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    Sathish Kasinathan • BMO Capital Markets

    Sathish Kasinathan's questions to Commercial Metals Co (CMC) leadership

    Sathish Kasinathan's questions to Commercial Metals Co (CMC) leadership • Q3 2025

    Question

    Sathish Kasinathan of Bank of America asked about the weaker-than-expected sequential volume growth in North American steel products for Q3 and inquired about the traction of the recent $60 rebar price hike.

    Answer

    President & CEO Peter Matt acknowledged that Q3 North American performance was impacted by operational outages but stated the company is set for a strong Q4 with volumes expected to be flattish to slightly up. CFO Paul Lawrence clarified that combined mill and downstream shipments were up 10% sequentially, in line with seasonal trends. Regarding pricing, Peter Matt emphasized a focus on "value over volume" and striking a balance between company returns, customer value, and incentivizing 'Buy America' policies.

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    Sathish Kasinathan's questions to Commercial Metals Co (CMC) leadership • Q2 2025

    Question

    Sathish Kasinathan inquired about the U.S. rebar market's pricing power relative to rising scrap costs and the financial performance and breakeven timeline for the Arizona 2 mill.

    Answer

    Executive Peter Matt stated that CMC is successfully implementing price increases across its portfolio, keeping margins above scrap cost movements, and expects further hikes. He noted the Arizona 2 mill did not break even in Q2 due to operational issues but is targeting Q4 for that milestone. Executive Paul Lawrence added that CMC's vertical integration mitigates the full impact of scrap index increases.

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    Sathish Kasinathan's questions to Commercial Metals Co (CMC) leadership • Q1 2025

    Question

    Sathish Kasinathan inquired about the Q2 shipment outlook for North American Steel, given strong late-season activity, and sought details on project delays within the Tensar division of the Emerging Business Group.

    Answer

    Executive Peter Matt and CFO Paul Lawrence clarified that Q2 shipments should follow normal seasonal patterns, declining 5-10% from Q1's high base. Regarding Tensar, Peter Matt explained that project delays are broad-based, not regional, but the impact is temporary. He and Paul Lawrence affirmed that the associated revenue and earnings are expected to be recaptured in Q3 and Q4 of fiscal 2025, with the full-year growth outlook for Tensar remaining positive.

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    Sathish Kasinathan's questions to Commercial Metals Co (CMC) leadership • Q4 2024

    Question

    Sathish Kasinathan of BMO Capital Markets inquired about the year-over-year outlook for the Emerging Business Group and asked when CMC would be able to quantify the financial benefits of its new TAG strategic initiative.

    Answer

    Peter Matt, an executive, stated that the Emerging Business Group's performance should be roughly similar year-over-year, with sequential declines attributed to normal seasonality. Regarding the TAG initiative, he explained it is a multi-year program with benefits expected in fiscal 2025, but the company will wait to share specific financial targets until the initiatives gain more traction.

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