elevated as we finish several remaining growth projects, it is moderating compared to recent years. As our CapEx is trending down, our cash from operations is moving up. That combination produced a meaningful increase in free cash flow for the quarter, and we expect this trend to continue. We also returned over $250 million to shareholders in the form of dividends and share repurchases, or roughly 34% of quarterly net earnings. Consistent with our long-term track record, we remain committed to returning at least 40% of net earnings to shareholders on an annual basis. Looking ahead, Nucor's financial strength, highly variable cost structure and business diversification position the company to invest in growth, reward our shareholders, and navigate through economic cycles.

Speaker #1: Looking ahead, NUCOR's financial strength, highly variable cost structure, and business diversification position the company to invest and growth, reward our shareholders, and navigate through economic cycles.

Speaker #2: And as our CapEx is trending down, our cash from operations is moving up. That combination produced a meaningful increase in free cash flow for the quarter, and we expect this trend to continue.

Speaker #2: We also returned over $250 million to shareholders in the form of dividends and share repurchases, or roughly 34% of quarterly net earnings. Consistent with our long-term track record, we remain committed to returning at least 40% of net earnings to shareholders on an annual basis.

Speaker #1: Turning to our second quarter outlook, we expect higher consolidated earnings, with improvement across all three operating segments. In steel mills, we expect stable volumes and increasing metal margins.

Speaker #1: The margin improvement reflects higher realized pricing, partially offset by rising raw material costs. Within the segment, we expect our sheet and plate businesses to be the largest contributors in the sequential increase.

Speaker #2: Looking ahead, Nucor's financial strength, highly variable cost structure, and business diversification position the company to invest in growth, reward our shareholders, and navigate through economic cycles.

Speaker #1: In steel products, we expect higher volumes and stable pricing. In some of our longer lead time products, like fabricated rebar and joist and deck, margins have been impacted by rising substrate costs, but are poised to improve as we work through backlogs and start to realize higher average selling prices.

Speaker #2: Turning to our second quarter outlook, we expect higher consolidated earnings, with improvement across all three operating segments. In steel mills, we expect stable volumes and increased metal margins.

Jack Sullivan: Turning to our Q2 outlook, we expect higher consolidated earnings with improvement across all three operating segments. In Steel Mills, we expect stable volumes and increasing metal margins. The margin improvement reflects higher realized pricing, partially offset by rising raw material costs. Within the segment, we expect our sheet and plate businesses to be the largest contributors in the sequential increase. In Steel Products, we expect higher volumes and stable pricing. In some of our longer lead time products, like fabricated rebar and joist and deck, margins have been impacted by rising substrate costs, but are poised to improve as we work through backlogs and start to realize higher average selling prices. In Raw Materials, we expect higher earnings driven primarily by improved realized pricing for DRI.

Speaker #2: The margin improvement reflects higher realized pricing, partially offset by rising raw material costs. Within the segment, we expect our sheet and plate businesses to be the largest contributors in the sequential increase.

Speaker #1: In raw materials, we expect higher earnings driven primarily by improved realized pricing for DRI. Taken as a whole, the earnings uplift across all of our operating segments will be partially offset by higher corporate and intercompany profit eliminations upon consolidation.

Speaker #2: In steel products, we expect higher volumes and stable pricing. In some of our longer lead time products, like fabricated rebar and joist and deck, margins have been impacted by rising substrate costs, but are poised to improve as we work through backlogs and start to realize higher average selling prices.

Speaker #1: As we look further into 2026, we continue to expect that NUCOR's earnings and cash flow will trend significantly higher than 2025. As we benefit from strong nonresidential construction and infrastructure demand and begin to see returns from the investments we've been making these past few years, with the hard work and dedication of the NUCOR team, we are confident in our ability to create value for our customers and shareholders.

Speaker #2: In raw materials, we expect higher earnings, driven primarily by improved realized pricing for DRI. Taken as a whole, the earnings outlook across all of our operating segments will be partially offset by higher corporate and intercompany profit eliminations upon consolidation.

Speaker #1: And with that, we'd like to hear from you and answer any questions you may have. Operator, please open the line for questions.

Jack Sullivan: Taken as a whole, the earnings uplift across all of our operating segments will be partially offset by higher corporate and intercompany profit eliminations upon consolidation. As we look further into 2026, we continue to expect that Nucor's earnings and cash flow will trend significantly higher than 2025 as we benefit from strong non-residential construction and infrastructure demand and begin to see returns from the investments we've been making these past few years. With the hard work and dedication of the Nucor team, we are confident in our ability to create value for our customers and shareholders. With that, we'd like to hear from you and answer any questions you may have. Operator, please open the line for questions.

Speaker #2: As we look further into 2026, we continue to expect that NUCOR's earnings and cash flow will trend significantly higher than 2025. We benefit from strong non-residential construction and infrastructure demand and begin to see returns from the investments we've been making these past few years.

Speaker #2: Thank you. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two.

Speaker #2: When preparing to ask a question, please ensure your device is unmuted locally. Our first question comes from Bill Peterson from JPMorgan. Your line is now open.

Speaker #2: With hard work and dedication of the NUCOR team, we are confident in our ability to create value for our customers and shareholders. And with that, we'd like to hear from you and answer any questions you may have.

Speaker #2: Please go ahead.

Speaker #3: Yeah. Hi. Good morning. Congratulations and strong quarter. Congrats to the new management appointees and thanks for the details thus far. On the West Virginia sheet mill, which you provided some granularity, I was hoping to get a bit more color on the phasing of commissioning, the strategy through year-end, and maybe what to expect for the next few years.

Speaker #2: Operator, please open the line for questions.

Speaker #1: Thank you. Can I ask a question? Please press stop if I wasn't on your telephone keypad now. If you change your mind, please press stop followed by two.

Speaker #3: I mean, I guess specifically, how long do you expect to commission phases to be complete? When do you expect to construction of the galve line to be complete?

Speaker #1: When preparing to ask a question, please ensure the device is on mute quickly. Ask a question comes from Bill Peterson from JPMorgan. Your line is now open.

Operator: Thank you. Our first question comes from Bill Peterson from JP Morgan.

Operator: Thank you. Our first question comes from Bill Peterson from JPMorgan.

Speaker #3: And I guess how should we think about when you're going to start production as well as the customer qualifications and then any sort of thoughts on utilization in the next few years as well?

Speaker #1: Please go ahead.

Speaker #3: Appreciate that.

Speaker #2: Yeah, hi. Good morning. Congratulations to NUCOR to the new management appointees and thanks for the details thus far. On the West Virginia sheet mill, which you provided some granularity, I was hoping to get a bit more color on the savings commission and the strategy through year-end.

Speaker #4: All right, Bill. Well, good morning and thank you for the question. I'm going to kick it off and maybe just say at a high level and then ask Steve Laxton or Noah to jump in with some more of the details around the commissioning of that mill.

Bill Peterson: Yeah. Hi, good morning. Congratulations on a strong quarter. Congratulations to the new management appointees, and thanks for the details thus far. On the West Virginia sheet mill, which you provided some granularity, I was hoping to get a bit more color on the phasing of commissioning, the strategy through year-end, and maybe what to expect for the next few years. I guess specifically, how long do you expect the commission phases to be complete? When do you expect the construction of the galv line to be complete? I guess, how should we think about when you're gonna start production as well as the customer qualifications, and then any sort of thoughts on utilization in the next few years as well. Appreciate that.

Speaker #4: But look, I want to begin with a backdrop of our most important value, which is the safety, health, and well-being of the entire NUCOR 33,000 team member family.

Speaker #2: And maybe what to expect for the next few years. And I guess specifically, how long do you expect the commission phase to be complete until we can get construction of the outline to be complete?

Speaker #2: And I guess how should we think about when you're going to start production as well as a customer qualifications and then any sort of thoughts on utilization in the next few years as well?

Speaker #4: Today, we sit at 65 of our divisions are reportable free at this point. It is an amazing accomplishment, and I want to thank each and every one of our teams, who are delivering exceptional results and you will see and continue to see those amazing results continue as we push into the quarter.

Speaker #2: So appreciate that.

Speaker #3: All right, Bill. Well, good morning. And thank you for the question. I'm going to kick it off and maybe just say at a high level and then ask Steve Black in order to know what to jump in with some more of the details around the commissioning of that mill.

Speaker #4: More specifically, Bill, and as we think about West Virginia, and we touched on it in the opening remarks, I and our team could not be more excited about the capability set that that mill will bring for NUCOR, for our customers, our shareholders, the value that's going to be generated and created in the largest sheet consuming region of the United States.

Leon Topalian: All right, Bill. Well, good morning, and thank you for the question. I'm gonna kick it off and maybe just stay at a high level and then ask Stephen D. Laxton or Noah to jump in with some more of the details around the commissioning of that mill. Look, I wanna begin with the backdrop of our most important value, which is the safety, health, and well-being of the entire Nucor 33,000 team member family. Today, we sit at 65 of our divisions are recordable free at this point. It is an amazing accomplishment, and I wanna thank each and every one of our teams who are delivering exceptional results. You will see and continue to see those amazing results continue as we push into the quarter.

Leon Topalian: All right, Bill. Well, good morning, and thank you for the question. I'm gonna kick it off and maybe just stay at a high level and then ask Steve Laxton or Noah to jump in with some more of the details around the commissioning of that mill. Look, I wanna begin with the backdrop of our most important value, which is the safety, health, and well-being of the entire Nucor 33,000 team member family. Today, we sit at 65 of our divisions are recordable free at this point. It is an amazing accomplishment, and I wanna thank each and every one of our teams who are delivering exceptional results. You will see and continue to see those amazing results continue as we push into the quarter.

Speaker #3: But look, I want to begin with a backdrop of our most important value, which is the safety and health and well-being of the entire NUCOR 33,000 team member family.

Speaker #3: Today, we sit at 65 of our divisions who are removal-free at this point. It is an amazing accomplishment. And I want to thank each and every one of our teams who are delivering exceptional results and you will see and continue to see those amazing results continue as we push into the quarter.

Speaker #4: Johnny Jacobs, who is our vice president, GM and his team, have done an incredible job. And as you know, the work that sits behind the scenes during construction and startup is tireless.

Speaker #3: More specifically, Bill, and as we think about West Virginia, and we touched on it in the opening remarks, I and our team cannot be more excited about the capability set that that mill will bring for NUCOR, for our customers, our shareholders, the value that's going to be generated and created in the largest sheet consuming region of the United States.

Speaker #4: It's thankless, and it's just a really, really challenging environment. And those individuals have done an amazing job. So thank you to our entire West Virginia team and again, I'll let Steve and Noah maybe update some more on the details.

Leon Topalian: You know, more specifically, Bill, as we think about West Virginia, we touched on it in the opening remarks, I and our team could not be more excited about the capability set that that mill will bring for Nucor, for our customers, our shareholders, the value that's going to be generated and created in the largest sheet-consuming region of the United States. Johnny Jacobs, who is our Vice President GM, and his team have done a incredible job. As you know, the work that sits behind the scenes during construction and startup is tireless, it's thankless, and it is a just a really, really challenging environment. Those individuals have done an amazing job. Thank you to our entire West Virginia team.

Speaker #5: Yeah. Happy to do that. Thanks for the question, Bill. And I'll just echo what Leon said about the team at West Virginia. They've had a remarkable safety record.

Speaker #3: Johnny Jacobs, who is our vice president, GM, and his team have done an incredible job. And as you know, the work that sits behind the scenes during construction and startup is tireless.

Speaker #5: I'll lead off with that. They've only had one reportable in all the years of that project. So outstanding safety culture and leadership in that team.

Speaker #3: It's thankless. And it's a really, really challenging environment. And those individuals have done an amazing job. So thank you to our entire West Virginia team and again, I'll let Steve and Noah maybe update some more on the details.

Speaker #5: And in terms of the specifics of your question, right now, Bill, we're about 85% of the way through construction. So we still have work to do on the construction side.

Speaker #5: Having said that, we're starting right now with some of the commissioning, and we'll be sequencing that throughout the year. And so we'll start with the pickle line, and then we'll bring up the cold mill and proceed through one of the galve lines, the automotive quality galve line.

Speaker #2: Yeah, happy to do that. Thanks for the question, Bill. And I'll just echo what Leon said about the West Virginia data remarkable safety record.

Leon Topalian: again, I'll let Stephen and Noah maybe update some more on the details.

Leon Topalian: Again, I'll let Stephen and Noah maybe update some more on the details.

Speaker #2: I'll lead off with that. They've only had one reportable in all the years of that project. So outstanding safety culture and leadership in that team.

Speaker #5: I'll be the next thing we start up after that. But in commissioning, ultimately, we'll get to commissioning the melt shop and hot mill later in the year.

Jack Sullivan: Yeah. Happy to do that. Thanks for the question, Bill. I'll just echo what Leon said about the team at West Virginia. They've had a remarkable safety record. I'll lead off with that. They've only had 1 reportable in all the years of that project. So, outstanding safety culture and leadership in that team. In terms of the specifics of your question, right now, Bill, we're about 85% of the way through construction. So we still have work to do on the construction side. Having said that, we're starting right now with some of the commissioning, and we'll be sequencing that throughout the year. So we'll start with the pickle line, then we'll bring up the cold mill and proceed through 1 of the galv lines.

Steve Laxton: Yeah. Happy to do that. Thanks for the question, Bill. I'll just echo what Leon said about the team at West Virginia. They've had a remarkable safety record. I'll lead off with that. They've only had 1 reportable in all the years of that project. So, outstanding safety culture and leadership in that team. In terms of the specifics of your question, right now, Bill, we're about 85% of the way through construction. So we still have work to do on the construction side. Having said that, we're starting right now with some of the commissioning, and we'll be sequencing that throughout the year. So we'll start with the pickle line, then we'll bring up the cold mill and proceed through one of the galv lines.

Speaker #2: And in terms of the specifics of your question, right now, Bill, we're about 85% of the way through construction. So we still have work to do on construction site.

Speaker #5: By the end of this year, we'll be done with all the commissioning. We're on track to hit that milestone. And then we'll start moving up through production and ramp up in 2027.

Speaker #2: Having said that, we're starting right now with some of the commissioning. And we'll be sequencing that throughout the year. And so we'll start with the alignment and we'll bring up the whole mill and proceed through one of the galve lines, the automotive quality galve line.

Speaker #5: Bill, what you'll see there is a very intentional and deliberate plan from that team. And our entire sheet group, Noah and our team in the sheet group have really designed an excellent plan to bring that mill up in a very constructive and coordinated and intentional way.

Speaker #2: I'll be the next thing we start up after that. But in commissioning, ultimately, we'll get to commissioning the melt shop and hot mill later in the year.

Speaker #2: By the end of this year, we'll be done with all the commissioning. We're on track to hit that milestone. And then we'll start moving up through production and ramp up in 2027.

Speaker #5: And so by the time we get to the end of 2027, you ask about utilization rates and markets are going to dictate some of that.

Jack Sullivan: The automotive quality galv line will be the next thing we start up after that, in commissioning. Ultimately, we'll get to commissioning the melt shop and hot mill later in the year. By the end of this year, we'll be done with all the commissioning. We're on track to hit that milestone. Then we'll start moving up through production and ramp up in 2027. Bill, what you'll see there is the very intentional and deliberate plan from that team and our entire sheet group. Noah and our team in the sheet group have really designed an excellent plan to bring that mill up in a very constructive and coordinated and intentional way.

Steve Laxton: The automotive quality galv line will be the next thing we start up after that, in commissioning. Ultimately, we'll get to commissioning the melt shop and hot mill later in the year. By the end of this year, we'll be done with all the commissioning. We're on track to hit that milestone. Then we'll start moving up through production and ramp up in 2027. Bill, what you'll see there is the very intentional and deliberate plan from that team and our entire sheet group. Noah and our team in the sheet group have really designed an excellent plan to bring that mill up in a very constructive and coordinated and intentional way.

Speaker #5: So I might hedge here just a little bit; it'll depend on market conditions somewhat. But we'll be operating somewhere near that 50% of capacity by the end of next year.

Speaker #2: You'll see there is the very intentional and deliberate plan from that team and our entire sheet group. Noah and our team in the sheet group have really designed an excellent plan to bring that mill up in a very constructive and coordinated and intentional way.

Speaker #5: And so that team is poised. We're going to make great progress over the next year and a half. And into 2028, even with product development, continued penetration to the markets.

Speaker #2: And so by the time we get to the end of 2027, you asked about utilization rates and markets are going to dictate some of that.

Speaker #5: Anything you want to add?

Speaker #6: No, thank you. You were all over it. Thank you, Tim.

Speaker #3: Great. Thanks for that. And Steve, obviously, we've been working with you as a CFO, and now we have Jack, so congrats for both of you.

Speaker #2: So I might hedge here just a little bit. It'll depend on market conditions somewhat. We've operated somewhere near that 50% of capacity by the end of next year.

Speaker #3: Maybe the next question is for for Jack as you're a new role in CFO. How should investors think about any potential shifts in strategy relative to recent years, or anything you would continue, anything you would change, or just any sort of insights on how you're considering your new role?

Leon Topalian: By the time we get to the end of 2027, you ask about utilization rates, markets are going to dictate some of that. I might hedge here just a little bit. It will depend on market conditions somewhat, but we will be operating somewhere near that 50% of capacity by the end of next year. That team is poised. We are going to make great progress over the next year and a half, and into 2028 even with product development and continued penetration to the markets. Anything you want to add?

Steve Laxton: By the time we get to the end of 2027, you ask about utilization rates, markets are going to dictate some of that. I might hedge here just a little bit. It will depend on market conditions somewhat, but we will be operating somewhere near that 50% of capacity by the end of next year. That team is poised. We are going to make great progress over the next year and a half, and into 2028 even with product development and continued penetration to the markets. Anything you want to add?

Speaker #2: And so that team is poised. We're going to make great progress over the next year and a half. And in 2028, even with product development, continued penetration to the markets.

Speaker #5: Yeah. Thanks, Bill. Appreciate that. I step into this role with a lot of humility and gratitude to serve this great company. And the 33,000 teammates who make it such a special place.

Speaker #2: Anything you want to add?

Speaker #3: No, thank you. Thank you.

Speaker #4: Great. Thanks for that. And Steve, obviously, we've been working with you as a CFO. And now we have Jack. So congrats on both of you.

Speaker #5: Preceding me in the role are four highly accomplished NUCOR CFOs. And really, my goal is just to carry on their long-standing tradition of doing three things really well: maintaining a healthy balance sheet, investing for the future, and generating attractive returns for our shareholders.

Speaker #4: Maybe the next question is for Jack, as you're in a new role as CFO. How should investors think about any potential shifts in strategy relative to recent years, or anything you plan to continue, with changes in how you're considering your new role?

Noah: No, I think you were all over it. Thank you.

Noah Hanners: No, I think you were all over it. Thank you.

Bill Peterson: Great. Thanks for that. Steve, obviously we've been working with you as a CFO, and now we have Jack, so congrats on for both of you. Maybe the next question's for Jack as your, you know, new role in CFO. How should investors think about any potential shifts in strategy relative to recent years, or, you know, anything you would continue, anything you would change, or just any sort of insights on how you're considering your new role?

Speaker #5: Yeah, thanks, Bill. Appreciate that. You know, I'll step into this role with a lot of humility and gratitude to serve this great company. And the 33,000 teammates who make it such a special place.

Speaker #5: And Steve Laxton, who's sitting right here to my right, did a terrific job during his four-year tenure. Funding $15 billion in growth investments, returning $9 billion to our shareholders, and improving our credit profile along the way.

Speaker #5: Preceding me on the role were four highly accomplished NUCOR CFOs. And really, my goal is just to carry on their long-standing tradition of doing three things really well: maintain a healthy balance sheet, investing for the future, and generating attractive returns for our shareholders.

Noah: Yeah. Thanks, Bill. I appreciate that. You know, I step into this role with a lot of humility and gratitude to serve this great company and the 33,000 teammates who make it such a special place. Preceding me in the role are four highly accomplished Nucor CFOs. Really my goal is just to carry on their longstanding tradition of doing 3 things really well: maintaining a healthy balance sheet, investing for the future, and generating attractive returns for our shareholders. Steve Laxton, who's sitting right here to my right, did a terrific job during his 4-year tenure, funding $15 billion in growth investments, returning $9 billion to our shareholders, and improving our credit profile along the way. That's a pretty impressive trifecta right there.

Jack Sullivan: Yeah. Thanks, Bill. I appreciate that. You know, I step into this role with a lot of humility and gratitude to serve this great company and the 33,000 teammates who make it such a special place. Preceding me in the role are four highly accomplished Nucor CFOs. Really my goal is just to carry on their longstanding tradition of doing 3 things really well: maintaining a healthy balance sheet, investing for the future, and generating attractive returns for our shareholders. Steve Laxton, who's sitting right here to my right, did a terrific job during his 4-year tenure, funding $15 billion in growth investments, returning $9 billion to our shareholders, and improving our credit profile along the way. That's a pretty impressive trifecta right there.

Speaker #5: So that's a pretty impressive trifecta right there. And as the old saying goes, if it ain't broke, don't fix it. So Bill, no major shifts from that winning strategy, but what I would say is I think I bring a fresh set of eyes—a strong understanding of this business and how we make money—and just a lot of excitement to accelerate what is already one of the most compelling stories in American manufacturing.

Speaker #5: And Steve, asked to do, sitting right here to my right, did a terrific job during his four-year tenure—funding $15 billion in growth investments, returning $9 billion to our shareholders, and improving our credit profile along the way.

Speaker #5: So that's a pretty impressive tractor right there. As the old saying goes, if it ain't broke, don't fix it. So Bill, no major shifts from that winning strategy, but what I would say is I think I bring a fresh set of eyes, a strong understanding of this business and how we make money, and just a lot of excitement to accelerate what is already one of those compelling stories of American manufacturing.

Speaker #3: Thanks for that, everyone. And congrats again on the quarter.

Speaker #5: Thanks, Bill.

Speaker #7: Thank you. Next question is from Alex Hacking from Citi. You'll allow us now open. Please go ahead.

Speaker #8: Morning, guys. Thanks for the call. A couple of questions I'll ask them together, if that's okay. Firstly, on the sheet side, the new slow and steady approach to price hikes in this cycle that we're seeing right now, which may be discussed the rationale a little bit there and how the customer feedback has been—I mean, I hear only good things from customers, but I'm curious.

Noah: As the old saying goes, If it ain't broke, don't fix it. Bill, no major shifts, from that winning strategy, but what I would say is, I think I bring a fresh set of eyes, a strong understanding of this business and how we make money, and just a lot of excitement to accelerate what is already one of the most compelling stories in American manufacturing.

Jack Sullivan: As the old saying goes, If it ain't broke, don't fix it. Bill, no major shifts, from that winning strategy, but what I would say is, I think I bring a fresh set of eyes, a strong understanding of this business and how we make money, and just a lot of excitement to accelerate what is already one of the most compelling stories in American manufacturing.

Speaker #4: Thanks for that, everyone. And congrats again on the quarter.

Speaker #5: Thanks, Bill.

Speaker #6: Thank you. Next question is from Alex Hacking from Citi, the Alliance Networksman. Please go ahead.

Speaker #8: And then secondly, on structurals, demand at very, very strong. Imports are down, but don't seem to be down that much. Is there any particular subsegments that's driving structurals to be so good?

Speaker #7: Good morning, guys. Thanks for the call. A couple of questions I'll ask them together, if that's okay. Firstly, on the sheet side, the new slow and steady approach to price action cycle that we're seeing right now, which may be discussed the rationale a little bit there and how the customer feedback has been I mean, I care only good from customers but curious.

Bill Peterson: Thanks for that, everyone, and congrats again on the quarter.

Speaker #8: Thanks a lot.

Noah: Thanks, Bill.

Jack Sullivan: Thanks, Bill.

Speaker #4: Yeah. I'll kick it off, Alex, and good morning. And thanks for the question. And again, keep it a little broader base. But the question you ask around sheets and important one, and there's some very deliberate strategies there that I'll ask Noah to kind of walk us through.

Operator: Thank you. Our next question is from Alex Hacking from Citigroup. Your line is now open. Please go ahead.

Operator: Thank you. Our next question is from Alex Hacking from Citi. Your line is now open. Please go ahead.

Alex Hacking: Morning, guys. Thanks for the call. A couple of questions. I'll ask them together if that's okay. Firstly on the sheet side, you know, the new slow and steady approach to price hikes in this cycle that we're seeing right now, could you maybe discuss the rationale a little bit there and how the customer feedback has been? I mean, I hear only good things from customers, but I'm curious. Secondly, on structurals, you know, demand there very strong. Imports are down, but don't seem to be down that much. Is there any particular sub-segments that's driving structurals to be so good? Thanks a lot.

Speaker #7: And then, secondly, on structural demand, they're very, very strong. Imports are down, but don't seem to be down that much. Is there any particular subsegment that's driving structural to be so good?

Speaker #4: Because again, I think it's an important context is you overlay the backdrop of the current sheet market and demand today versus '21 and '22.

Speaker #4: And again, Noah can touch on that. You mentioned the structural side. And again, having spent three years at NUCOR Yamato, our NUCOR Yamato team and our Berkeley Bean Mill continue to deliver excellent performance both from a safety standpoint as well as from just net earnings.

Speaker #7: Thanks a lot.

Speaker #3: Yeah, I'll kick it off, Alex. And good morning. And thanks for the question and again, keep it a little broad-based. But the question you asked around sheets and important one.

Speaker #3: And there's some very deliberate strategies there that I'll ask Noah to kind of walk us through. Because again, I think an important context is overly the backdrop of the current sheet market and demand today versus '21 and '22.

Speaker #4: They are absolutely on fire. They're backlogs are at historic levels. Their customers' customers are busier than anything that I've seen—and again, my 30-year career.

Leon Topalian: Yeah. I'll kick it off, Alex, good morning, and thanks for the question. Again, keep it a little broader base, but the question you ask around sheet's an important one, and there's some very deliberate strategies there that I'll ask Noah to kind of walk us through. 'Cause again, I think it's an important context is, you know, you overlay the backdrop of the current sheet market and demand today versus 2021 and 2022. Again, Noah can touch on that. You know, you mentioned the structural side, and again, having spent 3 years at Nucor Yamato, our Nucor Yamato team and our Berkeley beam mill continue to deliver excellent performance, both from a safety standpoint as well as from a just net earnings. They are absolutely on fire. Their backlogs are at historic levels.

Leon Topalian: Yeah. I'll kick it off, Alex, good morning, and thanks for the question. Again, keep it a little broader base, but the question you ask around sheet's an important one, and there's some very deliberate strategies there that I'll ask Noah to kind of walk us through. 'Cause again, I think it's an important context is, you know, you overlay the backdrop of the current sheet market and demand today versus 2021 and 2022. Again, Noah can touch on that. You know, you mentioned the structural side, and again, having spent three years at Nucor Yamato. Our Nucor Yamato team and our Berkeley beam mill continue to deliver excellent performance, both from a safety standpoint as well as from a just net earnings. They are absolutely on fire. Their backlogs are at historic levels.

Speaker #3: And again, Noah can touch on that. You mentioned the structural side. And again, having spent three years at NUCOR Yamato, our NUCOR Yamato team and our Berkeley Bean Mill continue to deliver excellent performance both from a safety standpoint as well as from a just net earnings.

Speaker #4: So where is that going, man? It's obviously the non-res data centers. Energy structural side and infrastructure around energy, the chips, chip plants, and facilities warehousing.

Speaker #3: They are absolutely on fire. They're backlogs are at historic levels. Their customers' customers are busier than anything that I've seen in, again, my 30-year career.

Speaker #4: And in an area that we're going to continue to see expanded into the military complex in the years to come for NUCOR, so I would tell you it's hitting on all cylinders.

Speaker #3: So where is that going? And obviously, the nod as data centers. Energy structural side and infrastructure around energy and ship plants and facilities. Warehousing.

Speaker #4: And while data centers are white-hot, everyone's looking to participate, if you pulled out all of the data center backlog from NUCOR, man, it only takes that down about 10%.

Speaker #4: So the historic backlogs we're seeing are really, really spread out, incredibly well across the enterprise that give me great confidence that not only as we indicated, Q2 will be better, but I think 2026 is going to be a very strong year for NUCOR.

Leon Topalian: Their customers' customers are busier than anything that I've seen in, again, my 30-year career. You know, where is that going? Man, it's obviously the non-res, data centers, energy, structural side and infrastructure around energy and chips, chip plants and facilities, warehousing. You know, in an area that, you know, we're gonna continue to see expanded into the military complex in the years to come for Nucor. I would tell you it's hitting on all cylinders. While data centers are white hot, everyone's looking to participate. If you pulled out all of the data center backlog from Nucor, I mean, it only takes that down about 10%.

Speaker #3: And an area that we're going to continue to see expanded into the military complex in the years to come for NUCOR. So I would tell you it's hitting on all cylinders.

Speaker #3: And while data centers are white-hot, everyone's looking to participate, if you pulled out all of the data center backlog from NUCOR, it only takes us about 10%.

Speaker #4: Or for NUCOR. And so with that, Noah, why don't you walk through a little bit of the sheet strategy and where we sit today?

Speaker #5: Yeah. Thanks for the question, Alex. We like slow and steady, and our customers are liking slow and steady. And let's take a little time to unpack that.

Speaker #3: So the historic backlogs we're seeing are really, really spread out, incredibly well across the enterprise that give me great confidence that not only as we indicated, Q2 will be better, but I think 2026 is going to be a very strong year for NUCOR.

Speaker #5: The fundamental supporting pricing right now are really strong. And I would say the rally we're in is probably the strongest kind of fundamentals we've seen for some time.

Speaker #3: Or for Nucor. So, with that in mind, I want to walk through a little bit of the sheet strategy and where we sit today.

Speaker #5: Maybe give you some context for how we see the rest of '26. Let's step back to the last inflection point in the market, which was Q4 of last year.

Leon Topalian: The historic backlogs we're seeing are really spread out incredibly well across the enterprise that give me great confidence that not only, as we indicated, Q2 will be better, but I think 2026 is going to be a very strong year for Nucor or for Nucor. With that, Noah, why don't you walk through a little bit of the sheet strategy and where we sit today?

Speaker #5: Yeah, thanks for the question, Alex. We like slow and steady, and our customers like consistency. And let's take a look on back at that. The fundamentals supporting pricing right now are really strong.

Speaker #5: The low side of pricing in Q4 of last year. And to think about how our strategies work differently this year, you recall that historically what would have happened in that low point, that trough in the market is we would have had opportunistic speculative buyers overloading their order books to try to time the market.

Speaker #5: And I would say the rally we're in is probably the strongest kind of fundamentals we see for some time. Maybe to give you some context for how we see the rest of '26, we'll step back to the last inflection point in the market, which was Q4 of last year.

Noah: Yeah. Thanks for the question, Alex. You know, we like slow and steady, and our customers are liking slow and steady, and let's take a little time to unpack that. The fundamentals supporting pricing right now are really strong, and I would say the rally we're in is probably the strongest kind of fundamentals we've seen for some time. Maybe to give you some context for how we see the rest of 2026, let's step back to the last inflection point in the market, which was Q4 of last year, the low side of pricing in Q4 of last year.

Noah Hanners: Yeah. Thanks for the question, Alex. You know, we like slow and steady, and our customers are liking slow and steady, and let's take a little time to unpack that. The fundamentals supporting pricing right now are really strong, and I would say the rally we're in is probably the strongest kind of fundamentals we've seen for some time. Maybe to give you some context for how we see the rest of 2026, let's step back to the last inflection point in the market, which was Q4 of last year, the low side of pricing in Q4 of last year.

Speaker #5: And the result, if you think about traditional behavior in Q4, would have been that we would have overbooked on the mill side. Lead times would have jumped significantly.

Speaker #5: The low side of pricing in Q4 of last year. And to think about how our strategies work differently this year, recall that historically what happened in that low point, that trough in the market, is we would have had opportunistic speculative buyers overloading order books to try to time the market.

Speaker #5: Prices would have jumped significantly. And we would have really overshot basic market fundamentals. So then due to the spreads and the lead times, we then inevitably create the surge of imports that arrive a few months later similar to what we saw in the back half of '24.

Speaker #5: And the result, if you think about traditional behavior in Q4, would have been that we would have overbooked on the mill side lead times would have jumped significantly.

Speaker #5: That's what usually happens. We've seen this time and time again in the sheet world. But this time, our trajectory and our behavior has been markedly importantly different in this cycle.

Noah: To think about how our strategies work differently this year, you recall that historically, what would have happened in that low point, that trough in the market, is we would have had opportunistic, speculative buyers, overloading their order books to try to time the market. The result, if you think about traditional behavior in Q4, would have been that we would have overbooked on the mill side, lead times would have jumped significantly, prices would have jumped significantly, and we would have really overshot basic market fundamentals. Due to the spreads and the lead times, we then inevitably create the surge of imports that arrive a few months later, similar to what we saw in H2 2024. That's what usually happens. We've seen this time and time again in the sheet world.

Noah Hanners: To think about how our strategies work differently this year, you recall that historically, what would have happened in that low point, that trough in the market, is we would have had opportunistic, speculative buyers, overloading their order books to try to time the market. The result, if you think about traditional behavior in Q4, would have been that we would have overbooked on the mill side, lead times would have jumped significantly, prices would have jumped significantly, and we would have really overshot basic market fundamentals. Due to the spreads and the lead times, we then inevitably create the surge of imports that arrive a few months later, similar to what we saw in H2 2024. That's what usually happens. We've seen this time and time again in the sheet world.

Speaker #5: Prices would have jumped significantly. And we would have really overshot basic market fundamentals. So then due to the spreads and the lead times, we inevitably create a surge of imports that arrive a few months later similar to what we saw in the back half of '24.

Speaker #5: We didn't chase the market down in Q4. We managed our order book to match what we saw as true underlying demand. And you saw this reflected in our steady, I would call it, modest consistent approach with pricing and CSP.

Speaker #5: That would usually happen. You see the time and time again in the sheet world. But this time, our trajectory and our behavior has been markedly importantly different in the cycle.

Speaker #5: Consistent modest increases that were supported by underlying demand. And then this is one factor that we believe has helped keep imports low. If you think back to '24 and you saw imports that were 9 million-ish tons, this year we're tracking 4 million or under.

Speaker #5: We didn't change the market down in Q4. We managed our order book to match what we saw as true underlying demand. And you saw this reflected in our steady—we call it modest, consistent—approach with pricing and CSP.

Speaker #5: So there's a 5 million-ton window of serviceable market for domestic suppliers that that's a huge impact to the positivity with which we see the market today.

Speaker #5: Consistent modest increases that were supported by aligned demand. And this is one factor that we believe has helped keep imports low. If you saw imports that were 9 million-ish tons, this year we're tracking 4 million or under.

Noah: This time, our trajectory and our behavior has been markedly, importantly different in this cycle. We didn't chase the market down in Q4. We managed our order book to match what we saw as true underlying demand, and you saw this reflected in our steady, I would call it, modest, consistent approach with pricing and CSP. Consistent, modest increases that were supported by underlying demand. This is one factor that we believe's helped to keep imports low. If you think back to 2024, and you saw imports that were 9 million tons. This year, we're tracking 4 million or under. There's a 5 million-ton window of serviceable market for domestic suppliers. That's a huge impact to the positivity with which we see the market today.

Noah Hanners: This time, our trajectory and our behavior has been markedly, importantly different in this cycle. We didn't chase the market down in Q4. We managed our order book to match what we saw as true underlying demand, and you saw this reflected in our steady, I would call it, modest, consistent approach with pricing and CSP. Consistent, modest increases that were supported by underlying demand. This is one factor that we believe's helped to keep imports low. If you think back to 2024, and you saw imports that were 9 million tons. This year, we're tracking 4 million or under. There's a 5 million-ton window of serviceable market for domestic suppliers. That's a huge impact to the positivity with which we see the market today.

Speaker #5: And then as importantly, the supply chain is really healthy right now. Inventory levels are modest. Which just tells you we haven't seen the speculation that see in this market.

Speaker #5: So there's a 5 million-ton window of serviceable market for domestic suppliers that that's a huge impact to the positivity to which we see the market today.

Speaker #5: A couple of other notes just on the strength of the current market, why we have a pretty positive outlook. We have some key markets that are starting to show signs of positive outlook.

Speaker #5: And then as importantly, the supply chain is really healthy right now. Inventory levels are modest. Which tells you we haven't seen the speculation that traditionally drives the volatility we would see in this market.

Speaker #5: Service center shipments are starting to move up. They're trending up. We've heard from HVAC. Customers recently that are really in the non-residential construction space, about really strong second half there.

Speaker #5: A couple of other notes just on the strength of the current market. We have a pretty positive outlook. We have some key markets that are starting to show signs of positive outlook.

Speaker #5: So there's some tailwinds there in non-res construction that yield some strength as well. And then you already heard mentioned in the border fence, which is a million, million and a half tons over this year and next.

Noah: As importantly, the supply chain is really healthy right now. Inventory levels are modest, which just tells you we haven't seen the speculation that traditionally drives the volatility we would see in this market. Couple other notes just on the strength of the current market, while we have a pretty positive outlook, we have some key markets that are starting to show signs of positive outlook. Service center shipments are starting to move up. They're trending up. We've heard from HVAC customers recently that are really in a non-residential construction space about a really strong second half there. There's some tailwinds there in non-res construction that yield some strength as well.

Noah Hanners: As importantly, the supply chain is really healthy right now. Inventory levels are modest, which just tells you we haven't seen the speculation that traditionally drives the volatility we would see in this market. Couple other notes just on the strength of the current market, while we have a pretty positive outlook, we have some key markets that are starting to show signs of positive outlook. Service center shipments are starting to move up. They're trending up. We've heard from HVAC customers recently that are really in a non-residential construction space about a really strong second half there. There's some tailwinds there in non-res construction that yield some strength as well.

Speaker #5: Service center ships are starting to move up. They're trending up. We've heard from HVAC customers recently that are really in the NAS risk, non-residential construction space.

Speaker #5: So all that together, we believe supports a strong operating environment through '26 and then into potentially next year.

Speaker #5: About a really strong second half there. So there's some tailwinds there in non-risk construction that yield some strength as well. And then you already heard mentioned in the border fence, which is a million and a half tons over the year and next.

Speaker #6: Thanks, Noah. Really appreciate the context. And thanks to the rest of the team as well.

Speaker #4: Thanks, Alex.

Speaker #1: Thank you. Next question comes from Timna Tanners from Wells Fargo. Your line is now open. Please go ahead.

Speaker #5: So all that together, we believe supports a strong operating environment through '26 and then into potentially next year.

Speaker #7: Yeah. Hey, good morning, everyone. I wanted to follow up if I could on the guidance comments. So the 5% year-over-year volume increase would seem to imply that this level that we saw in the first quarter year-over-year is not sustainable.

Speaker #1: Well, I really appreciate the context. And thanks to the rest of the team as well.

Speaker #3: Thanks, Alex.

Speaker #4: Thank you. Next question comes from Nathan from Wells Fargo. Your line is now open. Please go ahead.

Noah: Then you already heard mention of the border fence, which is 1 million, 1.5 million tons over this year and next. All that together, we believe supports a strong operating environment through 2026, and then into potentially next year.

Noah Hanners: Then you already heard mention of the border fence, which is 1 million, 1.5 million tons over this year and next. All that together, we believe supports a strong operating environment through 2026, and then into potentially next year.

Speaker #7: So I'm just curious about what's driving that expectation. And I conclude just looking at the values that perhaps the bigger driver into Q2 could be price catching up with the market rather than volumes.

Speaker #6: Yeah, hey, good morning, everyone. I wanted to follow up a bit on the guidance comments. So the 5% year-over-year volume increase would seem to imply that this level that was on the first quarter year-over-year is not sustainable.

Alex Hacking: Thanks, Noah. Really appreciate the context. Thanks to the rest of the team as well.

Speaker #7: Is that a fair conclusion? And if you could comment a little bit more about the moving parts, that would be great.

Leon Topalian: Thanks, Alex.

Operator: Thank you. Our next question comes from Timna Tanners from Wells Fargo. Your line is now open. Please go ahead.

Speaker #6: So I'm just curious about what's driving that expectation. And I conclude just looking at the value that perhaps the bigger driver in Q2 could be price catching up with the market rather than volumes.

Speaker #4: Yeah. Timna, look, I think both are true. I think you're going to see volumes. And again, NUCOR's operating rate's about 87% right now. Utilization across the board, some groups being a little higher, some a little lower.

Timna Tanners: Yeah, hey, good morning, everyone. I wanted to follow up, if I could, on the guidance comments. The 5% year-over-year volume increase would seem to imply that this level that we saw in Q1 year-over-year is not sustainable. I'm just curious about what's driving that expectation. I conclude, just looking at the values that perhaps the bigger driver into Q2 could be price catching up with the market rather than volume. Is that a fair conclusion? If you could comment a little bit more about the moving parts, that'd be great.

Speaker #4: So we have room. And again, from a contract standpoint, you think about sheet market and the things Noah just walked through, we remain and have tons available in a very strong market.

Speaker #6: Is that a fair conclusion? And if you could comment a little bit more about the moving part, that would be great.

Speaker #3: Yeah, Tim, look, I think both are true. I think you're going to see volumes. And again, NUCOR's operating rate's about 87%. Utilization across the board.

Speaker #4: So we maintained some discipline and not booking all of those tons through contracts. So we have spot tons to offer. But again, we have we still have availability.

Speaker #3: Some groups being a little higher, some a little lower. So we have room. And again, from a contract standpoint, you think about sheet market and things will just walk through.

Speaker #4: And again, I think you're going to see that continue to move up. The demand drivers, again, I'm not going to underplay this I've been in this business a long time.

Speaker #3: We remain and have tons available in a very strong market. So we remain seeing some input and not looking at all those tons through contracts.

Leon Topalian: Yeah, Timna, I look, I think both are true. I think you're gonna see volumes, and again, Nucor's operating rates about 87% right now, utilization across the board. Some groups being a little higher, some a little lower. We have room. Again, from a contract standpoint, you think about sheet market and the things Noah just walked through, you know, we remain and have tons available in a very strong market. We maintained some discipline in not booking all of those tons through contracts. We have spot tons to offer. Again, we still have availability. Again, I think you're gonna see that continue to move up. The demand drivers, you know, again, I'm not gonna underplay this. I've been in this business a long time.

Speaker #4: I've been in our longs product businesses or sheet group. And from a longs perspective, our customers that I'm talking to today are busier than anything they've ever seen in their history.

Speaker #3: So we have spot tons to offer. But again, we have we still have availability. And again, I think you're going to see that continue to move up.

Speaker #4: So when I tell you the demand driver drivers today are hot, it's like '21, '22, or even beyond in some cases, depending on the product group.

Speaker #3: The demand drivers, again, I'm not going to underplay this I've been in this business a long time. I've been in our longest product businesses are sheet group and from a longs perspective, our customers that I'm talking to today are busier than anything they've ever seen in their history.

Speaker #4: So it is an incredible market. So I do think you're going to see some improvements in volume. To your point on the 5%, yeah, I think you're right.

Speaker #3: So, I tell you, the demand drivers today are hot. It's like '21, '22, or even beyond in some cases, depending on the product.

Speaker #4: I think it's much more likely that it pushes closer to double digits. Again, not ready to say it's going to be at or above 10%, but I think it'll strongly be above that 5% mark.

Speaker #3: So it is an incredible market. So I do think you're going to see some improvements in volume. To your point on the 5%, yeah, I think you're right.

Leon Topalian: I've been in our longs product businesses or sheet group. From a longs perspective, our customers that I'm talking to today are busier than anything they've ever seen in their history. When I tell you the demand driver, drivers today are odd, it's, you know, like 2021, 2022 or even beyond in some cases, depending on the product group. It is an incredible market. I do think you're gonna see some improvements in volume. To your point on the 5%, yeah, I think you're right. I think it's much more likely that it pushes closer to double digits. Again, not ready to say it's gonna be at or above 10%, but I think, you know, it'll strongly be above that 5% mark. You're gonna see that move up as well.

Speaker #4: So you're going to see that move up as well. So I think that answered the two questions you were pulling on. Did I miss anything there, Timna?

Speaker #3: It's much more likely that it pushes closer to double digits. Again, not ready to say it's going to be at or above 10%. But I think we'll strongly be above that 5% mark.

Speaker #7: I think that's fair. I think I just always helpful to get a little bit more color on how to think about some of the lags in pricing if you want.

Speaker #7: That'd be great. And then I guess the second question I was going to ask has to do with costs. And obviously, we all track scrap really closely.

Speaker #3: So you're going to see that move up as well. So I think that answered the two questions you were pulling on. Did I miss anything there, Tim?

Speaker #7: And that's a key one. But I just wondered if you could elaborate on some of the cost pressures that you alluded to earlier in this script.

Speaker #6: I think that's fair. I think I just be always helpful to get a little bit more color on how to think about some of the lag in pricing.

Speaker #7: That would be great.

Speaker #4: Yeah. Steve, I'm actually wanting to take both. I mean, the cost as well as the lag effect on which, again, I think is playing through, but will play through very positively as we head into Q2.

Speaker #6: If you want a great—and I guess the second question I was going to ask has to do with costs. And obviously, we all track scrap really closely.

Speaker #6: And that's a key one. But I wondered if you could elaborate on some of the cost pressures that you alluded to earlier in this script.

Speaker #6: Yeah. Yeah. Sure, Timna. The lag effect, just to elaborate on that just a little bit on the prior question, you know this, but for the other listeners on the call, 20% of our volume goes to our downstream business.

Leon Topalian: I think that answered the two questions you were following on. Did I miss anything there, Timna Tanners?

Speaker #6: That would be great.

Speaker #3: Yeah, Steve. Definitely take something cost as well as the lag effect on which again, I think it's playing through. But we'll play through very positively as we get into Q2.

Timna Tanners: I think that's fair. I think I just, you know, it'd be always helpful to get a little bit more color on how to think about some of the lags in pricing. If, if you want, that'd be great. I guess the second question I was gonna ask has to do with costs, and obviously, we all track scrap really closely, and that's a key one. I just wondered if you could elaborate on some of the cost pressures that you alluded to earlier in the script. That would be great.

Speaker #6: And that gets in our financial results backed out through intercompany ELEMS. So you see that impacting financial results for us, but also with over 70%, 80% of our business in sheet being contract and some other businesses that have a lag effect to the pricing.

Speaker #7: Yeah, yeah, sure. The lag effect, just to elaborate on that just a little bit on the prior question. You know this, but for the other listeners on this call, 50% of our volume goes to our downstream business.

Speaker #7: And that gets in our financial results backed out through intercompany ELMCC. That impacting financial results for us. But also, with over 70%, 80% of our business in sheet being contract and some other businesses that have a lag effect to pricing.

Leon Topalian: Yeah. Steve, I actually want to take both. I mean, you know, the cost as well as the lag effect on, you know.

Leon Topalian: Yeah. Steve, I actually want to take both. I mean, you know, the cost as well as the lag effect on, you know...

Speaker #6: As pricing trends move up, it does there is this catch-up effect that takes time. And so to the heart of the question you were asking just a minute ago about Q2, you'll see some volume pickup.

Noah: Yeah

Steve Laxton: Yeah

Leon Topalian: is playing through, but will play through very positively as we head into Q2.

Leon Topalian: ...Is playing through, but will play through very positively as we head into Q2.

Noah: Yeah, yeah, sure, Tim. you know, the lag effect, just to elaborate on that just a little bit on the prior question. you know, you know this, but for the other listeners on the call, you know, 20% of our volume goes to our downstream business, and that gets in our financial results backed out through intercompany elim. You see, that impacting financial results for us, but also, with over 70%, 80% of our business in sheet being contract and some other businesses, that have a lag effect to the pricing. As pricing trends move up, there is this catch-up effect that takes time. To the heart of the question you were asking just a minute ago about Q2.

Steve Laxton: Yeah, yeah, sure, Tim. you know, the lag effect, just to elaborate on that just a little bit on the prior question. you know, you know this, but for the other listeners on the call, you know, 20% of our volume goes to our downstream business, and that gets in our financial results backed out through intercompany elim. You see, that impacting financial results for us, but also, with over 70%, 80% of our business in sheet being contract and some other businesses, that have a lag effect to the pricing. As pricing trends move up, there is this catch-up effect that takes time. To the heart of the question you were asking just a minute ago about Q2.

Speaker #6: We had weather effect, particularly some of the downstream products. You'll probably see a little bit more volume pickup relative to pricing in our products group.

Speaker #7: As pricing trends move up, it does there is this catch-up effect that takes time. And so to the heart of the question you were asking a minute ago about Q2, you'll see some volume pickups.

Speaker #6: But on the sheet side, excuse me, steel side, you're going to see the other way around. Where the pricing is catching up with. Catching up with the trends that you're seeing today in the marketplace.

Speaker #7: We had weather effect, particularly some of the downstream products. You'll probably see a little bit more volume pickup relative to pricing in the products.

Speaker #6: That's sort of putting a little bit finer point on your comment about the lag effect. And with regards to cost, NUCOR's costs have been down year-over-year and quarter over quarter.

Speaker #7: But on the sheet side, excuse me, steel side, you're going to see it the other way around where the pricing is catching up with the trends that you're seeing today in the marketplace.

Speaker #6: I think that's important to note. And a lot of that has to do with utilization or utilization is up. And but also supplies and services are down and a few other little details.

Speaker #7: So that's sort of putting a little bit finer point on your comment about the lag effect. And with regards to cost, Nucor's costs have been down year over year and quarter over quarter.

Speaker #6: The one area that is up that might be on investors' mind is energy. But I think it's important to note that energy's around 10% of the cost in steelmaking.

Stephen D. Laxton: You'll see some volume pickup. We had weather effect, particularly some of the downstream products. You'll probably see a little bit more volume pickup relative to pricing in our products group. On the sheet side-- or excuse me, steel side, you're gonna see it, the other way around, where the pricing is catching up with, catching up with the trends that you're seeing today in the marketplace. That's sort of putting a little bit finer point on your comment about the lag effect. With regards to cost, Nucor's costs have been down year over year and quarter over quarter. I think that's important to note. A lot of that has to do with utilization. Our utilization is up and, but also supplies and services are down, a few other little details.

Steve Laxton: You'll see some volume pickup. We had weather effect, particularly some of the downstream products. You'll probably see a little bit more volume pickup relative to pricing in our products group. On the sheet side-- or excuse me, steel side, you're gonna see it, the other way around, where the pricing is catching up with, catching up with the trends that you're seeing today in the marketplace. That's sort of putting a little bit finer point on your comment about the lag effect. With regards to cost, Nucor's costs have been down year over year and quarter over quarter. I think that's important to note. A lot of that has to do with utilization. Our utilization is up and, but also supplies and services are down, a few other little details.

Speaker #7: I think that's important to note. And a lot of that has to do with utilization. Our utilization is up. And but also supply and services are down and a few other little details.

Speaker #6: And it probably has a far less pronounced impact than some investors might be thinking because of what some of our integrated competition has in terms of their costs.

Speaker #7: The one area that is up that might be on investors' mind is energy. I think it's important that energy's around 10% of the cost in steelmaking.

Speaker #6: Our profile is simply different there. We hedge we typically forward buy anywhere between 40 to 50 percent of a year's worth of natural gas heading into it.

Speaker #7: And it probably has a far less pronounced impact than some investors might be thinking. Because of what some of our integrated competition has in terms of their costs.

Speaker #6: And most of our costs, 80% of our energy costs is related to power anyway. So we don't have quite the same degree of exposure to near-term moves and costs on that front.

Speaker #7: Our profile is simply different there. We hedge typically for buying anywhere between 40 and 50% of the year's worth of natural gas heading into it.

Speaker #7: Very helpful. Thanks, people. Thank you. Our next question comes from Lawson Winder from both the securities. Your line is now open. Please go ahead.

Speaker #7: And most of our cost, 80% of our energy cost is related to power anyway. So we don't know quite the same degree of exposure to near-term moves and costs on that front.

Stephen D. Laxton: The one area that is up that might be on investors' mind is energy. I think it's important to note that energy's around 10% of the cost in steel making, and it probably has a far less pronounced impact than some investors might be thinking because of what some of our integrated competition has in terms of their costs. Our profile is simply different there. We hedge, we typically forward buy anywhere between 40% to 50% of a year's worth of natural gas heading into it. Most of our cost, 80% of our energy cost is related to power anyway. We don't have quite the same degree of exposure to near-term moves and costs on that front.

Steve Laxton: The one area that is up that might be on investors' mind is energy. I think it's important to note that energy's around 10% of the cost in steel making, and it probably has a far less pronounced impact than some investors might be thinking because of what some of our integrated competition has in terms of their costs. Our profile is simply different there. We hedge, we typically forward buy anywhere between 40% to 50% of a year's worth of natural gas heading into it. Most of our cost, 80% of our energy cost is related to power anyway. We don't have quite the same degree of exposure to near-term moves and costs on that front.

Speaker #8: Thank you very much, operator, and good morning, Leon and team. Could I ask about the capital return? So in recent years, NUCOR has exceeded the 40% net income return.

Speaker #6: Very helpful. Thanks, Stevo. Thank you. Our next question comes from Lawson Winder from BMO Capital Markets. Your line is now open. Please go ahead.

Speaker #8: I mean, last year, it was like just under 70%. Is there room to push that higher in 2026? And how are you thinking about that?

Speaker #8: Thank you very much, operator. Good morning, Leon and team. Could I ask about the capital return? So in recent years, NUCOR has exceeded the 40% net income return, I mean, last year it was like just under 70%.

Speaker #8: And then the corollary to that would be looking at the investment opportunity set. Are you seeing any new opportunities in which to invest in the business that could compete for that free cash flow versus capital return?

Timna Tanners: Very helpful. Thanks to you both.

Speaker #8: Is there room to push higher in 2026? And how are you thinking about that? And then the corollary to that would be, looking at the investment opportunity set, are you seeing any new opportunities in which to invest in the business that could compete for that free cash flow versus capital return?

Stephen D. Laxton: Thank you.

Steve Laxton: Thank you.

Speaker #8: Thank you.

Operator: Thank you. Our next question comes from Lawson Winder from BMO Capital Markets. Your line is now open. Please go ahead.

Operator: Thank you. Our next question comes from Lawson Winder from BofA securities. Your line is now open. Please go ahead.

Speaker #6: Yeah. Hey, Lawson's Jack. Thanks for the question. In terms of share, returns to shareholders, I think over the past five years, we've trended close to 60% of net earnings over that time.

Lawson Winder: Thank you very much, operator. Good morning, Leon and team. Could I ask about the capital return? In recent years, Nucor has exceeded the 40% net income return. I mean, last year it was, like, just under 70%. Is there room to push that higher in 2026, and how are you thinking about that? The corollary to that would be looking at the investment opportunity set. Are you seeing any new opportunities in which to invest in the business that could compete for that free cash flow versus capital return? Thank you.

Speaker #8: Thank you.

Speaker #9: Yeah, hey, Lawson's Jack. Thanks for the question. In terms of share, the returns to shareholders, I think over the past five years, we've trended close to 60% of net earnings over that time.

Speaker #6: Starting out the first quarter, a touch under that 40% target. And that was really the result of our earnings beat. So as we work our way further into the year, you should expect us to continue to close that gap and potentially exceed it.

Speaker #9: Starting with the first quarter, a touch under that 40% target. And that was really the result of our earnings beat. As we work our way further into the year, you should expect us to continue to close that gap and potentially exceed it.

Speaker #6: But when it comes to actual returns to shareholders, it's sort of that balancing act between staying true to our longstanding targets of roughly 40%, recently higher, but also being opportunistic about other areas to create value for shareholders.

Jack Sullivan: Yeah. Hey, Lawson, it's Jack. Thanks for the question. In terms of share, you know, returns to shareholders, yeah, I think over the past five years, we've trended close to 60% of net earnings over that time. Starting out the Q1, a touch under that 40% target, that was really the result of our earnings beat. As we work our way further into the year, you know, you should expect us to continue to close that gap and potentially exceed it. When it comes to actual returns to shareholders, it's sort of that balancing act between staying true to our longstanding targets of roughly 40%, recently higher. Also, you know, being opportunistic about other areas to create value for shareholders.

Speaker #9: But when it comes to capital return to shareholders, sort of that bouncing act between staying true to our longstanding targets of roughly 40%, recently higher, but also being opportunistic about other areas to create value for shareholders.

Speaker #6: And a lot of that is through reinvestment. So we'll continue to do just that, balance reinvestment opportunities as they come along, maintain a healthy balance sheet along the way, and make good on our commitment to shareholders.

Speaker #9: And that's through reinvestment. So we'll continue to do just that, balance reinvestment opportunities as they come along, maintain a healthy balance sheet along the way, and make good on our commitment to shareholders.

Speaker #8: Okay. That's quite clear. And Jack, congratulations on the promotion. If I could ask a follow-up question just related to Joyce and Deck, you noted that pricing is expected to recover to help offset some of the higher substrate costs going forward in 2026.

Speaker #8: Okay. That's quite clear. And Jack, congratulations on the promotion. If I could ask a follow-up question related to Joyce and Jack, you noted that pricing is expected to recover to help offset some of the higher substrate costs.

Speaker #8: Could you just speak to some of the strengths and weakness that you're seeing in the underlying market for that business?

Speaker #6: Yeah. This is John. I'll take that question, Lawson. So really, the biggest market for the Joyce and Deck business is the warehouse market. And that's really in a steady state.

Speaker #8: In 2026, can you just speak to the strength and weakness that you're seeing in the underlying market for that business?

Jack Sullivan: A lot of that is through reinvestment. We'll continue to do just that, balance reinvestment opportunities as they come along, maintain a healthy balance sheet along the way, and make good on our commitment to shareholders.

Speaker #6: It's certainly not what it was in '21 or '22, but leveled off to a good position. The data center market continues to be really strong for us.

Speaker #9: Yeah, this is John. I'll take that question, Lawson. So, really, the biggest market for the joist and deck business is the warehouse market, and that's really in a steady state.

Lawson Winder: Okay. That's quite clear. Jack, congratulations on the promotion. If I could ask a follow-up question just related to joist and deck. You noted that pricing is expected to recover to help offset some of the higher substrate costs going forward in 2026. Can you just speak to some of the strength and weakness that you're seeing in the underlying market for that business?

Speaker #9: It's certainly not what it was in '21 or '22. But leveled off to a good position. The data center market continues to be really strong for us.

Speaker #6: That's where we're seeing a lot of our price increasing. And our backlog pricing has benefited from that and will continue to over the course of the year.

Speaker #6: So we feel good about where we are in that part of the business.

Speaker #9: That's where we're seeing a lot of our price increasing. And our backlog pricing has benefited from that. And we'll continue to record the years.

Speaker #8: Okay. Thank you, guys, very much.

John Hollatz: Yeah. This is John Hollatz. I'll take that question, Lawson Winder. Really the biggest market for the joist and deck business is the warehouse market. That's really in a steady state. It's certainly not what it was in 2021 or 2022, but leveled off to a good position. The data center market continues to be really strong for us. That's where we're seeing a lot of our price increasing, and our backlog pricing has benefited from that and will continue to over the course of the year. We feel good about where we are in that part of the business.

Speaker #4: Thanks, Lawson.

Speaker #9: We feel good about where we are in that part of the business.

Speaker #7: Thank you. The next question comes from Katja Jancic from BMO. Your line is now open. Please go ahead.

Speaker #8: Thank you, Greg.

Speaker #9: Hi. Thank you for taking my questions. Earlier, you mentioned the recent change to Section 232 tariffs impacting derivative products. Have you since then seen an increase in inquiries from manufacturers that could potentially try to reduce the impact?

Speaker #10: Thanks, Lawson.

Speaker #6: Thank you. The next question comes from Katya Jancic from EMO. Your line is now open. Please go ahead.

Speaker #11: Hi. Thank you for taking my questions. Earlier, you mentioned the recent change to security due to its impacting derivative products. Have you since then seen an increase in inquiries from manufacturers that could potentially try to reduce the impact?

Speaker #9: Or do you expect that to happen?

Speaker #4: Gotcha. I want to make sure I understand the question. With the 232, are we seeing our customers look to basically shore up their supply chains domestically?

Lawson Winder: Okay. Thank you, guys, very much.

Speaker #11: Or do you expect that to happen?

Leon Topalian: Thanks, Lawson.

Speaker #10: Gotcha. I want to make sure I understand the question. With the Q32, are we seeing our customers look to basically shore up their supply chains domestically?

Speaker #4: Is that?

Operator: Thank you. The next question comes from Katja Jancic from BMO. Your line is now open. Please go ahead.

Speaker #9: Right. Or even the nearshoring because there's an ability for them to reduce the tariff from 25 to 10 percent if they use 100% US steel.

Katja Jancic: Hi. Thank you for taking my questions. Earlier you mentioned the recent change to Section 232 tariffs impacting derivative products. Have you since then seen an increase in inquiries from manufacturers that could potentially try to reduce the impact, or do you expect that to happen?

Speaker #10: Is that?

Speaker #11: Right. Even the near-shoring because there's an ability for them to reduce the tariff from 25 to 10% if they use 1% US steel. So I'm just wondering if you're seeing any inquiries?

Speaker #9: So I'm just wondering if you're seeing any inquiries?

Speaker #4: Yeah. We absolutely are. And again, I think what you've seen with the Trump 2.0 and the trade things that he's implemented both from an EO and 232 is to create a long-term level fair playing field.

Speaker #10: Yeah. We absolutely are. And again, I think what you're seeing with the from 2.0 and the trade things that he's implemented, both from the EO and Q32, is to create a long-term level fare playing field.

Leon Topalian: Gotcha. I wanna make sure I understand the question. With the 232, are we seeing our customers look to basically shore up their supply chains domestically, is that?

Speaker #4: And so again, we're seeing import levels trend down to 15%, which is certainly the lowest I've seen in my entire career. At NUCOR, so it's at a healthy and what I believe is a very sustainable level for the US industry.

Katja Jancic: Right. Even in the near shoring, because there's an ability for them to reduce the tariff from 25% to 10% if they use 100% US steel. I'm just wondering.

Speaker #10: And so again, we're seeing import levels trend down to 15%, which is certainly the lowest I've seen in my entire career at Nucor. So it's at a healthy and, what I believe, a very sustainable level for the U.S. industry.

Speaker #4: But yes, your answer to your question and it's something that we will certainly support in the melted made in America provisions of any trade policy that gets enacted in so yeah, our customers are certainly aware of that.

Leon Topalian: Oh, yes.

Leon Topalian: if you're seeing any inquiries.

Katja Jancic: ...If you're seeing any inquiries.

Leon Topalian: Yeah, we absolutely are. Again, I think, you know, what you've seen with the, you know, Trump 2.0 and the trade things that he's implemented, you know, both from an EO and 232 is to create a long-term level fair playing field. Again, we're seeing import levels trend down to, you know, 15%, which is certainly the lowest I've seen in my entire career at Nucor. It's at a healthy and what I believe is a very sustainable level for the US industry.

Speaker #10: But yes, you're answering your question. And it's something that we will certainly support. And the melted made in America provisions of any trade policy that gets enacted in so yeah, our customers are certainly aware of that.

Speaker #4: And looking to see how they can control their cost and output. And so yeah, the domestic industry is healthy. It's strong. And again, NUCOR's best days are still in front of us.

Speaker #10: And looking to see how they can control their cost and output. And so, yeah, the domestic industry is healthy. It's strong. And again, Nucor's best days are still in front of us.

Speaker #9: And maybe going back to the energy side, I understand that it's only 10%, but maybe looking more longer term, given that there is this expectation data centers are going to consume more energy and power costs are going to be moving higher, how are you thinking about your power costs longer term?

Leon Topalian: That's certainly the lowest I've seen in my entire career at Nucor. It's at a healthy and what I believe is a very sustainable level for the US industry. Yes, to answer your question, and it's something that we will certainly support in, you know, the melt and Made in America provisions of any trade policy that gets enacted. Our customers are certainly aware of that and looking to see how they can control their cost and output. The domestic industry is healthy, it's strong, and again, Nucor's best days are still in front of us.

Speaker #6: Can you go back to the energy side? I understand that it's only 10%. But maybe looking more long-term, given that there is this expectation data centers are going to consume more energy and power costs are going to be moving higher, how are you thinking about your power costs long-term?

Leon Topalian: Yes, to answer your question, and it's something that we will certainly support in, you know, the melt and Made in America provisions of any trade policy that gets enacted. Our customers are certainly aware of that and looking to see how they can control their cost and output. The domestic industry is healthy, it's strong, and again, Nucor's best days are still in front of us.

Speaker #9: Or are you thinking in any way to potentially look at longer-term contracts? Or how should we think about it?

Speaker #4: Yeah, Katja. Look, this is something we've talked about for a long, long time. In fact, very early days from when I became CEO in 2020, we've taken small positions, but financial positions in things like NuScale Power, which is the small module reactor technology because we need all the power that we can get, not just in solar and wind, which are good.

Speaker #6: Or are you thinking in any way to potentially look at longer-term contracts? Or how do you think about it?

Speaker #10: Yeah. Look, this is something we've talked about for a long, long time. In fact, very early days from when I became CEO in 2020, we've taken small positions of financial positions in things like NuScale, Power, which is the small module reactor technology because we need all the power that we can get, not just in solar and wind, which are good.

Katja Jancic: Maybe going back to the energy side. I understand that it's only 10%, but maybe looking more longer term, given that there is this expectation data centers are gonna consume more energy and power costs are gonna be moving higher, how are you thinking about your power cost longer term? Or are you thinking in any way to potentially look at longer term contracts, or how should we think about it?

Speaker #4: We're suppliers to both of those industries, but it's simply not enough. We've got to re or we believe NUCOR believes we've got to re-embrace nuclear power in this country.

Speaker #10: We're suppliers to both of those industries, but it's simply not enough. We've got to reiterate what we believe. Nucor believes we've got to re-embrace nuclear power in this country.

Speaker #4: It is the cleanest, most sustainable, always on. Demand-driven power that we can bring to the grid. So you saw us invest in NuScale. You saw us invest in Helion that we're incredibly excited about.

Speaker #10: It is the cleanest, most sustainable, always-on demand-driven power that we can bring to the grid. So you saw us invest in NuScale. You saw us invest in Helion that we're incredibly excited about.

Leon Topalian: Yeah, Katja. Look, this is something we've talked about for a long, long time. In fact, very early days from when I became CEO in 2020, we've taken small positions, but financial positions in things like NuScale Power, which is the small modular reactor technology. Because we need all the power that we can get, not just in solar and wind, which are good. We're suppliers to both of those industries, but it's simply not enough. We've got to, or we believe, Nucor believes we've got to re-embrace nuclear power in this country. It is the cleanest, most sustainable, always on, demand-driven power that we can bring to the grid. You saw us invest in NuScale, you saw us invest in Helion that we're incredibly excited about.

Speaker #4: But those investments also tied to being able to build those facilities, whether it's nuclear or fission and/or fusion, behind the meter so that we could generate our own supply.

Speaker #10: Those investments also are helping with being able to build those facilities, whether it's nuclear or fission and/or fusion behind the meter, so that we can generate our own supply.

Speaker #4: Any excess then would go to the grid. So to your point, the demand profile and what the US economy is not doing to keep up with supply has been an issue.

Speaker #10: Any excess then would go to the grid. So to your point, the demand profile and what the US economy is not doing keep up with supply.

Speaker #4: And something we've thought about for a very long period of time at NUCOR. So we've made those positions. But Steve mentioned it earlier as well.

Speaker #10: It's an issue and something we've thought about for a very long period of time at NUCOR. So we've made those positions. But Steve mentioned it earlier as well.

Speaker #4: Part of the reason why we hedge our natural gas buys, it's part of the reason we got into drilling wells on our own to begin with.

Speaker #10: Part of the reason why we had our natural gas buys. It's part of the reason we got into drilling wells on our own to begin with.

Speaker #4: It's the reason why we have a great relationship in every state that we're in that we have a steel mill in with a utility so that we maintain long-term uninterruptible power contracts that are very, very efficient and cost-effective.

Leon Topalian: Those investments also tied to being able to build those facilities, whether it's nuclear or fission and/or fusion behind the meter, so that we could generate our own supply. Any excess then would go to the grid. To your point, the demand profile and what the US economy is not doing to keep up with supply has been an issue and something we've thought about for a very long period of time at Nucor. We've made those positions. You know, Steve mentioned it earlier as well. Part of the reason why we hedge our natural gas buys, it's part of the reason we got into drilling wells on our own to begin with.

Speaker #10: It's the reason why we have a great relationship in every state that we're in. We have a steel mill in with a utility, so that we maintain long-term uninterruptible power contracts that are very, very efficient and cost-effective.

Speaker #4: So do I expect in the years to come that we'll get a lot of pressure? Absolutely. 100%. As you know, the data centers aren't pushing two, three, four hundred megawatts.

Speaker #10: So do I expect in the years to come that we'll get a lot of pressure? Absolutely. 100%. As you know, the data centers are pushing two, three, four hundred megawatts.

Speaker #4: Now they're pushing gigawatts. These facilities are massive, and they are massive power consumers. And so we've been thoughtful about it. We continue to be thoughtful about it.

Speaker #10: Now they're pushing gigawatts. These facilities are massive. And they are massive power consumers. And so we've been thoughtful about it. We continue to be thoughtful about it.

Speaker #4: And we will continue to invest in the things, not because we want to make electrons, but we recognize that this nation has to re-embrace nuclear.

Speaker #10: And we will continue to invest in the things, not because we want to make electrons, but we recognize that this nation has to embrace nuclear today.

Leon Topalian: It's the reason why we have a great relationship in every state that we're in, that we have a steel mill in with the utilities so that we maintain long-term uninterruptible power contracts that are very, very efficient and cost effective. Do I expect in the years to come that we'll get a lot of pressure? Absolutely, 100%. As you know, the data centers are pushing 2, 3, 400 MW now. They're pushing gigawatts. These facilities are massive, and they are massive power consumers. We've been thoughtful about it. We continue to be thoughtful about it, and we will continue to invest in the things, not because we wanna make electrons, but we recognize that this nation has to re-embrace nuclear. Today, China's building 46 new nuclear facilities. The US is building 0.

Speaker #4: Today, China is building 46 new nuclear facilities. The US is building zero. We've got to change that. And again, I think it's a it's one of the clearest ways that we remain a superpower in cloud computing, AI, and the things that are going to transform and revolutionize the US economy.

Speaker #10: China is building 46 new nuclear facilities. The US is building zero. We've got to change that. And again, I think it's a it's one of the clearest ways that we remain a superpower in cloud computing, AI, and the things that are going to transform and revolutionize the US economy.

Speaker #7: Thank you.

Speaker #4: Thank you.

Speaker #9: Thanks. Our next question comes from Caliste Alba from Morgan Stanley. Your line is now open. Please go ahead.

Speaker #6: Thank you.

Speaker #10: Thank you.

Speaker #6: Thanks. Next question comes from Caliste Alba from Morgan Stanley. Your line is now open. Please go ahead.

Speaker #10: Yeah. Thank you. Good morning, everyone. So a couple of questions that are basically follow-ups from prior inquiries. One is on return money to shareholders.

Speaker #12: Yeah. Good morning, everyone. So a couple of questions that are basically follow-ups from prior inquiries. One is on return on money to shareholders. As your campus starts to peak and you get the benefit of the new projects, would you have any preference between incremental buybacks or special dividends?

Speaker #10: As your CapEx starts to peak and you get the benefit of the new projects, would you have any preference between incremental buybacks or special dividends?

Leon Topalian: We've got to change that. Again, I think it's one of the clearest ways that we remain a superpower in cloud computing, AI, and the things that are gonna transform and re-revolutionize the US economy.

Speaker #10: Or are you an agnostic to those two choices?

Speaker #12: Or are you agnostic to those two choices?

Speaker #11: Yeah. I think it thanks for the question, Carlos. With respect to the best way to return cash to shareholders, traditionally, our preference has been through buybacks.

Speaker #13: Yeah. I think thanks for the question, Carlos. With respect to the best way to return cash to shareholders, traditionally, our preference has been through buybacks.

Katja Jancic: Thank you.

Leon Topalian: Thank you.

Operator: Our next question comes from Carlos de Alba from Morgan Stanley. Your line is now open. Please go ahead.

Speaker #11: There have been very few instances over decades in which we've contemplated a special dividend. Not taking that entirely off the table, it's just our traditional practice has been through buybacks and sort of dollar-cost averaging our way through the year.

Carlos de Alba: Yeah, thank you. Good morning, everyone. A couple of questions are basically follow-ups from prior inquiries. One is on returning money to shareholders. As your CapEx starts to peak and you get the benefit of the new projects, would you have any preference between incremental buybacks or special dividends, or are you agnostic to those two choices?

Speaker #13: There have been very few instances over decades in which we've contemplated a special dividend. I'm not taking that entirely off the table. It's just our traditional practice has been through buybacks and through dollar-cost averaging our way through the year.

Speaker #10: Thank you, Jack. And then the other question is related to imports. The administration recently put out a procedure for submissions by steel or aluminum producers that would be committed to new capacity in the US.

Speaker #12: Thank you, Jack. And then the other question is related to inputs. The administration recently put out a procedure for submissions by steel or aluminum producers that would be committed to new capacity in the US.

Jack Sullivan: Yeah, I think it. Thanks for the question, Carlos. With respect to the best way to return cash to shareholders, traditionally our preference has been through buybacks. There have been very few instances over decades in which we've contemplated a special dividend. Not taking that entirely off the table, it's just, our traditional practice has been through buybacks and sort of dollar cost averaging our way through the year.

Speaker #10: This is related to the proclamation 10984 on imports of medium and heavy-duty vehicles. And vehicle parts. How do you think this could impact potentially the announcement of new capacity in the US, steel capacity in the US?

Speaker #12: And this is related to the proclamation 10984 on imports of medium and heavy-duty vehicles. And vehicle parts. How do you think this could impact potentially the announcement of new capacity in the US, steel capacity in the US?

Speaker #10: Because I think what it does, it could cause the imports from 50% sorry, not imports, but the tariffs from 50% to 25%.

Speaker #12: So I think we're agnostic regarding the imports from 50% sorry, not imports, but the tariffs from 50% to 25%.

Carlos de Alba: Thank you, Jack. Then the other question is related to imports. The administration recently put out procedures for submissions by steel or aluminum producers that would be committed to new capacity in the US. This is related to the Proclamation 10984 on imports of medium- and heavy-duty vehicles and vehicle parts. How do you think this could impact potentially the announcement of new capacity in the US, steel capacity in the US? I think-

Speaker #4: Well, Carlos, I think it's a fair question. And look, we've seen it. We've seen the interest from overseas. We've seen Nippon Steel come in and buy the US steel assets.

Speaker #10: Okay. I think it's a fair question. And look, we've seen it. We've seen the interest from overseas. We've seen Nippon Steel come in and buy the US steel assets.

Speaker #4: And that company no longer exists, right? It's now owned and operated by a Japanese company. You're seeing similar results in Louisiana with Hyundai building their sheet mill there and when I think there are drivers to that, not just trade policy, but when you're the strongest economic situation in the world, people want to come here and build things.

Speaker #10: And that company no longer exists, right? It's now owned and operated by a Japanese company. You're seeing similar results in Louisiana, which Hyundai building their sheet mill there and then when I think they're driving to that, not just trade policy, but when you're the strongest economic situation in the world, people want to come here and build things.

Leon Topalian: Yeah, look.

Carlos de Alba: I think what it does, it could cut the imports from 50%, sorry, not imports, but the tariffs from 50% to 25%.

Speaker #4: Certainly, there are some incentives for them to do that. But then maybe just touch on some more specifics to Carlos's question.

Speaker #10: Certainly, there are some incentives for them to do that. But then maybe just touch on some more specifics to Carlos's question.

Leon Topalian: Look, Carlos, I think it's a fair question. Look, we've seen it. We've seen the interest from overseas. We've seen Nippon Steel come in and buy the US steel assets, and, you know, that company no longer exists, right? It's now owned and operated by a Japanese company. You're seeing, you know, similar results in Louisiana with Hyundai, you know, building their sheet metal there. Then, you know, I think there are drivers to that, not just trade policy, but when you're the strongest economic situation in the world, people wanna come here and build things. Certainly, there are some incentives for them to do that. Ben, maybe, just touch on, you know, some more specifics to Carlos's question.

Speaker #11: Yeah, Carlos. Appreciate the question. We're obviously aware of that. To EO, we've studied as well. I would not add much more, actually, than Leon did, right?

Speaker #13: Yeah, Carlos. Appreciate the point. We're obviously aware of this. The ECO, we've studied as well. Would not add much more, actually, than Leon did, right?

Speaker #11: We continue to study that. I think that a lot of people are always going to tend to move towards the US market as strong as it is.

Speaker #13: We continue to study that. I think that a lot of people are always going to tend to move towards the US market as strong as it is.

Speaker #11: However, we're still going to wait and see approach on that EO, along with many other things that are coming out right now.

Speaker #13: However, we're still going to take a wait-and-see approach on that ECO, along with many other things coming out right now.

Speaker #10: All right. Great. Thank you very much.

Speaker #12: All right. Great. Thank you very much.

Speaker #4: Thanks, Carlos.

Speaker #10: Thanks, Carlos.

Speaker #7: Thank you. Our next question is from Nick Cash from Goldman Sachs. Your line is now open. Please go ahead.

Speaker #6: Thank you. Next question is from Nick Cash from Goldman Sachs. Your line is now open. Please go ahead.

Speaker #12: Hi. Thank you so much, team, for taking the question. I just wanted to double-click on Timna's question and then respond from earlier a second.

Speaker #14: Hi. Thank you so much, team, for taking the question. I want to double-click on Tim's question and response from earlier a second. The guide from 4Q was about 5% volume growth.

Ben: Yeah, Carlos, appreciate the question. We're obviously aware of that, the EO we've studied as well. I would not add much more actually than Leon did. I would continue to study that. I think that a lot of people are always gonna tend to move towards the US market as strong as it is. However, we're still in a wait-and-see approach on that EO, along with many other things that are coming out right now.

Ben Pickett: Yeah, Carlos, appreciate the question. We're obviously aware of that, the EO we've studied as well. I would not add much more actually than Leon did. I would continue to study that. I think that a lot of people are always gonna tend to move towards the US market as strong as it is. However, we're still in a wait-and-see approach on that EO, along with many other things that are coming out right now.

Speaker #12: The guide from 4Q was about 5% volume growth, and now it sounds like NUCOR is expecting more than 5% volume growth for the year.

Speaker #14: And now it sounds like Nucor is expecting more than 5% volume growth for the year. I'm pretty positive and constructive on that and the environment.

Speaker #12: You sound pretty positive and constructive on that and the environment. So I'm just trying to any more color on what specifically has changed over the past, I guess, two to three months?

Speaker #14: So I'm just trying to any more color on what specifically has changed over the past, I guess, two to three months. Are you more positive on the end markets?

Speaker #12: Are you more positive on the end markets? And does that give you conviction in heading into the back half of the year? Or are certain end markets seeing stronger than anticipated rate of change over the past two months?

Speaker #14: And does that give you conviction in heading into the back half of the year? Or are certain end markets seeing a stronger than anticipated change over the past two months?

Carlos de Alba: All right. Agree. Thank you very much.

Leon Topalian: Thanks, Carlos.

Speaker #12: Imports weaker than thought, or what you're seeing potentially even across the backlog? Any additional color would be helpful. Thank you.

Speaker #14: Imports weaker than thought, or what you're seeing potentially even across the backlog? Any additional color would be helpful.

Operator: Thank you. Our next question is from Nick Tash from Goldman Sachs. Your line is now open. Please go ahead.

Operator: Thank you. Our next question is from Nick Cash from Goldman Sachs. Your line is now open. Please go ahead.

Speaker #10: Yeah. Okay. I appreciate the question. And I think you're seeing a trifecta come to fruition. So I think it's all the above. So I want to get into three categories.

Speaker #4: Yeah, Nick. Look, I appreciate the question. And I think you're seeing a trifecta come to fruition. So I think it's all the above. So I'll unpack it in three categories.

Nick Tash: Hi. Thank you so much, team, for taking the question. I just wanted to double-click on Tim's question and response from earlier. Again, the guide, you know, from Q4 was about, you know, 5% volume growth, and now it sounds like Nucor's expecting more than 5% volume growth for the year. You sound pretty positive and constructive on that and the environment. Any more color on what specifically has changed over the past, I guess, you know, 2 to 3 months? Are you more positive on the end markets, and does that give you conviction in heading into the back half of the year?

Nick Cash: Hi. Thank you so much, team, for taking the question. I just wanted to double-click on Tim's question and response from earlier. Again, the guide, you know, from Q4 was about, you know, 5% volume growth, and now it sounds like Nucor's expecting more than 5% volume growth for the year. You sound pretty positive and constructive on that and the environment. Any more color on what specifically has changed over the past, I guess, you know, 2 to 3 months? Are you more positive on the end markets, and does that give you conviction in heading into the back half of the year?

Speaker #10: One, I think our core businesses we're seeing incredible demand, incredible growth. Our long products groups are from rebar and PQ. Our structural backlogs are beyond numbers that we've ever seen.

Speaker #4: One, I think at our core businesses, we're seeing incredible demand, incredible growth. Our long products groups are from rebar MBQ. Our structural backlogs are beyond numbers that we've ever seen.

Speaker #10: Our customers' customers in the non-res structural fabrics are incredibly busy. There's a demand picture today that is incredibly robust that I think is a part of that driver.

Speaker #4: Our customers' customers in the non-res, the structural fabricators are incredibly busy. There is a demand picture today that is incredibly robust that I think is a part of that driver.

Nick Tash: Are certain end markets seeing, you know, stronger than anticipated rate of change over the past two months, imports weaker than thought or what you're seeing potentially even across the backlog? Any additional color would be helpful. Thank you.

Nick Cash: Are certain end markets seeing, you know, stronger than anticipated rate of change over the past two months, imports weaker than thought or what you're seeing potentially even across the backlog? Any additional color would be helpful. Thank you.

Speaker #10: The second piece to that is where we stand beyond businesses that are continuing to ramp up. When we talk about insulated metal panels, our doors and door technology, the tunnels and structures being built that we're building—that, again, we are incredibly excited about what they're bringing to the table.

Speaker #4: The second piece of that is our expand beyond businesses that are continuing to ramp up. When we talk about insulated metal panels, our doors and door technologies, the towers and structures, greenfield plants, that we're building that, again, we are incredibly excited about what they're bringing to the table.

Leon Topalian: Yeah, Nick. Look, I appreciate the question, and I think you're seeing a trifecta come to fruition. I think it's all the above. I'll unpack it in three categories. One, I think in our core businesses, we're seeing an incredible demand, incredible growth. Our long products groups are from rebar, MBQ. Our structural backlogs are beyond numbers that we've ever seen. Our customers in the non-res, the structural fabricators are incredibly busy. There is a demand picture today that is incredibly robust that I think is a part of that driver. The second piece of that is our expand beyond businesses that are continuing to ramp up.

Speaker #10: And then the enclosures and data center spaces all are going to be contributing to a much healthier bottom line for NUCOR and our shareholders.

Speaker #4: And then the enclosures and data center spaces all are going to be contributing to a much healthier bottom line for NUCOR and our shareholders.

Speaker #10: Not just this quarter, not just in the coming quarters, but year over year, you're going to see it. And then the third and last and probably the most important point, Nick, we spend nearly $20 billion since I took over the company as CEO.

Speaker #4: Not just this quarter, not just in the coming quarters, but year over year, you're going to see it. And then the third and last and probably the most important point, Nick, we spend nearly $20 billion since I took over the company as CEO, and our teams have done an incredible job of implementing that cash and projects safely.

Speaker #10: And our teams have done an incredible job of implementing that cash and projects safely. They've worked tirelessly to bring those projects through, construction, commissioning, startups, being out to see some of those in that planting and that toiling and just nurturing come to harvest.

Leon Topalian: When we talk about insulated metal panels or doors and door technologies, the Towers & Structures, greenfield plants that we're building, that again, we are incredibly excited about what they're bringing to the table. You know, the enclosures and data center spaces all are gonna be contributing to a much healthier bottom line for Nucor and our shareholders, not just this quarter, not just in the coming quarters, but year over year, you're gonna see it. The third and last, and probably the most important point, you know, Nick, we spent nearly $20 billion since I took over the company as CEO, and our teams have done an incredible job of, you know, implementing that cash and projects safely. They've worked tirelessly to bring those projects through, you know, construction, commissioning, and startup.

Speaker #4: They've worked tirelessly to bring those projects through, construction commissioning, startup. You're beginning now to see some of those in that planting and that toiling and just nurturing come to harvest.

Speaker #10: So for, again, years of working towards and building out, you're now beginning to see the harvest starting to hit the balance sheet. And that's only going to continue.

Speaker #4: So for, again, years of working towards and building out, you're now beginning to see the harvest starting to hit the balance sheet. And that's only going to continue.

Speaker #10: The pent-up tsunami of earnings power that Nucor has invested is still yet to hit the balance sheet. It is why I am so incredibly optimistic in looking at where our share price closed last night, and the opening this morning.

Speaker #4: The pent-up tsunami of earnings power that NUCOR is invested is still yet to hit the balance sheet. It is why I am so incredibly optimistic and looking at where our share price closed last night, the opening this morning.

Speaker #10: Man, we're just getting warmed up. And so NUCOR's best days, weeks, months, and years are still in front of us. It's going to be more optimistic.

Speaker #4: And we're just getting warmed up. And so NUCOR's best days, weeks, months, and years are still in front of it. And I couldn't be more optimistic.

Speaker #10: So those three factors combined bring to me what's going to generate the healthiest returns NUCOR shareholders are experiencing and they're seeing and higher lows than NUCOR has ever experienced by balancing out the MA portfolio with countercyclical companies and product ranges that are in different end markets that, again, just stabilize the earnings portfolio through the balance sheet.

Speaker #4: So those three factors combined bring to me what's going to generate the healthiest returns NUCOR shareholders have ever experienced and ever seen and higher lows than NUCOR has ever experienced by balancing out the M&A portfolio with countercyclical companies and product ranges that are in different end markets that, again, just stabilize the earnings portfolio through the balance sheet.

Leon Topalian: You're beginning now to see some of those, and that planting and that, you know, that toiling and just nurturing come to harvest. For, again, years of working towards and building out, you're now beginning to see the harvest starting to hit the balance sheet, and that's only going to continue. The pent-up tsunami of earnings power that Nucor's invested is still yet to hit the balance sheet. It is why I am so incredibly optimistic. You know, looking at where our share price closed last night, the opening this morning, man, we're just getting warmed up. Nucor's best days, weeks, months, and years are still in front of it. I couldn't be more optimistic.

Speaker #10: So again, I couldn't be more optimistic. And yeah, those three pieces really are why we feel very confident about 2026 and beyond.

Speaker #4: So again, I couldn't be more optimistic. And yeah, those three pieces really are why we feel very confident about 2026 and beyond.

Speaker #14: Awesome. Thank you. I'll pass it on.

Speaker #12: Awesome. Thank you. I'll pass it on.

Speaker #6: Thank you.

Speaker #10: Thank you, Nick.

Speaker #6: We have no further questions. So let's turn back to Leon to tell you and Sharon, CEO, for any closing remarks.

Leon Topalian: Those three factors combined bring to me what's going to generate the healthiest returns Nucor shareholders have ever experienced and ever seen and higher lows than Nucor's ever experienced by balancing out the M&A portfolio with counter-cyclical companies and product ranges that are in different end markets that again, just stabilize the earnings portfolio through the balance sheet. Again, I couldn't be more optimistic and yeah, those three pieces really are why we feel very confident about 2026 and beyond.

Speaker #7: Thank you.

Speaker #4: Thank you, Nick.

Speaker #7: We currently have no further questions. So I'd like to hand back to Leon to tie in. Taryn, CEO, for any closing remarks.

Speaker #10: Well, thank you all for joining us on today's call. And before we conclude, I want to once again thank our team for delivering a strong start to our year and also for your unwavering commitment to becoming the world's leading company.

Speaker #4: Well, thank you all for joining us on today's call. And before I conclude, I want to once again thank our team for delivering a strong start to our year.

Speaker #4: And also for your unwavering commitment to becoming the world's safest steel company. And I'd also like to thank our customers for the trust that you place in us each and every day.

Speaker #10: I'd also like to thank our customers for the trust that you place in us each and every day. And finally, to our investors, for your continued confidence in our long-term strategy.

Speaker #4: And finally, to our investors, for your continued confidence in our long-term strategy. Thank you and have a great day.

Speaker #10: Thank you and have a great day.

Nick Tash: Awesome. Thank you. I'll pass it on.

Nick Cash: Awesome. Thank you. I'll pass it on.

Operator: Thank you.

Leon Topalian: Thank you, Nick.

Operator: We currently have no further questions. I'd like to hand back to Leon Topalian, Chair and CEO, for any closing remarks.

Leon Topalian: Well, thank you all for joining us on today's call. Before I conclude, I want to once again thank our team for delivering a strong start to our year and also for your unwavering commitment to becoming the world's safest steel company. I'd also like to thank our customers for the trust that you place in us each and every day. Finally, to our investors, for your continued confidence in our long-term strategy. Thank you and have a great day.

Operator: Thank you. This now concludes today's call. Thank you all for joining. You may now disconnect your lines.

Q1 2026 Nucor Corp Earnings Call

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