Commercial Metals Company (CMC) investor relations material

Executive summary

• Core EBITDA rose 78.6% year-over-year to $353.6 million, with margin expansion to 14.2% driven by metal margin gains, TAG initiatives, and precast acquisitions.

• Adjusted earnings increased 142.4% year-over-year to $193 million, or $1.73 per diluted share, excluding $25.5 million in pre-tax expenses related to precast acquisitions.

• All business segments experienced year-over-year growth, with significant contributions from recent precast acquisitions and improved safety culture.

• Deleveraging efforts are ahead of plan, with net leverage reduced to 2.1x, nearing the target of below 2x by mid-2027.

• Organic growth investments, including AZ2 micro mill and West Virginia mill, are advancing, with AZ2 reaching over 75% capacity utilization.

Financial highlights

• Net earnings for Q3 were $173 million, or $1.55 per diluted share.

• Core EBITDA per ton of finished steel shipped increased 75.6% year-over-year to $230.

• Construction Solutions Group net sales nearly doubled year-over-year to $394.6 million, with adjusted EBITDA up 138% to $97.4 million and margin up 400 bps to 24.7%.

• Europe Steel Group adjusted EBITDA was $34.7 million, benefiting from a $20.4 million CO2 credit and improved market conditions.

• Net sales for Q3 were $2.48 billion, up 22.9% year-over-year, with a core EBITDA margin of 14.2%.

Outlook and guidance

• Q4 is expected to see a meaningful sequential increase in core EBITDA, with a $40–$50 million improvement quarter-over-quarter.

• North America Steel Group to benefit from absence of mill outages and higher volumes; Construction Solutions Group expects mid-teens adjusted EBITDA growth.

• Precast business guidance for FY26 adjusted EBITDA remains $165–$175 million, with strong backlog and normalization of weather conditions supporting confidence.

• Europe expected to see modestly higher adjusted EBITDA in Q4, excluding CO2 credits.

• Management expects continued above-target contributions from the TAG program, with positive momentum across all segments.