Commercial Metals Company Investor Day 2026

It's great to be here today, I have been looking forward to this for some time.

Today, I want to talk about a couple things that I saw when I first came to CMC, then we're going to get into the transformation. When I first came to CMC, this is about three years ago now, what really caught my attention was I could see there was tremendous untapped potential in the company. Secondly, I could see that we could build on CMC's strengths and reinvigorate a long-term growth strategy. Today, as I noted, we're going to talk about the transformation that's underway and introduce you to a number of the folks that are leading the way. I am very excited to share some of these details with you. I want to start with four compelling messages that I think will pique your interest in CMC. First message, we are a diversified early-stage construction supplier.

With the transformation that's underway, we will drive higher margins, lower volatility, and stronger growth. Second, CMC is capitalizing on strong multi-year construction demand created by years of under-investment. Third message, CMC has three powerful levers of value creation that will drive earnings and cash flow over the next several years. Lever number 1 is capturing the full potential of our business. Lever number 2 is harvesting the benefit of capital that we've already deployed. Lever number 3 is reshaping our portfolio through portfolio optimization and disciplined M&A. Fourth message, today, we are introducing some compelling 2029 mid-cycle targets, and these, combined with our capital allocation strategy that Paul will outline, will underwrite significant shareholder value creation. I am very excited to share our story with you today, let's jump in.

For those of you that are less familiar with CMC, we are a 111-year-old Texas-based company with revenues and EBITDA of $8.8 billion and $1.3 billion respectively. We operate through three segments, each with strong market positions, leading market positions, and difficult-to-replicate business franchises. Our North America Steel Group is the number 1 producer of rebar in the U.S. Our Construction Solutions business is the number 1 producer of precast in the Southeast, number 3 overall in the U.S., and the number 1 producer of Geogrid solutions. Our Europe Steel Group is the number 1 producer of merchant products and a leading player in the Polish rebar market. In the middle of the slide here, you can see that Construction Solutions represents 28% of our adjusted EBITDA or core EBITDA. Our goal over the next three years is to take that to 40% plus. That will include some acquisitions.

Those acquisitions are not in the targets that we're sharing today. We are going to focus our conversation today on our U.S. business. That's because the U.S. is the bulk of our business and the heart of our transformation. Europe remains an important piece of our company, as we've talked about in recent calls, there are a number of green shoots in Europe. We'd be happy to take questions on Europe in the Q&A sessions. I want to start by digging in on early-stage construction. I say we are an early-stage construction supplier in an evolving construction market. Why do I say that? Over 90% of our products go into early-stage construction applications. By that, we define that as everything from construction planning through structural framing. Decades of providing reliable products and great service have created the strong and resilient CMC that you know today.

I want to just take a quick moment to thank our customers for the trust that they've placed in us over all these decades. However, as projects grow larger and more complex, our customers' needs are evolving. I've spent a tremendous amount of time with our large customers and a lot of small customers as well, and I can tell you the conversation is changing. Increasingly, CMC is being asked to partner with customers or to dedicate capacity to this or that project. This is new, and this is something that is a significant opportunity for CMC. It's a differentiating opportunity for CMC. It will bring us, for a portion of our business, this will complement our existing product-led strategy and bring us to a strategy where we're providing enterprise-level solutions, where we might be providing multiple solutions to a job site.

It's a significant opportunity for CMC, as I said. The earnings potential is enormous, and it goes well beyond any of the targets that we have today. You're going to hear about a number of examples of this through the business leaders as they go through their presentations. I said we're on a transformation journey. It's one that we started three years ago with a strong culture and a tactically exceptional team, a series of good businesses that had the potential to be great businesses, and a strong foundation and early-stage construction to build on. What I can tell you today, in 2026, is that we have made tremendous progress in this transformation. What's most gratifying for me is that all of the pieces that we need to achieve our 2029 targets are in place. We just have to execute. What will we become in 2029?

We will be a best-in-class company addressing critical construction challenges with a steel company delivering consistently higher margins and a scaled Construction Solutions business delivering higher margins and growth with lower capital intensity, together generating materially higher returns and bringing a capital allocation strategy that balances growth for the company and return of capital to shareholders. This is our transformation. It's the mission in this company. It's making it a very exciting time to be an employee of the company, and I submit it's an interesting time to be a shareholder of the company. Let me just say a few words about demand. Demand is strong. Our backlogs are growing. What's common to each of our core construction end markets is a multi-year demand profile created by years of under-investment. Let's just look at some of the key markets. Infrastructure, multi-year demand profile. You all know about the IIJA.