Commercial Metals Company · NYSE:CMC
Commercial Metals — Q3 2025 Earnings Presentation
31 slides from Commercial Metals's earnings presentation, Jun 23, 2025
Slide 1: Q3 FY 2025 Supplemental Slides
Q3 FY 2025 Supplemental Slides
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws with respect to general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade actions, the effects of continued pressure
Slide 3: A Market Leader with a Winning Formula
A Market Leader with a Winning Formula CMC is charting the course for improved profitability. Starting from a position of competitive strength, we see structural tailwinds in our core North American construction markets for years to come and meaningful opportunities for margin growth. Strong Competi
Slide 4: Key Takeaways From Today's Call
Key Takeaways From Today’s Call Executing on strategy to meaningfully enhance CMC’s financial profile Exceeding targeted level of benefits from the TAG program, with substantial expected upside through continued effort across initiatives Progress on other strategic efforts well underway North Americ
Slide 5: Running and Growing a Great Business
Running and Growing a Great Business We are aiming for a new level of performance by getting more out of our existing business while investing in value enhancing capabilities 1 ✓ Focus on the safety of our people and building a world-class team Investing in Our ✓ Execute operational and commercial e
Slide 6: Update on Transform, Advance, Grow (TAG) Program
Update on Transform, Advance, Grow (TAG) Program The enterprise-wide, transformational, capital-light TAG program aims to drive improved ROIC as well as higher through-the-cycle margins, earnings, and cash flows. The effort includes 150+ individual initiatives across operational, commercial, and sup
Slide 7: Tariffs Impact Multiple Areas of CMC's Business
Tariffs Impact Multiple Areas of CMC’s Business Area of Impact Supply Into CMC’s Markets Demand In CMC’s Markets Operating and Capital Costs • Elimination of Section 232 tariff exemptions and Near-term impact Operating costs rate increase (to 50%) has restricted level of • Overall, CMC’s bid and con
Slide 8: North American Market Conditions
North American Market Conditions Conditions on-the-ground for both our North America Steel Group and Emerging Businesses Group have been stable Near-Term View Mid to Long-Term View • Key internal indicators show stability in underlying demand • Structural trends should be durable, provide a major ta
Slide 9: EBG is Delivering Strong Results
EBG is Delivering Strong Results Relative to more mature steel markets, EBG should provide higher, more L12M $130M 18.0% 15% defensible margins, higher growth rate, lower capital intensity Results adjusted EBITDA EBITDA margin of segment EBITDA1 Performance CMC CMC CMC Tensar Reinforcing Constructio
Slide 10: Green Shoots Appearing for Our Europe Steel Group
Green Shoots Appearing for Our Europe Steel Group Market conditions have improved modestly in recent quarters. Emerging green shoots point to further strengthening ahead. Recent Market Developments Demand Factors Supply Factors • Increased inflows of EU funds, increasing 8.9% in CY 2025 • Potential
Slide 11: Q3 Operational Update and Performance Drivers
Q3 Operational Update • Demand for long steel products in North America remained resilient − Finished steel shipments increased 1.6% y/y • North America Steel Group steel product margin inflected upward during the quarter − Steel product metal margin declined $39 per ton from the prior year period,
Slide 12: Q3 Consolidated Operating Results
Q3 Consolidated Operating Results Performance Summary Core EBITDA Bridge2 – Q3 2024 to Q3 2025 Units in 000’s except per ton amounts and margin $ Millions Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 300 External Finished Steel Tons Shipped1 1,432 1,439 1,459 1,354 1,512 250 Core EBITDA2 $256,108 $227,065 $21
Slide 13: Q3 North America Steel Group
Q3 North America Steel Group Performance Summary North America Steel Group – Key Margins Units in 000’s except per ton amounts and margin $ / ton Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 1,200 250 External Finished Steel Tons Shipped1 1,135 1,120 1,146 1,044 1,153 958 1,000 951 938 898 874 200 SP and DP M
Slide 14: Q3 Emerging Businesses Group
Q3 Emerging Businesses Group Performance Summary Contribution to Net Sales Change – Q3 2024 to Q3 2025 Units in 000’s except margin Quarterly net sales figures in $ million, contribution to net sales changes provided in percentages Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 220 Net sales up 4.7% Net sales t
Slide 15: Q3 Europe Steel Group
Q3 Europe Steel Group Performance Summary Europe Steel Group – Key Margins Units in 000’s except per ton amounts and margin $ / ton Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 350 External Finished Steel Tons Shipped1 297 319 313 310 359 Margin Over Scrap and Adjusted EBITDA per ton 292 293 300 284 269 275 A
Slide 16: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy CMC will prudently allocate capital while maintaining a strong and flexible balance sheet Focus on Growth Competitive Cash Distributions Targeting value accretive growth that strategically strengthens our business Goal is to provide an attractive rate of cash
Slide 17: Framework for Prudent Inorganic Growth
Framework for Prudent Inorganic Growth Seeking to add capabilities that complement existing portfolio CMC’s Current Participation in Early-Stage Construction Strategic Goals Phases Spectrum of Early-Stage Activities Site Utility Foundation / Prep Infrastructure Structures • Establish platform to mea
Slide 18: Framework for Prudent Inorganic Growth Cont'd
Framework for Prudent Inorganic Growth Cont’d Targeted Financial Metrics Target Asset / Transaction Characteristics Target Assets: • Attractively positioned within $150 billion1 • EBITDA margins above 20% and less volatile early-stage construction sector than current CMC levels • Market leader – pro
Slide 19: Appendix
Appendix © CMC
Slide 20: Safety is Core to Our Mission
Safety is Core to Our Mission Continual improvement has resulted from our We achieved world-class performance across our operational concentrated focus on safety and culture footprint during the first three quarters of FY 2025 CMC and Domestic Steel Industry1 Total Recordable Total Recordable Incide
Slide 21: Financial Strength
Financial Strength Solid balance sheet position and enhanced cash flow profile support the execution of announced projects, strategic M&A, and cash distributions to our shareholders Debt Maturity Profile Q3 FY’25 Liquidity (US$ in millions) (US$ in millions) <1.0x Net debt to adjusted Total liquidit
Slide 22: Clear Sustainability Leader
Clear Sustainability Leader CMC plays a key role in the circular steel economy, turning end of life metals into the steel that forms the backbone of modern society Scopes 1&2 Greenhouse Gas Emissions (GHG) Intensity ACCOUNTABILITY FOR OUR RESPECT FOR OUR ACTIONS ENVIRONMENT ACTING WITH INTEGRITY tCO
Slide 23: Appendix: Non-GAAP Financial Reconciliations
Appendix: Non-GAAP Financial Reconciliations © CMC
Slide 24: Adjusted EBITDA, Core EBITDA, and Core EBITDA margins – Last 5 Quarters
Adjusted EBITDA, Core EBITDA, and Core EBITDA margins – Last 5 Quarters [1] See page 30 for definitions of non-GAAP measures Q3 FY25 Supplemental Slides 24 June 23, 2025
Slide 25: Adjusted Earnings
Adjusted Earnings [1] See page 30 for definitions of non-GAAP measures Q3 FY25 Supplemental Slides 25 June 23, 2025
Slide 26: Return on Invested Capital
Return on Invested Capital [1] Federal statutory rate of 21% plus approximate impact of state level income tax [2] See page 30 for definitions of non-GAAP measures Q3 FY25 Supplemental Slides 26 June 23, 2025
Slide 27: Emerging Businesses Group Adjusted Segment EBITDA % of Total Segment EBITDA
Emerging Businesses Group Adjusted Segment EBITDA % of Total Segment EBITDA 12 MONTHS ENDED 3 MONTHS ENDED figures in thousand $ 5/31/2025 5/31/2025 2/28/2025 11/30/2024 8/31/2024 North America Steel Group $713,939 $185,984 $128,818 $188,205 $210,932 Emerging Businesses Group 129,610 40,912 23,519 2
Slide 28: Discretionary Cash Flows
Discretionary Cash Flows [1] See page 30 for definitions of non-GAAP measures Q3 FY25 Supplemental Slides 28 June 23, 2025
Slide 29: Net Debt to Adjusted EBITDA and Net Debt to Capitalization
Net Debt to Adjusted EBITDA and Net Debt to Capitalization [1] See page 30 for definitions of non-GAAP measures Q3 FY25 Supplemental Slides 29 June 23, 2025
Slide 30: Definitions for non-GAAP financial measures
Definitions for non-GAAP financial measures ADJUSTED EARNINGS Adjusted earnings is a non-GAAP financial measure that is equal to earnings (loss) before asset impairments, including the estimated income tax effects thereof. The adjustment “settlement for New Markets Tax Credit transaction” represents
Slide 31: CMC.COM
CMC.COM
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