Commercial Metals Company · NYSE:CMC
Commercial Metals — Q2 FY2025 Earnings Presentation
29 slides from Commercial Metals's earnings presentation, Mar 20, 2025
Slide 1: Q2 FY 2025 Supplemental Slides
Q2 FY 2025 Supplemental Slides
Slide 2: Forward-looking statements
2Q2 FY25 Supplemental Slides March 20, 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 c
Slide 3: Increasing Shareholder Value With a Winning Formula
3Q2 FY25 Supplemental Slides March 20, 2025 Leading positions in core solutions and geographies Focused strategy that leverages capabilities, competitive strengths, and market knowledge Strong balance sheet and cash generation provide flexibility to execute on strategy Vertical structure optimizes r
Slide 4: Our Success Starts with Safety
4 20 05 20 06 20 07 20 08 20 09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19 20 20 20 21 20 22 20 23 20 24 YT D 20 25 CMC Incident Rate Domestic Steel Industry 1 2023 2024 20252023 2024 20252023 2024 20252023 2024 2025 Our Success Starts with Safety [1] Domestic steel industry data is
Slide 5: Bright spots emerging, but elevated near-term uncertainty persists
5 Bright spots emerging, but elevated near-term uncertainty persists • Pricing environment improved during Q2 • Optimism among North American customers, mirrored by external indicators • New project awards reached the second highest level since late fiscal 2022 Construction pipeline remains robust;
Slide 6: Bright Spots Emerging, but Elevated Uncertainty Persists
6 70 75 80 85 90 95 100 105 110 115 20 30 40 50 60 70 80 Bright Spots Emerging, but Elevated Uncertainty Persists Construction industry sentiment has continued to improve Q2 FY25 Supplemental Slides March 20, 2025 ENR Construction Confidence Index1 Highest level in three years NIFB Small Business Op
Slide 7: Highway Construction Outlook Remains Positive
7 Individual markets Broad market segmentDo m es tic R eb ar C on su m pt io n Br ea kd ow n3 Highway Construction Outlook Remains Positive Q2 FY25 Supplemental Slides March 20, 2025 27 0 5 10 15 20 25 30 Im pr ov em en ts Si ng le fa m ily M ul ti- fa m ily Pu bl ic u til ity Ed uc at io na l O ff
Slide 8: Powerful Structural Trends Remain Intact
8 Comments Forecasted Construction Starts – inflation adjusted2 (% change compared to average of 2019 to 20213) (10%) – 10% 20% 30% 2024 2025 2026 2027 2028 – 10% 20% 30% 40% 50% 2024 2025 2026 2027 2028 – 10% 20% 30% 40% 2024 2025 2026 2027 2028 – 10% 20% 30% 2024 2025 2026 2027 2028 Estimated Pote
Slide 9: Expansion of Section 232 Tariff Directionally Positive
9 Mexico 15% Canada 9% EU 17% Other Exempt 3% Tariff 56% Mexico 35% Canada 28% EU 20% Other Exempt 6% Tariff 11% Expansion of Section 232 Tariff Directionally Positive Q2 FY25 Supplemental Slides March 20, 2025 ~45% of CY 2024 rebar imports were tariff exempt ~90% of CY 2024 merchant bar imports wer
Slide 10: The Path Ahead – Running and Growing a Great Business
10 The Path Ahead – Running and Growing a Great Business Q2 FY25 Supplemental Slides March 20, 2025 • Focus on people to ensure safety and provide talent development opportunities • Enact operational and commercial excellence (TAG program) efforts that span all levels of the enterprise • Drive to ac
Slide 11: Green Shoots Appearing for Our Europe Steel Group
11 Recent Market Developments • Increased inflows of EU funds, increasing 9.7% in CY 2025 from CY 2024 − Funding amount equal to roughly 3.5% of Polish GDP − Expected to support highway and rail investment programs • Major projects entering market, including nuclear power generation and national tra
Slide 12: Outlook and Q2 highlights
12 • Consolidated financial results in the third quarter are anticipated to rebound from the second quarter level • North America Steel Group finished steel shipments should follow typical seasonal patterns in the third quarter, while adjusted EBITDA margin is expected to increase sequentially on hi
Slide 13: Q2 Consolidated Operating Results
13 212 131 (93) 9 6 (1) (2) 0 50 100 150 200 250 Q2 2024 NA Steel Group EBITDA Europe Steel Group EBITDA Emerging Businesses Group EBITDA Corp & Eliminations Other Non- Op Items Q2 2025 Q2 Consolidated Operating Results Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 External Finished Steel Tons Shipped1 1,285 1
Slide 14: Q2 North America Steel Group
14 220 123 (4) (28) (61) (3) 0 50 100 150 200 250 Q2 '24 Adj EBITDA per Ton Raw Materials Steel Products Downstream Other Q2 '25 Adj EBITDA per Ton 220 217 188 164 123 1,015 951 958 938 898 526 538 522 489 476 0 50 100 150 200 250 300 0 200 400 600 800 1,000 1,200 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25
Slide 15: Q2 Europe Steel Group
15 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 O-23 N-23 D-23 J-24 F-24 M-24 A-24 M-24 J-24 J-24 A-24 S-24 O-24 N-24 D-24 279 292 284 269 275 (31) (14) (11) 83 2 (50) 0 50 100 150 200 250 300 350 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Q2 '25 Steel Products Margin Over Scrap Adjusted EBITDA per To
Slide 16: Q2 Emerging Businesses Group
16 156 159 1.8% 0.2% (2.9%) 4.3% (1.5%) 100 110 120 130 140 150 160 170 Q2 2024 Geogrids & Geopiers Construction Services Impact Metals Performance Reinforcing Steel Anchoring Systems Q2 2025 Key Performance Drivers Q2 2025 vs Q2 2024 Q2 Emerging Businesses Group Q2 ’24 Q3 ’24 Q4 ’24 Q1 ’25 Q2 ’25 N
Slide 17: Disciplined Capital Allocation Strategy
17 • First half 2025 capital expenditures of $204.5 million • FY 2025 capex expected in a range of $550 million to $600 million − $250 million to $300 million related to Steel West Virginia • Targeting growth expenditures on key mill projects that will strengthen market presence and lower costs • Fu
Slide 18: Cash Generation Profile and Capital Deployment
18 Discretionary Cash Flow1 (in millions) Capital Deployed for Capital Expenditures, Acquisitions, and Cash Distributions to Shareholders (in millions) $5 $37 $2 $141 $155 $279 $380 $997 $911 $450 $287 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Excludes litigation expense Cash Generation Profile an
Slide 19: Balance Sheet Strength
19 $71 $146 $599 $758 $300 $300 $300 $145 $600 2024 2025 2026 2027 2028 2029 2030 2031 2032 2047 Balance Sheet Strength [1] 2047 tax-exempt bonds were priced to yield 3.5%; coupon rate is 4.0% Revolver Poland Credit Facilities (US$ in millions) Revolving Credit Facility 4.125% Notes Cash and Cash Eq
Slide 20: Net debt to EBITDA and capitalization
20 45 % 46 % 42 % 37 % 33 % 32 % 24 % 18 % 21 % 22 % 20 % 17 % 18 % 14 % 24 % 17 % 15 % 15 % 13 % 11 % 8% 10 % 9% 6% 6% 8% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 3. 8x 3. 9x 3. 2x 2. 5x 1. 9x 1. 6x 1. 2x 0. 9x 1. 1x 1. 2x 1. 0x 0. 8x 0. 7x 0. 5x 0. 7x 0. 5x 0. 4x 0. 5x 0. 5x 0. 4x 0. 3x 0. 4x 0.
Slide 21: Clear Sustainability Leader
1.18 28.60 CMCGlobal Industry 3.76 21.27 CMCGlobal Industry 0.73 1.92 CMCGlobal Industry Clear Sustainability Leader Q2 FY25 Supplemental Slides │ March 20, 2025 21 Note: GHG emissions statistics for CMC include only steel mill operations, which represents over 95% of CMC’s emissions footprint Sourc
Slide 22: Appendix: Non-GAAP Financial Reconciliations
© CMC Appendix: Non-GAAP Financial Reconciliations
Slide 23: Adjusted EBITDA, Core EBITDA, and Core EBITDA margins – Last 5 Quarters
23 Adjusted EBITDA, Core EBITDA, and Core EBITDA margins – Last 5 Quarters [1] See page 28 for definitions of non-GAAP measures Q2 FY25 Supplemental Slides March 20, 2025
Slide 24: Adjusted Earnings
24 Adjusted Earnings [1] See page 28 for definitions of non-GAAP measures Q2 FY25 Supplemental Slides March 20, 2025
Slide 25: Return on Invested Capital
25 Return on Invested Capital [1] Federal statutory rate of 21% plus approximate impact of state level income tax [2] See page 28 for definitions of non-GAAP measures Q2 FY25 Supplemental Slides March 20, 2025
Slide 26: Discretionary Cash Flows
26 [1] See page 28 for definitions of non-GAAP measures Discretionary Cash Flows Q2 FY25 Supplemental Slides March 20, 2025
Slide 27: Net Debt to Adjusted EBITDA and Net Debt to Capitalization
27 Net Debt to Adjusted EBITDA and Net Debt to Capitalization [1] See page 28 for definitions of non-GAAP measures Q2 FY25 Supplemental Slides March 20, 2025
Slide 28: Definitions for non-GAAP financial measures
28 Definitions for non-GAAP financial measures ADJUSTED EARNINGS Adjusted earnings is a non-GAAP financial measure that is equal to earnings before asset impairments, including the estimated income tax effects thereof. The adjustment settlement for New Markets Tax Credit transaction represents the r
Slide 29: CMC.COM
CMC.COM