Commercial Metals Company (CMC) investor relations material

Strategic transformation and growth initiatives

• Pursuing a transformation to become a diversified early-stage construction solutions platform, expanding beyond steel into high-margin, capital-light businesses with scalable leadership positions in early-stage construction markets.

• Focusing on three value creation levers: capturing full business potential (via operational and commercial excellence through TAG), harvesting benefits from $1.5B of growth capital already deployed, and reshaping the portfolio through disciplined M&A and optimization toward higher-return, lower capital intensity businesses.

• Construction Solutions Group targeted to grow from 28% to 40%+ of adjusted/core EBITDA by 2029, driven by organic growth and acquisitions, particularly in precast and emerging businesses.

• Integration of recent precast acquisitions (Foley and CP&P) is ahead of schedule, with $30M–$40M of run-rate gross synergies targeted by year three, expanding the addressable market by $20B and strengthening market leadership in high-growth regions.

• Emphasis on capital discipline, with a new enterprise-wide framework, technology platform, and investment committee, resulting in $180M of avoided capital and 95% of projects on or under budget in FY25.

Operational and commercial excellence (TAG)

• TAG (Transform, Advance, Grow) is embedded as the operating system, driving enterprise-wide best practices, standardization, and continuous improvement, with $250M run-rate EBITDA benefits by FY26 and $350M+ by FY27.

• Initiatives include AI-enabled scrap optimization ($20M annual savings), improved logistics, yield enhancements, and commercial tools like unified CRM and data-driven margin analysis.

• Over 150 individual initiatives have been implemented, with TAG fully integrated into the continuous improvement culture and focused on advancing safety, workforce capability, and commercial discipline.

• Commercial excellence focuses on customer-centricity, disciplined execution, and leveraging the expanded portfolio to win more project opportunities, supported by AI-driven lead generation and cross-selling.

• Capital discipline is now a core strength, with rigorous project evaluation and post-mortem analysis, ensuring high returns on invested capital.

Portfolio optimization and growth

• Recent acquisitions of Foley and CP&P have expanded the precast platform, creating synergy opportunities and strengthening market leadership in high-growth regions.

• Precast business delivers higher margins, lower volatility, and strong free cash flow, supporting a step-change in financial performance.

• Ongoing disciplined M&A strategy targets complementary businesses in early-stage construction, focusing on high-population-growth markets and scalable, high-return opportunities.