Nucor CEO on Q2 Earnings, Tariffs, and US Manufacturing Strength

Q2 Earnings and Demand Drivers

• 💡 Nucor's Q2 performance was strong, exceeding Q1 results, with minimal impact from rising raw material costs or tariffs.
• 📈 Demand drivers for Nucor's products remain robust, with stable or improving conditions in non-residential construction, data centers, advanced manufacturing, and the energy sector.
• 🚀 Order entry rates for Nucor's products are at all-time highs in some cases, indicating strong market demand.

Trade Policy and Re-industrialization

• 🇺🇸 The current administration's pro-manufacturing and pro-America trade policies are seen as drivers for reshoring manufacturing back to the US.
• 🛠️ Nucor is positioned at the forefront of repowering, reshoring, and rebuilding America with its diverse product strength and sustainable operations.
• 🤝 Tariffs on imported steel are viewed as a good first step and a catalyst for broader trade negotiations to achieve better trade agreements with other nations.

Domestic Investment and Future Growth

• 💰 Nucor has invested approximately $20 billion in recent years, with a new state-of-the-art steel mill in West Virginia set to start up.
• 📈 The company is beginning to realize earnings from recent investments, including new mills in North Carolina and Arizona, and galvanizing lines in California and Indiana.
• ✨ These investments are expected to unlock pent-up earnings power, leading to higher highs and higher lows for shareholders.

Global Steel Market Dynamics

• 📉 China has historically influenced global industrial metal prices, including steel, through dumping and subsidies.
• 🔍 Nucor remains vigilant against illegal dumping and subsidies, advocating for trade cases regardless of the administration.
• 📊 In a supply-demand environment, US consumers will ultimately dictate steel prices within the United States.