Q1 2026 Commercial Metals Co Earnings Call

January 8, 2026

Meter Matt cmc's president and chief executive officer and Paul Lawrence senior, vice, president and Chief Financial Officer. Today's materials, including the press release and supplemental. Slides that accompany this call can be found on cmc's investor relations website. Today's call is being recorded after the company's remarks. We will have a question and answer session and we'll have a few instructions at that time.

I would like to remind all participants that on today's discussion that will contain 4 looking statements including with respect to economic conditions effects of legislation and trade actions. Us steel import levels construction activity demand for finished steel products, and pre-cast concrete products. The expected capabilities, benefits costs and timeline for construction of new facilities. The expected benefits of recent recent acquisitions the company's operations, the company's strategic growth plan and its anticipated benefits, legal proceedings. The company's future results of operations, Financial measures and capital spending. These statements reflect the company's beliefs based on current conditions. But our subject to risks and uncertainties the company's earnings release most recent annual report on form, 10K, and other filings with the US Securities and Exchange commissions. Contain additional information concerning factors that could cause actual results to differ materially from those projected in forward-looking statements except as required by law, CMC does not assume

Many obligation to update amend or clarify. These statements

Some numbers presented will be non-gaap Financial measures and reconciliations for such numbers can be found in the company's earnings release supplemental slide presentation or on the company's website.

unless stated otherwise all references made to year or quarter end are references to the company's fiscal year or fiscal quarter and now for opening remarks and introductions, I will turn the call over to Peter

Good morning everyone and thank you for joining cmc's first quarter earnings conference call. I hope each of you have a wonderful holiday season and a Happy New Year.

CMC had an exceptional start to our fiscal year as we built on the Strategic Foundation, laid in fiscal 2025, continuing to meaningfully, and sustainably enhance our financial profile.

Operator: Hello. Welcome, everyone, to the fiscal 2026 Q1 earnings call for CMC. Joining me on today's call are Peter Matt, CMC's President and Chief Executive Officer, and Paul Lawrence, Senior Vice President and Chief Financial Officer. Today's materials, including the press release and supplemental slides that accompany this call, can be found on CMC's Investor Relations website. Today's call is being recorded. After the company's remarks, we will have a question-and-answer session, and we'll have a few instructions at that time. I would like to remind all participants that on today's discussion that will contain forward-looking statements, including with respect to economic conditions, effects of legislations and trade actions, U.S.

The first quarter was 1 of the best in our company's history, serving as validation. That our ambitious strategy is bearing fruit. Strategic actions taken over the last 12 to 18 months, including the launch of tag organizational realignments in critical areas. And the onboarding of key talent and resources to support. Growth areas are directly driving bottom line improvements. We are confident. There is much more to come particularly with the addition of cmc's large-scale pre-cast platform, our strategic Focus remains on transforming CMS.

Operator: steel import levels, construction activity, demand for finished steel products and precast concrete products, the expected capabilities, benefits, costs, and timeline for construction of new facilities, the expected benefits of recent acquisitions, the company's operations, the company's strategic growth plan and its anticipated benefits, legal proceedings, the company's future results of operations, financial measures, and capital spending. These statements reflect the company's beliefs based on current conditions but are subject to risks and uncertainties. The company's earnings release, most recent annual report on Form 10-K, and other filings with the US Securities and Exchange Commission contain additional information concerning factors that could cause actual results to differ materially from those projected in forward-looking statements. Except as required by law, CMC does not assume any obligation to update, amend, or clarify these statements.

steel import levels, construction activity, demand for finished steel products and precast concrete products, the expected capabilities, benefits, costs, and timeline for construction of new facilities, the expected benefits of recent acquisitions, the company's operations, the company's strategic growth plan and its anticipated benefits, legal proceedings, the company's future results of operations, financial measures, and capital spending. These statements reflect the company's beliefs based on current conditions but are subject to risks and uncertainties. The company's earnings release, most recent annual report on Form 10-K, and other filings with the US Securities and Exchange Commission contain additional information concerning factors that could cause actual results to differ materially from those projected in forward-looking statements. Except as required by law, CMC does not assume any obligation to update, amend, or clarify these statements.

See into an even stronger organization with higher, more stable, margins, earnings cash flows and Returns on Capital.

Now, let's jump into the first quarter results.

for the quarter CMC reported net earnings of 177.3 million or 1.58 cents per diluted, share excluding certain charges which Paul will take you through in more detail, adjusted earnings were 26.2 million or

1.84 cents per diluted share.

Our Consolidated core ibida of 316.9 million grew by over 50% from a year ago and nearly 9% sequentially. Reaching its highest level in 2 years. Our core ibida margin of 14.9% likewise expanded both year-over-year and compared to the prior quarter.

Operator: Some numbers presented will be non-GAAP financial measures, and reconciliations for such numbers can be found in the company's earnings release, supplemental slide presentation, or on the company's website. Unless stated otherwise, all references made to year or quarter end are references to the company's fiscal year or fiscal quarter. And now, for opening remarks and introductions, I will turn the call over to Peter.

Some numbers presented will be non-GAAP financial measures, and reconciliations for such numbers can be found in the company's earnings release, supplemental slide presentation, or on the company's website. Unless stated otherwise, all references made to year or quarter end are references to the company's fiscal year or fiscal quarter. And now, for opening remarks and introductions, I will turn the call over to Peter.

Peter Matt: Good morning, everyone, and thank you for joining CMC's first quarter earnings conference call. I hope each of you had a wonderful holiday season and a Happy New Year. CMC had an exceptional start to our fiscal year as we built on the strategic foundation laid in fiscal 2025, continuing to meaningfully and sustainably enhance our financial profile. The first quarter was one of the best in our company's history, serving as validation that our ambitious strategy is bearing fruit. Strategic actions taken over the last 12 to 18 months, including the launch of TAG, organizational realignment in critical areas, and the onboarding of key talent and resources to support growth areas, are directly driving bottom-line improvement. We are confident there is much more to come, particularly with the addition of CMC's large-scale precast platform.

As outlined on slide 5. This occurred against a good Market backdrop with stable, demand, limited Imports, Rising long steel, metal, margins, and attractive project opportunities within certain construction segments, those CMC certainly benefited from these constructive conditions. Our results were meaningfully enhanced by solid execution that allowed us to capitalize on the opportunities we are seeing across our North American footprint.

Let's review some highlights starting with our North, America Steel Group, cmc's Mill, Network had a strong operational performance, which was critical to supporting customers in a relatively tight, domestic Supply, environment and maintaining high levels of customer service.

Tag initiative efforts, including the scrap optimization initiatives launched in fiscal 2025 contributed nicely to metal margin expansion.

Program. Now rolled out.

Across all domestic Mills. We are using less scrap per ton of Steel produced and utilizing lower cost, scrap Blends, increasing the metal margin on each ton.

Peter Matt: Our strategic focus remains on transforming CMC into an even stronger organization with higher, more stable margins, earnings, cash flows, and returns on capital. Now, let's jump into the Q1 results. For the quarter, CMC reported net earnings of $177.3 million, or $1.58 per diluted share. Excluding certain charges, which Paul will take you through in more detail, adjusted earnings were $206.2 million, or $1.84 per diluted share. Our consolidated core EBITDA of $316.9 million grew by over 50% from a year ago and nearly 9% sequentially, reaching its highest level in two years. Our core EBITDA margin of 14.9% likewise expanded both year over year and compared to the prior quarter. As outlined on slide five, this occurred against a good market backdrop with stable demand, limited imports, rising long steel metal margins, and attractive project opportunities within certain construction segments.

Our strategic focus remains on transforming CMC into an even stronger organization with higher, more stable margins, earnings, cash flows, and returns on capital. Now, let's jump into the Q1 results. For the quarter, CMC reported net earnings of $177.3 million, or $1.58 per diluted share. Excluding certain charges, which Paul will take you through in more detail, adjusted earnings were $206.2 million, or $1.84 per diluted share. Our consolidated core EBITDA of $316.9 million grew by over 50% from a year ago and nearly 9% sequentially, reaching its highest level in two years. Our core EBITDA margin of 14.9% likewise expanded both year over year and compared to the prior quarter. As outlined on slide five, this occurred against a good market backdrop with stable demand, limited imports, rising long steel metal margins, and attractive project opportunities within certain construction segments.

Last quarter, I discussed new commercial rigor in the way. CMC approaches opportunities within its Downstream fabrication business.

Positive impact of this. Change is only just beginning to be reflected in our financial results but we are seeing it more significantly benefit our average price in backlog which represents the work that will be shipped in future quarters encouragingly despite enhanced selectivity in the projects, we accept the volume in cmc's, Downstream backlog, increased modestly, year-over-year and sequentially. We believe this is at least in part related to cmc's ability to leverage its unique and comprehensive portfolio of capabilities to win projects. Particularly those that require specialized reinforcing Solutions or a large-scale resource deployment.

A recent example, has been the success. We have had in the LNG space which requires highly specialized cryogenic Steel.

the reliability of a large fabrication and Logistics Network and expertise and project management, all of which we provide

Peter Matt: Though CMC certainly benefited from these constructive conditions, our results were meaningfully enhanced by solid execution that allowed us to capitalize on the opportunities we are seeing across our North American footprint. Let's review some highlights, starting with our North America Steel Group. CMC's mill network had a strong operational performance, which was critical to supporting customers in a relatively tight domestic supply environment and maintaining high levels of customer service. TAG initiative efforts, including the scrap optimization initiatives launched in fiscal 2025, contributed nicely to metal margin expansion. With the program now rolled out across all domestic mills, we are using less scrap per ton of steel produced and utilizing lower-cost scrap blends, increasing the metal margin on each ton. Last quarter, I discussed new commercial rigor in the way CMC approaches opportunities within its downstream fabrication business.

Though CMC certainly benefited from these constructive conditions, our results were meaningfully enhanced by solid execution that allowed us to capitalize on the opportunities we are seeing across our North American footprint. Let's review some highlights, starting with our North America Steel Group. CMC's mill network had a strong operational performance, which was critical to supporting customers in a relatively tight domestic supply environment and maintaining high levels of customer service. TAG initiative efforts, including the scrap optimization initiatives launched in fiscal 2025, contributed nicely to metal margin expansion. With the program now rolled out across all domestic mills, we are using less scrap per ton of steel produced and utilizing lower-cost scrap blends, increasing the metal margin on each ton. Last quarter, I discussed new commercial rigor in the way CMC approaches opportunities within its downstream fabrication business.

strong execution, helped our Construction Solutions Business formerly known as our emerging businesses group, achieve a record first quarter adjusted, Ada,

Constructive conditions, our results were meaningfully enhanced by solid execution that allowed us to capitalize on the opportunities we are seeing across our North American footprint.

To our North, America Steel Group underlying market conditions were supportive. But our efforts to capitalize on these drove results to new heights.

Let's review some highlights, starting with our North America Steel Group. CMC's mill network had a strong operational performance, which was critical to supporting customers in a relatively tight domestic supply environment and maintaining high levels of customer service.

Tag initiative efforts, including the scrap optimization initiative launched in fiscal 2025, contributed nicely to metal margin expansion.

With the program now rolled out across all domestic mills, we are using less scrap per ton of steel produced and utilizing lower-cost scrap blends, increasing the metal margin on each ton.

Attends our specifically. We are seeing several important commercial and operational initiatives gain traction. Our team has moved to deepen relationships with key customers. Improving our visibility into their upcoming product demand. We have also positioned ourselves to better address market demand across a full spectrum of Geo grid Solutions. Our highest value products are experiencing strong demand from Mega projects, such as lmg Investments but we are also capturing more opportunities in mid and lower tier portions of the market operationally, the 10th our team is doing an exceptional job managing costs and increasing production, reliability ensuring that.

We have the product available where and when needed at a cost of optimizers margins.

Peter Matt: The positive impact of this change is only just beginning to be reflected in our financial results, but we are seeing it more significantly benefit our average price in backlog, which represents the work that will be shipped in future quarters. Encouragingly, despite enhanced selectivity in the projects we accept, the volume in CMC's downstream backlog increased modestly year over year and sequentially. We believe this is at least in part related to CMC's ability to leverage its unique and comprehensive portfolio of capabilities to win projects, particularly those that require specialized reinforcing solutions or large-scale resource deployment. A recent example has been the success we have had in the LNG space, which requires highly specialized cryogenic steel, the reliability of a large fabrication and logistics network, and expertise in project management, all of which we provide.

The positive impact of this change is only just beginning to be reflected in our financial results, but we are seeing it more significantly benefit our average price in backlog, which represents the work that will be shipped in future quarters. Encouragingly, despite enhanced selectivity in the projects we accept, the volume in CMC's downstream backlog increased modestly year over year and sequentially. We believe this is at least in part related to CMC's ability to leverage its unique and comprehensive portfolio of capabilities to win projects, particularly those that require specialized reinforcing solutions or large-scale resource deployment. A recent example has been the success we have had in the LNG space, which requires highly specialized cryogenic steel, the reliability of a large fabrication and logistics network, and expertise in project management, all of which we provide.

Last quarter, I discussed new commercial rigor in the way CMC approaches opportunities within its Downstream fabrication business.

Positive impact of this change is only just beginning to be reflected in our financial results, but we are seeing it more significantly benefit our average price in backlog, which represents the work that will be shipped in future quarters. Encouragingly, despite enhanced selectivity in the Pro—

Our CMC Construction Services business achieved, strong results, during the quarter with Revenue growth outpacing. The broader Market due to several impactful initiatives to acquire new customers gain, share of wallet through more productive, proactive, Outreach and standardized pricing and service levels across the footprints.

This is just a sampling of the initiatives that we are undertaking to drive our business from good to great. Our success, reflects the Strategic efforts of cmc's leaders to push their businesses to new levels of performance.

I mentioned earlier that we capitalized on a supportive environment in the quarter. Let me provide a bit more color on what we saw.

We accept the volume and CMC's downstream backlog increased modestly, year-over-year and sequentially. We believe this is at least in part related to CMC's ability to leverage its unique and comprehensive portfolio of capabilities to win projects, particularly those that require specialized reinforcing solutions or large-scale resource deployment.

In North America, we experienced healthy stable, underlying demand for our major products.

A recent example has been the success we have had in the LG space, which requires highly specialized cryogenic steel.

The reliability of a large fabrication and logistics network and expertise in project management, all of which we provide.

Peter Matt: Strong execution helped our construction solutions business, formerly known as our Emerging Businesses Group, achieve a record first quarter Adjusted EBITDA. Similar to our North America Steel Group, underlying market conditions were supportive, but our efforts to capitalize on these drove results to new heights. At Tensar specifically, we are seeing several important commercial and operational initiatives gain traction. Our team has moved to deepen relationships with key customers, improving our visibility into their upcoming product demand. We have also positioned ourselves to better address market demand across a full spectrum of geogrid solutions. Our highest value products are experiencing strong demand from mega projects such as LNG investments, but we are also capturing more opportunities in mid and lower-tier portions of the market.

Strong execution helped our construction solutions business, formerly known as our Emerging Businesses Group, achieve a record first quarter Adjusted EBITDA. Similar to our North America Steel Group, underlying market conditions were supportive, but our efforts to capitalize on these drove results to new heights. At Tensar specifically, we are seeing several important commercial and operational initiatives gain traction. Our team has moved to deepen relationships with key customers, improving our visibility into their upcoming product demand. We have also positioned ourselves to better address market demand across a full spectrum of geogrid solutions. Our highest value products are experiencing strong demand from mega projects such as LNG investments, but we are also capturing more opportunities in mid and lower-tier portions of the market.

This in combination with a well-balanced supply landscape supported volumes and margins during the quarter shipments of finished steel were virtually unchanged year-over-year and down less than a percentage point from fiscal Q4 compared to a more typical 4% to 5% seasonal sequential decline.

Our Construction Solutions business, formerly known as our Emerging Businesses Group, achieved a record first quarter, adjusted Ava,

Consistent with our guidance, metal margins, increased sequentially as we were able to capitalize on the summer price announcements.

To our north, America Steel Group underlying market conditions were supportive. But our efforts to capitalize on these drove results to new heights.

At 10, our, specifically, we are seeing several important commercial and operational initiatives gain traction. Our team has moved to deepen relationships with key customers, improving our visibility into their upcoming product demand. We have also positioned ourselves to better address.

Peter Matt: Operationally, the Tensar team is doing an exceptional job managing costs and increasing production reliability, ensuring that we have the product available where and when needed at a cost that optimizes margins. Our CMC construction services business achieved strong results during the quarter, with revenue growth outpacing the broader market due to several impactful initiatives to acquire new customers, gain share of wallet through more proactive outreach, and standardized pricing and service levels across the footprint. This is just a sampling of the initiatives that we are undertaking to drive our business from good to great. Our success reflects the strategic efforts of CMC's leaders to push their businesses to new levels of performance. I mentioned earlier that we capitalized on a supportive environment in the quarter. Let me provide a bit more color on what we saw.

Operationally, the Tensar team is doing an exceptional job managing costs and increasing production reliability, ensuring that we have the product available where and when needed at a cost that optimizes margins. Our CMC construction services business achieved strong results during the quarter, with revenue growth outpacing the broader market due to several impactful initiatives to acquire new customers, gain share of wallet through more proactive outreach, and standardized pricing and service levels across the footprint. This is just a sampling of the initiatives that we are undertaking to drive our business from good to great. Our success reflects the strategic efforts of CMC's leaders to push their businesses to new levels of performance. I mentioned earlier that we capitalized on a supportive environment in the quarter. Let me provide a bit more color on what we saw.

Market demand across a full spectrum of geogrid solutions—our highest value products are experiencing strong demand from mega projects, such as LNG investments. But we are also capturing more opportunities in mid and lower tier portions of the market operationally—the tens. Our team is doing an exceptional job managing costs and increasing production reliability, ensuring that we have the product available where and when needed at a cost that optimizes margins.

Project inquiries related to energy generation, reshoring Advanced manufacturing and lmg infrastructure. The DMI leads construction activity by 12 to 18 months and increased by approximately 50% on a year-over-year basis. In November with the commercial segment growing by 57% and institutional by 37% even excluding data centers. A hot bed of growth in North America commercials showed solid expansion Rising 36% from a year ago.

Our CMC Construction Services business achieved strong results during the quarter, with revenue growth outpacing the broader market due to several impactful initiatives to acquire new customers, gain share of wallet through more productive, proactive outreach, and standardized pricing and service levels across the footprint.

This is just a sampling of the initiatives that we are undertaking to drive our business from good to great. Our success reflects the strategic efforts of CMC's leaders to push their businesses to new levels of performance.

We remain confident that emerging structural drivers, including investment in US. Infrastructure reassuring industrial capacity, growth in energy generation and transmission the buildout of AI infrastructure as well as addressing a, the, a US housing shortage will support construction activity over the long term.

Peter Matt: In North America, we experienced healthy, stable underlying demand for our major products. This, in combination with a well-balanced supply landscape, supported volumes and margins during the quarter. Shipments of finished steel were virtually unchanged year over year and down less than a percentage point from fiscal Q4, compared to a more typical 4% to 5% seasonal sequential decline. Consistent with our guidance, metal margins increased sequentially as we were able to capitalize on the summer price announcements. Downstream bid volumes, our best gauge of the construction pipeline, remained healthy and were consistent with recent quarters, with continued strength across key market segments, including public works, data centers, institutional buildings, and energy projects.

In North America, we experienced healthy, stable underlying demand for our major products. This, in combination with a well-balanced supply landscape, supported volumes and margins during the quarter. Shipments of finished steel were virtually unchanged year over year and down less than a percentage point from fiscal Q4, compared to a more typical 4% to 5% seasonal sequential decline. Consistent with our guidance, metal margins increased sequentially as we were able to capitalize on the summer price announcements. Downstream bid volumes, our best gauge of the construction pipeline, remained healthy and were consistent with recent quarters, with continued strength across key market segments, including public works, data centers, institutional buildings, and energy projects.

I mentioned earlier that we capitalized on a supportive environment in the quarter. Let me provide a bit more color on what we saw.

In North America, we experienced healthy, stable underlying demand for our major products.

As noted on slide, 10 of the earnings presentation. Nearly 3 trillion of corporate Investments were announced across related areas in calendar, 2025 commencement of even a handful of these related, Mega projects could provide a meaningful demand Catalyst for CMC in the quarters ahead.

This, in combination with a well-balanced supply landscape, supported volumes and margins during the quarter. Shipments of finished steel were virtually unchanged year-over-year and down less than a percentage point from fiscal Q4, compared to a more typical 4% to 5% seasonal sequential decline.

as we were able to capitalize on the summer price announcements,

Peter Matt: We continue to see substantial pent-up demand, particularly within non-residential markets, a view supported by historic strength in the Dodge Momentum Index, or DMI, as well as recent conversations with many of our largest customers who are increasingly bullish as they experience a large inflow of project inquiries related to energy generation, reshoring, advanced manufacturing, and LNG infrastructure. The DMI leads construction activity by 12 to 18 months and increased by approximately 50% on a year-over-year basis in November, with the commercial segment growing by 57% and institutional by 37%. Even excluding data centers, a hotbed of growth in North America, commercial showed solid expansion, rising 36% from a year ago. We remain confident that emerging structural drivers, including investment in US infrastructure, reshoring industrial capacity, growth in energy generation and transmission, the build-out of AI infrastructure, as well as addressing a US.

We continue to see substantial pent-up demand, particularly within non-residential markets, a view supported by historic strength in the Dodge Momentum Index, or DMI, as well as recent conversations with many of our largest customers who are increasingly bullish as they experience a large inflow of project inquiries related to energy generation, reshoring, advanced manufacturing, and LNG infrastructure. The DMI leads construction activity by 12 to 18 months and increased by approximately 50% on a year-over-year basis in November, with the commercial segment growing by 57% and institutional by 37%. Even excluding data centers, a hotbed of growth in North America, commercial showed solid expansion, rising 36% from a year ago. We remain confident that emerging structural drivers, including investment in US infrastructure, reshoring industrial capacity, growth in energy generation and transmission, the build-out of AI infrastructure, as well as addressing a US.

Before I move on to our other segments, I would like to briefly update you on the status of the rebar trade case filed with the International Trade Commission or ITC back in June. Alleging exporters located in Algeria, Bulgaria Egypt and Vietnam are guilty of dumping material into the US market in December the Department of Commerce. Provided a preliminary ruling against Algeria finding that producers based in that country are guilty of dumping and subjected them to the maximum Duty sought by the domestic rebar industry, which is 127%. While this margin rate, could change. Once the Department of Commerce, finalizes its investigation on Algeria in March, we are encouraged by the preliminary results and applaud the Department's defense of fair trade preliminary rulings are expected in March for anti-dumping Duty, investigations covering Egypt. Via

Vietnam in Bulgaria.

Downstream bid volumes are the best gauge of the construction pipeline, remain healthy, and were consistent with recent quarters, with continued strength across key market segments, including public works, data centers, institutional buildings, and energy projects. We continue to see substantial pent-up demand, particularly within non-residential markets—a view supported by historic strengths in the Dodge Momentum Index, or DMI, as well as recent conversations with many of our largest customers, who are increasingly bullish as they experience a large inflow of project inquiries related to energy generation, reshoring, advanced manufacturing, and LNG infrastructure. The DMI leads construction activity by 12 to 18 months and increased by approximately 50% on a year-over-year basis in November, with the commercial segment growing by 57%, and institutional.

Turning to our Construction Solutions group current conditions are similar to those. Just described with steady activity, across most construction, segments punctuated by a few hot areas, like data, centers, and large energy projects. Our commercial teams continue to see encouraging signals regarding future activity, including healthy quoting levels, and improved velocity of

Quote conversion to backlog.

By 37%, even excluding data centers. A hotbed of growth in North America commercials showed solid expansion, rising 36% from a year ago.

In addition to these broad indicators of potential, demand, we are seeing an increase in attractive, individual opportunity opportunities that require specialized reinforcement Solutions, particularly among bridge and energy projects.

Peter Matt: housing shortage, will support construction activity over the long term. As noted on slide 10 of the earnings presentation, nearly $3 trillion of corporate investments were announced across related areas in calendar 2025. Commencement of even a handful of these related mega projects could provide a meaningful demand catalyst for CMC in the quarters ahead. Before I move on to our other segments, I would like to briefly update you on the status of the rebar trade case filed with the International Trade Commission, or ITC, back in June, alleging exporters located in Algeria, Bulgaria, Egypt, and Vietnam are guilty of dumping material into the US market. In December, the Department of Commerce provided a preliminary ruling against Algeria, finding that producers based in that country are guilty of dumping and subjected them to the maximum duty sought by the domestic rebar industry, which is 127%.

We remain confident that emerging structural drivers, including investment in U.S. infrastructure, re-shoring industrial capacity, growth in energy generation and transmission, the buildout of AI infrastructure, as well as addressing the U.S. housing shortage, will support construction activity over the long term.

Conditions for our Europe, Steel Group, softened modestly from the fourth quarter demand remained resilient on solid polish. Economic growth providing an outlet for healthy shipping volumes. But average price in margin levels were negatively impacted by the import flows.

As noted on slide 10 of the earnings presentation, nearly $3 trillion of corporate investments were announced across related areas in calendar 2025. Commencement of even a handful of these related mega projects could provide a meaningful demand catalyst for CMC in the quarters ahead.

A portion of the price pressure experienced. During the quarter may have been related to buyers of foreign material seeking to import product ahead of the European Union's carbon border adjustment mechanism or cbam taking effect on January 1st 2026. We view this as a temporary overhang and expect prices in our primary markets to benefit from the launch of cbam, which should increase the cost of some imports. Particularly those that have historically been most aggressively priced

Peter Matt: While this margin rate could change once the U.S. Department of Commerce finalizes its investigation on Algeria in March, we are encouraged by the preliminary results and applaud the department's defense of fair trade. Preliminary rulings are expected in March for anti-dumping duty investigations covering Egypt, Vietnam, and Bulgaria. Turning to our construction solutions group, current conditions are similar to those just described, with steady activity across most construction segments, punctuated by a few hot areas like data centers and large energy projects. Our commercial teams continue to see encouraging signals regarding future activity, including healthy quoting levels and improved velocity of quote conversion to backlog. In addition to these broad indicators of potential demand, we are seeing an increase in attractive individual opportunities that require specialized reinforcement solutions, particularly among bridge and energy projects. Conditions for our Europe Steel Group softened modestly from Q4.

While this margin rate could change once the U.S. Department of Commerce finalizes its investigation on Algeria in March, we are encouraged by the preliminary results and applaud the department's defense of fair trade. Preliminary rulings are expected in March for anti-dumping duty investigations covering Egypt, Vietnam, and Bulgaria. Turning to our construction solutions group, current conditions are similar to those just described, with steady activity across most construction segments, punctuated by a few hot areas like data centers and large energy projects. Our commercial teams continue to see encouraging signals regarding future activity, including healthy quoting levels and improved velocity of quote conversion to backlog. In addition to these broad indicators of potential demand, we are seeing an increase in attractive individual opportunities that require specialized reinforcement solutions, particularly among bridge and energy projects. Conditions for our Europe Steel Group softened modestly from Q4.

The green shoots, we have noted in recent earnings calls continued to mature, with more emerging recent Market, developments include signals of a coming recovery in residential construction, activity, driven by declining mortgage interest rates and a need for new housing stock.

Before I move on to our other segments, I would like to briefly update you on the status of the rebar trade case filed with the International Trade Commission, or ITC, back in June. Alleging exporters located in Algeria, Bulgaria, Egypt, and Vietnam are guilty of dumping material into the US market, in December the Department of Commerce provided a preliminary ruling against Algeria, finding that producers based in that country are guilty of dumping and subjected them to the maximum duty sought by the domestic rebar industry, which is 127%. While this margin rate could change once the Department of Commerce,

We are also more optimistic about the prospect of cbam benefiting long steel pricing.

It has its investigation on Algeria in March. We are encouraged by the preliminary results and applaud the Department's defense of fair trade. Preliminary rulings are expected in March for anti-dumping duty investigations covering Egypt, Vietnam, and Bulgaria.

With greater Clarity, regarding the terms and implementation. Now, available our team in Poland believes the program could increase the cost of some imported long products by at least $50 per ton and help support overall market price levels.

Wrapping up my comments on the quarter. Let me dive more deeply into tag. This is our Enterprise wide operational and Commercial Excellence program aiming to drive a permanent step, change Improvement to our margins earnings cash, flows and roic,

Turning to our Construction Solutions group, current conditions are similar to those just described, with steady activity across most construction segments, punctuated by a few hot areas like data centers and large energy projects. Our commercial teams continue to see encouraging signals regarding future activity, including healthy quoting levels and improved velocity of quote conversion to backlog.

Fiscal 2026 will be a pivotal year as execution, further permeates the organization and as the expected level of ibida benefit increases meaningfully during fiscal. 2025 tag initiatives were primarily focused on domestic Mill, operations, and Logistics.

In addition to these broad indicators of potential demand, we are seeing an increase in attractive individual opportunity opportunities that require specialized reinforcement solutions, particularly among bridge and energy projects.

Peter Matt: Demand remained resilient on solid Polish economic growth, providing an outlet for healthy shipping volumes, but average price and margin levels were negatively impacted by the import flows. A portion of the price pressure experienced during the quarter may have been related to buyers of foreign material seeking to import product ahead of the European Union's carbon border adjustment mechanism, or CBAM, taking effect on 1 January 2026. We view this as a temporary overhang and expect prices in our primary markets to benefit from the launch of CBAM, which should increase the cost of some imports, particularly those that have historically been most aggressively priced. The green shoots we have noted in recent earnings calls continue to mature with more emerging. Recent market developments include signals of a coming recovery in residential construction activity driven by declining mortgage interest rates and a need for new housing stock.

Demand remained resilient on solid Polish economic growth, providing an outlet for healthy shipping volumes, but average price and margin levels were negatively impacted by the import flows. A portion of the price pressure experienced during the quarter may have been related to buyers of foreign material seeking to import product ahead of the European Union's carbon border adjustment mechanism, or CBAM, taking effect on 1 January 2026. We view this as a temporary overhang and expect prices in our primary markets to benefit from the launch of CBAM, which should increase the cost of some imports, particularly those that have historically been most aggressively priced. The green shoots we have noted in recent earnings calls continue to mature with more emerging. Recent market developments include signals of a coming recovery in residential construction activity driven by declining mortgage interest rates and a need for new housing stock.

This year, we are focused on operational initiatives in every line of business across each segment and are increasing. Our emphasis on key commercial opportunity opportunities.

we are also targeting meaningful efficiencies in our sgna expenses while maintaining our high level of performance,

Conditions for our Europe Steel Group softened modestly from the fourth quarter. Demand remained resilient on solid polish economic growth, providing an outlet for healthy shipping volumes. But average price and margin levels were negatively impacted by the import flows, a portion of the price pressure experienced during the quarter.

We are pleased with the execution on new initiatives. So far in fiscal 2026 and have maintained solid momentum on programs launched in fiscal 2025, including the scrap. Optimization Mill, yields Ally usage and Logistics benefits that delivered approximately 50 million of ibida. Last fiscal year.

This may have been related to buyers of foreign material seeking to import product ahead of the European Union's Carbon Border Adjustment Mechanism, or CBAM, taking effect on January 1, 2026. We view this as a temporary overhang and expect prices in our primary markets to benefit from the launch of CBAM, which should increase the cost of some imports, particularly those that have historically been most aggressively priced.

Looking at fiscal 2026 and Beyond commercial Excellence is a major opportunity where we see significant upside potential through achieving better margins, and Fuller, value realization for cmc's industry-leading capabilities and service levels.

Peter Matt: We are also more optimistic about the prospect of CBAM benefiting long steel pricing. With greater clarity regarding the terms and implementation now available, our team in Poland believes the program could increase the cost of some imported long products by at least $50 per ton and help support overall market price levels. Wrapping up my comments on the quarter, let me dive more deeply into TAG. This is our enterprise-wide operational and commercial excellence program, aiming to drive a permanent step change improvement to our margins, earnings, cash flows, and ROIC. Fiscal 2026 will be a pivotal year as execution further permeates the organization and as the expected level of EBITDA benefit increases meaningfully. During fiscal 2025, TAG initiatives were primarily focused on domestic mill operations and logistics.

We are also more optimistic about the prospect of CBAM benefiting long steel pricing. With greater clarity regarding the terms and implementation now available, our team in Poland believes the program could increase the cost of some imported long products by at least $50 per ton and help support overall market price levels. Wrapping up my comments on the quarter, let me dive more deeply into TAG. This is our enterprise-wide operational and commercial excellence program, aiming to drive a permanent step change improvement to our margins, earnings, cash flows, and ROIC. Fiscal 2026 will be a pivotal year as execution further permeates the organization and as the expected level of EBITDA benefit increases meaningfully. During fiscal 2025, TAG initiatives were primarily focused on domestic mill operations and logistics.

Earnings calls continued to mature, with more emerging recent market developments. These include signals of a coming recovery in residential construction activity, driven by declining mortgage interest rates and a need for new housing stock.

For the Mills, this comes in a variety of forms, including enforcing grade and size extras. Applying appropriate premiums to pricing on special orders and addressing areas of margin. Leakage such as delayed price implementation and Freight recovery.

We are also more optimistic about the prospect of CBAM benefiting long steel pricing.

It will also mean more definitive segmentation of our customer base with clear value propositions to the different customer segments and related commercial terms, to ensure that all accounts generate acceptable margins,

With greater clarity regarding the terms and implementation now available, our team in Poland believes the program could increase the cost of some imported long products by at least $50 per ton and help support overall market price levels.

Wrapping up my comments on the quarter. Let me dive more deeply into TAG. This is our enterprise-wide operational and commercial excellence program aiming to drive a permanent step-change improvement to our margins, earnings, cash flows, and ROIC.

You are Downstream fabrication business. We are pursuing enhancements to our margin structure through increased price. Discipline, a willingness to decline works that does not reach a suitable, profit threshold and improved terms and mechanisms in contracts. At the heart of our efforts is the ability to leverage cmc's unique capabilities and scale to achieve better margin outcomes on complex jobs that only a few Fabricators can perform.

Peter Matt: This year, we are focused on operational initiatives in every line of business across each segment and are increasing our emphasis on key commercial opportunities. We are also targeting meaningful efficiencies in our SG&A expenses while maintaining our high level of performance. We are pleased with the execution on new initiatives so far in fiscal 2026 and have maintained solid momentum on programs launched in fiscal 2025, including the scrap optimization, mill yield, alloy usage, and logistics benefits that delivered approximately $50 million of EBITDA last fiscal year. Looking at fiscal 2026 and beyond, commercial excellence is a major opportunity where we see significant upside potential through achieving better margins and fuller value realization for CMC's industry-leading capabilities and service levels.

This year, we are focused on operational initiatives in every line of business across each segment and are increasing our emphasis on key commercial opportunities. We are also targeting meaningful efficiencies in our SG&A expenses while maintaining our high level of performance. We are pleased with the execution on new initiatives so far in fiscal 2026 and have maintained solid momentum on programs launched in fiscal 2025, including the scrap optimization, mill yield, alloy usage, and logistics benefits that delivered approximately $50 million of EBITDA last fiscal year. Looking at fiscal 2026 and beyond, commercial excellence is a major opportunity where we see significant upside potential through achieving better margins and fuller value realization for CMC's industry-leading capabilities and service levels.

Fiscal 2026 will be a pivotal year as execution further permeates the organization and as the expected level of EBITDA benefits increases meaningfully. During fiscal 2025, TAG initiatives were primarily focused on domestic mill operations and logistics.

Based on progress, we are making across operational, commercial and sgna initiatives. I am confident that we will reach or exceed, our ambitious, goal of exiting fiscal 2026 with an annualized, run rate, ibaa benefit of million dollars.

This year, we are focused on operational initiatives in every line of business across each segment and are increasing our emphasis on key commercial opportunities.

We are also targeting meaningful efficiencies in our SG&A expenses while maintaining our high level of performance.

In December subsequent to the end of the first quarter, CMC closed on the Acquisitions of cpmp and Foley products. And we are now operating 1 of the largest pre-cast, concrete businesses in the in the United States.

This platform is transformational for us. Broadening cmc's commercial portfolio in a way that increases our value. Proposition to customers meaningfully enhancing our financial profile and extending our growth Runway.

We are pleased with the execution on new initiatives so far in fiscal 2026, and have maintained solid momentum on programs launched in fiscal 2025, including the scrap optimization mill, yields, L usage, and logistics benefits that delivered approximately $50 million of EBITDA last fiscal year.

Peter Matt: For the mills, this comes in a variety of forms, including enforcing grade and size extras, applying appropriate premiums to pricing on special orders, and addressing areas of margin leakage such as delayed price implementation and freight recovery. It will also mean more definitive segmentation of our customer base with clear value propositions to the different customer segments and related commercial terms to ensure that all accounts generate acceptable margins. To our downstream fabrication business, we are pursuing enhancements to our margin structure through increased price discipline, a willingness to decline work that does not reach a suitable profit threshold, and improved terms and enforcement mechanisms in contracts. At the heart of our efforts is the ability to leverage CMC's unique capabilities and scale to achieve better margin outcomes on complex jobs that only a few fabricators can perform.

For the mills, this comes in a variety of forms, including enforcing grade and size extras, applying appropriate premiums to pricing on special orders, and addressing areas of margin leakage such as delayed price implementation and freight recovery. It will also mean more definitive segmentation of our customer base with clear value propositions to the different customer segments and related commercial terms to ensure that all accounts generate acceptable margins. To our downstream fabrication business, we are pursuing enhancements to our margin structure through increased price discipline, a willingness to decline work that does not reach a suitable profit threshold, and improved terms and enforcement mechanisms in contracts. At the heart of our efforts is the ability to leverage CMC's unique capabilities and scale to achieve better margin outcomes on complex jobs that only a few fabricators can perform.

Looking at fiscal 2026 and beyond, commercial excellence is a major opportunity where we see significant upside potential through achieving better margins, and fuller value realization for CMC's industry-leading capabilities and service levels.

Based on our initial observations over the last few weeks of owning these businesses, I am even more confident regarding their potential to strengthen CMC and create meaningful value. For shareholders, both cpmp and Foley are excellent. Cultural fits for our company and have talented teams in place at every level of their organizations, including very strong leadership groups that will remain in place and are fully aligned and executing CMC, strategic vision and delivering meaningful synergies.

Discussions with pre-cast leadership regarding the business outlook for fiscal 2026 have been positive. Backlogs are at good levels, featuring solid volumes and attractive average pricing, which should support healthy shipment levels. As we enter the spring construction season.

Value propositions to the different customer segments and related commercial terms, to ensure that all accounts generate acceptable margins,

The outlook for underlying demand is positive for our core Mid-Atlantic and Southeastern geographies bolstered by the expected growth in data centers, manufacturing facilities, and storm water management systems.

Details on our second quarter earnings call which will include Financial results for our pre-cast business within cmc's Construction Solutions segment.

We are pursuing enhancements to our margin structure through increased price discipline, a willingness to decline work that does not reach a suitable profit threshold, and improvements to terms and mechanisms in contracts. At the heart of our efforts is the ability to leverage CMC's unique capabilities and scale to achieve better margin outcomes on complex jobs that only a few fabricators can perform.

Peter Matt: Based on progress we are making across operational, commercial, and SG&A initiatives, I am confident that we will reach or exceed our ambitious goal of exiting fiscal 2026 with an annualized run rate EBITDA benefit of $150 million. In December, subsequent to the end of the first quarter, CMC closed on the acquisitions of CP&P and Foley Products, and we are now operating one of the largest precast concrete businesses in the United States. This platform is transformational for us, broadening CMC's commercial portfolio in a way that increases our value proposition to customers, meaningfully enhancing our financial profile and extending our growth runway. Based on our initial observations over the last few weeks of owning these businesses, I am even more confident regarding their potential to strengthen CMC and create meaningful value for shareholders.

Based on progress we are making across operational, commercial, and SG&A initiatives, I am confident that we will reach or exceed our ambitious goal of exiting fiscal 2026 with an annualized run rate EBITDA benefit of $150 million. In December, subsequent to the end of the first quarter, CMC closed on the acquisitions of CP&P and Foley Products, and we are now operating one of the largest precast concrete businesses in the United States. This platform is transformational for us, broadening CMC's commercial portfolio in a way that increases our value proposition to customers, meaningfully enhancing our financial profile and extending our growth runway. Based on our initial observations over the last few weeks of owning these businesses, I am even more confident regarding their potential to strengthen CMC and create meaningful value for shareholders.

Having mentioned our Construction Solutions group a few times, I would like to highlight the reasons for renaming the segment.

First, we believe that the title Construction Solutions better reflects the business composition of the segment as more than 95% of the ibida will be derived from providing high margin solutions to the construction Market. Additionally, the new name, more closely aligns with the Strategic priorities of CMC. In particular, the aim to profitably grow our role in early stage construction and build a commercial portfolio. That makes us the preferred partner by our customers.

In December, subsequent to the end of the first quarter, CMC closed on the acquisitions of CPMP and Foley Products. We are now operating one of the largest precast concrete businesses in the United States.

This platform is transformational for us, broadening CMC's commercial portfolio in a way that increases our value proposition to customers, meaningfully enhancing our financial profile and extending our growth runway.

Before turning the call over to Paul, I would like to recognize the efforts of our world-class employees. We have asked a lot of the team as we execute our ambitious vision for the future and I am truly inspired by all that they have accomplished so far. Their efforts Have Been instrumental in laying the groundwork for years of success ahead and I look forward to maintaining that momentum with that, I'll turn the call over to Paul.

Peter Matt: Both CP&P and Foley are excellent cultural fits for our company and have talented teams in place at every level of their organizations, including very strong leadership groups that will remain in place and are fully aligned in executing CMC's strategic vision and delivering meaningful synergies. Discussions with precast leadership regarding the business outlook for fiscal 2026 have been positive. Backlogs are at good levels, featuring solid volumes and attractive average pricing, which should support healthy shipment levels as we enter the spring construction season. The outlook for underlying demand is positive for our core Mid-Atlantic and southeastern geographies, bolstered by the expected growth in data centers, manufacturing facilities, and stormwater management systems. We look forward to providing further details on our second quarter earnings call, which will include financial results for our precast business within CMC's construction solutions segment.

Both CP&P and Foley are excellent cultural fits for our company and have talented teams in place at every level of their organizations, including very strong leadership groups that will remain in place and are fully aligned in executing CMC's strategic vision and delivering meaningful synergies. Discussions with precast leadership regarding the business outlook for fiscal 2026 have been positive. Backlogs are at good levels, featuring solid volumes and attractive average pricing, which should support healthy shipment levels as we enter the spring construction season. The outlook for underlying demand is positive for our core Mid-Atlantic and southeastern geographies, bolstered by the expected growth in data centers, manufacturing facilities, and stormwater management systems. We look forward to providing further details on our second quarter earnings call, which will include financial results for our precast business within CMC's construction solutions segment.

Thank you, Peter and good morning and happy New Year to everyone on the call.

Remain in place and are fully aligned and executing CMC strategic vision, and delivering meaningful synergies.

As noted earlier, we reported fiscal first quarter 2026, net earnings of 177.3 million or a158 per diluted share compared to a net loss of 175.7 million and a net loss per diluted share of a dollar 54 in the prior year period.

During the quarter, we incurred a proximately, 36.7 million in pre-tax expenses, with 24.9 million related to the Acquisitions of cpnp and Foley.

3.7 million for interest on the Judgment amount associated, with the previously, disclosed litigation, as well as an 8.1 million unrealized loss on undesignated commodity hedges.

The outlook for underlying demand is positive for our core Mid-Atlantic and Southeastern geographies, bolstered by the expected growth in data centers, manufacturing facilities, and storm water management systems.

We look forward to providing further details on our second quarter earnings call, which will include financial results for our pre-cast business within CMC's Construction Solutions segment.

Peter Matt: Having mentioned our construction solutions group a few times, I would like to highlight the reasons for renaming the segment. First, we believe that the title, Construction Solutions, better reflects the business composition of the segment, as more than 95% of the EBITDA will be derived from providing high-margin solutions to the construction market. Additionally, the new name more closely aligns with the strategic priorities of CMC, in particular the aim to profitably grow our role in early-stage construction and build a commercial portfolio that makes us the preferred partner by our customers. Before turning the call over to Paul, I would like to recognize the efforts of our world-class employees. We have asked a lot of the team as we execute our ambitious vision for the future, and I am truly inspired by all that they have accomplished so far.

Having mentioned our construction solutions group a few times, I would like to highlight the reasons for renaming the segment. First, we believe that the title, Construction Solutions, better reflects the business composition of the segment, as more than 95% of the EBITDA will be derived from providing high-margin solutions to the construction market. Additionally, the new name more closely aligns with the strategic priorities of CMC, in particular the aim to profitably grow our role in early-stage construction and build a commercial portfolio that makes us the preferred partner by our customers. Before turning the call over to Paul, I would like to recognize the efforts of our world-class employees. We have asked a lot of the team as we execute our ambitious vision for the future, and I am truly inspired by all that they have accomplished so far.

Excluding these expenses which amounted to 28.9 million on an after tax basis. Adjusted earnings for the quarter total, 206.2 million or a dollar 84 per diluted share compared to 8 6. 9 7 7.

as a reminder, the prior year period included an adjustment for an estimated net, after tax charge of 265, million to reflect an adverse litigation verdict acral

Having mentioned our Construction Solutions group a few times, I would like to highlight the reasons for renaming the segment. First, we believe that the title 'Construction Solutions' better reflects the business composition of the segment, as more than 95% of the EBITDA will be derived from providing high-margin solutions to the construction market. Additionally, the new name more closely aligns with the strategic priorities of CMC—in particular, the aim to profitably.

during the first quarter of fiscal 2026, CMC generated Consolidated, Corey but Dove 316.9 million representing a 52% increase from

208.7 million in the prior year period.

Our role in early stage construction and building a commercial portfolio makes us the preferred partner for our customers.

The dmc's North American Steel Group.

generated adjusted Eva of 293.9 million for the quarter equal to 257 per ton of finished steel shipped

Peter Matt: Their efforts have been instrumental in laying the groundwork for years of success ahead, and I look forward to maintaining that momentum. With that, I'll turn the call over to Paul. Thank you, Peter, and good morning and happy New Year to everyone on the call. As noted earlier, we reported fiscal first quarter 2026 net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million and a net loss per diluted share of $1.54 in the prior year period. During the quarter, we incurred approximately $36.7 million in pre-tax expenses, with $24.9 million related to the acquisitions of CP&P and Foley, $3.7 million for interest on the judgment amount associated with the previously disclosed litigation, as well as an $8.1 million unrealized loss on undesignated commodity hedges.

Their efforts have been instrumental in laying the groundwork for years of success ahead, and I look forward to maintaining that momentum. With that, I'll turn the call over to Paul.

Paul Lawrence: Thank you, Peter, and good morning and happy New Year to everyone on the call. As noted earlier, we reported fiscal first quarter 2026 net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million and a net loss per diluted share of $1.54 in the prior year period. During the quarter, we incurred approximately $36.7 million in pre-tax expenses, with $24.9 million related to the acquisitions of CP&P and Foley, $3.7 million for interest on the judgment amount associated with the previously disclosed litigation, as well as an $8.1 million unrealized loss on undesignated commodity hedges.

Before turning the call over to Paul, I would like to recognize the efforts of our world-class employees. We have asked a lot of the team as we execute our ambitious vision for the future, and I am truly inspired by all that they have accomplished so far. Their efforts have been instrumental in laying the groundwork for years of success ahead, and I look forward to maintaining that momentum. With that, I'll turn the call over to Paul.

Segment adjusted EV. But the increase 58% compared to the prior year period driven primarily by higher margin over. Scrap costs on Stihl products, resulting in an Eva margin of 17.7%, compared to 12.3% in the prior year period.

Thank you, Peter, and good morning, and Happy New Year to everyone on the call.

Financial results. Also benefited from continued. Improved operational performance at Arizona 2, as well as contributions from our tag efforts.

As Peter mentioned, we are driving continued gains from TAG initiatives launched during fiscal 25 and have more recently, rolled out commercial initiatives to improve margin capture.

As noted earlier, we reported fiscal first quarter 2026 net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million and a net loss per diluted share of $1.54 in the prior-year period.

The construction solutions group first quarter, net sales of 198.3 million grew by 17% on a year-over-year basis.

During the quarter, we incurred approximately $36.7 million in pre-tax expenses, with $24.9 million related to the acquisitions of CPNP and Foley, and $3.7 million for interest on the judgment amount associated with the previously disclosed litigation.

Peter Matt: Excluding these expenses, which amounted to $28.9 million on an after-tax basis, adjusted earnings for the quarter totaled $206.2 million, or $1.84 per diluted share, compared to $86.9 million and $0.76 per diluted share, respectively, in the prior year period. As a reminder, the prior year period included an adjustment for an estimated net after-tax charge of $265 million to reflect an adverse litigation verdict accrual. During Q1 of fiscal 2026, CMC generated consolidated core EBITDA of $316.9 million, representing a 52% increase from $208.7 million in the prior year period. CMC's North American Steel Group generated adjusted EBITDA of $293.9 million for the quarter, equal to $257 per ton of finished steel shipped.

Excluding these expenses, which amounted to $28.9 million on an after-tax basis, adjusted earnings for the quarter totaled $206.2 million, or $1.84 per diluted share, compared to $86.9 million and $0.76 per diluted share, respectively, in the prior year period. As a reminder, the prior year period included an adjustment for an estimated net after-tax charge of $265 million to reflect an adverse litigation verdict accrual. During Q1 of fiscal 2026, CMC generated consolidated core EBITDA of $316.9 million, representing a 52% increase from $208.7 million in the prior year period. CMC's North American Steel Group generated adjusted EBITDA of $293.9 million for the quarter, equal to $257 per ton of finished steel shipped.

As well as an $8.1 million unrealized loss on Undiz commodity hedges.

Adjusted Eva Dove 39.6 million significantly increase by 75% year-over-year, driven by strong results from tensar and CMC Construction Services as well as some improvement at CMC impact metals from the depressed levels of a year ago.

Benefiting from solid project. Demand.

The positive impact of the sales initiatives mentioned by Peter in strong cost management efforts.

CMC Construction Services likewise profited from self-help measures that drove IBA Improvement on both a year-over-year and sequential basis.

As a reminder, the prior year period included an adjustment for an estimated net, after-tax charge of $265 million to reflect an adverse litigation verdict.

Contributions from our performance reinforcing steel division remained historically strong but the client modestly from recent elevated levels.

Construction Solutions group, adjusted IBA margin of 20%, improved by 6.6% percentage points compared to the prior year period.

During the first quarter of fiscal 2026, CMC generated consolidated core EBITDA of $316.9 million, representing a 52% increase from

$208.7 million in the prior year period.

Dmc's North, American Steel Group.

Our Europe Steel Group reported adjusted Eva of 10.9 million for the first quarter of 2026 down from 25.8 million in the prior year period.

Peter Matt: Segment-adjusted EBITDA increased 58% compared to the prior year period, driven primarily by higher margin over scrap cost on steel products, resulting in an EBITDA margin of 17.7% compared to 12.3% in the prior year period. Financial results also benefited from continued improved operational performance at Arizona 2, as well as contributions from our TAG efforts. As Peter mentioned, we are driving continued gains from TAG initiatives launched during fiscal 2025 and have more recently rolled out commercial initiatives to improve margin capture. The Construction Solutions Group Q1 net sales of $198.3 million grew by 17% on a year-over-year basis. Adjusted EBITDA of $39.6 million significantly increased by 75% year-over-year, driven by strong results from Tensar and CMC Construction Services, as well as some improvement at CMC Impact Metals from the depressed levels of a year ago.

Segment-adjusted EBITDA increased 58% compared to the prior year period, driven primarily by higher margin over scrap cost on steel products, resulting in an EBITDA margin of 17.7% compared to 12.3% in the prior year period. Financial results also benefited from continued improved operational performance at Arizona 2, as well as contributions from our TAG efforts. As Peter mentioned, we are driving continued gains from TAG initiatives launched during fiscal 2025 and have more recently rolled out commercial initiatives to improve margin capture. The Construction Solutions Group Q1 net sales of $198.3 million grew by 17% on a year-over-year basis. Adjusted EBITDA of $39.6 million significantly increased by 75% year-over-year, driven by strong results from Tensar and CMC Construction Services, as well as some improvement at CMC Impact Metals from the depressed levels of a year ago.

Generated adjusted EBITDA of $293.9 million for the quarter, equal to $257 per ton of finished steel shipped.

The decline was driven by lower CO2 credit which amounted to 15.6 million during the first quarter of 2026 compared to 44.1 million received during the year ago period.

Segment adjusted EBITDA increased 58% compared to the prior year period, driven primarily by higher margin over scrap cost on Stihl products, resulting in an EBITDA margin of 17.7%, compared to 12.3% in the prior year period.

The reduction in the CO2. Credit was the result of the credit generated for a calendar 2024 being separated into 2 tranches 1 of which which was received during the fourth quarter of fiscal 2025. While the remaining amount was received in the first quarter of fiscal 2026,

Financial results also benefited from continued improved operational performance at Arizona 2, as well as contributions from our TAG efforts.

by comparison results for last year's, first quarter reflected the entirety of the 2023 annual CO2 credit

Launched during fiscal '25, and have more recently rolled out commercial initiatives to improve margin capture.

Including the impact of energy cost, rebates adjusted e, but the improved on a year-over-year basis on stronger, shipping volumes and higher metal margins.

The Construction Solutions Group first quarter net sales of $198.3 million grew by 17% on a year-over-year basis.

Chipman's grew by approximately 16% from the 5th, first fiscal quarter of 2025 as a result of continued polish economic expansion in reduced import flows from Germany.

Metal margins, expanded by $37 per ton, largely driven by the same factors.

Peter Matt: Tensar achieved its best first quarter financial performance under CMC ownership, benefiting from solid project demand, the positive impact of the sales initiatives mentioned by Peter, and strong cost management efforts. CMC Construction Services likewise profited from self-help measures that drove EBITDA improvement on both a year-over-year and sequential basis. Contributions from our performance reinforcing steel division remained historically strong but declined modestly from recent elevated levels. Construction Solutions Group's adjusted EBITDA margin of 20% improved by 6.6 percentage points compared to the prior year period. Our Europe Steel Group reported adjusted EBITDA of $10.9 million for the first quarter of 2026, down from $25.8 million in the prior year period. The decline was driven by a lower CO2 credit, which amounted to $15.6 million during the first quarter of 2026, compared to $44.1 million received during the year-ago period.

Tensar achieved its best first quarter financial performance under CMC ownership, benefiting from solid project demand, the positive impact of the sales initiatives mentioned by Peter, and strong cost management efforts. CMC Construction Services likewise profited from self-help measures that drove EBITDA improvement on both a year-over-year and sequential basis. Contributions from our performance reinforcing steel division remained historically strong but declined modestly from recent elevated levels. Construction Solutions Group's adjusted EBITDA margin of 20% improved by 6.6 percentage points compared to the prior year period. Our Europe Steel Group reported adjusted EBITDA of $10.9 million for the first quarter of 2026, down from $25.8 million in the prior year period. The decline was driven by a lower CO2 credit, which amounted to $15.6 million during the first quarter of 2026, compared to $44.1 million received during the year-ago period.

Adjusted IBA dove $39.6 million, significantly increased by 75% year-over-year, driven by strong results from Tensar and CMC Construction Services, as well as some improvement at CMC Impact Metals from the depressed levels of a year ago.

During the quarter, our polish Mill, underwent, an annual maintenance outage which incurred approximately $10 million of costs.

And Far achieved its best first quarter financial performance under CMC ownership, benefiting from solid project demand.

Deemed an excellent job, starting up efficiently following the plan downtime and similar to recent quarters continues to effectively manage costs across the or the organization.

The positive impact of the sales initiatives mentioned by Peter in strong cost management efforts.

I will now discuss cmc's balance sheet and liquidity position as outlined on slide 13 of the supplemental presentation.

CMC Construction Services likewise profited from self-help measures that drove EBITDA improvement on both a year-over-year and sequential basis.

As of November 30th Cash Cash equivalents and restricted cash totaled 3 billion dollars.

Contributions from our Performance Reinforcing Steel division remained historically strong, but declined modestly from recent elevated levels.

This amount included approximately 2 billion in proceeds raised through a senior notes offering in November, most of, which was earmarked to fund the company's purchase of fully products.

Instruction Solutions Group adjusted IBA margin of 20%, improved by 6.6 percentage points compared to the prior year period.

In December, we closed both the CP and P and Foley Acquisitions and payments of approximately 2.5 billion were made.

Our Europe Steel Group reported adjusted EVA of $10.9 million for the first quarter of 2026, down from $25.8 million in the prior year period.

the table on the left hand, side of slide 13 provides an illustrative view of cmc's cash balance, net debt, and net debt to Eva, assuming both transactions had closed on November 30th,

Peter Matt: The reduction in the CO2 credit was the result of the credit generated for calendar 2024 being separated into two tranches, one of which was received during the fourth quarter of fiscal 2025, while the remaining amount was received in the first quarter of fiscal 2026. By comparison, results for last year's first quarter reflected the entirety of the 2023 annual CO2 credit. Including the impact of energy cost rebates, Adjusted EBITDA improved on a year-over-year basis on stronger shipping volumes and higher metal margins. Shipments grew by approximately 16% from the first fiscal quarter of 2025 as a result of continued Polish economic expansion and reduced import flows from Germany. Metal margins expanded by $37 per ton, largely driven by the same factors. During the quarter, our Polish mill underwent an annual maintenance outage, which incurred approximately $10 million of costs.

The reduction in the CO2 credit was the result of the credit generated for calendar 2024 being separated into two tranches, one of which was received during the fourth quarter of fiscal 2025, while the remaining amount was received in the first quarter of fiscal 2026. By comparison, results for last year's first quarter reflected the entirety of the 2023 annual CO2 credit. Including the impact of energy cost rebates, Adjusted EBITDA improved on a year-over-year basis on stronger shipping volumes and higher metal margins. Shipments grew by approximately 16% from the first fiscal quarter of 2025 as a result of continued Polish economic expansion and reduced import flows from Germany. Metal margins expanded by $37 per ton, largely driven by the same factors. During the quarter, our Polish mill underwent an annual maintenance outage, which incurred approximately $10 million of costs.

The decline was driven by lower CO2 credit, which amounted to $15.6 million during the first quarter of 2026, compared to $44.1 million received during the year-ago period.

As you can see, net leverage stands at approximately 2.5 times using combined adjusted EV but uh, of for legacy CMC and our newly acquired pre-cast business.

This is lower than the 2.7 times, proforma figure shared at the time of the fully acquisition.

With the reduction resulting from the increase to EBA generation of our business.

By comparison, results for last year's first quarter reflected the entirety of the 2023 annual CO2 credit.

We continue to be confident in our ability to return to our net leverage Target of below 2 times within 18 months and will prioritize delivering in the quarters ahead.

Including the impact of energy cost, rebates adjusted. EBIT improved on a year-over-year basis on stronger shipping volumes and higher metal margins.

This effort will be aided by strong cash flow generation from the pre-class platform itself. The wind down of capital expenditures for the construction of Steel, West, Virginia and the significant cash. Tax savings generated by the 48 C program in the 1 big beautiful bill.

Shipments grew by approximately 16% from the fifth, first fiscal quarter of 2025, as a result of continued Polish economic expansion and reduced import flows from Germany.

Metal margins expanded by $37 per ton, largely driven by the same factors.

Additionally, we have reduced our share repurchases during this period of Leverage reduction to amounts, approximating our annual share issuance under our compensation programs.

Peter Matt: Team did an excellent job starting up efficiently following the planned downtime, and similar to recent quarters, continues to effectively manage costs across the organization. I will now discuss CMC's balance sheet and liquidity position as outlined on slide 13 of the supplemental presentation. As of 30 November, cash, cash equivalents, and restricted cash totaled $3 billion. This amount included approximately $2 billion in proceeds raised through a senior notes offering in November, most of which was earmarked to fund the company's purchase of Foley Products. In December, we closed both the CP&P and Foley acquisitions, and payments of approximately $2.5 billion were made. The table on the left-hand side of slide 13 provides an illustrative view of CMC's cash balance, net debt, and net debt to EBITDA, assuming both transactions had closed on 30 November.

Team did an excellent job starting up efficiently following the planned downtime, and similar to recent quarters, continues to effectively manage costs across the organization. I will now discuss CMC's balance sheet and liquidity position as outlined on slide 13 of the supplemental presentation. As of 30 November, cash, cash equivalents, and restricted cash totaled $3 billion. This amount included approximately $2 billion in proceeds raised through a senior notes offering in November, most of which was earmarked to fund the company's purchase of Foley Products. In December, we closed both the CP&P and Foley acquisitions, and payments of approximately $2.5 billion were made. The table on the left-hand side of slide 13 provides an illustrative view of CMC's cash balance, net debt, and net debt to EBITDA, assuming both transactions had closed on 30 November.

During the quarter, our Polish mill underwent an annual maintenance outage, which incurred approximately $10 million of costs.

Subsequent to quarter end CMC. Increased the capacity of our revolving credit facility from 600 million to 1 billion.

On liquidity position to support the execution of strategic goals going forward.

The team did an excellent job starting up efficiently following the planned downtime and, similar to recent quarters, continues to effectively manage costs across the organization.

Using the same adjustments to our November 30th balance sheet.

I will now discuss CMC's balance sheet and liquidity position as outlined on slide 13 of the supplemental presentation.

To give effect to the pre-cast Acquisitions and also giving effect to the upsized revolver. Estimated available liquidity would have been slightly over 1.7 billion.

As of November 30th, cash, cash equivalents, and restricted cash totaled $3 billion.

Dmc's effective tax rate was 3.1% in the first quarter.

Looking at we anticipate a full year effective, tax rate between 5 and 10% for fiscal 2026.

This amount included approximately $2 billion in proceeds raised through a senior notes offering in November, most of which was earmarked to fund the company's purchase of fully products.

In December, we closed both the CP&P and Foley acquisitions, and payments of approximately $2.5 billion were made.

As a result of several factors including our 48, C tax credit bonus depreciation on our West Virginia Mill investment as well as accelerated depreciation on the assets of the Acquisitions of fully and cpnp. We do not anticipate paying any significant US Federal cash taxes in fiscal 2026 or for much of fiscal 2027.

Peter Matt: As you can see, net leverage stands at approximately 2.5x using combined adjusted EBITDA for legacy CMC and our newly acquired precast business. This is lower than the 2.7x pro forma figure shared at the time of the Foley acquisition, with the reduction resulting from the increased EBITDA generation of our business. We continue to be confident in our ability to return to our net leverage target of below 2x within 18 months, and we'll prioritize delevering in the quarters ahead. This effort will be aided by strong cash flow generation from the precast platform itself, the wind down of capital expenditures for the construction of Steel West Virginia, and the significant cash tax savings generated by the 48C program and the One Big Beautiful Bill.

As you can see, net leverage stands at approximately 2.5x using combined adjusted EBITDA for legacy CMC and our newly acquired precast business. This is lower than the 2.7x pro forma figure shared at the time of the Foley acquisition, with the reduction resulting from the increased EBITDA generation of our business. We continue to be confident in our ability to return to our net leverage target of below 2x within 18 months, and we'll prioritize delevering in the quarters ahead. This effort will be aided by strong cash flow generation from the precast platform itself, the wind down of capital expenditures for the construction of Steel West Virginia, and the significant cash tax savings generated by the 48C program and the One Big Beautiful Bill.

The table on the left-hand side of slide 13 provides an illustrative view of CMC's cash balance, net debt, and net debt to EBITDA. Assuming both transactions had closed on November 30th,

As you can see, net leverage stands at approximately 2.5 times using combined adjusted EBITDA for legacy CMC and our newly acquired pre-cast business.

This is lower than the 2.7 times pro forma figure shared at the time of the full acquisition.

Returning to cmc's fiscal 2026 Capital spending Outlook. We anticipate spending approximately 625 million in total of this amount. Approximately 300 million is associated with completing the construction of our steel West Virginia micromill as well as a handful of high return growth Investments within our Construction Solutions group and approximately 25 million in our newly acquired pre-cast businesses,

With the reduction resulting from the increase to IB, but, uh, generation of our business.

This concludes my remarks and I'll turn it back to Peter for additional comments on cmc's financial Outlook.

Thank you, Paul.

Prioritized delivering in the quarters ahead.

Turning to our Outlook. We expect Consolidated core ibaa in the second quarter of fiscal 2026 to decline modestly. From first quarter levels due to a normal level of slowdown, within our key markets, this will be partially offset by the addition of cmc's recently, acquired pre-cast businesses.

Peter Matt: Additionally, we have reduced our share repurchases during this period of leverage reduction to amounts approximating our annual share issuance under our compensation programs. Subsequent to quarter end, CMC increased the capacity of our revolving credit facility from $600 million to $1 billion. This will ensure a strong liquidity position to support the execution of strategic goals going forward. Using the same adjustments to our 30 November balance sheet to give effect to the precast acquisitions and also giving effect to the upsize revolver, estimated available liquidity would have been slightly over $1.7 billion. CMC's effective tax rate was 3.1% in the first quarter. Looking ahead, we anticipate a full-year effective tax rate between 5% and 10% for fiscal 2026.

Additionally, we have reduced our share repurchases during this period of leverage reduction to amounts approximating our annual share issuance under our compensation programs. Subsequent to quarter end, CMC increased the capacity of our revolving credit facility from $600 million to $1 billion. This will ensure a strong liquidity position to support the execution of strategic goals going forward. Using the same adjustments to our 30 November balance sheet to give effect to the precast acquisitions and also giving effect to the upsize revolver, estimated available liquidity would have been slightly over $1.7 billion. CMC's effective tax rate was 3.1% in the first quarter. Looking ahead, we anticipate a full-year effective tax rate between 5% and 10% for fiscal 2026.

This effort will be aided by strong cash flow generation from the pre-cast platform itself, the wind-down of capital expenditures for the construction of Steel West, Virginia, and the significant cash tax savings generated by the 48C program and the one big, beautiful bill.

Additionally, we have reduced our share repurchases during this period of leverage reduction to amounts approximating our annual share issuance under our compensation programs.

The company will recognize several acquisition related expenses. During the second quarter including transaction fees debt, issuance costs and customary purchase accounting adjustments Each of which will be excluded from Corey bath.

Subsequent to quarter end, CMC increased the capacity of our revolving credit facility from $600 million to $1 billion.

This will ensure a strong liquidity position to support the execution of strategic goals going forward.

Using the same adjustments to our November 30th balance sheet.

Segment adjusted ibida for our North. America Steel Group is anticipated to be lower sequentially due to normal seasonal, volume Trends, and the impact of plan maintenance outages. While steel product metal margin is expected to remain relatively stable.

To give effect to the pre-cast acquisitions, and also giving effect to the upsized revolver, estimated available liquidity would have been slightly over $1.7 billion.

Financial results for the construction solutions group should improve compared to the first quarter of fiscal 2026 with the contribution of the pre-cast business more than offsetting seasonal weakness across the segments, other divisions.

CMC's effective tax rate was 3.1% in the first quarter.

Peter Matt: As a result of several factors, including our 48C tax credit, bonus depreciation on our West Virginia mill investment, as well as accelerated depreciation on the assets of the acquisitions of Foley and CP&P, we do not anticipate paying any significant US federal cash taxes in fiscal 2026 or for much of fiscal 2027. Turning to CMC's fiscal 2026 capital spending outlook, we anticipate spending approximately $625 million in total. Of this amount, approximately $300 million is associated with completing the construction of our Steel West Virginia micromill, as well as a handful of high-return growth investments within our Construction Solutions Group, and approximately $25 million in our newly acquired precast businesses. This concludes my remarks, and I'll turn it back to Peter for additional comments on CMC's financial outlook. Thank you, Paul.

As a result of several factors, including our 48C tax credit, bonus depreciation on our West Virginia mill investment, as well as accelerated depreciation on the assets of the acquisitions of Foley and CP&P, we do not anticipate paying any significant US federal cash taxes in fiscal 2026 or for much of fiscal 2027. Turning to CMC's fiscal 2026 capital spending outlook, we anticipate spending approximately $625 million in total. Of this amount, approximately $300 million is associated with completing the construction of our Steel West Virginia micromill, as well as a handful of high-return growth investments within our Construction Solutions Group, and approximately $25 million in our newly acquired precast businesses. This concludes my remarks, and I'll turn it back to Peter for additional comments on CMC's financial outlook.

Looking ahead, we anticipate a full-year effective tax rate between 5% and 10% for fiscal 2026.

Europe Steel Group, adjusted Eva is expected to be break, even with margin growth potential later in fiscal 2026, when the carbon border adjustment mechanism takes full effect,

The first quarter marked in an excellent start to fiscal 2026 and CMC is well positioned to deliver strong results for the remainder of the year.

As a result of several factors, including our 48C tax credit, bonus depreciation on our West Virginia Mill investment, as well as accelerated depreciation on the assets of the acquisitions of Foley and CPNP, we do not anticipate paying any significant U.S. federal cash taxes in fiscal 2026 or for much of fiscal 2027.

Solid market, dynamics benefits of our tag program and effective. Operational execution are generating momentum and cmc's existing businesses which will be supplemented by 165 million, to 175 million of ibitta contributions from approximately 8 and a half months of ownership of the pre-cast businesses in fiscal 2026.

Turning to CMC's fiscal 2026 capital spending outlook, we anticipate spending approximately $625 million in total. Of this amount, approximately $300 million is associated with completing the construction of our steel West Virginia micro mill, as well as a handful of high-return growth investments within our Construction Solutions group, and approximately $25 million in our newly acquired pre-cast businesses.

Looking out longer term. I am confident that CMC will continue to create value for our shareholders as we remain focused on executing against our strategic initiatives which we expect to deliver meaningful and sustained enhancements to our margins earnings, cash flow generation and return on Capital.

Peter Matt: Thank you, Paul. Turning to our outlook, we expect consolidated Core EBITDA in the second quarter of fiscal 2026 to decline modestly from first quarter levels due to a normal level of slowdown within our key markets. This will be partially offset by the addition of CMC's recently acquired precast businesses. The company will recognize several acquisition-related expenses during the second quarter, including transaction fees, debt issuance costs, and customary purchase accounting adjustments, each of which will be excluded from Core EBITDA. Segment-adjusted EBITDA for our North America Steel Group is anticipated to be lower sequentially due to normal seasonal volume trends and the impact of planned maintenance outages, while steel product metal margin is expected to remain relatively stable.

This concludes my remarks, and I'll turn it back to Peter for additional comments on CMC's financial outlook.

Peter Matt: Turning to our outlook, we expect consolidated Core EBITDA in the second quarter of fiscal 2026 to decline modestly from first quarter levels due to a normal level of slowdown within our key markets. This will be partially offset by the addition of CMC's recently acquired precast businesses. The company will recognize several acquisition-related expenses during the second quarter, including transaction fees, debt issuance costs, and customary purchase accounting adjustments, each of which will be excluded from Core EBITDA. Segment-adjusted EBITDA for our North America Steel Group is anticipated to be lower sequentially due to normal seasonal volume trends and the impact of planned maintenance outages, while steel product metal margin is expected to remain relatively stable.

I would like to conclude by thanking our customers for their trust and confidence in CMC and all of our employees for delivering yet another quarter of very solid safety and operational performance.

Thank you. And at this time, we will open the call for questions.

Thank you, Paul. Turning to our outlook, we expect consolidated core EBITDA in the second quarter of fiscal 2026 to decline modestly from first quarter levels due to a normal level of slowdown within our key markets. This will be partially offset by the addition of CMC's recently.

Thank you. We will now begin the question and answer session to ask a question. You may press star then 1 on your touchtone phone,

If you are using a speaker-phone, please pick up your handset before pressing the keys.

if at any time your question has been addressed and you would like to withdraw your question, please press star then 2

Please let me yourself to 1 question and 1 follow-up. At this time, we will pause momentarily to assemble our roster.

Required pre-cast businesses, the company will recognize several acquisition-related expenses during the second quarter, including transaction fees, debt issuance costs, and customary purchase accounting adjustments, each of which will be excluded from core EBITDA.

For North American.

And the first question will come from Satish kasan with Bank of America. Please go ahead.

Peter Matt: Financial results for the Construction Solutions Group should improve compared to the first quarter of fiscal 2026, with the contribution of the precast business more than offsetting seasonal weakness across the segment's other divisions. Europe Steel Group Adjusted EBITDA is expected to be approximately break-even, with margin growth potential later in fiscal 2026 when the Carbon Border Adjustment Mechanism takes full effect. The first quarter marked an excellent start to fiscal 2026, and CMC is well-positioned to deliver strong results for the remainder of the year. Solid market dynamics, benefits of our TAG program, and effective operational execution are generating momentum in CMC's existing businesses, which will be supplemented by $165 million to 175 million of EBITDA contributions from approximately eight and a half months of ownership of the precast businesses in fiscal 2026.

Financial results for the Construction Solutions Group should improve compared to the first quarter of fiscal 2026, with the contribution of the precast business more than offsetting seasonal weakness across the segment's other divisions. Europe Steel Group Adjusted EBITDA is expected to be approximately break-even, with margin growth potential later in fiscal 2026 when the Carbon Border Adjustment Mechanism takes full effect. The first quarter marked an excellent start to fiscal 2026, and CMC is well-positioned to deliver strong results for the remainder of the year. Solid market dynamics, benefits of our TAG program, and effective operational execution are generating momentum in CMC's existing businesses, which will be supplemented by $165 million to 175 million of EBITDA contributions from approximately eight and a half months of ownership of the precast businesses in fiscal 2026.

Steel Group is anticipated to be lower sequentially due to normal seasonal volume trends and the impact of planned maintenance outages, while steel product metal margin is expected to remain relatively stable.

Financial results for the Construction Solutions Group should improve compared to the first quarter of fiscal 2026, with a contribution of the pre-cast business more than offsetting seasonal weakness across the segments and other divisions.

Good morning and congrats on the strong quarter and as well as the closing of cpnp and folio equations. Um, based on what you have seen in the past 3 to 5 weeks uh since the closing of these equations, can you maybe talk about some of the positive or negative surprises, uh, you have seen so far, um, and do you see any potential for acceleration of the 3? A timeline to realize the announced 30 to 40 million in synergies?

Uh, great question. Um, again with the uh preface that this is early days in our ownership of this business, I would say that,

Europe Steel Group adjusted EBITDA is expected to be approximately break-even, with margin growth potential later in fiscal 2026, when the Carbon Border Adjustment Mechanism takes full effect.

The first quarter marked an excellent start to fiscal 2026, and CMC is well positioned to deliver strong results for the remainder of the year.

Peter Matt: Looking out longer term, I am confident that CMC will continue to create value for our shareholders as we remain focused on executing against our strategic initiatives, which we expect to deliver meaningful and sustained enhancements to our margins, earnings, cash flow generation, and return on capital. I would like to conclude by thanking our customers for their trust and confidence in CMC and all of our employees for delivering yet another quarter of very solid safety and operational performance. Thank you, and at this time, we will open the call for questions. Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Looking out longer term, I am confident that CMC will continue to create value for our shareholders as we remain focused on executing against our strategic initiatives, which we expect to deliver meaningful and sustained enhancements to our margins, earnings, cash flow generation, and return on capital. I would like to conclude by thanking our customers for their trust and confidence in CMC and all of our employees for delivering yet another quarter of very solid safety and operational performance. Thank you, and at this time, we will open the call for questions.

Solid market dynamics, benefits of our TAG program, and effective operational execution are generating momentum in CMC's existing businesses, which will be supplemented by $165 million to $175 million of EBITDA contributions from approximately eight and a half months of ownership of the Precast businesses in fiscal 2026.

We have been really, uh, very pleasantly uh, surprised with uh, with everything that we've seen. Um and uh, I wouldn't say there's anything that's really come up. That we weren't expecting, uh, on the negative side. And I'd say, there are a number of things that are on the positive side that that we've seen. And let me just give you a, a little story from, um, 1 of my, uh, trips. I went to a cpmp off-site and it was a gathering of probably a hundred folks from cpmp. And then a couple of product experts from CMC, um, and 2 remarks. I'd make that were I think Super gratifying. Um, as the, you know, kind of new owner of the business first is, uh, in the room. You could have been in a room with CMC, folks. It was the the cultural Affinity is is outstanding.

Another quarter, a very solid safety and operational performance.

Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star, then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.

Thank you. And at this time, we will open the call for questions.

Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then 1 on your touchtone phone.

Peter Matt: If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. Please limit yourself to one question and one follow-up. At this time, we will pause momentarily to assemble our roster. The first question will come from Satish Kasinathan with Bank of America. Please go ahead. Yeah, hi, good morning, and congrats on the strong quarter and as well as the closing of CP&P and Foley acquisitions. Based on what you have seen in the past three to five weeks since the closing of these acquisitions, can you maybe talk about some of the positive or negative surprises you have seen so far? And do you see any potential for acceleration of the three-year timeline to realize the announced $30 to $40 million in synergies? Yeah, thanks, Satish. Great question.

If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. Please limit yourself to one question and one follow-up. At this time, we will pause momentarily to assemble our roster. The first question will come from Sathish Kasinathan with Bank of America. Please go ahead.

If you are using a speakerphone, please pick up your handset before pressing the keys.

If at any time your question has been addressed and you would like to withdraw your question, please press star then 2.

Please let me, yourself, to 1 question and 1 follow-up. At this time, we will pause momentarily to assemble our roster.

Sathish Kasinathan: Yeah, hi, good morning, and congrats on the strong quarter and as well as the closing of CP&P and Foley acquisitions. Based on what you have seen in the past three to five weeks since the closing of these acquisitions, can you maybe talk about some of the positive or negative surprises you have seen so far? And do you see any potential for acceleration of the three-year timeline to realize the announced $30 to $40 million in synergies?

And the first question will come from Satish Kasan with Bank of America. Please go ahead.

Um and uh and that that was super uh helpful to see because I think it's going to make our integration efforts uh integration efforts go. Well um second was I noted that we brought a couple of CMC product experts. Um and there was a tremendous amount of discussion around uh, you know, kind of different opportunities that we and cpmp have together and a lot of excitement around that. So that was also super encouraging because it kind of validates the, uh, uh, part of our investment thesis. Uh, in terms of the synergies, we are, um, I would say, the work we've done so far. Uh, leads us to believe that we, we're very confident that we that we can get the synergies. Uh, what I would say is that, uh, it's early to, to speculate on the timing. And I wouldn't want to accelerate, uh, what we said in the past, but we're very confident. The, the synergies are there. If not more,

Peter Matt: Yeah, thanks, Satish. Great question.

Um, okay, thank you, thank you for that. Um uh maybe um uh my second question is on the North American Metal margins, which are currently at 3 year highs. Um can you maybe talk about how you see this margin sustain or improve um, in in the coming quarters. Given the context that, uh, we expect some new Supply to come into the market?

Um, yeah. Hi, good morning, and congrats on the strong quarter, as well as the closing of CPNP. And for the acquisitions, um, based on what you have seen in the past three to five weeks, uh, since the closing of these acquisitions, can you maybe talk about some of the positive or negative surprises, uh, you have seen so far? Um, and do you see any potential for acceleration of the three-year timeline to realize the announced $30 to $40 million in synergies?

Peter Matt: Again, with the preface that this is early days in our ownership of this business, I would say that we have been really very pleasantly surprised with everything that we've seen. I wouldn't say there's anything that's really come up that we weren't expecting on the negative side, and I'd say there are a number of things that are on the positive side that we've seen. Let me just give you a little story from one of my trips. I went to a CP&P offsite, and it was a gathering of probably 100 folks from CP&P and then a couple of product experts from CMC. Two remarks I'd make that were, I think, super gratifying as the kind of new owner of the business. First is, in the room, you could have been in a room with CMC folks.

Again, with the preface that this is early days in our ownership of this business, I would say that we have been really very pleasantly surprised with everything that we've seen. I wouldn't say there's anything that's really come up that we weren't expecting on the negative side, and I'd say there are a number of things that are on the positive side that we've seen. Let me just give you a little story from one of my trips. I went to a CP&P offsite, and it was a gathering of probably 100 folks from CP&P and then a couple of product experts from CMC. Two remarks I'd make that were, I think, super gratifying as the kind of new owner of the business. First is, in the room, you could have been in a room with CMC folks.

Yeah, thanks, Satish. Uh, great question. Um, again, with the, uh, preface that this is early days in our ownership of this business, I would say that

Yeah, um, maybe I'll start on this, uh, going backwards and commenting on the new Supply. So, um, you know, there's been a lot of, uh, talk about the new Supply and, and yes, there is new Supply coming into the market. I think we've been consistent,

In saying that, uh, we're not overly concerned by the new Supply, uh, and that's particularly true in the current context, where you've got a much lower Imports, uh, than we've had in, in, in previous years. So, based on the level of demand. As it is today, we feel comfortable that the the marketplace can absorb the new Supply as it comes in. And if demand gets stronger,

Peter Matt: The cultural affinity is outstanding, and that was super helpful to see because I think it's going to make our integration efforts go well. Second was I noted that we brought a couple of CMC product experts, and there was a tremendous amount of discussion around kind of different opportunities that we and CP&P have together, and a lot of excitement around that. So that was also super encouraging because it kind of validates the part of our investment thesis. In terms of the synergies, we are. I would say the work we've done so far leads us to believe that we're very confident that we can get the synergies. What I would say is that it's early to speculate on the timing, and I wouldn't want to accelerate what we've said in the past, but we're very confident the synergies are there, if not more.

The cultural affinity is outstanding, and that was super helpful to see because I think it's going to make our integration efforts go well. Second was I noted that we brought a couple of CMC product experts, and there was a tremendous amount of discussion around kind of different opportunities that we and CP&P have together, and a lot of excitement around that. So that was also super encouraging because it kind of validates the part of our investment thesis. In terms of the synergies, we are. I would say the work we've done so far leads us to believe that we're very confident that we can get the synergies. What I would say is that it's early to speculate on the timing, and I wouldn't want to accelerate what we've said in the past, but we're very confident the synergies are there, if not more.

Which we believe it will. Then, uh, I think it's fair to say that, um, you know, there's going to be uh, there's going to be plenty of plenty of demand to absorb any new Supply that comes into the market. So we feel good about that. Um, getting to your question on margins. So in Q2, uh, we would expect Mill margins. So our steel product margins to be flattish. Um, and

We have been really, uh, very pleasantly, uh, surprised with, uh, with everything that we've seen. Um, and, uh, I wouldn't say there's anything that's really come up that we weren't expecting, uh, on the negative side. And I'd say there are a number of things that are on the positive side that we've seen. And let me just give you a, a little story from, um, one of my, uh, trips. I went to a CPMP off-site and it was a gathering of probably a hundred folks from CPMP, and then a couple of product experts from CMC. Um, and two remarks I'd make that were, I think, super gratifying. Um, as the, you know, kind of new owner of the business, first is, uh, in the room, you could have been in a room with CMC folks. It would— the, the cultural affinity is outstanding, um, and, uh, and that was super, uh, helpful to see because I think it's going to make our integration efforts, uh,

They've, uh, taking into account. The fact that we do expect to realize all of the November uh November uh $30 price increase. Um and and but we also have seasonally stronger scrap um in in uh in this period and and that will offset some of that. And in our Downstream, we could see

Integration efforts go well um second was I noted that we brought a couple of CMC product experts, um, and there was a tremendous amount of discussion around, uh, you know, kind of different opportunities that we and cpmp have together and a lot of excitement around that. So that was also super encouraging because it kind of validates the, uh, uh, part of our investment thesis. Uh, in terms of the synergies, we are, um, I would say, the work we've done so far. Uh, leads us to believe that we, we're very confident that we that we can get the synergies. Uh, what I would say is that, uh, it's early to, to speculate on the timing. And I wouldn't want to accelerate, uh, what we've said in the past, but we're very confident. The, the synergies are there. If not more,

Peter Matt: Okay, thank you for that. Maybe my second question is on the North American metal margins, which are currently at three-year highs. Can you maybe talk about how you see this margin sustain or improve in the coming quarters given the context that we expect some new supply to come into the market? Yeah, maybe I'll start on this going backwards and commenting on the new supply. So there's been a lot of talk about the new supply, and yes, there is new supply coming into the market. I think we've been consistent in saying that we're not overly concerned by the new supply, and that's particularly true in the current context where you've got much lower imports than we've had in previous years. So based on the level of demand as it is today, we feel comfortable that the marketplace can absorb the new supply as it comes in.

Sathish Kasinathan: Okay, thank you for that. Maybe my second question is on the North American metal margins, which are currently at three-year highs. Can you maybe talk about how you see this margin sustain or improve in the coming quarters given the context that we expect some new supply to come into the market?

margins in a sustainable way, uh, across our business and

Peter Matt: Yeah, maybe I'll start on this going backwards and commenting on the new supply. So there's been a lot of talk about the new supply, and yes, there is new supply coming into the market. I think we've been consistent in saying that we're not overly concerned by the new supply, and that's particularly true in the current context where you've got much lower imports than we've had in previous years. So based on the level of demand as it is today, we feel comfortable that the marketplace can absorb the new supply as it comes in.

Um, okay, thank you, thank you for that. Um, uh, maybe, um, uh, my second question is on the North American metal margins, which are currently at three-year highs. Um, can you maybe talk about how you see this margin sustain or improve, um, in the coming quarters, given the context that, uh, we expect some new supply to come into the market?

Yeah, um, maybe I'll start on this, uh, going backwards and commenting on the new supply. So, um, you know, there's been a lot of, uh, talk about the new supply and, and yes, there is new supply coming into the market. I think we've been consistent,

What? Uh and and we expect that some of that tag contribution is going to come in the form of benefiting metal margins uh as we go forward. So we're very excited about about that and I think uh, as we go into the back half, you know, there's been a a merchant price increase, uh, $50 a ton. We should see a little bit of that in the second quarter. But really, most of it is going to be in the back uh, 2 quarters. And and uh, any other pricing actions will really set us up for a strong uh back half of of uh 2026.

Okay, thank you. I appreciate the color.

Thank you.

The next question will come from catcha Jenik with the BMO Capital markets. Please go ahead.

Hi. And a Happy New Year to everyone.

Peter Matt: If demand gets stronger, which we believe it will, then I think it's fair to say that there's going to be plenty of demand to absorb any new supply that comes into the market. So we feel good about that. Getting to your question on margins, in Q2, we would expect mill margins, our steel product margins, to be flattish, and that is taking into account the fact that we do expect to realize all of the November $30 price increase, but we also have seasonally stronger scrap in this period, and that will offset some of that. In our downstream, we could see; I think we think it's going to be flat to, could be slightly down given kind of the raw material path through to the fabrication business.

If demand gets stronger, which we believe it will, then I think it's fair to say that there's going to be plenty of demand to absorb any new supply that comes into the market. So we feel good about that. Getting to your question on margins, in Q2, we would expect mill margins, our steel product margins, to be flattish, and that is taking into account the fact that we do expect to realize all of the November $30 price increase, but we also have seasonally stronger scrap in this period, and that will offset some of that. In our downstream, we could see; I think we think it's going to be flat to, could be slightly down given kind of the raw material path through to the fabrication business.

Maybe staying on the more near term, so you expect seasonally volumes to be impacted by seasonality. But can you talk a little bit about what that actually means? Because it seems that so far. We haven't really seen a material impact from seasonality.

Yeah, it's a, it's a, it's a great Point. Um, we did have a stronger volumes than we, uh, honestly than we expected in the, in the first quarter.

Which we believe it will. Then, uh, I think it's fair to say that, um, you know, there's going to be, uh, there's going to be plenty of, plenty of demand to absorb any new supply that comes into the market. So we feel good about that. Um, getting to your question on margins—so, in Q2, uh, we would expect mill margins, so our steel product margins, to be flattish. Um, and

But going into the second quarter. Uh, we are expecting kind of typical seasonality. Um, and remember in the second quarter, we've got the winter conditions construction slows down, and typically there's been a, you know, going Q, uh, 1 to Q2 there's a 5 to 10 percent decline, we'd expect to be, um, in that range. Uh, but I will acknowledge that, uh, you know, the the uh, volumes have been stronger, uh, here to 4.

Peter Matt: But as we go forward, I think the shape of the margins is really going to depend on a couple of factors. One is obviously the supply-demand that emerges in the marketplace, and the second is really our TAG initiative. And I think this is an important point to make on TAG because TAG is all about growing margins in a sustainable way across our business, and we expect that some of that TAG contribution is going to come in the form of benefiting metal margins as we go forward. So we're very excited about that, and I think as we go into the back half, you know there's been a merchant price increase, $50 a ton.

But as we go forward, I think the shape of the margins is really going to depend on a couple of factors. One is obviously the supply-demand that emerges in the marketplace, and the second is really our TAG initiative. And I think this is an important point to make on TAG because TAG is all about growing margins in a sustainable way across our business, and we expect that some of that TAG contribution is going to come in the form of benefiting metal margins as we go forward. So we're very excited about that, and I think as we go into the back half, you know there's been a merchant price increase, $50 a ton.

And and then maybe on the West Virginia, uh, Mill. Can you update us? What the plan? The ramp up plan, there is

Yeah. Um, we're

We also have seasonally stronger scrap um in in uh in this period and and that will offset some of that. And in our Downstream we could see. I think we think it's going to be flat to, uh, could be slightly down. Given the, you know, kind of the raw material passed through to the fabrication business. But as we go forward, uh, I think the shape of the, of the margins is really going to depend on a couple of factors. 1 is obviously the supply demand, uh, that emerges in the marketplace and the second is, uh, really our tag initiative. Um, and I think this is an important point to make on tag because, uh, you know, tag is all about growing margins in a sustainable way, uh, across our business and

We're super excited about that. We're, uh, you know, you start 1 of these projects and, and it seems like a long way off and now, uh, you know, kind of, we're within 6 months of the startup. So we've actually started some of the cold commissioning already. Um, the hot commissioning, which is, you know, the official startup is as Paul noted uh likely to begin or or will begin in uh in June of this year. Um and we feel really good about it and and just to comment on West, Virginia,

Peter Matt: We should see a little bit of that in the second quarter, but really most of it is going to be in the back two quarters, and any other pricing actions will really set us up for a strong back half of 2026. Okay, thank you. I appreciate the color. Thank you. The next question will come from Katja Jancic with BMO Capital Markets. Please go ahead. Hi, and a happy New Year to everyone. Maybe staying on the more near term, so you expect seasonal volumes to be impacted by seasonality, but can you talk a little bit about what that actually means? Because it seems that so far we haven't really seen a material impact from seasonality. Yeah, it's a great point.

We should see a little bit of that in the second quarter, but really most of it is going to be in the back two quarters, and any other pricing actions will really set us up for a strong back half of 2026.

Sathish Kasinathan: Okay, thank you. I appreciate the color.

Peter Matt: Thank you.

Operator: The next question will come from Katja Jancic with BMO Capital Markets. Please go ahead.

Okay, thank you. I appreciate the color.

Thank you.

Katja Jancic: Hi, and a happy New Year to everyone. Maybe staying on the more near term, so you expect seasonal volumes to be impacted by seasonality, but can you talk a little bit about what that actually means? Because it seems that so far we haven't really seen a material impact from seasonality.

The next question will come from Katya Jenik with BMO Capital Markets. Please go ahead.

Hi, and a Happy New Year to everyone.

You know, give him the market conditions. We, we couldn't be bringing that on, at a better time. Um, but the other thing I think that really Bears note, uh, is the fact that we are bringing this project in on budget. Um, and I have to say hats off to the whole West Virginia team for the incredible Capital discipline that they've shown in this in this uh, this project. You know, these are these are Big dollar expenditures, you know, we're spending over 600 million dollars on this on this project and, um, uh, there's a lot of examples of projects that are are kind of over budget and uh, thanks to the discipline that everyone's shown. We've we've managed to bring it in and ultimately that helps us from roic perspective, which, you know, is a, a critical objective for us to improve

Maybe staying on the more near-term. So you expect, seasonally, volumes to be—

Peter Matt: Yeah, it's a great point.

Impacted by seasonality. But can you talk a little bit about what that actually means? Because it seems that, so far, we haven't really seen a material impact from seasonality.

Yeah. So

Peter Matt: We did have stronger volumes than we, honestly, than we expected in the first quarter, but going into the second quarter, we are expecting kind of typical seasonality. Remember, in the second quarter, we've got the winter conditions, construction slows down, and typically there's been, going Q1 to Q2, a 5% to 10% decline, and we'd expect to be in that range. But I will acknowledge that the volumes have been stronger heretofore. Then maybe on the West Virginia mill, can you update us what the plan, the ramp-up plan there is? Yeah, we're super excited about that. You start one of these projects, and it seems like a long way off, and now kind of we're within six months of the startup. So we've actually started some of the cold commissioning already.

We did have stronger volumes than we, honestly, than we expected in the first quarter, but going into the second quarter, we are expecting kind of typical seasonality. Remember, in the second quarter, we've got the winter conditions, construction slows down, and typically there's been, going Q1 to Q2, a 5% to 10% decline, and we'd expect to be in that range. But I will acknowledge that the volumes have been stronger heretofore.

Um, we did have a stronger volume than we, uh, honestly than we expected in the first quarter.

Gotcha. The only thing I would add to, uh, to Peter's comments is, is just recall from a startup perspective. This is a rebar only, uh, Mill different from, uh, Arizona, 2 and so, typically based on our other rebar, only Mills in the fact that this is not near the degree of new technology being introduced as uh as with A2. We would expect to ramp the operation up over uh over the following 12 months once we uh meet that uh hot commissioning startup

Perfect. Thank you. Thank you ka.

The next question will come from Tristan gresser with BNP, parabas? Please go ahead.

Katja Jancic: Then maybe on the West Virginia mill, can you update us what the plan, the ramp-up plan there is?

But going into the second quarter. Uh, we are expecting kind of typical seasonality. Um, and remember in the second quarter, we've got the winter conditions construction slows down and typically there's been a, you know, going Q, uh, 1 to Q2 there's a 5 to 10 percent Decline and we'd expect to be, um, in that range. Uh, but I will acknowledge that, uh, you know, the the uh, volumes have been stronger, uh, here to 4.

Peter Matt: Yeah, we're super excited about that. You start one of these projects, and it seems like a long way off, and now kind of we're within six months of the startup. So we've actually started some of the cold commissioning already.

And then maybe on the West Virginia—uh, Mel, can you update us on what the plan is? The ramp-up plan there?

Peter Matt: The hot commissioning, which is the official startup, is, as Paul noted, likely to begin or will begin in June of this year. We feel really good about it. Just to comment on West Virginia, given the market conditions, we couldn't be bringing that on at a better time. But the other thing I think that really bears note is the fact that we are bringing this project in on budget. I have to say hats off to the whole West Virginia team for the incredible capital discipline that they've shown in this project. These are big dollar expenditures. You know we're spending over $600 million on this project, and there's a lot of examples of projects that are kind of over budget.

The hot commissioning, which is the official startup, is, as Paul noted, likely to begin or will begin in June of this year. We feel really good about it. Just to comment on West Virginia, given the market conditions, we couldn't be bringing that on at a better time. But the other thing I think that really bears note is the fact that we are bringing this project in on budget. I have to say hats off to the whole West Virginia team for the incredible capital discipline that they've shown in this project. These are big dollar expenditures. You know we're spending over $600 million on this project, and there's a lot of examples of projects that are kind of over budget.

Yes. Hi, thank you for taking my questions. Uh, the first 1 is, um, on the all the EBG, um, division. Uh, if you can talk a little bit about the look for physical Q2, um, also more specifically, what kind of seasonality usually do you see on on the pre-cast business? Uh, is it fair to assume a normalized? A bit de quarterly run rate for pre-cast and add a bit of? Uh, I mean, because tensor has been pretty strong as well. So I would assume maybe, um, a bit stronger on that division. But, yeah, would love to have your your thought on that. Yeah. So,

Yeah, um, we're super excited about that. We're uh, you know, you start 1 of these projects and, and it seems like a long way off and now, uh, you know, kind of, we're within 6 months of the startup. So we've actually started some of the cold commissioning already. Um, the hot commissioning, which is, you know, the official startup is as Paul noted uh likely to begin or or will begin in uh in June of this year. Um and we feel really good about it and and just to comment on West, Virginia,

Ality in that business. It's you know, as we noted in the uh, prepared remarks, a substantial portion of that the most, The Lion Share of that is going into construction markets. So

Peter Matt: And thanks to the discipline that everyone's shown, we've managed to bring it in, and ultimately that helps us from an ROIC perspective, which you know is a critical objective for us to improve. Gotcha. The only thing I would add to Peter's comments is just recall from a startup perspective, this is a rebar-only mill, different from Arizona 2. And so typically, based on our other rebar-only mills and the fact that this is not near the degree of new technology being introduced as with AZ 2, we would expect to ramp the operation up over the following 12 months once we meet that hot commissioning startup. Perfect. Thank you. Thank you, Katja. The next question will come from Tristan Gresser with BNP Paribas. Please go ahead. Yes, hi. Thank you for taking my questions. The first one is on the old EBG division.

And thanks to the discipline that everyone's shown, we've managed to bring it in, and ultimately that helps us from an ROIC perspective, which you know is a critical objective for us to improve.

Seasonality is, is definitely a factor in our Q2 is the weakest period. Um, and I should note that, uh, tents are in particular with ground stabilization is the is, uh, kind of the, the most seasonal, um, as we, uh, as we look at at at that business from year to year. So I think you can expect uh, normal uh Q2 seasonality in that um, pre-cast. So, in our pre-cast business, we think that will largely follow the seasonality that we have in, in our business overall

Paul Lawrence: Gotcha. The only thing I would add to Peter's comments is just recall from a startup perspective, this is a rebar-only mill, different from Arizona 2. And so typically, based on our other rebar-only mills and the fact that this is not near the degree of new technology being introduced as with AZ 2, we would expect to ramp the operation up over the following 12 months once we meet that hot commissioning startup.

You know, given the market conditions, we, we couldn't be bringing that on at a better time. Um, but the other thing I think that really Bears note, uh, is the fact that we are bringing this project in on budget. Um, and I have to say hats off to the whole West Virginia team for the incredible Capital discipline that they've shown in this in this uh, this project. Do, you know, these are these are Big dollar expenditures, you know, where spending over million dollars on this, on this project. And, um, uh, there's a lot of examples of projects that are are kind of over budget and uh, thanks to the discipline that everyone's shown. We've we've managed to bring it in and ultimately that helps us from roic perspective which, you know, is a critical objective for us to improve

um and what I mean by that is our steel business overall, um typically uh you've got in the in the um

Katja Jancic: Perfect. Thank you.

Gotcha. The only thing I would add to to Peter's comments is, is just recall from a startup perspective. This is a rebar only, uh, Mill different from Arizona 2. And so, typically based on our other rebar, only Mills in the fact that this is not near the degree of new technology being introduced as uh, as with A2. We would expect to ramp the operation up over. Uh, over over the following 12 months, once we uh meet that uh hot commissioning startup

Peter Matt: Thank you, Katja.

Operator: The next question will come from Tristan Gresser with BNP Paribas. Please go ahead.

Perfect, thank you.

Winter months. You've got a, a reduction in the amount of activity that you see, and we expect that to be the case, too. So um, this is maybe not part of your question but I'll I'll go to it directly to say we expect in the second quarter, the pre-cast business to contribute about 30 million dollars of ebita roughly speaking. Um, which will seem lighter and that goes entirely to seasonality. And as Paul noted, um, in his comments, the the backlogs that we're seeing are very strong. They're stronger than last year.

Thank you ka.

Tristan Gresser: Yes, hi. Thank you for taking my questions. The first one is on the old EBG division.

The next question will come from Tristan Greer with BNP Paribas, please. Go ahead.

Um and so we feel very good about uh the prospects for that business going uh into our ownership in 26.

Peter Matt: If you can talk a little bit about the outlook for fiscal Q2, also more specifically, what kind of seasonality usually do you see on the precast business? Is it fair to assume a normalized EBITDA quarterly run rate for precast and add a bit of, I mean, because Tensar has been pretty strong as well? So I would assume maybe a bit stronger on that division, but yeah, would love to have your thoughts on that. Yeah, so thank you for the question, Tristan. So EBG, typically, as we've said before, there is absolutely seasonality in that business. As we noted in the prepared remarks, a substantial portion of that, the lion's share of that, is going into construction markets. So seasonality is definitely a factor, and our Q2 is the weakest period.

If you can talk a little bit about the outlook for fiscal Q2, also more specifically, what kind of seasonality usually do you see on the precast business? Is it fair to assume a normalized EBITDA quarterly run rate for precast and add a bit of, I mean, because Tensar has been pretty strong as well? So I would assume maybe a bit stronger on that division, but yeah, would love to have your thoughts on that.

All right. No that's uh, that's very clear and uh, going back to your prepared remarks on uh, scrap sorting. Um how much of of a benefit it's been, can you give us some numbers and what you've been doing? And how has it changed today versus what what you used to do in the past in terms of using glass scrap and varying the the quality of the scrap uh any any color there would be would also be great. Yeah we I mean

Peter Matt: Yeah, so thank you for the question, Tristan. So EBG, typically, as we've said before, there is absolutely seasonality in that business. As we noted in the prepared remarks, a substantial portion of that, the lion's share of that, is going into construction markets. So seasonality is definitely a factor, and our Q2 is the weakest period.

With any, um, additional comments. But, um, I guess what, I'd, I'd start by first saying, is that, uh, in the past, we talked about, uh, the scrap optimization being a, I think a was a 5 to 10 million dollar opportunity, um, and that has grown substantially. Uh, and I think the, the key point is, is that we started out in a couple of Mills and now we're pushing it to other Mills. So we're getting the benefit of our our, uh, a broader footprint.

Peter Matt: And I should note that Tensar in particular, with ground stabilization, is kind of the most seasonal as we look at that business from year to year. So I think you can expect normal Q2 seasonality in that. Precast, so in our precast business, we think that will largely follow the seasonality that we have in our business overall. And what I mean by that is our steel business overall. Typically, you've got in the winter months, you've got a reduction in the amount of activity that you see, and we expect that to be the case too. So this is maybe not part of your question, but I'll go to it directly to say we expect in the second quarter the precast business to contribute about $30 million of EBITDA, roughly speaking, which will seem lighter, and that goes entirely to seasonality.

And I should note that Tensar in particular, with ground stabilization, is kind of the most seasonal as we look at that business from year to year. So I think you can expect normal Q2 seasonality in that. Precast, so in our precast business, we think that will largely follow the seasonality that we have in our business overall. And what I mean by that is our steel business overall. Typically, you've got in the winter months, you've got a reduction in the amount of activity that you see, and we expect that to be the case too. So this is maybe not part of your question, but I'll go to it directly to say we expect in the second quarter the precast business to contribute about $30 million of EBITDA, roughly speaking, which will seem lighter, and that goes entirely to seasonality.

And there are 2 points as you as you said 1 is um in the quality of the scrap. We've done a tremendous amount of work in uh, in the quality of the scrap. And we've identified places where. For example, we're using a lot more shred than we need to use, so we can cut back on the shred and that obviously, you know, kind of reduces

Seasonality is, is definitely a factor in our Q2 is the weakest period. Um, and I should note that, uh, tents are in particular with ground stabilization is the is, uh, kind of the, the most seasonal, um, as we, uh, as we look at at at that business from year to year. So I think you can expect uh, normal uh Q2 seasonality in that um pre-cast. So in our pre-cast business, we think that will largely follow the seasonality that we have in.

Uh, scrap costs and so forth. Um, we've also done a tremendous amount of work on yield, um, and that has helped us a lot in terms of uh obviously using less scrap to produce the tons that uh and sell the tons that we want to want to produce and sell.

In our business overall—um, and what I mean by that is our steel business overall—um, typically, uh, you've got in the, in the, um,

Peter Matt: And as Paul noted in his comments, the backlogs that we're seeing are very strong. They're stronger than last year, and so we feel very good about the prospects for that business going into our ownership in 2026. All right. No, that's very clear. And going back to your prepared remarks on scrap sorting, how much of a benefit it's been, and can you give us some numbers in what you've been doing and how has it changed today versus what you used to do in the past in terms of using less scrap and varying the quality of the scrap? Any color there would also be great. Yeah, I mean, I'll start, and then Paul can jump in with any additional comments.

And as Paul noted in his comments, the backlogs that we're seeing are very strong. They're stronger than last year, and so we feel very good about the prospects for that business going into our ownership in 2026.

Tristan Gresser: All right. No, that's very clear. And going back to your prepared remarks on scrap sorting, how much of a benefit it's been, and can you give us some numbers in what you've been doing and how has it changed today versus what you used to do in the past in terms of using less scrap and varying the quality of the scrap? Any color there would also be great.

Winter months. You've got a, a reduction in the amount of activity that you see, and we expect that to be the case, too. So um, this is maybe not part of your question but I'll I'll go to it directly to say we expect in the second quarter, the pre-cast business to contribute about 30 million of ebit. Da roughly speaking, um, which will seem lighter and that goes entirely to seasonality. And as Paul noted, um, in his comments, the the backlogs that we're seeing are very strong. They're stronger than last year. Um, and so we feel very good about uh, the prospects for that business going, uh, into our ownership in 26.

All anything to the, the only thing I would add Tristan is, you know, as, as we've noted, uh, what we achieved last year, was approximately 50 million from from tag. And I would say those 2 initiatives just given the dollars involved that, uh, that Peter outlined probably were near half of the, uh, the the, the the the realization that we had last year and, and as, as Peter said, those were on, you know, piloting, the uh, initiatives in a few locations and growing throughout uh, both 25 and 26 and incremental uh, number of Mills to get it across the entire platform. And so, we are very excited about the opportunity of those. Uh, those initiatives to continue to contribute uh well to our business 1 thing, that's maybe worthy of an additional comment. Visa V tag is. Um and this goes for a lot of our tag initiatives. You know what we've found is that on something like scrap optimization? It started out in 1 mil, uh and then you start to see

these real benefits in the mail and of course, every male manager wants to run their mail as well as they possibly can, so there's been

Peter Matt: Yeah, I mean, I'll start, and then Paul can jump in with any additional comments.

All right. No, that's uh, that's very clear and, and, uh, going back to your report remarks on, uh, scrap sorting, um, how much of of a benefit it's been and can you give us some numbers and what you've been doing? And how has it changed today versus what what you used to do in the past? In terms of using less scrap and varying the the quality of the scrap, uh any any color there would be

Peter Matt: But I guess what I'd start by first saying is that in the past, we talked about the scrap optimization being, I think it was a $5 to $10 million opportunity, and that has grown substantially. I think the key point is that we started out in a couple of mills, and now we're pushing it to other mills. So we're getting the benefit across a broader footprint. And there are two points, as you said. One is in the quality of the scrap. We've done a tremendous amount of work in the quality of the scrap, and we've identified places where, for example, we're using a lot more shred than we need to use. So we can cut back on the shred, and that obviously kind of reduces scrap costs and so forth.

But I guess what I'd start by first saying is that in the past, we talked about the scrap optimization being, I think it was a $5 to $10 million opportunity, and that has grown substantially. I think the key point is that we started out in a couple of mills, and now we're pushing it to other mills. So we're getting the benefit across a broader footprint. And there are two points, as you said. One is in the quality of the scrap. We've done a tremendous amount of work in the quality of the scrap, and we've identified places where, for example, we're using a lot more shred than we need to use. So we can cut back on the shred, and that obviously kind of reduces scrap costs and so forth.

Also be great. Yeah, we I mean, we all start and then Paul can jump in with any, um, additional comments. But, um, I guess what, I'd, I'd start by first saying, is that, uh, in the past, we talked about, uh, the scrap optimization being a, I think of it was a 5 to 10 million dollar opportunity, um and that has grown substantially. Uh, and I think the the key point is, is that we started out in a couple mils and now we're pushing it to other Mills. So we're getting the benefit of our our uh, a broader footprint.

Peter Matt: We've also done a tremendous amount of work on yield, and that has helped us a lot in terms of obviously using less scrap to produce the tons and sell the tons that we want to produce and sell. Paul, anything to? The only thing I would add, Tristan, is as we've noted, what we achieved last year was approximately $50 million from TAG. And I would say those two initiatives, just given the dollars involved that Peter outlined, probably were near half of the realization that we had last year. And as Peter said, those were on piloting the initiatives in a few locations and growing throughout both 2025 and 2026, an incremental number of mills to get it across the entire platform. And so we are very excited about the opportunity of those initiatives to continue to contribute well to our business.

We've also done a tremendous amount of work on yield, and that has helped us a lot in terms of obviously using less scrap to produce the tons and sell the tons that we want to produce and sell. Paul, anything to?

How this can be really a game changer. Um, and as we've talked about in the past, again, the goal is long-term sustainable, margin improvement, over what we would be otherwise, right? So, if, uh, X was our historical, our historical margin, we want to be at X Plus Y. And, uh, we're working internally on some tools to help you all Define that. But but we believe that there is through tag the opportunity to make our business, uh, durably better. And, uh, and, and I think that's, uh, that'll be a really important, contributor to, to value.

All right. Now that's uh, that's very helpful and interesting. Thank you.

Thank you.

And there are 2 points as you as you said 1 is um, in the quality of the scrap. We've done a tremendous amount of work in, uh, in the quality of the scrap and we've identified places where. For example, we're using a lot more shred than we need to use. So we can cut back on the shred and that obviously, you know, kind of reduces, uh, scrap costs and so forth. Um, we've also done a tremendous amount of work on yield, um, and that has helped us a lot in terms of uh obviously using less scrap to produce the tons that uh and sell the tons that we want to want to produce and sell.

Paul Lawrence: The only thing I would add, Tristan, is as we've noted, what we achieved last year was approximately $50 million from TAG. And I would say those two initiatives, just given the dollars involved that Peter outlined, probably were near half of the realization that we had last year. And as Peter said, those were on piloting the initiatives in a few locations and growing throughout both 2025 and 2026, an incremental number of mills to get it across the entire platform. And so we are very excited about the opportunity of those initiatives to continue to contribute well to our business.

The next question will come from Alex hacking with City. Please go ahead.

Yeah, hi thanks. Uh, good morning. Happy New Year, everyone.

I guess the first question, you know, you mentioned the uh,

Increased commercial selectivity in rebar Fab and and part of that was about reducing risk.

Has cancer. Risks been rising. And and is there a reason why? Thanks

Why why reduce what let me just make sure. I understand your question. Why were addressing that point?

sorry, the question was, um, has counterparty risks been rising and

And why it's counterparty risks, and Rising. If it has been rising, yeah, I wouldn't say it's

Peter Matt: One thing that's maybe worthy of an additional comment vis-à-vis TAG is, and this goes for a lot of our TAG initiatives, what we've found is that on something like scrap optimization, it started out in one mill, and then you start to see these real benefits in the mill. Of course, every mill manager wants to run their mill as well as they possibly can. So there's been this kind of compounding effect as more of the mills take it on and bring it into full bloom. That's, I think, a characteristic of the TAG program in general. One of the things that we're super excited about, we see new initiatives coming in and sizable new initiatives coming in. We got to build charters and plans around these different initiatives, but you can see how this can be really a game changer.

One thing that's maybe worthy of an additional comment vis-à-vis TAG is, and this goes for a lot of our TAG initiatives, what we've found is that on something like scrap optimization, it started out in one mill, and then you start to see these real benefits in the mill. Of course, every mill manager wants to run their mill as well as they possibly can. So there's been this kind of compounding effect as more of the mills take it on and bring it into full bloom. That's, I think, a characteristic of the TAG program in general. One of the things that we're super excited about, we see new initiatives coming in and sizable new initiatives coming in. We got to build charters and plans around these different initiatives, but you can see how this can be really a game changer.

I would say this is,

That we are looking to reduce in the portfolio. And we're at manifests itself is Alex's, um,

What we found is that on something like scrap optimization, it started out in one mill, uh, and then you start to see these real benefits in the mill. And, of course, every mill manager wants to run their mill as well as they possibly can. So there's been

Peter Matt: And as we've talked about in the past, again, the goal is long-term sustainable margin improvement over what we would be otherwise, right? So if X was our historical margin, we want to be at X plus Y. And we're working internally on some tools to help you all define that, but we believe that there is, through TAG, the opportunity to make our business durably better. And I think that'll be a really important contributor to value. All right. No, that's very helpful and interesting. Thank you. Thank you. The next question will come from Alex Hacking with Citi. Please go ahead. Yeah, hi. Thanks. Good morning. Happy New Year, everyone. I guess first question, you mentioned increased commercial selectivity in rebar fab, and part of that was about reducing risk. Has counterparty risk been rising, and is there a reason why? Thanks.

And as we've talked about in the past, again, the goal is long-term sustainable margin improvement over what we would be otherwise, right? So if X was our historical margin, we want to be at X plus Y. And we're working internally on some tools to help you all define that, but we believe that there is, through TAG, the opportunity to make our business durably better. And I think that'll be a really important contributor to value.

In our fabrication business, and some of the, uh, contracts will be asked to do longer term jobs. Uh, and a lot of times those longer term jobs can be at a fixed price, and of course, our raw material inputs, uh, can change. So, you can get out 2 years or 3 years, uh, and there have been some instances with this company in the past and I'm sure others, uh, where you get, you can get upside down on a project. And what we're trying to do is to, uh, reduce that risk by making sure, either through, uh, proper escalators, uh, proper indexing that we are being compensated for that risk. So that again, it goes back to the roic point. That in any environment, we are generating a good return on the capital that we, we put in, which is, you know, substantial in a business like this.

this, uh, kind of compounding effect as, uh, more of the Mills. Uh, take it on and, and bring it into into full bloom. So, and that's, I think a characteristic of, of, uh, the tag program in general and 1 of the things that we're super excited, about we see, uh, new initiatives coming in and, you know, sizeable new initiatives coming in and we got a build, uh, Charters and plans around these different initiatives, but you can see how this can be really a game changer. Um, and as we've talked about in the past, again, the goal is long-term sustainable, margin improvement, over what we would be otherwise, right? So, if, uh, X was our historical, our historical margin, we want to be at X Plus Y. And uh, we're working internally on some tools to help you all Define that. But but we believe that there is through tag the opportunity to make our business, uh, durably better.

Tristan Gresser: All right. No, that's very helpful and interesting. Thank you.

And, uh, and, and, and I think that's, uh, that'll be a really important contributor to, to value.

And I just to reiterate uh and make sure it's clear. You know, counterparty risk. We have historically never had an experience of significant uh, counterparty risk. And nor do we see that really going forward with the structure of how the construction contracts are. Uh, are are written. Uh, this is all about reducing the risk as Peter said around, uh, margin preservation and ensuring we're getting a good margin on the job.

Paul Lawrence: Thank you.

Operator: The next question will come from Alex Hacking with Citi. Please go ahead.

All right. Now, that's very helpful and interesting. Thank you.

Thank you.

Oh, I get it. Thanks for the clarification. I guess. I I'm misinterpreted um,

Alex Hacking: Yeah, hi. Thanks. Good morning. Happy New Year, everyone. I guess first question, you mentioned increased commercial selectivity in rebar fab, and part of that was about reducing risk. Has counterparty risk been rising, and is there a reason why? Thanks.

The next question will come from Alex Hacking with Citi. Please go ahead.

and then on your uh, you know, as you mentioned the importers

You know, have been getting ahead of cbam.

Yeah. Hi, thanks. Good morning. Happy New Year, everyone.

I guess, first question—you know, you mentioned, uh,

Increase commercial selectivity in rebuff Fab, and part of that was about reducing risk.

Have calcified the risks been rising, and is there a reason why? Thanks.

Peter Matt: Let me just make sure I understand your question. Why we're addressing that point? Sorry. The question was, has counterparty risk been rising, and why has counterparty risk been rising, if it has been rising? Yeah, I wouldn't say it's been rising. I would say this is a risk that we have taken historically that we are looking to reduce in the portfolio. And where it manifests itself is, Alex, in our fabrication business, in some of the contracts, we'll be asked to do longer-term jobs. And a lot of times, those longer-term jobs can be at a fixed price. And of course, our raw material inputs can change. So you can get out two years or three years, and there have been some instances with this company in the past, and I'm sure others, where you can get upside down on a project.

Peter Matt: Let me just make sure I understand your question. Why we're addressing that point?

What, what?

Let me just make sure I understand your question. Why were we addressing that point?

Alex Hacking: Sorry. The question was, has counterparty risk been rising, and why has counterparty risk been rising, if it has been rising?

How I mean do you have any idea like how long it could? How many quarters it could take for, for prices in Europe? To stop benefiting from from cbam. Thanks. Yeah. Um, so again, it took effect January 1, um, and uh, our read on the situation is for certain importers, the average impact on them could be 50 euros a ton

Sorry, the question was, um, has counterparty risk been rising, and—

Peter Matt: Yeah, I wouldn't say it's been rising. I would say this is a risk that we have taken historically that we are looking to reduce in the portfolio. And where it manifests itself is, Alex, in our fabrication business, in some of the contracts, we'll be asked to do longer-term jobs. And a lot of times, those longer-term jobs can be at a fixed price. And of course, our raw material inputs can change. So you can get out two years or three years, and there have been some instances with this company in the past, and I'm sure others, where you can get upside down on a project.

Uh, and, and for, uh, for many of them, it could be higher initially because they have to be qualified to get to the 50 year, olds a ton and before they're qualified. There's a default rate that's even higher. Um, so

And why it's counterparty risks, and rising. If it has been rising—yeah, I wouldn't say it's been rising. I would say this is a risk that we have taken historically, that we are looking to reduce in the portfolio. And where it manifests itself is, Alex's, um,

Peter Matt: What we're trying to do is to reduce that risk by making sure either through proper escalators, proper indexing, that we are being compensated for that risk. So that, again, it goes back to the ROIC point, that in any environment, we are generating a good return on the capital that we put in, which is substantial in a business like this. Just to reiterate and make sure it's clear, counterparty risk, we have historically never had an experience of significant counterparty risk, and nor do we see that really going forward with the structure of how the construction contracts are written. This is all about reducing the risk, as Peter said, around margin preservation and ensuring we're getting a good margin on the job. Oh, I get it. Thanks for the clarification. I guess I misinterpreted.

What we're trying to do is to reduce that risk by making sure either through proper escalators, proper indexing, that we are being compensated for that risk. So that, again, it goes back to the ROIC point, that in any environment, we are generating a good return on the capital that we put in, which is substantial in a business like this.

Paul Lawrence: Just to reiterate and make sure it's clear, counterparty risk, we have historically never had an experience of significant counterparty risk, and nor do we see that really going forward with the structure of how the construction contracts are written. This is all about reducing the risk, as Peter said, around margin preservation and ensuring we're getting a good margin on the job.

And our fabrication business, and some of the, uh, contracts will be asked to do longer term jobs. Uh, and a lot of times those longer term jobs can be at a fixed price, and of course, our raw material inputs, uh, can change. So, you can get out 2 years or 3 years, uh, and there have been some instances with this company in the past and I'm sure others, uh, where you get, you can get upside down on a project. And what we're trying to do is to, uh, reduce that risk by making sure, either through, uh, proper escalators, uh, proper indexing that we are being compensated for that risk. So that again, it goes back to the roic point. That in any environment, we are generating a good return on the capital that we, we put in, which is, you know, substantial in a business like this.

Alex Hacking: Oh, I get it. Thanks for the clarification. I guess I misinterpreted.

The other thing too to note is that uh, in addition to the, to the, uh, cbam there is also this Safeguard mechanism that was renegotiated by the EU, um, and the Safeguard mechanism. Remember that's the effectively a quota system and in the revised safeguards the quotas are reduced by 50%. And the tariffs for being above the quotas, are increased by 50%, that should come into effect in the middle of the year. Uh, and that should be only additive to, uh, to the situation in Europe and just to frame it a little bit for you.

Peter Matt: And then on Europe, as you mentioned, importers have been getting ahead of CBAM. Do you have any idea how many quarters it could take for prices in Europe to stop benefiting from CBAM? Thanks. Yeah. So again, it took effect 1 January, and our read on the situation is for certain importers, the average impact on them could be €50 a ton. And for many of them, it could be higher initially because they have to be qualified to get to the €50 a ton. And before they're qualified, there's a default rate that's even higher. So this is going to play out over the course of calendar 2026.

And then on Europe, as you mentioned, importers have been getting ahead of CBAM. Do you have any idea how many quarters it could take for prices in Europe to stop benefiting from CBAM? Thanks.

Oh, I get it. Thanks for the clarification, I guess. I—I misinterpreted, um,

And then on your, uh, you know, as you mentioned, importers—

You know, have been getting ahead of CMC.

How—I mean, do you have any idea, like, how long it could take? How many quarters it could take?

Peter Matt: Yeah. So again, it took effect 1 January, and our read on the situation is for certain importers, the average impact on them could be €50 a ton. And for many of them, it could be higher initially because they have to be qualified to get to the €50 a ton. And before they're qualified, there's a default rate that's even higher. So this is going to play out over the course of calendar 2026.

For for prices in Europe. To start benefiting from from cbam, thanks. Yeah. Um, so again, it took effect January 1, um, and uh, our read on the situation is for certain importers, the average impact on them, could be 50 euros a ton

You know, if you think about, uh, our production capability in, uh, Poland. And you think about the 45 million dollars of, of CO2 credits. We get that's about 30 bucks a ton, uh, above our break, even operational performance today, uh, and then add 50 euros to that. All of the sudden, you start to get to, uh, numbers where we are running at levels at, or above, or through the cycle, uh, performance. So, uh, so again, this is not, uh, something that's going to happen overnight, but in addition, to all the other catalysts in Poland, I think it's reason for some real optimism.

Thanks, and best of luck.

Thank you.

The next question will come from timna Tanners with Wells. Fargo, please go ahead.

Uh, and, and for, uh, for many of them, it could be higher initially because they have to be qualified to get to the 50-year-olds a ton, and before they're qualified, there's a default rate that's even higher. Um, so

Peter Matt: I think it's fair to say you've probably noted in the import numbers that there was a kind of a large pre-buying of incremental tons coming into Europe that probably before CBAM, excuse me, that will probably delay the impact of the CBAM credit that we should be getting. But I do believe by the time we get to, we'll get a little bit of it in our Q2, and in our Q3 and Q4, we should see a substantial portion. And certainly, over the course of the year, the calendar year, it should roll in. The other thing to note is that in addition to the CBAM, there is also this safeguard mechanism that was renegotiated by the EU. And the safeguard mechanism, remember, that's effectively a quota system.

I think it's fair to say you've probably noted in the import numbers that there was a kind of a large pre-buying of incremental tons coming into Europe that probably before CBAM, excuse me, that will probably delay the impact of the CBAM credit that we should be getting. But I do believe by the time we get to, we'll get a little bit of it in our Q2, and in our Q3 and Q4, we should see a substantial portion. And certainly, over the course of the year, the calendar year, it should roll in. The other thing to note is that in addition to the CBAM, there is also this safeguard mechanism that was renegotiated by the EU. And the safeguard mechanism, remember, that's effectively a quota system.

Yeah. Hey good morning and happy New Year. Um I wanted to tear on my questions to trade. So um, you talked about the cban implications helping pricing but I think another aspect of cban is that it helps domestic uh producers in Europe. Perhaps take some market share. So curious about you know, what volume impact you might see there and then I have a follow up on the um us trade side.

Yep. Uh I think that's a it's a fair point that you're making. Um and uh and I think there are some volume opportunities. Uh, we we have been running at, I would say a relatively good rate of production recently, so I think there is some volume opportunity for us. Uh, but I wouldn't say it's it's huge at this point.

26. Uh, I think it's fair to say you've, you've probably noted in the import numbers that, uh, there was a large, there was a kind of a large pre-b, buyer of incremental, uh, tons coming into Europe that probably that, you know, before cbam excuse me, um, that that, uh, will probably delay the impact of of, uh, the cbam credit that, that that we should be back getting. But I do believe in the, by the time we get to the, we'll get a little bit of it in the, in the, our second quarter. And in our third, and fourth quarters, we should see a substantial portion and certainly over the course, of the year, uh, the calendar year, it should, it should roll in. Um, the other thing too to note is that, uh, in addition to the, to the, uh, cbam, there is also this Safeguard mechanism that was renegotiated by the EU, um, and the Safeguard mechanism. Remember that?

Peter Matt: In the revised safeguards, the quotas are reduced by 50%, and the tariffs for being above the quotas are increased by 50%. That should come into effect in the middle of the year, and that should be only additive to the situation in Europe. And just to frame it a little bit for you, if you think about our production capability in Poland and you think about the $45 million of CO2 credits we get, that's about 30 bucks a ton above our break-even operational performance today. And then add EUR 50 to that, all of a sudden, you start to get to numbers where we are running at levels at or above our through-the-cycle performance. So again, this is not something that's going to happen overnight, but in addition to all the other catalysts in Poland, I think it's reason for some real optimism. Thanks. Best of luck.

In the revised safeguards, the quotas are reduced by 50%, and the tariffs for being above the quotas are increased by 50%. That should come into effect in the middle of the year, and that should be only additive to the situation in Europe. And just to frame it a little bit for you, if you think about our production capability in Poland and you think about the $45 million of CO2 credits we get, that's about 30 bucks a ton above our break-even operational performance today. And then add EUR 50 to that, all of a sudden, you start to get to numbers where we are running at levels at or above our through-the-cycle performance. So again, this is not something that's going to happen overnight, but in addition to all the other catalysts in Poland, I think it's reason for some real optimism.

That's effectively a quota system. And in the revised safeguards, the quotas are reduced by 50%, and the tariffs for being above the quotas are increased by 50%. That should come into effect in the middle of the year. Uh, and that should be only additive to, uh, to the situation in Europe, and just to frame it a little bit for you.

Alex Hacking: Thanks. Best of luck.

Important, probably because of the filing of the case, even before any decision. Yeah, no. It's it's a great Point. We've definitely seen some pullback in the imports from those countries, and I'll just remind you and others that, uh, those countries in 2005, the the trade case, countries imported about 500,000 tons of of, of Steel into the into the US. So, uh, if there was an outcome, that's anything like, what we have on the Algeria case, unlimited ruling, I think that's going to be really helpful in terms of, uh, of keeping those Imports out of the country and remember, on those trade cases, these are 5-year, uh, terms on the before the sunset review. So it's a, it's quite a durable, uh, durable. Uh, point. I think to your question on Turkey, we have noticed that turkey has uh, as increased, their their shipments, um,

You know, if you think about, uh, our production capability in, uh, Poland. And you think about the 45 million dollars of, of CO2 credits. We get that's about 30 bucks a ton, uh, above our break, even operational performance today, uh, and then add 50 euros to that all the sudden, you start to get to, uh, numbers where we are running at levels at, or above, or through the cycle, uh, performance. So, uh, so again, this is not, uh, something that's going to happen overnight, but in addition, to all the other catalysts in Poland, I think it's reason for some real optimism.

Peter Matt: Thank you. The next question will come from Timna Tanners with Wells Fargo. Please go ahead. Yeah. Hey, good morning and happy New Year. I wanted to tailor my questions to trade. So you talked about the CBAM implications helping pricing, but I think another aspect of CBAM is that it helps domestic producers in Europe perhaps take some market share. So curious about what volume impact you might see there. And then I have a follow-up on the US trade side. Yep. I think that it's a fair point that you're making, and I think there are some volume opportunities. We have been running at, I would say, a relatively good rate of production recently. So I think there is some volume opportunity for us, but I wouldn't say it's huge at this point. Okay. Great. Second question.

Peter Matt: Thank you.

Operator: The next question will come from Timna Tanners with Wells Fargo. Please go ahead.

Thanks, and best of luck.

Thank you.

Timna Tanners: Yeah. Hey, good morning and happy New Year. I wanted to tailor my questions to trade. So you talked about the CBAM implications helping pricing, but I think another aspect of CBAM is that it helps domestic producers in Europe perhaps take some market share. So curious about what volume impact you might see there. And then I have a follow-up on the US trade side.

The next question will come from Timna Tanners with Wells Fargo. Please go ahead.

We'll have to watch that again in the context of of, uh, overall Imports today, we're not overly concerned about that, um, but again, we'll, we'll be watching that carefully, um, to see, uh, to make sure that it it, uh, to make sure that what they're importing, they're importing as a, a fair Trader.

Got it. Yeah it seems like Imports could take yet another leg down um but thanks for the color and all the best. Appreciate it. Thank you, Tim.

Peter Matt: Yep. I think that it's a fair point that you're making, and I think there are some volume opportunities. We have been running at, I would say, a relatively good rate of production recently. So I think there is some volume opportunity for us, but I wouldn't say it's huge at this point.

The next question will come from Bill Peterson with JP Morgan. Please go ahead.

Yeah, hey, good morning and happy New Year. Um, I wanted to turn to my questions on trade. So, um, you talked about the CBAM implications helping pricing, but I think another aspect of CBAM is that it helps domestic producers in Europe perhaps take some market share. So, curious about, you know, what volume impact you might see there? And then I have a follow-up on the US trade side.

Yeah, uh thanks everyone. Happy New Year and thanks for all the color on the call thus far. Um, wanted to ask about A2, how the ramp is progressed, how how the ramp progressed during the prior quarter and you know, what utilization you're running at and then how should we think about operations and utilize utilization ahead?

Timna Tanners: Okay. Great. Second question.

Peter Matt: On the US side, I know you mentioned, of course, Algeria, Bulgaria, Egypt, Vietnam. But if you look at the latest trade data, actually, imports are coming again from Turkey and from what I think Portugal and Spain. So just any thoughts on the Turkish side? And also, maybe Portugal and Spain keep more production domestic, and that falls off, but it does seem like the other countries before you mentioned are already shrunk in terms of importance, probably because of the filing of the case even before any decision. Yeah. No, it's a great point. We've definitely seen some pullback in the imports from those countries. And I'll just remind you and others that those countries in 2005, the trade case countries, imported about 500,000 tons of steel into the US.

On the US side, I know you mentioned, of course, Algeria, Bulgaria, Egypt, Vietnam. But if you look at the latest trade data, actually, imports are coming again from Turkey and from what I think Portugal and Spain. So just any thoughts on the Turkish side? And also, maybe Portugal and Spain keep more production domestic, and that falls off, but it does seem like the other countries before you mentioned are already shrunk in terms of importance, probably because of the filing of the case even before any decision.

Peter Matt: Yeah. No, it's a great point. We've definitely seen some pullback in the imports from those countries. And I'll just remind you and others that those countries in 2005, the trade case countries, imported about 500,000 tons of steel into the US.

And we were nicely profitable in the first quarter too, um, and we expect to be nicely profitable throughout the year there. Um, in terms of utilization rates we exited last year at about 60%. Um, we expect to demonstrate, uh, full run rate during our fiscal year 2026, um, but we don't expect to be at full run rate in 2026 and, and that is, uh, because we, uh, we still have a number of merchants specs that we've got to perfect and that's going to take some time and it'll Force us to run at, you know, kind of sub.

Peter Matt: So if there was an outcome that's anything like what we have on the Algeria case and a preliminary ruling, I think that's going to be really helpful in terms of keeping those imports out of the country. And remember, on those trade cases, these are five-year terms before the sunset review. So it's quite a durable point. I think to your question on Turkey, we have noticed that Turkey has increased their shipments. We'll have to watch that. Again, in the context of overall imports today, we're not overly concerned about that. But again, we'll be watching that carefully to make sure that what they're importing, they're importing as a fair trader. Got it. Yeah. It seems like imports could take yet another leg down. But thanks for the color and all the best. Appreciate it. Thank you, Timna.

So if there was an outcome that's anything like what we have on the Algeria case and a preliminary ruling, I think that's going to be really helpful in terms of keeping those imports out of the country. And remember, on those trade cases, these are five-year terms before the sunset review. So it's quite a durable point. I think to your question on Turkey, we have noticed that Turkey has increased their shipments. We'll have to watch that. Again, in the context of overall imports today, we're not overly concerned about that. But again, we'll be watching that carefully to make sure that what they're importing, they're importing as a fair trader.

Okay, great second question, on the um, us side. I know you mentioned, of course, Algeria, Bulgaria Egypt, Vietnam. But if you look at the latest trade data, actually, Imports are coming again from turkey. And from what I think, uh, Portugal and Spain. So just any thoughts on on the Turkish side and also maybe Portugal and Spain. Keep more production domestic and that falls off. But it does seem like, uh, the other countries before you mentioned are already, uh, shrunk in terms of importance, probably, because of the filing of the case, even before any decision. Yeah, no. It's, it's a great Point. We've definitely seen some pullback in the imports from those countries, and I'll just remind you and others that, uh, those countries in 2005, in the, the trade case, countries imported about 500,000 tons of of, of, of Steel into the into the US. So, uh, if there was an outcome, that's anything like what we have on the Algeria case and

Suboptimal, uh, utilization. But, um, we feel good about where we are. Uh, there's, uh, there's still some challenges there. I to, to, to be clear. Um, but the team has done an incredible job. And this is where I think the, the CMC, uh, Team really shines because we have, uh, drawn people and expertise from all across our Network to, uh, to help us with this operation. And, and remember the challenge is, this isn't your, uh, grandfather's steel mill so to speak, right? This is a, uh, uh, you know, very Innovative steel mill. It'll be a Workhorse in our portfolio, but there's a lot of new technology to, to make work. Um, and the other challenge that we've had their bill is, uh, is just with the, the, um, kind of the the

Timna Tanners: Got it. Yeah. It seems like imports could take yet another leg down. But thanks for the color and all the best. Appreciate it.

People not from the vantage point of the the people aren't good. The people are great, but it takes some training to learn this. Um,

Preliminary ruling. I think that's going to be really helpful in terms of uh, of keeping those Imports, out of the country and remember, on those trade cases. These are 5 year, uh, terms on the before the sunset review. So it's a, it's quite a durable, uh, durable. Uh, point. I think to your question on Turkey, we have noticed that turkey has, uh, has increased their, their shipments. Um, we'll have to watch that again in the context of of, uh, overall Imports today, we're not overly concerned about that, um, but again, we'll, we'll be watching that carefully, um, to see, uh, to make sure that it it, uh, to make sure that what they're importing, they're importing as a, a fair Trader.

Peter Matt: Thank you, Timna.

Peter Matt: The next question will come from Bill Peterson with JPMorgan. Please go ahead. Yeah. Thanks, everyone. Happy New Year, and thanks for all the color on the call thus far. I wanted to ask about AZ2, how the ramp has progressed, how the ramp progressed during the prior quarter, and what utilization you're running at, and then how should we think about operations and utilization ahead. Yeah. AZ2, we've said in the past that this has been a challenging one, and my comments will cover that a little bit. But I think the important point is we reached profitability on EBITDA in the fourth quarter, and we were nicely profitable in the first quarter too. And we expect to be nicely profitable throughout the year there. In terms of utilization rates, we exited last year at about 60%.

Operator: The next question will come from Bill Peterson with JPMorgan. Please go ahead.

Courts could take yet another leg down, but thanks for the color and all the best. Appreciate it. Thank you, Timna.

Bill Peterson: Yeah. Thanks, everyone. Happy New Year, and thanks for all the color on the call thus far. I wanted to ask about AZ2, how the ramp has progressed, how the ramp progressed during the prior quarter, and what utilization you're running at, and then how should we think about operations and utilization ahead.

The next question will come from Bill Peterson with JP Morgan. Please go ahead.

And uh, and so, uh, we we've we've done a lot of work around training and I think that's uh, enhancing our reliability substantially and it will continue to do so as we go through the year. So um, so hopefully that that helps you

Peter Matt: Yeah. AZ2, we've said in the past that this has been a challenging one, and my comments will cover that a little bit. But I think the important point is we reached profitability on EBITDA in the fourth quarter, and we were nicely profitable in the first quarter too. And we expect to be nicely profitable throughout the year there. In terms of utilization rates, we exited last year at about 60%.

Yeah, uh, thanks everyone. Happy New Year, and thanks for all the color on the call thus far. Um, I wanted to ask about AZ2—how the ramp has progressed, how the ramp progressed during the prior quarter, and, you know, what utilization you're running at. And then, how should we think about operations and utilization ahead?

Yeah, it does. Thanks for that. And then my second question, um, can you speak a bit more to the pricing profile of your Downstream backlog and whether new order entry continues to be priced higher than what's in the backlog? And I guess to what extent is the commercial discipline slash, you know tag initiatives you spoke of earlier playing a role

Peter Matt: We expect to demonstrate full run rate during our fiscal year 2026, but we don't expect to be at full run rate in 2026. That is because we still have a number of merchant specs that we've got to perfect, and that's going to take some time, and it'll force us to run at kind of suboptimal utilization. We feel good about where we are. There's still some challenges there, to be clear, but the team has done an incredible job. This is where I think the CMC team really shines because we have drawn people and expertise from all across our network to help us with this operation. Remember, the challenge is this isn't your grandfather's steel mill, so to speak, right? This is a very innovative steel mill.

We expect to demonstrate full run rate during our fiscal year 2026, but we don't expect to be at full run rate in 2026. That is because we still have a number of merchant specs that we've got to perfect, and that's going to take some time, and it'll force us to run at kind of suboptimal utilization. We feel good about where we are. There's still some challenges there, to be clear, but the team has done an incredible job. This is where I think the CMC team really shines because we have drawn people and expertise from all across our network to help us with this operation. Remember, the challenge is this isn't your grandfather's steel mill, so to speak, right? This is a very innovative steel mill.

Yeah. Um, absolutely. So, we do continue to, uh, see prices improve in our Downstream. So we're, uh, we have been really for the last couple quarters, uh, putting new Pro new, uh, orders into the backlog at higher prices. Um, so so that continues and we feel good about that progression and actually, um, kind of starting out the year. We've had a couple of new orders that have come in, in, in a, in a really nice place. So, um, so I think we feel good about that, um, and, uh, and again, demand has in in that business remains very solid, um, and, uh, so so there's a lot of, a lot of project activity and a lot on the drawing board. So, um, we're

We're optimistic about where things go there.

Yeah. Um, easy to uh, we we've said in the past that uh, this has been a challenging 1. Uh, and I'll my comments will cover that a little bit. But I, I think it's, uh, the important point is we reached profitability, uh, on ibida in the fourth quarter and we were nicely profitable in the first quarter too. Um, and we expect to be nicely profitable throughout the year there. Um, in terms of utilization rates we exited last year at about 60%. Um, we expect to demonstrate, uh, full run rate during our fiscal year 2026. Um, but we don't expect to be at full run, right in 2026. And, and that is, uh, because we, uh, we still have a number of merchants specs that we've got to perfect and that's going to take some time and it'll Force us to run at, you know, kind of sub.

Thanks again.

Yep, thank you.

The next question will come from Carlos. De Alba with Morgan Stanley. Please go ahead.

Yeah, thank you very much. Uh, Happy New Year everyone.

So many just adding uh, to to the discussion on on the new commercial approach in the publication business.

Peter Matt: It'll be a workhorse in our portfolio, but there's a lot of new technology to make work. And the other challenge that we've had there, Bill, is just with kind of the people, not from the vantage point that the people aren't good; the people are great, but it takes some training to learn this. And so we've done a lot of work around training, and I think that's enhancing our reliability substantially, and it will continue to do so as we go through the year. So hopefully, that helps you. Yeah, it does. Thanks for that. And then my second question: can you speak a bit more to the pricing profile of your downstream backlog and whether new order entry continues to be priced higher than what's in the backlog? And I guess to what extent is the commercial discipline/TAG initiatives you spoke of earlier playing a role? Yeah.

It'll be a workhorse in our portfolio, but there's a lot of new technology to make work. And the other challenge that we've had there, Bill, is just with kind of the people, not from the vantage point that the people aren't good; the people are great, but it takes some training to learn this. And so we've done a lot of work around training, and I think that's enhancing our reliability substantially, and it will continue to do so as we go through the year. So hopefully, that helps you.

How much of your of your business is already in in this indexed, um, uh format where where you are able to maybe better protect your your margins and and and how do you see that evolving in in the coming quarters? If it's still not a big percentage of the overall business. Yeah, it's it's not a big percent.

Suboptimal, uh, utilization. But, um, we feel good about where we are. Uh, there's, there's still some challenges there. I to to be clear, um, but the team has done an incredible job. And this is where I think the, the CMC, uh, Team really shines because we have, uh, drawn people and expertise from all across our Network to, uh, to help us with this operation. And, and remember the challenge is, this isn't your, uh, grandfather's steel mill so to speak, right? This is a, uh, uh, you know, very Innovative steel mill. It'll be a Workhorse in our portfolio, but there's a lot of new technology to, to make work. Um, and the other challenge that we've had their bill is, uh, is just with the, the, um, kind of the the people not from the vantage point of the, the people aren't good. The people are great, but it takes some training to learn this. Um,

Bill Peterson: Yeah, it does. Thanks for that. And then my second question: can you speak a bit more to the pricing profile of your downstream backlog and whether new order entry continues to be priced higher than what's in the backlog? And I guess to what extent is the commercial discipline/TAG initiatives you spoke of earlier playing a role?

And uh, and so, uh, we've done a lot of work around training and I think that's, uh, enhancing our reliability substantially, and it will continue to do so as we go through the year. So, um, hopefully that helps you.

Among the customers can vary, right? So there are some dots for example, that are, uh, are more inclined to to it than others. Um, so we're we're working from a, a relatively low base, uh, on that. But uh, but we do see the opportunity to increase it and to open the dialogue with customers on indexation. Um, and indexation is just 1 of the strategies, right? The uh, the other obvious strategy is there is just proper escalation. Um and when you talk about commercial Excellence, 1 of the things that that we've been uh I think showing the team's done an amazing job on

Peter Matt: Yeah. Absolutely. So we do continue to see prices improve in our downstream. So we have been really, for the last couple of quarters, putting new orders into the backlog at higher prices. So that continues, and we feel good about that progression. And actually, kind of starting out the year, we've had a couple of new orders that have come in in a really nice place. So I think we feel good about that. And again, demand in that business remains very solid. And so there's a lot of project activity, and a lot on the drawing board. So we're optimistic about where things go there.

Yeah, it does. Thanks for that. And then, my second question: Can you speak a bit more to the pricing profile of your Downstream backlog and whether new order entry continues to be priced higher than what's in the backlog? And, I guess, to what extent is the commercial discipline or the TAG initiatives you spoke of earlier playing a role?

Peter Matt: Absolutely. So we do continue to see prices improve in our downstream. So we have been really, for the last couple of quarters, putting new orders into the backlog at higher prices. So that continues, and we feel good about that progression. And actually, kind of starting out the year, we've had a couple of new orders that have come in in a really nice place. So I think we feel good about that. And again, demand in that business remains very solid. And so there's a lot of project activity, and a lot on the drawing board. So we're optimistic about where things go there. Thanks again. Yep. Thank you. The next question will come from Carlos de Alba with Morgan Stanley. Please go ahead. Yeah. Thank you very much. Happy New Year, everyone.

Bill Peterson: Thanks again.

Yeah. Um, absolutely. So, we do continue to, uh, see prices improve in our Downstream. So we're, uh, we have been really for the last couple quarters, uh, putting new Pro new, uh, orders into the backlog at higher prices. Um, so so that continues and we feel good about that progression and actually, um, kind of starting out the year. We've had a couple of new orders that have come in, in, in a, in a really nice place. So, um, so I think we feel good about that, um, and, uh, and again, demand has in in that business remains very solid, um, and, uh, so so, there's a lot of, a lot of project activity and a lot on the drawing board. So, um, we're, we're optimistic about where things go there.

Peter Matt: Yep. Thank you.

Operator: The next question will come from Carlos de Alba with Morgan Stanley. Please go ahead.

Thanks again.

Yep, thank you.

Carlos de Alba: Yeah. Thank you very much. Happy New Year, everyone.

The next question will come from Carlos de Alba with Morgan Stanley. Please go ahead.

Peter Matt: So maybe just adding to the discussion on the new commercial approach in the fabrication business, how much of your business is already in this indexed format where you are able to maybe better protect your margins? And how do you see that evolving in the coming quarters if it's still not a big percentage of the overall business? Yeah. It's not a big percentage today. And the openness to it among the customers can vary, right? So there are some DOTs, for example, that are more inclined to it than others. So we're working from a relatively low base on that, but we do see the opportunity to increase it and to open the dialogue with customers on indexation. And indexation is just one of the strategies, right? The other obvious strategy there is just proper escalation.

So maybe just adding to the discussion on the new commercial approach in the fabrication business, how much of your business is already in this indexed format where you are able to maybe better protect your margins? And how do you see that evolving in the coming quarters if it's still not a big percentage of the overall business?

Yeah, thank you very much. Uh, happy New Year, everyone.

So, many just adding uh, to the discussion on the new commercial approaching for vacation business.

See, to take this type of risk in the way that we've been taking it. And, uh, over time, we will work towards reducing that, uh, and that'll again, contribute to higher margins through the cycle. Higher returns more consistent returns, all the things that we're, uh, we're pointing towards and Carlos. I just that, you know, what we've spoken of is is really around protecting the, the, the, the risk from a duration perspective, there's also, you know, recognizing the value that CMC brings from a reliability perspective and I think that is also critical in terms of our capabilities and ensuring we get value for the service, we break. There's a tremendous amount of risk to a construction project, uh, that comes with all the subcontractors, having a reliable partner as CMC is uh drives a, a higher value re recognition and and we got to make sure we we capture that

Peter Matt: Yeah. It's not a big percentage today. And the openness to it among the customers can vary, right? So there are some DOTs, for example, that are more inclined to it than others. So we're working from a relatively low base on that, but we do see the opportunity to increase it and to open the dialogue with customers on indexation. And indexation is just one of the strategies, right? The other obvious strategy there is just proper escalation.

that makes sense. Um and then what is the the EB the margin that you're 160 to 170 million EB that guidance for CSG represent and um and would you say the the these guidance this evida guidance is somewhat conservative, given that you're just start starting to take over over those assets.

Peter Matt: When you talk about commercial excellence, one of the things that we've been, I think, showing the team's done an amazing job on being more disciplined about this is in making sure that, number one, we have proper escalators in place, and then number two, that we're actually enforcing those escalators as we go through, kind of go through the period. So this is a journey, but the way we think about it internally is that over time, it doesn't make sense for companies like CMC to take this type of risk in the way that we've been taking it. Over time, we will work towards reducing that, and that'll, again, contribute to higher margins through the cycle, higher returns, more consistent returns, all the things that we're pointing towards.

When you talk about commercial excellence, one of the things that we've been, I think, showing the team's done an amazing job on being more disciplined about this is in making sure that, number one, we have proper escalators in place, and then number two, that we're actually enforcing those escalators as we go through, kind of go through the period. So this is a journey, but the way we think about it internally is that over time, it doesn't make sense for companies like CMC to take this type of risk in the way that we've been taking it. Over time, we will work towards reducing that, and that'll, again, contribute to higher margins through the cycle, higher returns, more consistent returns, all the things that we're pointing towards.

Yeah, I mean, Paul you can comment on the, on the margin but the um, I would say look, it's early days, right? And uh, and we're doing a lot of work on integration as I said at the very beginning, we feel uh, kind of good about what we've seen. Uh but you know, there's some adjustment that has to happen as you uh, bring a new company into into our company and and uh, so so maybe we're being a little bit conservative but but I think it's it's appropriate to be cautious. And again, you know, our goal, with all of you and with all of our investors is to be in a situation where we are under promising and overd delivering and and that's what we're shooting to do here.

And as far as that the margins are concerned, you know, it it'll be made up of of the 2 buckets. You know our existing business typically is in the High Teens so call that 18 to 20% margin we would expect that to to remain there and the pre-cast business to come up combination of the uh the 2 entities to be in the 30 to 35% uh range from a from a margin perspective. So

No change. Uh, obviously, it's just a, uh, a different mix going forward than what we've had. Historically,

With customers on indexation. Um, and indexation is just 1 of the strategies, right? The uh, the other obvious strategy is there is just proper escalation. Um and when you talk about commercial Excellence, 1 of the things that that we've been, uh, I think showing the team's done, an amazing job on on being more disciplined about this is in making sure that number 1, we have proper escalators in place and then number 2 that we're actually enforcing those escalators as we as we go through, um, you know, kind of go through the period. So this is a journey but, you know, the way we think about it internally is, is that over time, it doesn't make sense for companies like CMC to take this type of risk in the way that we've been taking it. And, uh, over time, we will work towards reducing that, uh, and that'll again, contribute to higher margins through the cycle, higher returns.

Peter Matt: And Carlos, I'd just add what we've spoken of is really around protecting the risk from a duration perspective. There's also recognizing the value that CMC brings from a reliability perspective, and I think that is also critical in terms of our capabilities and ensuring we get value for the service we bring. There's a tremendous amount of risk to a construction project that comes with all the subcontractors. Having a reliable partner, as CMC is, drives a higher value recognition, and we got to make sure we capture that. That makes sense. And then what is the EBITDA margin that your $160 to 170 million EBITDA guidance for CSG represents? And would you say that this EBITDA guidance is somewhat conservative given that you're just starting to take over those assets? Yeah.

Paul Lawrence: And Carlos, I'd just add what we've spoken of is really around protecting the risk from a duration perspective. There's also recognizing the value that CMC brings from a reliability perspective, and I think that is also critical in terms of our capabilities and ensuring we get value for the service we bring. There's a tremendous amount of risk to a construction project that comes with all the subcontractors. Having a reliable partner, as CMC is, drives a higher value recognition, and we got to make sure we capture that.

Yeah, great. Thank you, Paul. Yeah, I misspoke clearly the 165 to 175 with a guidance is for is not for CSG, it's for the pre-cast business. So thank you very much. Good luck. Thank you.

The next question will come from Mike Harris with Goldman Sachs. Please go ahead.

More consistent returns all the things that we're, uh, we're pointing towards and Carlos. I just said, you know what we've spoken of is is really around protecting the, the the the risk from a duration perspective, there's also, you know, recognizing the value that CMC brings from a reliability perspective and I think that is also critical in terms of our capabilities and ensuring we get value for the service, we break. There's a tremendous amount of risk to a construction project

Carlos de Alba: That makes sense. And then what is the EBITDA margin that your $160 to 170 million EBITDA guidance for CSG represents? And would you say that this EBITDA guidance is somewhat conservative given that you're just starting to take over those assets?

that comes with all the subcontractors, having a reliable partner as CMC is uh drives a, a higher value recognition and and we got to make sure we we capture that

That makes sense. Um and then what is the the EB the margin that you're 160 to 170 million EB that guidance for CSG represent and um, and would you say that that these guidance, this EBA guidance is somewhat conservative? Given that you're just starting, starting to take over over those assets.

Peter Matt: Yeah. I mean, Paul, you can comment on the margin, but I would say, look, it's early days, right? And we're doing a lot of work on integration. As I said at the very beginning, we feel kind of good about what we've seen, but there's some adjustment that has to happen as you bring a new company into our company. And so maybe we're being a little bit conservative, but I think it's appropriate to be cautious. And again, our goal with all of you and with all of our investors is to be in a situation where we are under-promising and over-delivering, and that's what we're shooting to do here.

Peter Matt: I mean, Paul, you can comment on the margin, but I would say, look, it's early days, right? And we're doing a lot of work on integration. As I said at the very beginning, we feel kind of good about what we've seen, but there's some adjustment that has to happen as you bring a new company into our company. And so maybe we're being a little bit conservative, but I think it's appropriate to be cautious. And again, our goal with all of you and with all of our investors is to be in a situation where we are under-promising and over-delivering, and that's what we're shooting to do here. And as far as the margins are concerned, it'll be made up of the two buckets. Our existing business typically is in the high teens, so call that 18% to 20% margin.

Yeah, good morning. Thanks for uh, squeezing me in just a 1, quick question, on my part. When I look at the uh tag program, uh, I think last quarter the expectation for the uh, expected run rate, uh, annualized Evo benefit at the end of 26, was greater than 150. And now you're, you're saying 150. So does that change just the function of timing or did you, uh, adjust your initiative list or just being conservative, know? I think, uh, I don't, I don't think it was greater than 150. I think we, um, we have moved towards 150, uh, as we've gotten more clarity on the, on the, uh, opportunities in tag. Um, and by the way, uh, as we've said in, in many other, uh, forums, this is just the beginning, right? So it's not like 1, 150 is the end. Uh, as we get more Fidelity around this, uh, that we will, we will share more. What, we're, you know, what we're really doing in?

Tag is, we're trying to build durable margin Improvement. Uh, so, uh, you know, rather than throw, uh, lots of programs in that we haven't, uh, fully vetted or we haven't, uh, done the work to make sure that they deliver and they deliver in a sustainable way where, um, you know, we're proceeding a little bit more slowly, but I think the the outcome will be something that's more lasting.

Okay, thanks a lot for that clarification. Thank you.

Paul Lawrence: And as far as the margins are concerned, it'll be made up of the two buckets. Our existing business typically is in the high teens, so call that 18% to 20% margin.

Yeah, I mean, Paul you can comment on the, on the margin but the um, I would say look, it's early days, right? And uh, and we're doing a lot of work on integration as I said at the very beginning, we feel uh, kind of good about what we've seen uh but you know there's some adjustments that has to happen as you uh, bring a new company into into our company and and uh, so so maybe we're being a little bit conservative but but I think it's it's appropriate to be cautious. And again you know, our goal, with all of you and with all of our investors is to be in a situation where we are under promising and overd delivering and and that's what we're shooting to do here.

The next question will come from Phil Gibbs. With keybanc capital markets, please go ahead.

Peter Matt: We would expect that to remain there. And the precast business, the combination of the two entities to be in the 30% to 35% range from a margin perspective. So no change. Obviously, it's just a different mix going forward than what we've had historically. Yeah. Great. Thank you, Paul. Yeah. I misspoke. Clearly, the 165 to 175 EBITDA guidance is not for CSG. It's for the precast business. So thank you very much. Good luck. Thank you. The next question will come from Mike Harris with Goldman Sachs. Please go ahead. Yeah. Good morning. Thanks for squeezing me in. Just one quick question on my part. When I look at the TAG program, I think last quarter, the expectation for the expected run rate annualized EBITDA benefit at the end of 2026 was greater than 150. And now you're saying 150.

We would expect that to remain there. And the precast business, the combination of the two entities to be in the 30% to 35% range from a margin perspective. So no change. Obviously, it's just a different mix going forward than what we've had historically.

Hey uh good morning. Sorry. If this question was asked earlier but what is the the typical seasonality of the North American Business? From a from a volume standpoint relative to the q1.

Carlos de Alba: Yeah. Great. Thank you, Paul. Yeah. I misspoke. Clearly, the 165 to 175 EBITDA guidance is not for CSG. It's for the precast business. So thank you very much. Good luck.

No change. Uh, obviously, it's just a, uh, a different mix going forward than what we've had historically.

Peter Matt: Thank you.

Operator: The next question will come from Mike Harris with Goldman Sachs. Please go ahead.

Yeah, great. Thank you, Paul. Yeah, I misspoke clearly the 155 to 175 with a guidance is for is is not for CSG. It's it's for the Precast business. So thank you very much. Good luck. Thank you.

Change that we would, we would expect. Uh, obviously that is very much weather dependent and uh uh, we've seen some inclement inclement weather in the in the west coast. Certainly uh um nationally. It's been pretty good so far, but we were only in the early Innings of of the winter. So typical is 5 to 10 and that's what we're getting towards.

Mike Harris: Yeah. Good morning. Thanks for squeezing me in. Just one quick question on my part. When I look at the TAG program, I think last quarter, the expectation for the expected run rate annualized EBITDA benefit at the end of 2026 was greater than 150. And now you're saying 150.

The next question will come from Mike Harris with Goldman Sachs. Please go ahead.

Thank you. And then uh in terms of integrating uh just just Baseline appreciation. I'm assuming you're going to have some write-ups associated with uh the pre-cast uh deals. I think your Baseline for DNA was like 70 or 75 million in q1. So what what should we be anticipating for for Q2?

Peter Matt: So has that changed just a function of timing, or did you adjust your initiative list, or just being conservative? No, I don't think it was greater than 150. I think we have moved towards 150 as we've gotten more clarity on the opportunities in TAG. And by the way, as we've said in many other forums, this is just the beginning, right? So it's not like 150 is the end. As we get more fidelity around this, we will share more. What we're really doing in TAG is we're trying to build durable margin improvement. So rather than throw lots of programs in that we haven't fully vetted or we haven't done the work to make sure that they deliver, and they deliver in a sustainable way, we're proceeding a little bit more slowly, but I think the outcome will be something that's more lasting. Okay.

So has that changed just a function of timing, or did you adjust your initiative list, or just being conservative?

Peter Matt: No, I don't think it was greater than 150. I think we have moved towards 150 as we've gotten more clarity on the opportunities in TAG. And by the way, as we've said in many other forums, this is just the beginning, right? So it's not like 150 is the end. As we get more fidelity around this, we will share more. What we're really doing in TAG is we're trying to build durable margin improvement. So rather than throw lots of programs in that we haven't fully vetted or we haven't done the work to make sure that they deliver, and they deliver in a sustainable way, we're proceeding a little bit more slowly, but I think the outcome will be something that's more lasting.

Yeah, good morning. Thanks for, uh, squeezing me in. Just one quick question on my part. When I look at the tag program, uh, I think last quarter the expectation for the, uh, expected run rate, annualized, even that benefit at the end of '26, was greater than $150 million. And now you're saying $150 million. So, does that change just as a function of timing, or did you, uh, adjust your initiative list, or just being conservative? I think, uh, I don't think it was greater than $150 million. I think we, um, we have moved towards $150 million as we've gotten more—

Yeah, it's a great question. Phil and, you know, as we have on these businesses, just for a short period of time, and the complexity of some of the purchase accounting, we're not in a, in a place from a, uh, uh, a DNA perspective. Well, really a amortization perspective to provide, uh, guidance. There's you know, a lot of intangibles associated with the, uh, the businesses and they all have different, uh, uh, valuation approaches and durations. And so what we know is cash flow, the cash flow of these businesses will be uh certainly very attractive as we outlined in at the acquisition. Um, we were able to achieve the fun.

Financing at very, uh, attractive rates uh, in in November and and excited about uh uh the uh, the conclusion of of the the, the financing. Um, but as far as the accounting, uh, we are not yet in a position to really provide much outline in terms of what the amortization will be.

Mike Harris: Okay. Thanks a lot for that clarification.

Done the work to make sure that they deliver, and they deliver in a sustainable way, where, um, you know, we're proceeding a little bit more slowly, but I think the outcome will be something that's more lasting.

Thank you.

Peter Matt: Thanks a lot for that clarification. Thank you. The next question will come from Phil Gibbs with KeyBanc Capital Markets. Please go ahead. Hey. Good morning. Sorry if this question was asked earlier, but what is the typical seasonality of the North American business from a volume standpoint relative to Q1? Typically, Phil, it's in the 5% to 10% range that we would expect. Obviously, that is very much weather-dependent, and we've seen some inclement weather in the West Coast. Certainly, nationally, it's been pretty good so far, but we were only in the early innings of the winter. So typical is 5% to 10%, and that's what we're guiding towards. Thank you. And then in terms of integrating just baseline depreciation, I'm assuming you're going to have some write-ups associated with the precast deals.

Peter Matt: Thank you.

Operator: The next question will come from Phil Gibbs with KeyBanc Capital Markets. Please go ahead.

Okay, thanks a lot for that clarification. Thank you.

Phil Gibbs: Hey. Good morning. Sorry if this question was asked earlier, but what is the typical seasonality of the North American business from a volume standpoint relative to Q1?

The next question will come from Phil Gibbs with KeyBanc Capital Markets. Please go ahead.

Peter Matt: Typically, Phil, it's in the 5% to 10% range that we would expect. Obviously, that is very much weather-dependent, and we've seen some inclement weather in the West Coast. Certainly, nationally, it's been pretty good so far, but we were only in the early innings of the winter. So typical is 5% to 10%, and that's what we're guiding towards.

Hey, uh, good morning. Sorry if this question was asked earlier, but what is the typical seasonality of the North American business from a volume standpoint, relative to Q1?

At this time there appear to be no further questions Mr. Matt I'll now turn the call back over to you. Thank you Nick uh at CMC. We remain confident that our best days are ahead. The combination of structural de demand, Trends, operational and Commercial Excellence initiatives to strengthen our through the cycle, performance and value of creative growth opportunities, create an exciting future for our company.

Thank you for joining us. On today's conference call, we look forward to speaking with many of you during our investor calls in the coming days and weeks. Thank you.

The conference has now concluded, thank you for attending today's presentation. You may now disconnect

Phil Gibbs: Thank you. And then in terms of integrating just baseline depreciation, I'm assuming you're going to have some write-ups associated with the precast deals.

Yep. Typically, uh, uh, Phil, it's it's in the 5 to 10%, uh, range that we would, we would expect. Uh, obviously that is very much weather dependent and uh, uh, we've seen some inclement inclement weather in the in the west coast. Certainly uh um nationally. It's been pretty good so far, but we were only in the early Innings of of the winter. So typical is 5 to 10 percentage.

Peter Matt: I think your baseline for DNA was like $70 or $75 million in Q1. So what should we be anticipating for Q2? Yeah. It's a great question, Phil. And as we have owned these businesses just for a short period of time and the complexity of some of the purchase accounting, we're not in a place from a DNA perspective, well, really an amortization perspective to provide guidance. There's a lot of intangibles associated with the businesses, and they all have different valuation approaches and durations. And so what we know is cash flow. The cash flow of these businesses will be certainly very attractive as we outlined at the acquisition. We were able to achieve the financing at very attractive rates in November and excited about the conclusion of the financing.

I think your baseline for DNA was like $70 or $75 million in Q1. So what should we be anticipating for Q2?

Peter Matt: Yeah. It's a great question, Phil. And as we have owned these businesses just for a short period of time and the complexity of some of the purchase accounting, we're not in a place from a DNA perspective, well, really an amortization perspective to provide guidance. There's a lot of intangibles associated with the businesses, and they all have different valuation approaches and durations. And so what we know is cash flow. The cash flow of these businesses will be certainly very attractive as we outlined at the acquisition. We were able to achieve the financing at very attractive rates in November and excited about the conclusion of the financing.

Thank you. And then uh in terms of integrating uh just just Baseline depreciation, I'm assuming you're going to have some write-ups associated with uh the pre-cast uh deals. I think your Baseline for DNA was like 70 or 75 million in q1. So what what should we be anticipating for for Q?

Too.

Peter Matt: But as far as the accounting, we are not yet in a position to really provide much outline in terms of what the amortization will be. Thank you. Thank you. At this time, there appear to be no further questions. Mr. Matt, I'll now turn the call back over to you. Thank you, Nick. At CMC, we remain confident that our best days are ahead. The combination of structural demand trends, operational and commercial excellence initiatives to strengthen our through-the-cycle performance, and value accretive growth opportunities create an exciting future for our company. Thank you for joining us on today's conference call. We look forward to speaking with many of you during our investor calls in the coming days and weeks. Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

But as far as the accounting, we are not yet in a position to really provide much outline in terms of what the amortization will be.

Yeah, it's a great question. Phil and, you know, as we have owned these businesses, just for a short period of time, and the complexity of some of the purchase accounting, we're not in a, in a place from a, uh, uh, a DNA perspective. Well, really a amortization perspective to provide, uh, guidance. There's you know, a lot of intangibles associated with the, uh, the businesses and they all have different, uh, uh, valuation approaches and durations. And so what we know is cash flow, the cash flow of these businesses will be uh, certainly very attractive as we outlined in at the acquisition. Um, we were able to achieve the financing at very uh, attractive rates, uh, in in November and and excited about uh uh the uh, the conclusion of of the the, the financing. Um, but as far as the accounting, uh, we are not yet in a position to really

Provide much outline in terms of what the amortization will be.

Phil Gibbs: Thank you.

Peter Matt: Thank you.

Operator: At this time, there appear to be no further questions. Mr. Matt, I'll now turn the call back over to you.

Thank you.

Peter Matt: Thank you, Nick. At CMC, we remain confident that our best days are ahead. The combination of structural demand trends, operational and commercial excellence initiatives to strengthen our through-the-cycle performance, and value accretive growth opportunities create an exciting future for our company. Thank you for joining us on today's conference call. We look forward to speaking with many of you during our investor calls in the coming days and weeks. Thank you.

At this time, there appear to be no further questions. Mr. Matt, I'll now turn the call back over to you.

A combination of structural demand, demand trends, operational and Commercial Excellence initiatives to strengthen our through-the-cycle performance and value-accretive growth opportunities create an exciting future for our company.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Thank you for joining us. On today's conference call, we look forward to speaking with many of you during our investor calls in the coming days and weeks. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

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