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    Katja Jancic • BMO Capital Markets

    Katja Jancic's questions to Century Aluminum Co (CENX) leadership

    Katja Jancic's questions to Century Aluminum Co (CENX) leadership • Q2 2025

    Question

    Katja Jancic of BMO Capital Markets inquired about the raw material sourcing for the Mt. Holly restart, the application of 45X tax credits to the new production, the timing of tax credit cash receipts, and the potential Q4 EBITDA outlook given current spot prices.

    Answer

    President & CEO Jesse Gary and EVP & CFO Peter Trpkovski confirmed that alumina for Mt. Holly is covered by the existing 2026 supply book and that the new tonnage will receive 45X credits. Regarding the $195M receivable, Trpkovski stated the FY23 portion is expected "imminently" with the FY24 portion arriving in 6-9 months. He also confirmed that based on current spot prices and contractual lags, Q4 EBITDA could see a significant uplift, aligning with the analyst's estimate of $140M-$150M.

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    Katja Jancic's questions to Century Aluminum Co (CENX) leadership • Q1 2025

    Question

    Katja Jancic of BMO Capital Markets inquired about the nature of the Q2 2025 incremental operating expenses, the lack of a benefit from previously cited one-time alumina costs, and the expected timing and amount of cash receipts from the 45X manufacturing tax credit.

    Answer

    CEO Jesse Gary confirmed the Q2 OpEx increase of $10-$15 million is a one-time event that should reverse in Q3. He explained the alumina cost situation was driven by the timing of vessel sales at different price points. CFO Peter Trpkovski stated the company expects to receive approximately $60 million for its FY'23 tax credit in Q2 2025, with the remainder arriving later. He noted FY'24 credits would likely be received in late 2025 or early 2026.

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    Katja Jancic's questions to Century Aluminum Co (CENX) leadership • Q4 2024

    Question

    Katja Jancic inquired about the potential timeline and investment required for a restart of the Mt. Holly smelter and asked for more details on the projected cost to build the new U.S. smelter.

    Answer

    President and CEO Jesse Gary estimated a potential Mt. Holly restart would have approximately a nine-month timeline but deferred providing a cost estimate until a final decision is made. Regarding the new smelter, he highlighted the finalization of a $500 million Department of Energy grant and completion of engineering work, with site selection and energy contract negotiations expected to conclude by the end of Q2 2025.

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    Katja Jancic's questions to Warrior Met Coal Inc (HCC) leadership

    Katja Jancic's questions to Warrior Met Coal Inc (HCC) leadership • Q2 2025

    Question

    Katja Jancic of BMO Capital Markets asked for an updated outlook on Blue Creek's 2026 production volume given the accelerated startup. She also inquired about the pricing basis (CFR vs. FOB) for Blue Creek sales and the potential financial benefit from the new 45X tax credit.

    Answer

    CEO Walter Scheller estimated that 2026 production volume from Blue Creek could approach 4 million tons. He also confirmed that current sales are primarily on a CFR basis but expects this to evolve with market conditions over the mine's life. CFO Dale Boyles provided a preliminary estimate for the 45X tax credit's impact, suggesting it could be in the $30-40 million per year range, contingent on variable costs and met coal prices.

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    Katja Jancic's questions to Warrior Met Coal Inc (HCC) leadership • Q1 2025

    Question

    Katja Jancic of BMO Capital Markets inquired about Warrior's price realization outlook, the sustainability of its low Q1 costs, and potential tariff impacts on imported longwall shields.

    Answer

    CEO Walter Scheller confirmed that a price realization of 80% to 85% is a reasonable expectation. CFO Dale Boyles added that Q1's cost levels are sustainable in the near term if met coal prices remain low, as costs are highly variable. Boyles also stated that the company will not incur any tariff impacts on its imported longwall shields.

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    Katja Jancic's questions to Warrior Met Coal Inc (HCC) leadership • Q4 2024

    Question

    Katja Jancic from BMO Capital Markets asked if sales shipments would be weighted towards the second half of the year, whether the 85-90% price realization guidance remains valid with new high-vol A production from Blue Creek, and for a breakdown of sales to China within the Asian market.

    Answer

    CFO Dale Boyles confirmed that shipments will be more weighted to the second half of 2025 due to the timing of Blue Creek's 1 million tons of production. He affirmed the 85-90% price realization guidance still stands but noted that recent market dynamics could place results at the lower end of that range. For competitive reasons, Boyles declined to specify the sales volume to China but assured that the company is not overcommitted and can reorient volumes if necessary.

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    Katja Jancic's questions to Warrior Met Coal Inc (HCC) leadership • Q3 2024

    Question

    Katja Jancic inquired about the progress of commercial discussions for the future Blue Creek volume, asking if it would be sold via contract or spot. She also asked about hiring plans for the next year and the potential impact on costs.

    Answer

    CEO Walter Scheller confirmed that conversations with customers about Blue Creek volume are underway and that the initial sales will likely be contracted trial cargoes for customers to test in their coke ovens. Regarding hiring, he estimated around 100 new hires for Blue Creek next year, though the budget is not finalized. CFO Dale Boyles clarified that these hiring costs would be capitalized as mine development and would not impact the cost of sales until the coal is sold.

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    Katja Jancic's questions to Peabody Energy Corp (BTU) leadership

    Katja Jancic's questions to Peabody Energy Corp (BTU) leadership • Q2 2025

    Question

    Katja Jancic from BMO Capital Markets questioned how the accelerated development at the Centurion mine might affect sales targets and sought confirmation that the updated PRB cost guidance includes the new, lower royalty rate.

    Answer

    EVP & CFO Mark Spurbeck stated that while Centurion's longwall production is being pulled forward into Q1 2026, the company is not yet changing its 2025 production guidance. He confirmed the lower federal royalty rate is included in the PRB guidance, providing a net benefit of approximately $0.40 per ton to Peabody, or $15-20 million in 2025.

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    Katja Jancic's questions to Peabody Energy Corp (BTU) leadership • Q1 2025

    Question

    Katja Jancic from BMO Capital Markets asked if the hold on financing for the Anglo American deal also affects the potential sale of a minority interest in the Centurion mine. She also inquired about the drivers of the strong Q1 cost performance and the reasons for the higher cost guidance in Q2.

    Answer

    President and CEO Jim Grech stated there is "no correlation" between the Anglo deal financing and the separate process of exploring a partial sale of the Centurion mine. CFO Mark Spurbeck explained that Q1's outstanding cost performance was due to productivity gains and reduced overtime. He attributed the higher Q2 cost guidance to lower volumes and specific operational work at the Coppabella mine, but noted the company is trending toward the low end of full-year guidance.

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    Katja Jancic's questions to Peabody Energy Corp (BTU) leadership • Q4 2024

    Question

    Katja Jancic sought more detail on the 2025 metallurgical coal cost guidance, questioning why costs were not trending lower given higher production and asking about the specific negative impact from the Coppabella mine. She also inquired if recent adverse weather in Australia was affecting production or port operations.

    Answer

    CFO Mark Spurbeck clarified that while production is up, the 2025 cost guidance of $120-$130/tonne is consistent with 2024's actual costs of $123/tonne. He attributed this to the need to move an additional 6 million BCMs of waste at Coppabella and the impact of a weaker Australian dollar in 2024. CMO Malcolm Roberts confirmed that recent monsoonal rains caused a short-term, approximately 7-day interruption at the port but had no remarkable impact on mine production.

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    Katja Jancic's questions to Peabody Energy Corp (BTU) leadership • Q3 2024

    Question

    Katja Jancic from BMO Capital Markets sought clarification on the impact of the Wambo underground mine's earlier closure on 2025 seaborne thermal volumes and product mix. She also asked about the expected Q4 shipment volume for Shoal Creek, its target markets, and the rationale for selling into a subdued spot market.

    Answer

    CEO Jim Grech clarified that Wambo underground's production will decrease by approximately 400,000 tonnes in 2025 to 800,000 tonnes, confirming it is Newcastle-grade coal and that a negative mix shift is possible. CMO Malcolm Roberts projected Shoal Creek's Q4 shipments to be 600,000-700,000 tonnes, targeting China and Southeast Asia. He explained that selling on a CFR basis into Asia is necessary to meet growing demand, despite lower FOB benchmark prices.

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    Katja Jancic's questions to Algoma Steel Group Inc (ASTL) leadership

    Katja Jancic's questions to Algoma Steel Group Inc (ASTL) leadership • Q2 2025

    Question

    Katja Jancic of BMO Capital Markets inquired about the current state of the Canadian plate market, its pricing compared to the U.S., the remaining capital expenditure for the Electric Arc Furnace (EAF) project, and the broader CapEx outlook amid a weak market environment.

    Answer

    CEO Michael Garcia characterized the Canadian plate market as stable and well-balanced, noting Algoma has increased its market share to over 40%. However, he stated that Canadian plate pricing is approximately 40% lower than in the U.S. market. Garcia also reaffirmed prior guidance on the EAF project budget, highlighting that the project has been de-risked. CFO Rajat Marwah added that maintenance CapEx would likely be at the lower end of the $80M-$120M range, while the remaining EAF project spending would proceed as planned.

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    Katja Jancic's questions to Algoma Steel Group Inc (ASTL) leadership • Q4 2024

    Question

    Katja Jancic from BMO Capital Markets asked about potential tariff mitigation strategies beyond the EAF transition, the timing and amount of an expected insurance payout, and the status of the company's working capital release plan. She also sought clarification on the full-year production volume outlook and the expected split between plate and HRC.

    Answer

    CEO Michael Garcia confirmed that an aggressive cost reduction plan has been underway for months, independent of tariff concerns. CFO Rajat Marwah detailed an expected $100 million insurance payout, with a $20-25 million advance coming soon. He also reaffirmed the plan to release $100 million in working capital by March 2025, which is unaffected by tariffs. For the full year, he guided for 2.1 to 2.2 million tons of shipments, with plate volumes averaging around 35,000 tons per month.

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    Katja Jancic's questions to Algoma Steel Group Inc (ASTL) leadership • Q2 2025

    Question

    Katja Jancic of BMO Capital Markets inquired about Algoma's working capital, asking for clarification on why the inventory build for the current quarter would be lower than usual despite the upcoming EAF start-up. She also asked for specifics on the expected working capital build for the EAF and the drivers behind the anticipated sequential increase in shipment volumes for the December quarter.

    Answer

    CFO Rajat Marwah explained that the significant EAF-related inventory build is not expected until calendar 2025. The current quarter's build will be lower than the typical $150 million, with an eventual working capital release of at least $100 million expected by March 2025. He noted a potential temporary build of $30-$50 million for scrap inventory during the transition. CEO Michael Garcia added that the expected volume increase is driven by the operational schedule, which has no planned outages, rather than a significant rise in market demand.

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    Katja Jancic's questions to Ryerson Holding Corp (RYI) leadership

    Katja Jancic's questions to Ryerson Holding Corp (RYI) leadership • Q2 2025

    Question

    Katja Jancic from BMO Capital Markets asked for the current split between transactional and contractual sales and the strategy for this mix. She also inquired about the company's exposure to the data center market and whether the full-year CapEx target of $50 million was still on track given lower spending in the first half.

    Answer

    President, CEO & Director Edward Lehner stated the sales mix is approximately 46% transactional and 54% program, with a strategy to win more transactional business through improved service consistency. He noted data center exposure is hard to quantify but is a growing subsector. Regarding CapEx, Lehner confirmed the $50 million target remains, attributing the first-half spending pace to the timing of project milestones and payments.

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    Katja Jancic's questions to Ryerson Holding Corp (RYI) leadership • Q1 2025

    Question

    Katja Jancic of BMO Capital Markets asked for an update on the sales mix between transactional and contractual business, whether the 60% transactional target remains, and the company's strategic outlook on its stainless steel portfolio given recent market weakness.

    Answer

    CFO Jim Claussen stated that transactional sales increased to 47% of the mix in Q1, up from 43% at year-end 2024. President and CEO Eddie Lehner confirmed the 60% transactional sales target is still in place, driven by strategic investments to improve service levels. Regarding stainless steel, Lehner affirmed the company's commitment, noting they have gained market share and are not planning to divest. He highlighted the opportunity is to grow the carbon franchise to complement their existing strength in non-ferrous metals.

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    Katja Jancic's questions to Ryerson Holding Corp (RYI) leadership • Q3 2024

    Question

    Katja Jancic of BMO Capital Markets inquired about Ryerson's potential for further working capital release to generate free cash flow in Q4 and sought confirmation on the company's 2025 capital expenditure forecast.

    Answer

    President and CEO Edward Lehner confirmed that there is more opportunity for working capital release in the fourth quarter as the company moves through a seasonal and cyclical bottom. He also reaffirmed that the capital expenditure forecast for the next year remains at $50 million.

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    Katja Jancic's questions to Nucor Corp (NUE) leadership

    Katja Jancic's questions to Nucor Corp (NUE) leadership • Q2 2025

    Question

    Katja Jancic from BMO Capital Markets questioned the drivers behind the expected Q3 margin compression in the steel mills segment, particularly concerning raw material costs and potential tariff impacts.

    Answer

    CEO Leon Topalian pointed to potential tariff impacts on raw materials from Brazil and a pricing lag effect. EVP Allen Behr detailed Nucor's mitigation strategies, emphasizing their flexible sourcing capabilities for DRI and pig iron, which reduces reliance on any single country. Topalian confirmed their guidance accounts for these potential risks.

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    Katja Jancic's questions to Nucor Corp (NUE) leadership • Q2 2025

    Question

    Katja Jancic of BMO Capital Markets questioned the specific drivers of the expected Q3 margin compression in the steel mill segment, given stable volume and pricing commentary. She also sought to confirm if potential Brazilian tariffs were factored into the guidance.

    Answer

    President and CEO Leon Topalian confirmed the Q3 forecast includes the potential impact of tariffs on raw materials from Brazil, which is the primary driver of the expected nominal margin compression. EVP Allen Behr detailed Nucor's mitigation strategy, emphasizing its raw material flexibility, including shifting global sourcing for DRI pellets and pivoting away from Brazilian pig iron by using internal DRI and low-copper shred.

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    Katja Jancic's questions to Nucor Corp (NUE) leadership • Q1 2025

    Question

    Katja Jancic from BMO Capital Markets asked if the CapEx forecast accounts for tariffs, inquired about the origin of imported equipment, and requested the Q1 production tonnage for the Brandenburg mill.

    Answer

    CFO Stephen Laxton confirmed the CapEx budget does not include speculation for tariffs. CEO Leon Topalian specified that equipment is sourced primarily from Europe (Italy and Germany). He also stated that the Brandenburg mill is on a pace of 150,000 to 160,000 tons for the quarter, with production expected to ramp up.

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    Katja Jancic's questions to Nucor Corp (NUE) leadership • Q4 2024

    Question

    Katja Jancic asked whether stronger-than-expected Q4 shipments were driven by real demand or pre-buying ahead of potential tariffs. She also inquired about Nucor's view on inventory levels across the supply chain.

    Answer

    CFO Steve Laxton attributed the strong Q4 shipments to both stable underlying demand and lower-than-expected disruption from the holidays, allowing for more shipping days. CEO Leon Topalian expressed optimism for 2025, expecting pro-growth policies and reshoring to drive demand, suggesting a healthy demand pull-through rather than just inventory effects.

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    Katja Jancic's questions to Nucor Corp (NUE) leadership • Q3 2024

    Question

    Katja Jancic asked for confirmation on whether 2025 capital expenditures would remain above $3 billion and inquired about potential opportunities to optimize Nucor's manufacturing footprint by reducing older capacity as new projects come online.

    Answer

    CFO Steve Laxton indicated that due to large, multi-year growth projects, CapEx is expected to remain around the $3 billion level in 2025, with formal guidance to come. CEO Leon Topalian explained that while Nucor continuously rationalizes its production footprint for efficiency, the company's growth strategy is focused on adding differentiated capabilities, not on building new plants to replace old ones.

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    Katja Jancic's questions to Reliance Inc (RS) leadership

    Katja Jancic's questions to Reliance Inc (RS) leadership • Q2 2025

    Question

    Katja Jancic of BMO Capital Markets asked about the key drivers behind Reliance's significant market share gains and whether this trend is sustainable. She also questioned if the current market uncertainty is leading to an increase in M&A opportunities and how valuations are being affected.

    Answer

    President and CEO Karla Lewis attributed the sustainable market share gains to superior customer service, a next-day delivery model, extensive processing capabilities, and a decentralized structure that allows for quick market reaction. She emphasized this is part of a "smart profitable growth" strategy. On M&A, Lewis confirmed a Q2 uptick in deal flow, suggesting some business owners may be exiting due to prolonged uncertainty. She noted that seller valuation expectations are generally aligning more closely with Reliance's views, creating more viable opportunities.

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    Katja Jancic's questions to Reliance Inc (RS) leadership • Q1 2025

    Question

    Katja Jancic inquired about the potential for Reliance to expand its services further downstream into more fabricated processing. She also asked for an update on the current M&A environment, including the activity level of the pipeline and the typical size of potential deals.

    Answer

    Executive Karla Lewis responded that the company selectively evaluates opportunities for more advanced fabrication, particularly when requested by existing customers, but remains cautious to avoid competing with its customer base. Regarding M&A, Lewis noted that the pipeline activity was slower in late 2024 and early 2025, which is typical during periods of market uncertainty, but is now beginning to pick up again, with a focus on small to mid-sized companies.

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    Katja Jancic's questions to Reliance Inc (RS) leadership • Q4 2024

    Question

    Katja Jancic of BMO Capital Markets inquired if the 2025 focus on increasing volume would be driven more by organic growth or acquisitions. She also asked whether increasing protectionist policies could spur greater interest in domestic value-added processing.

    Answer

    Executive Karla Lewis confirmed that volume growth would be driven by both organic efforts and acquisitions, similar to 2024. She explained that demand for value-added processing was already trending up due to customers seeking efficiency and reshoring, and that new trade policies could potentially accelerate this trend. Executive Arthur Ajemyan added that a pickup in the general manufacturing end market would also naturally increase demand for value-added processing services.

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    Katja Jancic's questions to Reliance Inc (RS) leadership • Q3 2024

    Question

    Katja Jancic of BMO Capital Markets inquired about the company's confidence that Q4 demand headwinds are temporary and what factors will drive growth into 2025. She also asked about any observed slowdown in the automotive tolling business.

    Answer

    President and CEO Karla Lewis explained that near-term uncertainty is largely tied to the presidential election, but long-term confidence is supported by bipartisan backing for manufacturing and eventual interest rate cuts. For the automotive sector, Lewis stated that Reliance has not seen a pullback in its specific platforms, which focus on SUVs and light trucks, and expects stable demand with normal seasonality.

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    Katja Jancic's questions to Freeport-McMoRan Inc (FCX) leadership

    Katja Jancic's questions to Freeport-McMoRan Inc (FCX) leadership • Q2 2025

    Question

    Katja Jancic of BMO Capital Markets asked how potential U.S. tariffs could affect the company's outlook for declining costs in its North American operations.

    Answer

    President & CEO Kathleen Quirk stated that while they are monitoring a potential 5% cost impact from tariffs passed through by suppliers, the primary drivers of cost reduction remain operational. She highlighted efficiency gains, innovation, contractor rationalization, and low-cost pounds from the leach initiative as key factors. Quirk also noted the significant financial benefit from the U.S. copper premium offsets these pressures.

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    Katja Jancic's questions to Freeport-McMoRan Inc (FCX) leadership • Q2 2025

    Question

    Katja Jancic from BMO Capital Markets asked how potential U.S. tariffs could impact the company's outlook for declining costs in its North American operations.

    Answer

    President & CEO Kathleen Quirk acknowledged a potential 5% cost impact from tariffs but emphasized that significant cost savings are expected from efficiency improvements, innovation, reduced contractor reliance, and the low-cost pounds from the Leach initiative. She highlighted that the U.S. copper premium and existing Net Operating Losses (NOLs) will significantly benefit margins and cash flows.

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    Katja Jancic's questions to Freeport-McMoRan Inc (FCX) leadership • Q4 2024

    Question

    Katja Jancic asked for an update on the legislative steps and potential timeline for copper to qualify for the 10% U.S. tax credit, and whether it's still possible in 2025.

    Answer

    President and CEO Kathleen Quirk explained that it requires further legislation following a bill that passed the House. While she could not predict the timing of U.S. legislative processes, she noted the issue has bipartisan support and that its enactment would be significant, representing a potential benefit of around $500 million.

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    Katja Jancic's questions to Steel Dynamics Inc (STLD) leadership

    Katja Jancic's questions to Steel Dynamics Inc (STLD) leadership • Q2 2025

    Question

    Katja Jancic from BMO Capital Markets asked for the specific EBITDA contribution from the Sinton mill in Q2 and questioned if the mill is positioned to reach its $500 million annualized EBITDA run-rate in the second half of 2025.

    Answer

    CFO Theresa Wagler declined to provide specific financial metrics for Sinton but confirmed its performance was significantly better than Q1. She clarified that achieving the full through-cycle run rate is more likely a 2026 event, as the mill continues to ramp up its value-added product mix, including automotive and API grades.

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    Katja Jancic's questions to Steel Dynamics Inc (STLD) leadership • Q3 2024

    Question

    Katja Jancic from BMO Capital Markets asked if the 80% contractual base for flat-rolled steel would change with the Sinton ramp-up and questioned the specific cause of the startup challenges at Sinton after its recent maintenance.

    Answer

    COO Barry Schneider explained that the contractual concentration will remain in the 70-80% range as new value-add lines support this model. CEO Mark Millett clarified the 80% figure is specific to flat-rolled products. Regarding Sinton, Mr. Schneider attributed the slow restart to safety protocols required when working with high-voltage systems after an outage, noting it was not an unusual event.

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    Katja Jancic's questions to Alcoa Corp (AA) leadership

    Katja Jancic's questions to Alcoa Corp (AA) leadership • Q2 2025

    Question

    Katja Jancic inquired about the potential impact on Alcoa if proposed U.S. tariffs on Brazil were to include alumina, and also asked for details on the contingency plans and cost implications of the delayed mine approvals in Western Australia.

    Answer

    EVP & CFO Molly Beerman explained that while tariffs on Brazilian alumina would affect U.S. smelter sourcing, Alcoa could redirect supply from Western Australia, albeit at a higher shipping cost. President, CEO & Director William Oplinger added that no cost impacts from the Western Australia mine delay are expected in 2025 or 2026, as contingency plans are in place to manage the new timeline.

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    Katja Jancic's questions to Alcoa Corp (AA) leadership • Q1 2025

    Question

    Katja Jancic asked for the specific Midwest premium assumption used in the company's tariff impact calculation, what the 'correct' premium should be, and the current status of the permitting process in Western Australia.

    Answer

    President and CEO William Oplinger and EVP and CFO Molly Beerman confirmed the current calculation uses a $0.39/lb Midwest premium. Oplinger stated that an equilibrium premium, based on a 25% tariff, would be in the $880 to $990 per ton range. He also confirmed that the permitting process in Western Australia is progressing as expected.

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    Katja Jancic's questions to Alcoa Corp (AA) leadership • Q4 2024

    Question

    Katja Jancic of BMO Capital Markets inquired about the potential impact of a 25% tariff on Canadian aluminum, asking how high the Midwest premium could go and if the increase would be sufficient to offset the negative effects for Alcoa.

    Answer

    President and CEO William Oplinger responded that the Midwest premium would likely rise "substantially" to attract metal from other regions, creating inefficient trade flows. He clarified that due to Alcoa's larger production in Canada (900,000 tonnes) versus the U.S. (300,000 tonnes), the premium increase would not fully offset the tariff's negative financial impact on the company.

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    Katja Jancic's questions to Alcoa Corp (AA) leadership • Q3 2024

    Question

    Katja Jancic inquired about Alcoa's capital allocation priorities, specifically the potential for increased shareholder returns, and asked if there were opportunities to increase alumina production to capitalize on high prices.

    Answer

    CFO Molly Beerman and CEO William Oplinger both emphasized that deleveraging is the top priority for early 2025. On production, CEO William Oplinger stated there are no large, quick projects to increase alumina output, though smaller debottlenecking and creep projects are ongoing.

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    Katja Jancic's questions to Commercial Metals Co (CMC) leadership

    Katja Jancic's questions to Commercial Metals Co (CMC) leadership • Q3 2025

    Question

    Katja Jancic of BMO Capital Markets focused on inorganic growth, asking about the valuation multiples for target acquisitions in the $500-$750 million range and the current status of the M&A pipeline.

    Answer

    President & CEO Peter Matt explained that while target companies may have higher valuation multiples than CMC, they are justified by higher margins and better cash flow characteristics. He stressed that CMC will be disciplined, aiming to lower the effective multiple paid over time through synergies and growth. He described the M&A pipeline as 'good' with active processes, though some are moving slowly due to market uncertainty.

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    Katja Jancic's questions to Commercial Metals Co (CMC) leadership • Q1 2025

    Question

    Katja Jancic asked about the timing of benefits from the TAG operational excellence initiative and questioned the sustainability of the current share buyback pace given increasing capital expenditures.

    Answer

    Executive Peter Matt stated that while the mentioned TAG initiatives have a run-rate benefit of $10-15 million, the company is not yet quantifying the total impact for fiscal 2025, emphasizing the program's long-term goal of elevating margins. On capital allocation, he affirmed that the quarterly share repurchase level is considered sustainable and that the company intends to consistently execute its buyback program as part of its balanced strategy.

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    Katja Jancic's questions to Commercial Metals Co (CMC) leadership • Q4 2024

    Question

    Katja Jancic from BMO Capital Markets sought clarification on how the TAG initiative's goal of 'higher through-the-cycle margins' compares to current margin levels and asked for more detail on the value of the current backlog versus the prior quarter.

    Answer

    Executive Peter Matt explained that the TAG initiative aims to provide incremental margin improvement on top of what are already structurally higher levels, helping to defend margins in a downturn or enhance them in a stable environment. Paul Lawrence, Senior Vice President and Chief Financial Officer, added that while backlog volumes remain comparable, the value has decreased due to more competitive pricing on new projects.

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    Katja Jancic's questions to Constellium SE (CSTM) leadership

    Katja Jancic's questions to Constellium SE (CSTM) leadership • Q4 2024

    Question

    Katja Jancic from BMO Capital Markets inquired if the 2025 guidance would be weighted more toward the second half, if the same pattern applies to free cash flow, and about the timing of share buyback acceleration.

    Answer

    CFO Jack Guo confirmed that Q1 would be weaker due to seasonality and the Valais flood impact, with performance strengthening thereafter as cost initiatives and operational improvements take hold. He noted that while free cash flow is typically negative in Q1, it will be partially offset by prior cash initiatives. CEO Jean-Marc Germain added that potential tariff benefits, not in the guidance, could also materialize in the second half. Guo affirmed the company's commitment to the buyback program throughout the year.

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    Katja Jancic's questions to Constellium SE (CSTM) leadership • Q3 2024

    Question

    Katja Jancic inquired about the quantifiable impact of non-market-related EBITDA drivers for the upcoming year and asked for clarification on whether the mentioned cost reductions were incremental to the existing Vision '25 program.

    Answer

    CEO Jean-Marc Germain detailed several self-help drivers expected to contribute over €100 million to EBITDA, including €35-40 million from the new recycling center, over €25 million from the Vision '25 program, benefits from aerospace contract repricing, and operational improvements at Muscle Shoals. CFO Jack Guo confirmed that the company is accelerating cost reduction efforts, and the mentioned savings are incremental to the original Vision '25 targets.

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