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    Michael Harris • Goldman Sachs

    Michael Harris's questions to Nucor Corp (NUE) leadership

    Michael Harris's questions to Nucor Corp (NUE) leadership • Q2 2025

    Question

    Michael Harris of Goldman Sachs Group, Inc. asked about potential gaps in Nucor's steel products portfolio and what new verticals could offer synergies, clarifying if the strategy is about filling gaps or enhancing existing strengths.

    Answer

    President and CEO Leon Topalian asserted there are no significant 'low spots' in the portfolio, emphasizing its growth to 45% of Nucor's earnings and confirming the strategy is to continue adding capabilities for customers. CFO Stephen Laxton reinforced this, pointing to the segment's EBITDA margin expansion from pre-COVID levels of ~10% to 16-17% today, stating that future capital will be allocated to businesses that fit this value-accretive model.

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    Michael Harris's questions to Nucor Corp (NUE) leadership • Q2 2025

    Question

    Michael Harris from Goldman Sachs inquired about potential gaps in Nucor's Steel Products portfolio and where the company sees opportunities for synergistic growth.

    Answer

    CEO Leon Topalian asserted there are no weak areas, highlighting the segment's significant growth in contribution to total earnings. CFO Stephen Laxton pointed to the dramatic EBITDA margin expansion since pre-COVID levels. Both executives confirmed the strategy is to continue adding high-margin, value-added businesses to the portfolio rather than filling perceived gaps.

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    Michael Harris's questions to Nucor Corp (NUE) leadership • Q1 2025

    Question

    Michael Harris of The Goldman Sachs Group, Inc. asked for the drivers behind the Q1 adjusted EPS beat compared to guidance and questioned the reasons for the sequential gross margin compression.

    Answer

    CFO Stephen Laxton attributed the earnings beat primarily to higher-than-expected shipment volumes in the bar and sheet mills. He explained the margin squeeze was due to a 2-3% year-over-year increase in conversion costs (largely energy) and a 3% quarter-over-quarter rise in scrap costs, which impacted margins due to pricing lags.

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    Michael Harris's questions to Reliance Inc (RS) leadership

    Michael Harris's questions to Reliance Inc (RS) leadership • Q2 2025

    Question

    Michael Harris from Goldman Sachs followed up on the Q3 gross margin pressure, seeking to understand if it is a temporary issue limited to the third quarter or if it could extend further. He also asked for commentary on the sustainability of the company's recent market share gains.

    Answer

    President and CEO Karla Lewis explained that the margin pressure is believed to be temporary, stemming from a unique Q2 environment where tariff uncertainty hindered the pass-through of mill price increases while shorter lead times accelerated the receipt of higher-cost inventory. She expects positive impacts from aluminum and stainless price hikes to materialize in Q3. Lewis also reaffirmed the sustainability of market share gains, which are driven by the company's service model and a strategic corporate initiative to grow volumes and improve operating leverage on capital investments.

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    Michael Harris's questions to Reliance Inc (RS) leadership • Q1 2025

    Question

    Michael Harris asked for a breakdown of the record Q1 same-store sales outperformance, seeking to understand the split between market share gains and contributions from 2024 acquisitions. He also inquired about current inventory levels relative to targets and any potential need to restock.

    Answer

    Executives Arthur Ajemyan and Karla Lewis clarified that of the 9% total increase in tons sold, acquisitions contributed about 3.5%, while same-store growth accounted for the remaining 5.6%. Lewis attributed this strong organic growth to successful market share gains, particularly in non-residential construction, and excellent execution by their teams. Regarding inventory, Lewis explained that the company manages levels based on inventory turns, not a restocking strategy, and is very happy with current levels, which are turning slightly above their goal due to the strong shipments.

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    Michael Harris's questions to Reliance Inc (RS) leadership • Q4 2024

    Question

    Michael Harris of Goldman Sachs sought clarification on the first-quarter guidance, asking why the pricing outlook was only 'roughly flat' given the strong volume forecast of up 6% to 8%. He also inquired about expectations for working capital in Q1.

    Answer

    Executive Karla Lewis explained that the flat pricing guidance is a conservative view that does not yet incorporate the potential positive impact from tariffs, as it can take time for price increases to become effective in the market. Executive Arthur Ajemyan stated that working capital should follow typical seasonal patterns, with a build in Q1 and Q2 as shipment levels increase, followed by releases in Q3 and Q4.

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    Michael Harris's questions to Steel Dynamics Inc (STLD) leadership

    Michael Harris's questions to Steel Dynamics Inc (STLD) leadership • Q1 2025

    Question

    Michael Harris of Goldman Sachs requested more detail on the $19 million unrealized gain/loss adjustment to EBITDA and its potential impact for the remainder of the year.

    Answer

    EVP & CFO Theresa Wagler clarified that the adjustment was an unrealized loss related to the company's commodity risk management and hedging activities for copper and aluminum. She explained that it was caused by sharp moves in nonferrous prices and described it as a timing issue that is expected to reverse in subsequent quarters and net out over time.

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    Michael Harris's questions to Commercial Metals Co (CMC) leadership

    Michael Harris's questions to Commercial Metals Co (CMC) leadership • Q2 2025

    Question

    Michael Harris questioned the current supply-demand balance and utilization rates in the North American rebar market, and also asked about the potential disruption from composite rebar.

    Answer

    Executive Peter Matt described the North American rebar market as 'quite well balanced' with CMC's mills running at full utilization, supporting price increases. Regarding composite rebar, he acknowledged its niche applications but stated it is not a material threat to the broader steel market due to limitations in fabrication and applicability.

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