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
2Q3 FY25 Supplemental Slides June 23, 2025 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 co
Slide 3: A Market Leader with a Winning Formula
3 © GeoNames, Microsoft, TomTom Powered by Bing 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
Slide 4: Key Takeaways From Today's Call
4Q3 FY25 Supplemental Slides June 23, 2025 [1] Adjusted earnings, core EBITDA, core EBITDA margin, and return on invested capital are non-GAAP financial measures. For definitions and reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, see the appen
Slide 5: Running and Growing a Great Business
5 Running and Growing a Great Business Q3 FY25 Supplemental Slides June 23, 2025 We are aiming for a new level of performance by getting more out of our existing business while investing in value enhancing capabilities Investing in Our People & Excellence Value Accretive Organic Growth Capability En
Slide 6: Update on Transform, Advance, Grow (TAG) Program
6 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 s
Slide 7: Tariffs Impact Multiple Areas of CMC's Business
7 • Elimination of Section 232 tariff exemptions and rate increase (to 50%) has restricted level of imports reaching U.S. • Earlier this month, domestic rebar producers filed a trade case against Algeria, Bulgaria, Egypt, and Vietnam Mexico & Canada Other Imports Domestic Suppliers Trade Case Nation
Slide 8: North American Market Conditions
8 North American Market Conditions Q3 FY25 Supplemental Slides June 23, 2025 [1] Source: American Road and Transportation Builders Association [2] Source: Whitehouse.gov [3] Per Concrete Reinforcing Steel Institute Conditions on-the-ground for both our North America Steel Group and Emerging Business
Slide 9: EBG is Delivering Strong Results
9 EBG is Delivering Strong Results Q3 FY25 Supplemental Slides June 23, 2025 $130M adjusted EBITDA 18.0% EBITDA margin 15% of segment EBITDA1 CMC Construction Services Tensar CMC Impact Metals CMC Anchoring Systems Performance Reinforcing Steel Description Soil stabilization for road, foundation, an
Slide 10: Green Shoots Appearing for Our Europe Steel Group Market
10Q3 FY25 Supplemental Slides June 23, 2025 Demand Factors Recent Market Developments • Increased inflows of EU funds, increasing 8.9% in CY 2025 from CY 2024 − Funding amount equal to roughly 3.5% of Polish GDP − Expected to support highway, rail, and energy investment programs • Major projects ent
Slide 11: Outlook and Q3 highlights
11 • Consolidated financial results in the fourth quarter are anticipated to improve from the third quarter level • North America Steel Group finished steel shipments should follow typical seasonal patterns in the fourth quarter, while adjusted EBITDA margin is expected to increase sequentially on h
Slide 12: Q3 Consolidated Operating Results
12 256 204 (60) 8 3 0 (3) 0 50 100 150 200 250 300 Q3 2024 NA Steel Group EBITDA Europe Steel Group EBITDA Emerging Businesses Group EBITDA Corp & Eliminations Other Non- Op Items Q3 2025 Q3 Consolidated Operating Results Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 External Finished Steel Tons Shipped1 1,432
Slide 13: Q3 North America Steel Group
13 217 188 164 123 161 951 958 938 898 874 538 522 489 476 499 0 50 100 150 200 250 0 200 400 600 800 1,000 1,200 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Adjusted EBITDA per Ton of Finished Steel Shipped Downstream Product Margin Over Scrap (1 Qtr Lag) Steel Product Margin Over Scrap Q3 North America Ste
Slide 14: Q3 Emerging Businesses Group
14 189 197 (0.3%) 2.8% 0.3% 0.4% 1.5% 100 120 140 160 180 200 220 Q3 2024 Geogrids & Geopiers Construction Services Impact Metals Performance Reinforcing Steel Anchoring Systems Q3 2025 Key Performance Drivers Q3 2025 vs Q3 2024 Q3 Emerging Businesses Group Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 Net sal
Slide 15: Q3 Europe Steel Group
15 292 284 269 275 293 (14) (11) 83 2 10 (50) 0 50 100 150 200 250 300 350 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Steel Products Margin Over Scrap Adjusted EBITDA per Ton Q3 Europe Steel Group Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 Q3 ’25 External Finished Steel Tons Shipped1 297 319 313 310 359 Adjusted EBITDA ($
Slide 16: Disciplined Capital Allocation Strategy
16 • Capital expenditures of $293.9 million through first nine months of FY 2025 • FY 2025 capex expected in a range of $425 million to $475 million • Steel West Virginia will complete CMC’s low-cost and flexible mill network. No further new mill investments expected in the foreseeable future • Futu
Slide 17: Framework for Prudent Inorganic Growth
17 Framework for Prudent Inorganic Growth • Establish platform to meaningfully extend growth runway in the $150 billion1 early-stage construction market • Increase CMC’s customer value proposition • Leverage commercial synergies across CMC’s portfolio • Enhance key company financial metrics over lon
Slide 18: Framework for Prudent Inorganic Growth Cont'd
18 Framework for Prudent Inorganic Growth Cont’d Target Assets: • EBITDA margins above 20% and less volatile than current CMC levels • Free cash flow conversion above current CMC levels driven by lower capital intensity of new investment • Solid underlying organic growth rate driven by increasing ma
Slide 19: Appendix
© CMC Appendix
Slide 20: Safety is Core to Our Mission
20 2023 2024 20252023 2024 20252023 2024 20252023 2024 2025 CMC Incident Rate Domestic Steel Industry 1 Safety is Core to Our Mission [1] Domestic steel industry data is for Iron and Steel Mills and Ferroalloy Manufacturing (NAICS – 3311) from the Bureau of Labor Statistics CMC and Domestic Steel In
Slide 21: Financial Strength
21 $77 $158 $599 $893 $3 00 $3 00 $3 00 $1 45 $6 00 $1 50 2025 2026 2027 2028 2029 2030 2031 2032 2047 Financial Strength [1] 2047 tax-exempt bonds were priced to yield 3.5%; coupon rate is 4.0%; 2032 tax-exempt bonds mature in 2055, but have a mandatory tender for purchase requirement in May 2032 [
Slide 22: Clear Sustainability Leader
22Q3 FY25 Supplemental Slides │ June 23, 2025 Note: GHG emissions statistics for CMC include only steel mill operations, which represents over 95% of CMC’s emissions footprint Sources: CMC 2024 Sustainability Report; virgin material content for industry based on data from Bureau of International Rec
Slide 23: Appendix: Non-GAAP Financial Reconciliations
© CMC Appendix: Non-GAAP Financial Reconciliations
Slide 24: Adjusted EBITDA, Core EBITDA, and Core EBITDA margins
24 [1] See page 30 for definitions of non-GAAP measures Q3 FY25 Supplemental Slides June 23, 2025 Adjusted EBITDA, Core EBITDA, and Core EBITDA margins – Last 5 Quarters
Slide 25: Adjusted Earnings
25 [1] See page 30 for definitions of non-GAAP measures Q3 FY25 Supplemental Slides June 23, 2025 Adjusted Earnings
Slide 26: Return on Invested Capital
26 [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 June 23, 2025 Return on Invested Capital
Slide 27: Emerging Businesses Group Adjusted Segment EBITDA
27Q3 FY25 Supplemental Slides June 23, 2025 Emerging Businesses Group Adjusted Segment EBITDA % of Total Segment EBITDA 12 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
Slide 28: Discretionary Cash Flows
28 [1] See page 30 for definitions of non-GAAP measures Q3 FY25 Supplemental Slides June 23, 2025 Discretionary Cash Flows
Slide 29: Net Debt to Adjusted EBITDA and Net Debt to Capitalization
29 [1] See page 30 for definitions of non-GAAP measures Q3 FY25 Supplemental Slides June 23, 2025 Net Debt to Adjusted EBITDA and Net Debt to Capitalization
Slide 30: Definitions of non-GAAP measures
30 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 the recognition of deferred revenue from
Slide 31: CMC.COM
CMC.COM