Nucor(US:NUE)2025-04-29 19:11Financial Data and Key Metrics Changes - Nucor generated EBITDA of $696 million and earned $0.77 of adjusted EPS in Q1 2025, despite lower results compared to prior quarters [7] - Net earnings were $156 million or $0.67 per share, including pretax charges of $29 million related to facility closures [19] - The company returned nearly $430 million to shareholders during the quarter [7][28] Business Line Data and Key Metrics Changes - The steel mill segment generated adjusted pretax earnings of $241 million, increasing approximately 43% from the prior quarter, with volume increasing 14% [20] - The bar mill group saw shipments rise 21% compared to the prior quarter and 20% year over year [20] - The steel products segment generated adjusted pretax earnings of $37 million, with backlog growth of nearly 25% across all downstream products [22] Market Data and Key Metrics Changes - Backlogs rose over 30% in steel mill segments and nearly 25% in steel products [15] - The company noted steady to improving demand for steel among customers engaged in rebuilding American industry [16] - The structural backlog is at the highest levels in Nucor's history, indicating strong future demand [76] Company Strategy and Development Direction - Nucor is focused on long-term growth plans, reinvesting nearly $860 million into the company, with two-thirds allocated to projects commencing operations in the next two years [7][8] - The company is expanding its capabilities through acquisitions and organic growth investments, establishing four distinct platforms with higher growth potential [24] - Nucor aims to strengthen and diversify its earnings profile while addressing evolving customer needs [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a robust order book and healthy demand across various sectors, including advanced manufacturing and infrastructure projects [16][17] - The company is well-positioned to capture domestic steel demand growth, supported by favorable trade policies [32] - Management acknowledged macroeconomic uncertainties but emphasized Nucor's strong financial position and capabilities to navigate challenges [17] Other Important Information - Nucor's greenhouse gas emission intensity is among the lowest in the global steel industry, and the company is advancing cleaner energy sources [18] - The company has made significant progress in reducing injuries over the past several years [18] Q&A Session Summary Question: What are the expected startup costs for 2025? - Management indicated that startup costs for 2025 would be similar to previous years, around $160 million to $170 million [36] Question: What is the expected utilization at Brandenburg by year-end 2025? - Management expressed confidence in achieving EBITDA positive run rates by summer and highlighted significant production achievements at Brandenburg [39] Question: Can you provide clarity on second quarter guidance? - Management refrained from providing specific quantitative guidance but acknowledged strong order entry rates and backlogs [50] Question: How is Nucor mitigating tariff impacts? - Management stated that the impact of tariffs on raw materials is minimal due to diversified supply strategies and ongoing monitoring of market conditions [54] Question: What is the impact of Section 232 on downstream products? - Management noted that the extension of Section 232 is having a positive impact, with imports dropping below 20% for the first time in years [64] Question: What is the outlook for steel products pricing? - Management indicated that while pricing may decline in the short term, margins are expected to remain stable due to lower substrate costs [66] Question: How did the first quarter results compare to expectations? - Management attributed the earnings beat primarily to volume increases in the steel segment, particularly in bar and sheet products [87] Question: What is the current status of the West Virginia project? - Management confirmed that the West Virginia project is on track for a late 2026 startup, with significant progress made [111]