Question · Q4 2025
Cecilia Tang, on behalf of Mike Harris, inquired about the specific demand drivers within the construction industry, asking for a breakdown across infrastructure, residential, industrial, and energy sectors. She also questioned why the first-quarter outlook was not more positive despite strong current quarter performance.
Answer
President and CEO Peter Matt detailed strong infrastructure demand driven by IIJA, anticipating a multi-year trend. He noted mixed non-residential construction with strength in energy, data centers, and institutional spending, while commercial and retail were weaker, but expressed bullishness for a turn given a $2 trillion project pipeline. Residential markets were described as lackluster due to interest rates but expected to recover with rate declines, addressing a 2-4 million home deficit. SVP and CFO Paul Lawrence clarified the Q1 outlook, highlighting strong North America Steel Group performance, but noted a $15 million reduction in CO2 credits and planned maintenance outages for the Europe Steel Group, and significant seasonality impacting the Emerging Businesses Group.