Good morning. Welcome to Commercial Metals 2026 Investor Day. I'm Andy Larkin, Vice President of Investor Relations. On behalf of our entire leadership team, we're so excited to have you with us today. Whether you're joining via the webcast or live and in person here at the beautiful and iconic New York Stock Exchange, we have an outstanding program for you. If I were to frame up the purpose of today's event, it's simple. A deeper look at our company, at our strategy, and critically, the people that are charged with executing that plan each and every day. We hope you leave here with a deeper understanding of the opportunities we have in front of us, as well as a deeper conviction in our ability to drive long-term shareholder value. now while it's my honor to open today's festivities it's also my tremendous burden to try to keep our auditors and lawyers happy so i urge you to read our safe harbor statement and know that our team will be making some forward-looking statements these statements reflect our current expectations and views and actual results may differ due to a variety of risks and uncertainties. And for more information on those factors, please refer to our most recent Form 10-K and other filings with the SEC. With that out of the way, and if you followed the CMC story for any amount of time, you'll know that safety is our top priority. So in the event an alarm were to sound, please wait and listen to instructions from safety personnel. And in the unlikely event of an evacuation please also listen to the floor wardens for instructions and exit via the stairwells but not the stairwell in outside of Freedom Hall. Okay now let's turn to our agenda. Our president and CEO Peter Matt will begin by telling the CMC story and outlining the value creation levers that will drive growth and value creation. Ty Garrison will talk you through our TAG program, our operating model that's fundamentally enhancing every aspect of our enterprise. Brian Halloran will walk you through our North American Steel Group, how we're reaping the benefits of prior investments, how we're benefiting from a constructive demand environment, and how we're delivering profitable growth. After halftime, Keith Haas and Mike Doucette will take us through our construction solutions group, first with a look at the precast business, followed by a look at opportunities within our emerging businesses portfolio. Paul Lawrence, our CFO, will tie things together by outlining our financial targets, capital allocation priorities, and valuation framework. Peter will conclude with some brief remarks. And you'll also note that we have two dedicated Q&A sessions today. So if you're following via the webcast, please submit your questions via the web portal. For that first Q&A session, we ask that the content stay contained to the first half of the presentation. So Ty, Peter, and Brian's presentations will be fair game. That second Q&A session, everything will be on the table. and before i forget if you haven't already please silence your cell phones hopefully i've set the stage for what to expect today and as i invite peter onto the stage we'd like to share a short video with you that captures the energy of our business and the momentum behind cmc enjoy change is constant and the companies that thrive are the ones that recognize opportunity early and evolve with purpose.

For more than a century, CMC has done exactly that. It has continually evolved to meet the needs of growing markets. Today, that evolution continues. Through operational excellence and disciplined capital allocation, including highly strategic acquisitions, CMC is evolving beyond steel into a diversified early-stage construction solutions platform. With an integrated portfolio spanning design and planning, ground improvement, site preparation, water and utility management, and concrete reinforcement, CMC is expanding its role across the construction lifecycle. Because before a structure rises, the most critical work happens. Planning, stabilization, foundations, and reinforcement. These early phases determine everything that follows. And as construction demand accelerates across such sectors as energy and transportation, as well as complex manufacturing projects, customers increasingly need partners with the expertise and scale to execute seamlessly across these critical stages. That's where CMC is positioned to lead. Driven by our pursuit of excellence, CMC is optimizing and growing its portfolio toward higher returns. Lower capital intensity businesses designed to deliver stronger margins, reduced earnings volatility, and more durable growth. The opportunities may evolve, but CMC's approach remains the same. Seeing what comes next and building for it. CMC is early stage construction.

Okay, thank you Andy for the introduction and welcome everyone. It's great to be here today and 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 and 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. And secondly, I could see that we could build on CMC's strengths and reinvigorate a long-term growth strategy. And 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. And 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 underinvestment. Third message, CMC has three powerful levers of value creation that will drive earnings and cash flow over the next several years. Lever number one is capturing the full potential of our business. Lever number two is harvesting the benefit of capital that we've already deployed. And lever number three 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, so 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 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 American Steel Group is the number one producer of rebar in the U.S. Our construction solutions business is the number one producer of precast in the southeast, number three overall in the U.S., and the number one producer of geogrid solutions. And our Europe Steel Group is the number one 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, our 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. And as we've talked about in recent calls, there are a number of green shoots in Europe. And 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? Well, over 90% of our products go into early-stage construction applications. And by that, we define that as everything from construction planning through structural framing. And decades, decades of providing reliable products and great service have created the strong and resilient CMC that you know today. And 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, so 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. And 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 in early stage construction to build on. And what I can tell you today in 2026 is that we have made tremendous progress in this transformation. And 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. We just have to execute. So 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. and 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, and our backlogs are growing. What's common to each of our core construction and markets is a multi-year demand profile created by years of underinvestment. And let's just look at some of the key markets. Infrastructure, multi-year demand profile. You all know about the IIJA. There's a follow-on infrastructure bill that's being worked on. I just spent some time in Washington. I can tell you there is bipartisan support for a continuation of the infrastructure bill. Non-residential construction. We have talked about, again, multi-year demand profile. We have talked about literally trillions of projects, trillions of projects across energy, across data centers, across other industrial applications, institutional applications. And we have a Dodge Momentum Index that remains at elevated levels suggesting that there is a pipeline of additional projects coming on over the next 12 to 18 months. Multi-year demand profile. And even residential, where things are weak today, but there's also a multi-year demand profile created by the two to five million homes that need to be built across this country. And CMC is uniquely positioned to meet this. Our scale, our leading market positions, the broad capabilities we bring, the very deep local market positions that we have, and our strong track record on both easy to execute projects and difficult to execute projects, create a differentiated market position that makes CMC hard to beat. In summary, the demand's good and we're very well positioned to capture it. So how will we create value in our company? We have three powerful levers of value creation. Lever number one, capturing the full potential of our business. This is about making the most of what we have. It's about TAG. TAG is our transform, advance, and grow initiative, for those of you that don't know. Lever number two, harvesting the benefit of growth capital that we've already deployed. 1.5 billion of it. 1.5 billion of it. And lever number three, reshaping our portfolio through portfolio optimization and disciplined M&A. Each of these levers will drive durably higher margins and growth with lower capital intensity. So let's dig in on each of the three levers. I want to lever number one capturing the full potential of our business. I want to start with safety. It all starts with safety. Safety is our number one priority. The best companies are the companies that have safe financial performance. They also have best financial performance. That's been our experience in our operations, and safety will remain our top priority. It's good for our people, and it's good for our business. So what's TAG all about? Well, Ty's going to talk about TAG in a lot more detail, but let me introduce it. And there are really two key elements to TAG. Number one is driving operational excellence to create structural cost advantage. And lever number two is building commercial excellence to capture the full margin potential of our business. I say TAG is our foundation. And the reason why I say that is because as a company, I firmly believe we need to earn the right to grow. Our goal with TAG is durable margin improvement. That means we raise our top line, we reduce our costs, we create incremental margin that more than offsets any inflation in our business, and we do it on a sustainable basis. TAG has been a tremendous success. Tremendous success. By the end of fiscal year 2026, less than a month from now, we will have achieved over $250 million of run rate EBITDA benefits on a gross basis. And I will tell you that involves very little capital, coming back to the capital light point. By the end of next year, fiscal year 2027, we will have achieved over $350 million of gross run rate EBITDA benefits from TAG. 60% of that will fall to the bottom line as durable margin improvement. That's over 200 basis points of margin improvement from TAG. And I'm telling all of you today, we are not done. The beauty of this program is the more we dig, the more we find. And I am so proud of what our company has done. This started as a framework. It has become a mindset, and it has changed our company, and Ty will cover that in a lot greater detail. the best example that I can give you of making the most of our of what we have and tag is in our North American steel business and Brian's going to talk about this in some detail but as a prelude I thought I would highlight some of the work that we are doing and have done to strengthen our industry and CMC's position in it I know the steel business can be difficult I've spent the last 40 years of my life working first with it and now in it. But I submit to you there are a number of factors in our business today that suggest that the outcomes should be better. Factor number one, our business, certainly our corner of the steel market, is largely consolidated. CMC is a leader and we are determined to drive better outcomes for our business. Factor number two, the imports picture is materially better. With the work that we've done on fighting unfairly traded imports, we have reduced the volume of imports coming into this country by 500,000 to a million tons. And we've done it on a durable basis. When I say durable basis, I mean these anti-dumping and countervailing duties block those imports for five and oftentimes ten years, a minimum of five years. Third factor, in the context of multi-year demand and lower imports, Supply is balanced. And we at CMC are going to work by all of our means to support that balance of supply and demand in the market. We are managing for profits. We are not managing for volume. You hear us say this all the time, value over volume. To complement this, we are working to build a stronger and more resilient steel business. and this is where TAG comes in. We are working on operational excellence to ensure that we are low cost and we will be low cost. We are working on commercial excellence to ensure we capture the full potential margin in our business and we are just starting to scratch the surface of this. This is a huge opportunity for our company and as you will hear from Brian, Today, we are restructuring different parts of our business to improve the return profile. The Fab Full Potential is a great example of this. So, we are strengthening our industry, and we are strengthening our company. Let's talk about lever number two. Harvesting the benefits of capital we've already deployed. As I said earlier, we've spent $1.5 billion over the last several years investing in our assets. That is in the denominator of a return on invested capital calculation. The earnings are not in the numerator. Over the next period, we will ramp up, fully ramp up our Arizona 2 micromill, and we will launch and ramp up our West Virginia micro mill. With those two mills, we will have completed our mill network. We will not need to build another mill. We will have the network we need. We will also realize the earnings from our lower capital intensity construction solutions investments. And here I'm talking about investments in the precast operations in Colorado and Florida, our new GeoGrid line in Oklahoma, and our soon-to-be Galvavar 2 line in Knoxville, Tennessee. and going forward we will continue to invest in lower capital intensity opportunities that strengthen our market position build our capabilities and or reduce our costs and in the area of cost reduction I'm talking about things like process technology and automation and AI which you'll hear about from several of the folks today is a big opportunity for our company There's another really important aspect of our lower capital intensity strategy, and that is the inflection of free cash flow. That will start in 2027. And as you can see on the right-hand side of this chart, and this is using a simple free cash flow definition that the peers use of EBITDA minus CapEx, Our free cash flow will grow to $1.4 to $1.5 billion. And to put a point on that, that's a billion dollars a year after interest and taxes are factored in. I believe this is a grossly underappreciated valuation consideration for CMC. Let's talk about our third lever, reshaping our portfolio through portfolio optimization and disciplined M&A. We have done an in-depth review of every asset in our portfolio. And we've done this with a view towards what fits with our strategy, what doesn't fit with our strategy. And where assets do not fit with our strategy, we will divest them. at the right time and until then they will remain core. We will also reshape our portfolio with disciplined M&A. We will be very strategic in what we look at. We will look for businesses that add to our existing early stage construction capabilities. They will have a U.S. focus. They may build local or regional market share. They will certainly sponsor our early-stage construction or support our early-stage construction work. They will bring synergies, and they will build out around the financial profile that we're articulating today. And they will not stress our balance sheet. In the near term, we're likely to be talking about things that enhance existing capabilities. You know we did these two precast acquisitions. Something in the precast area could be interesting. We would love to grow Tensar, these types of things. Longer term, we will open our aperture a bit and look for other areas within early stage construction that complement what we're doing today and ideally find areas that are underpenetrated where we've got kind of growth parameters that support them. This is a very exciting lever for our company. It's an opportunity to reposition the company, and in doing this, we can create tremendous value for all of our shareholders. Our precast acquisitions are a great example of lever number three. This is an exciting new area for CMC, and it's a terrific addition to our portfolio. We love the value-added product that it's bringing into our portfolio. We really like the complementarity with our existing businesses. We like the scalable market leadership position that it brings. And, of course, we like the financial profile that it brings to CMC. we have heard really universally positive comments from our customers about this move and the connectivity around early stage construction and our integration is proceeding on pace we're very happy with what where we are our synergies are we have line of sight on all of the synergies that we are trying to get out of this and I am confident in saying that precast will make CMC a stronger and more resilient company. This has been a great success so far, and Keith's going to talk about it in a lot more detail. One more point on Precast. I talked about, or I mentioned, scalable market leadership position. When we look at acquisitions, we look at addressable market. And in this instance, Precast increased our addressable market by $20 billion, and that, combined with the very fragmented nature of the market, creates an exciting growth runway for our company. We are very excited by what we've achieved, and we are eager to deliver on what's ahead. And today, as I said at the very beginning, we are introducing some compelling mid-cycle financial targets for 2029. I'm going to highlight a few of them. Paul will talk about a few of the others, and we'll be happy to take questions on the financial targets in the second Q&A session. Our core EBITDA target of $1.65 to $1.8 billion assumes a stable environment. It assumes a 25% tariff at the low end of the range, and it assumes no additional acquisitions. That's a CAGR of 10% to 13% comparing to our TTM EBITDA. Our free cash flow, I already noted, will inflect to $1.4 to $1.5 billion starting in 2027. And the inflection will start in 2027. And again, noting after interest and taxes are factored in, that's a billion dollars per annum. And our ROIC target of 13 to 14.5% is well above historical performance and certainly well above the company's cost of capital. I think these targets speak strongly to the transformation that's underway at our company. And I am very confident that we can achieve them. An important piece of our transformation is the growth of construction solutions. As I noted earlier, today it's 28% of our portfolio. our goal is to grow that to 40% plus and that again that 40% plus will include some acquisitions that are not in the targets we're setting today and as we do that I think it's a fair question to say who should we be compared to and of course what are the implications for our multiple well CMC today trades at about seven times EBITDA our steel peers trade at eight to ten times EBITDA and our construction solutions peers traded 11 to 13 times EBITDA. Paul is going to present some comparative financial metrics and we invite you to draw your own conclusions. But one thing I think is perfectly clear. CMC is a much stronger company today than it was just three years ago and three years from now it will be even stronger. The most important ingredient of our transformation is our team. And I have an outstanding leadership team, and they're all here. Each leader brings something different to the party. And I thought I'd just highlight about the speakers some of what's special about what each of them are bringing to the party. Ty, who you're going to hear from next, brings a deep, deep knowledge of the company from his long tenure at CMC and has been relentless in making us better. He's the right man for the job on TAG. Brian brings also a deep, deep knowledge of the company, also from a long tenure with the company, and is 100% committed to creating a world-class steel company. keith is a seasoned precast executive he's the newest member of our team we came with the foley acquisition and has tremendous experience both in precast and as you'll hear in broader construction materials over decades mike has had a number of experiences a good tenure at cmc and a number of experiences outside of cmc a great commercial mind and has a great track record of building businesses. And Paul, a strong finance partner to me and to the other business leaders and absolutely committed to improve performance. I would be remiss if I didn't also give a shout out to the broader CMC team. This transformation is touching every corner of our company. I mean every corner of our company. And I can tell you, our team is all in. And in my, I told you before, 40 years of experience, I have never seen an execution force like this. I could not be prouder of what they have achieved and what we have achieved thus far. It's very exciting. So as I wrap up my comments for now, Now, I just want to say I am super excited about what's transpiring at CMC, and I really believe this is an extremely compelling opportunity. We are an industry leader. That's indisputable. We have a significant transformation underway. That is highly visible. We have durable margin expansion that's going on in this company. That's observable. We are executing an exciting growth strategy. That's also observable. And we will drive the returns on invested capital in this company to a level that is hundreds of basis points above historical performance. That is powerful. So you're going to hear some great presentations from the rest of the team. And with that, I'd like to thank you. and I'd like to welcome Ty Garrison to the stage.

Good morning, everyone. It's a pleasure to be here. My name's Ty Garrison, the SVP of Operational Commercial Excellence. As Peter noted, I've been around a while. I've been in multiple roles throughout the company, commercial roles, operational roles, and functional roles. And I think that gives me a unique perspective on the strengths that we have as a company. It also gives me an honest assessment of what needed to change in order to achieve the vision that Peter laid out for you this morning. In the past, we were successful with strong local execution and deep customer relationships. And while that won't change, that's core to what we do. On top of that, we're building an operating system to drive more consistency and discipline in the organization. That's TAG. So the story that i'm going to tell you today is one of self-help everything that we're going to talk about is completely within our control and i think that's what makes it so our story so exciting so there's three main things i'd like for you to take away today one our transformation is already underway our execution is paying off as peter showed you tag our execution engine is delivering fantastic results already and much more to come in the future. We're building a new operating system and new commercial and operational capabilities to improve margins, to generate higher cash through every cycle. That's the key to make this durable. And capital discipline is becoming a real edge for CMC. We're deploying a every dollar earns its place mentality going forward. Better projects, better planning, better execution will improve our return on invested capital. So all of those three messages I'd like to share with you today have a common theme. And that was for us to reach our full potential, we had to make some changes in the organization. cmc has a track record of being very successful over 111 years of success but we're not the same company we were even a decade ago we're larger over 250 locations we have a broader portfolio with the addition of tensar and precast and other various businesses and as you heard peter say our customer requirements are changing and their expectations are changing that presents real upside for us. But only if we operate with more consistency and more discipline to achieve our full potential. In the past, we had a very decentralized model. And that worked when we were a smaller company. But it failed to capture our scale, the vast expertise we have in the company, or our tremendous value proposition we now have for our customer base. So our intent is pretty simple going forward. Use our scale, use our expertise, embrace technology to close the performance gap that we have between our facilities. In other words, our best performing sites become the standard, not the exception. That's what TAG is. That's what TAG does. And I'd like to share an example with you. We have a performance gap in our melt shops between the best performing mill and the lowest performing mill. And we've never had a standard operating model to be able to drive the best practices through our mill fleet. TAG has changed that, and it's important because a 1% increase in melt shop yield in our company is equivalent to a 20 million dollars to our company. That's impressive. That's exciting. So I think if you were to take that example and drive it through the entire company, all of our lines of business, all of our business units, you could come to the conclusion that we have real upside for our margin potential. So what TAG's doing is it's moved us from plant-wide excellence to enterprise-wide excellence. And we think that's the key to transforming a larger, more complex CMC into a stronger, higher return CMC. And the engine behind that is TAG. I'm really excited to share more about TAG with you. I get very passionate about it. It's been wonderful for our company. And it was created to do two things. One, unlock financial value that we just talked about, but build capabilities to ensure that those results are sustainable. That's the key to TAG. I want to be clear about something. It's not a one-time cost-out program. It's not a program that exists outside of the business. In fact, it's fully embedded in the business, and it's owned by the business leaders that you will hear from today. We built TAG two years ago with our employees, not for our employees. And I think that's key, because the employees closest to the execution, the ones that are owning the results, helped build the program. We think that will make this program very, very sustainable. So we started with 150 initiatives. Some were simple optimization. Others were more transformative in nature. But one of the interesting things about this was that there weren't a lot of brand new ideas. We simply had never had a mechanism to be able to drive the change through the entire organization. And I think that's what's so exciting moving forward. The results are undeniable at this point. As Peter said to you, by the end of this month, we will deliver $250 million of gross run rate EBITDA. And with new initiatives coming into the pipeline and the growth of existing initiatives, by the end of FY27, we will deliver $350 million of gross run rate EBITDA. It's very impressive. Equally impressive to me is it's come with very little to no capital deployed. Our investment has been in our people. We put our best people on the toughest projects. It's come with investing in a very structured and disciplined system behind TAG, a stage-gating system that ensures accountability and ensures that the results are sustainable. And it's come in investing in change management, changing the mindset, changing the expectations of our company. So what I'm most proud of, I think, is that TAG has become sort of a language at CMC, synonymous with change and transformation and continuous improvement. It's not uncommon today to walk the halls of corporate or be on the shop floor and hear someone say, that sounds like a great TAG opportunity. That's fantastic for me because that tells me that this is embedded in our culture. This is sustainable. It's the way we operate now. So while I have the pleasure of giving you the overview of TAG, what I'm excited about is for you to hear from the business leaders when they give you real tangible examples of the impact that TAG is having on their business. So while TAG's generated great results, it's also done a couple of other things. It's galvanized our go-forward priorities, And it's also helped us understand the new capabilities we have to continue to build. Operationally, we are committed to world-class safety, world-class productivity, and world-class cost. As you heard Peter say, we will be relentless about our pursuit of being low-cost. Commercially, build on the relationships we already have. accelerate our growth and capture the full margin potential of the products and solutions that we bring to the market we we realize this will take continued investment the journey is underway but it's not concluded we'll continue to invest in our people standardized processes and you'll hear a lot more about how we will embrace ai and technology going forward so let's talk a little bit more about operational excellence and what we're doing to build a structural cost advantage. CMC has a strong operating history, so operational excellence is not inventing something new at CMC. As you heard me say earlier, it's simply taking what we do best in certain facilities and scaling it across the enterprise, and that starts with safety. Safety is at the foundation of all we do. it's the core of our operating discipline we had a remarkable safety record in FY25 the best in the company history with a 1.0 incident rate FY26 is on pace to be another remarkable year so I want to thank all of the CMC employees for their commitment to working safe every day we want to drive the same discipline and rigor that we have towards safety to be a low-cost producer how do we do that we use our scale more effectively we use technology and ai to enhance our reliability of our facilities to increase our throughput and our efficiency and really important to optimize this very valuable network that we have we've made great progress and i'd like to share a couple of examples with you in the fabrication business You'll hear more from Brian. He'll talk about fab full potential. But in the fabrication business, we have a difficult time getting a full truckload to ship to the customer. It's just the nature of how bars are bent and shaped. But our fab group, through the TAG process, established a very simple metric, and they drove it through the entire enterprise. And that metric was an increase in tons per load. since we started tag we've we've increased our tons per load by 2.4 tons per load doesn't sound like a lot it saved us over 11 000 deliveries since we started this over seven million dollars i'll stick with tag for a moment in tag or i'll stick with fab for a moment in in fab we have a a operating system where we we shear shear rebar we try to optimize that through technology And we had pockets of where we were using this, but it wasn't standardized. Not all of our footprint was using it. Through TAG, we drove that standardization, and we improved our yield by half percent. That's $3 million savings for CMC. So while those numbers might not seem like a lot in the grand scheme of things, as you look at the overall CMC, when you stack those wins together, it's a meaningful financial uplift for CMC. That's what TAG is. But where I think we have the best example of the TAG playbook in action, where we see a team coming together with great leadership, standardizing a process, and using AI, is in our scrap optimization initiative. So as most of you know, scrap is one of our highest cost inputs in our mills. Any small movement in scrap mix can have a meaningful impact to the financial results of our steel mills. And the mixed decisions that we've made have generally been made at the local level, subject to local training, local expertise, and often local judgment. We use TAG, we saw this as a real opportunity for TAG, and we use TAG to bring a team together, create an AI-enabled solution to standardize how we optimize scrap across the organization. the results have been remarkable. $20 million in annual run rate savings from this one initiative. And while I'm excited about it, I would love for you to hear from the initiative owner, Jacob Seltzer.

The scrap metal we use across our mill production is our largest input cost. And when we took a closer look, it was clear that our biggest cost was also one of our biggest opportunities. Through TAG Scrap Optimization, we utilize cutting-edge AI tools powered by proprietary operational data to rethink our scrap mixes, challenging long-standing assumptions and improving how we purchase, manage, and consume materials across the network. The results have been significant. This initiative has already delivered over $20 million in savings, and we expect much more as we scale across all our mills. That's what TAG is all about, turning ideas into action, delivering real value, and creating long-lasting impact for CMC. And we're just getting started.

I love that video. I think it's just so exciting to see the passion with Jacob. And I think you see that run through our entire organization. There's a lot of momentum with TAG right now. People understand the value that it's bringing to our organization, and we have a long runway So we've talked about operational excellence and how we will win on cost. I want to switch to commercial excellence and talk a little bit about how we're going to win through our commercial approach. And we start from a place of strength. We have deep relationships. We have great market knowledge. And our customers trust us. You heard Peter say this. Our customers trust us because we spend time investing our resources, our time to make them successful. We listen. We listen to their pain points. We listen to their problems. And the customer's problems are changing. More complex projects, faster, more risk. So we're building capabilities and bringing new products like Precast on board to solve those customers' problems. So the one point I want to make very clear is that commercial excellence for us begins with the customer. We're a very customer-centric organization, but we're also looking at this from two additional angles, two fronts, I would say. One, improving the commercial execution and discipline in our company. We're doing it by deploying new technology and new tools, such as a unified CRM, so that we have a 360-degree view of our customers. By utilizing data, being much more data-driven than what perhaps we've been in the past for deep margin analysis and segmentation. But maybe more important importantly changing the expectation of our commercial team you heard peter say this earlier the expectation of our commercial team is that they will make decisions that adds value to our customer value to cmc not just simply in the volume that they can move or the products that they sell i can tell you as someone who has spent a lot of years on the commercial side of this business this is the most meaningful change that i have seen in my career is how we're approaching the commercial aspect of business, of our market, and how we're acting in the market. The other front is on our portfolio reach and leveraging our new portfolio that Peter talked about, early stage construction. We need to make our size and our reputation an asset. We're on hundreds and hundreds of job sites with our individual products throughout this What we're trying to do is build new capabilities and new products so that we earn the right to win more on every project. That's what you're going to hear from Mike and from Brian and from Keith today. Real examples of how we're doing this. So ultimately, the way we view it is the relationships get us in the door. The new portfolio we have built helps us win more. So just as I shared an example about how we're using AI and scrap optimization, I wanted to show you where the two fronts that I talked to you about are coming together, deploying new technology and building on our early stage construction portfolio. One of the things that we've run into, I would say, as we began to grow the company is the challenge on being able to get all the commercial opportunities in the hands of the commercial decision makers. What we've now done is we've built this system where we take all of the bids that we have in the company, project bids, project plans, and specs, and we put them into a data lake. We're also pulling in information from external sources like Dodge and Construct Connect. So it gives us this vast opportunity pool. And we're using AI to scrape the top of all of this and look for key words and key phrases like concrete reinforcing, or ground stabilization, or box culvert, things of that nature. When it identifies that, it then routes it to the appropriate decision maker with a potential lead. We're early innings on this, and we've only deployed it for larger projects. But we think there's a huge upside. By the time we get this fully built, and we have 15,000 bids going into this, we think it's just exponential opportunity for our commercial teams so if i had to give you one formula for what commercial excellence is for us it's relationships plus better commercial execution plus our new early stage portfolio that's what's going to help us win so we've talked operational excellence we've talked commercial excellence and i think a theme you've seen there has been in discipline. Let's finish up this morning with my section talking about what we're doing from a capital discipline standpoint. Traditionally, a lot of our capital decisions were made locally. The planning, the decisions were made locally. We've replaced that with three fundamental things that I think are very important. One, we've built an enterprise-wide framework that you will see on the screen here. A very rigorous stage gating system from planning through execution. Two, we've implemented a new technology, a new capital expenditure platform throughout our entire organization so we have more visibility into what we're spending and a better ability to do post-mortem so that we're continuously learning and how to deploy capital in a more effective way. And third, we've established a capital investment committee to ensure that we're deploying the right capital at the right time to the right projects. And these three things have had a meaningful impact. 95% of our projects in FY25 were on budget or below budget. That's a significant step up from the past. And we estimate, since we put this into place several years ago, we have avoided over 180 million dollars of capital due to this very disciplined approach that we've taken. And I'll give you a couple of brief examples. We need to replace an EAF in electric arc furnace in one of our mills. The scoping was done by the local team. When we put it through our process, we refined the scope, we reduced over design, and we reduced the overall spend by 40%. Similar example in West Virginia, we implemented really strong value engineering and a new contractor optimization strategy for dealing with our contractors. And on that greenfield mill, we avoided significant capital that we would have otherwise spent. So the bottom line is, as I said earlier, better planning, better projects, better execution is going to be our key to improving our return on invested capital. So I'll wrap up this morning with this. Transformation is underway. Our execution's paying off. You've seen the results from TAG. They're real and we've got more upside. We're building new capabilities in a new operating system to improve margins and make sure it's durable through all cycles. And capital discipline's now a strength as evidenced by $180 million of voided capital. That's how we're transforming CMC to reach the full potential. I'm so excited to be able to share the story with you this morning. With that, I'm going to welcome the SVP of North American Steel Group, Brian Halloran, to the stage. Thank you for your time.

Good morning, everyone. I am Brian Halloran, as Ty just said, SVP of North American Steel Group. I've worked with CMC for 28 years now. That's given me a lot of opportunities to work in various capacities in our recycling mills fabrication businesses and i have to say this might be one of my best assignments yet because today i have the privilege of updating you on the impressive progress that the team in the north american steel group is making to unlock the full potential of our business and we've been working hard as peter said last 111 years to build our business and reputation. And now we find ourselves in the enviable position of having an unmatched long products franchise and being the preferred partner with our customers. Our success is driven by an amazing team with this can-do culture. And we're now focused on improving our business by optimizing what we already own. And to do that, we're taking advantage of an improved industry structure, a more supportive policy environment. We're improving, as Ty just talked about, commercial and operational excellence through TAG to reinforce our low-cost position and unlock durable margin improvement. And then also, as I'm going to talk about, we have a huge opportunity, especially in North American Steel Group to reap the rewards of substantial growth capital that we've invested over the last few years. So let me start with the foundation of our business, which is we have an unmatched franchise with a nationwide capability to serve customers. As you know, we operate as a vertically integrated steel maker. We have recycling, we have mills, we have fabrication. that gives us this distinct advantage we control supply production delivery in recycling it represents this low-cost source of secure raw materials for our mills and our mills operate a nationwide network of low-cost operations and then fabrication represents that direct access into the end-use markets that we serve. And as far as the products, we have leading positions in all the major products that we produce. Peter mentioned number one in rebar. We're also number one in fabricated rebar. We are the only producer to offer a full portfolio of corrosion-resistant products, including epoxy, Galvabar, Chromex. So I think the question here becomes, How have we organized our capabilities and our footprint to earn the right to win? Our competitive advantage, it starts with the national scale. I can tell you it's amplified by our local execution. We have a strategic mill and fabrication footprint. It's purposefully focused on key demand centers, large metropolitan areas. We have deep, we're a 111-year-old company. We have deep, longstanding relationships with our customers. Some of those have been built over decades on a foundation of trust and reliability. And as I just talked about, it's vertically integrated. It's also a flexible EAF platform that I'm going to talk about more in just a minute. It ensures low cost, ensures supply chain security. So collectively, it is these capabilities that are the core of our competitive advantage that's driving our leading market position. But also in our story, we're benefiting from a significantly improved operating environment that's driven by consolidation, supportive policy, and also disciplined execution. Back in 2018 now, we cemented our leadership position in REBAR when we acquired Gerdau's REBAR assets. And that gave us an extensive mill network, made us the leader in fabrication that I just mentioned. More specifically, geographic coverage of all the major markets, low-cost position, and this last point's super important. It's a highly variable cost operating structure. It allows us to flex up and down based on market demand. On the trade side, we have been actively advocating for supportive trade policy for years. We and the industry are making significant progress. Trade actions that are either completed or underway now address 80%, more than 80% of the rebar imports over the last five years. It represents about a million tons. So when you're talking about a 9 to 10 million ton market, it's significant. And we're also focused on commercial execution. Ty, Peter, both referenced that. And it's really been a focus, as opposed to market share and moving tons, let's focus on value over volume. We think that's good for CMC. It's good for the industry. So when we think about the operating environment, that is significantly improved. It is the consolidation. It's the supportive trade policy and the disciplined execution that are all combining to support the higher and more stable returns that you're seeing in our performance. So going forward, our focus is clear. We're going to capture the full potential of our business. We have a great opportunity to harvest the growth capital that we've invested over the last few years, and we're reshaping our portfolio by optimizing our asset base. All with a goal of creating durably higher margins, growing our bottom line, and reducing capital intensity to increase our returns. And TAG, and you've heard a lot about TAG, you're going to hear more. That is the process. It's the framework that we're using to execute on these opportunities. Let's talk about our mills. And mill operations, the team is focused on utilizing TAG to scale best practices to reinforce our low-cost position. And last year, with a goal of speeding execution, we moved from what was a regional operating structure to a line of business operating structure. So now we have one leader over all of our mills, coupled with a, supported by a transformation director. the leader of our mills carlos danuelo happens to be here carlos raise your hand great guy 30 plus years of steel making experience if you want to corner him after after our presentation today a wealth of information and steel making but we could not be happier with how the organization is leveraging this new line of business org structure to take advantage of our collective expertise in making making steel and the number on this slide here is super impressive. What they've already been able to line out as a run rate in savings opportunities, over $130 million. And it's a lot of small initiatives and bigger ones stacked on top of each other. Ty talked about scrap optimization. That is a big opportunity. And there are many more. Across the North American Steel Group, we now have 70 initiatives that we're executing on. But I'll highlight a few here. So in our rolling mills, we're focused on improving yield through process stabilization. We're reducing the cost of alloys in our melt shops by doing deep regression analysis to come up with the lowest cost melt mixes. And we're improving maintenance through preventative maintenance, improving best practices. So a lot of progress in a relatively short period of time with still much more upside and similar efforts underway on the commercial side of our mills business. We're a recognized leader when it comes to commercial excellence in the industry. And our team's now focused on capturing more of the value that we deliver by improving consistency across regions and products. And with that disciplined execution and consistency in mind, within the last year, the team implemented a consistent commercial operating system supported by a unified CRM. And again, as with the Ops side, making great progress. More than $30 million of run rate benefits have been lined out, and we only see that number growing from here. I'll highlight just a few. Size and grade extras. cost our mills significantly more to produce. And by aligning on market competitive premiums, we're capturing that value. We're reducing freight costs. We have a nationwide network. We're using advanced logistics management to make sure that we're optimizing for the lowest cost to serve every customer, resulting in freight savings. And we continue to grow key accounts in critical geographies and products. So when it comes to our mills, it's this can-do culture that I'm talking about. It's the systems and organizational changes and tag. And all of that together is unlocking the significant value that I've shown here on the last couple of slides. On the fabrication business that we operate, another great example of how we're rethinking the business, restructuring the business to optimize returns. Within the last year in our FAB business, they've implemented, as I state here, FAB Full Potential. It's a long-term strategy focused on operational and commercial excellence to improve through the cycle returns in this business. The key aspect of the business is that it's more balanced. So in addition to being focused on the upstream benefits with our mills, we're also focused on making sure we get a healthy standalone return, that we're capturing the value of the products and services that we're delivering to early stage construction. And within the strategy, we're raising the bar on commercial execution and discipline and managing risk. And I'll highlight one thing we're doing there, risk mitigation tools. We're leading the implementation of risk mitigation tools in the industry to reduce the margin compression that we've historically seen during periods of rising rebar prices. The team, again, is making tremendous progress. it's a big aspiration there and we we are completely convinced now that executing on the goals that we've set for fab full potential we will double the through the cycle performance of this business in fact we're so um encouraged by what the fab team is doing we're using the same process and framework to rethink what we're doing in our recycling business and that's rolling out as we speak. So that is an overview of what we're doing in the North American Steel Group to recognize our full potential. I'll now talk about how we're working to harvest the significant, the benefits of the significant growth capital that we've invested over the last few years. Naturally, most of that has been in our steel mills. With the completion of Arizona and West Virginia, we will have completed the build-out of our nationwide steel network. Let me tell you, these two steel mills are state-of-the-art. They represent the future of steelmaking. I hope that some of you at some point get to see one or both of them, and we could not be prouder of our modern steelmakers who constructed. They're now operating these mills, and I'll offer a few comments on how we operate our mills network and what these mills mean to our network. And first, they're going to help us realize our ambition of having nationwide merchant and spool capabilities that our customers demand in their higher margin products. So big win-win there. And again, we operate our network utilizing advanced production and logistics management to create lowest cost to serve every customer. And it's a highly variable cost operating structure. So we can flex up and down, but I'll also highlight it's not just rebar. We also, I showed on that one of the earliest slides, we're number three in merchant. We also produce SBQ, wire rod, fence posts, and other products not listed here. So we have a lot of flexibility built into this franchise that we can adjust to market different levels of market demand across geographies, across different products. So the key takeaway here is that these two mills, they not only complete our network, but they also permanently improve the operating efficiency and lower the cost of our steelmaking network. Going forward, as Peter talked about, with these major investments behind us, it's going to be more of a capital light focus, and it's going to be heavily focused on AI and automation. And you might not think AI and automation when you think steel industry, but I can tell you there are many, and we're just getting started, many opportunities where we're employing AI, we're employing automation to improve the safety and the efficiency of our business. I'll mention a few in our rolling mills. We have bundling and tagging robots. In the melt shops, we have sampling and temperature-taking robots. And in recycling, we even have robotic arms sorting materials. And in every one of those cases, it's improving the safety of our operation. It's improving the efficiency of our operation. The other thing we'll continue to focus on naturally, as we have done for many years now, is upgrading existing facilities. And that's regardless of recycling, mills, fabrication. If we're operating it, we want it to be latest technology and lowest possible cost and efficiency for that, best efficiency for that operation. The last thing that I'll highlight for you today is very exciting growth opportunity for the company as early stage construction as we've talked about. and how we're leveraging North American Steel Group, specifically fabrication, to grow our early stage construction platform. Our fab group bids more than 15,000 construction jobs per year. And what we've realized as we've continued to build out this early stage construction platform, as many of those jobs have other opportunities for CMC well beyond fabricated rebar. There's opportunities for tents, our construction services, precast, and the list is growing. And each of those represent opportunities not just for deeper customer engagement, but multiple revenue streams. So where there was one, maybe there's three, maybe there's four now. And it's this ability to not only capture the information, but convert it. That's another example of our unmatched value proposition. And to really underscore my point here, I'll share with you what this looked like on a real-life mega job. So within the last couple years, we helped build out a $17 billion phase one of a chip fab facility in Texas. massive job we've been in rebar fabrication for more than 60 years this is one of the largest jobs we've ever undertaken 60,000 tons of rebar typical fab job to put into perspective for he's like 500 or less and if you think of a major structure in this area you might think of MetLife Stadium this is multiples of that so this is massive so the other thing with this job is it had this expedited construction schedule less than one year so most companies no way we're staying away from it our team recognized that because of our scale our expertise right in our wheelhouse and so not only was our fab facilities the production facilities able to leverage our network to keep pace with the construction schedule the production schedule but our logistics team was able to organize just-in-time delivery of more than 300 truckloads per month during construction to meet the needs. And in addition, we're on the site, we're able to leverage that to do Galvabar, Tensar, an assortment of products in our construction services business. And so I highlight this for you because it is a great example of the unmatched value that we're bringing to these construction sites and how we're leveraging the North American Steel Group to grow the early stage construction platform that Mike and Keith are going to talk to you about in just a minute. And here's the other thing, is that by performing like we're able to, by bringing this additional value, it positions us as the preferred partner on future phases and projects and as case in point on this particular job we were just awarded phase two so really really excited about the the way that we're bringing more value to our customers as i wrap up i'll leave you with just a few key takeaways the the heavy lifting is for the north american steel group uh heavy lifting on positioning and investment it is it's behind us at this point. It's really about execution. We have an unmatched long products franchise. We are the preferred partner with customers. We're benefiting from an industry structure, an improved policy environment. We're improving commercial and operational execution through TAG. And we are super excited about the opportunity in front of us to harvest the benefits of the growth capital that we've invested over the last few years and the proof it's in our results which demonstrate we're a business with growing earnings power higher returns and improving through the cycle performance with that i'd like to welcome andrew larkin back to the stage vp investor relations thank you i'll invite peter and ty back up as we get the stage set up for our first Q&A sessions.

And as a reminder for those on the webcast, if you wanted to submit your questions via the Q&A portal, we'll try to weave them into the discussion this morning. We will have a couple of microphones floating around for those in the room that would like to ask a question. We would ask that you just state your name and the firm you're with before stating your question. Great. I think we're all set. Raise them high, please. Yeah, right there.

Yeah, good morning. Carlos de Alba with Morgan Stanley. First question is, how would you break down the contribution of each of the three drivers of value creation that you elaborated? I think those were capturing the full potential of the business, the harvesting of benefits of growth capital already deployed, and the reshaping of your portfolio. I mean, what is the percentage contribution of that value creation, high level, and how should we measure that value creation? Is that increasing EBITDA that you are forecasting, or what is the number attached to those? And my second question, if I may, very quickly, is the European business is going to be, I think, 6% of your portfolio. you. Why would you keep that, given everything that you are trying to achieve and accomplish in the Americas, in the U.S.?

Okay, well, thank you very much for the question. Maybe I'll start and you guys can jump in. So, as we think about the contribution of the different pieces, the first point to make is lever number three is zero in our targets. We haven't assumed any acquisitions. Okay, so between the first two, what we've talked about today is 200 basis points plus of margin improvement from capturing the full potential of our business. And I think when we did the precast acquisitions, we also talked about, you know, 200 basis point margin improvement coming from precast. Right. So so I think as we as we think about the kind of the impact of the two pieces, I think it'd be fair to say that they're roughly comparable. Right. When you when you think about two hundred million dollars of of tag benefit and then if you sum up all the different projects that we have, it's probably another, you know, couple hundred million dollars of EBITDA. Yeah, rough numbers. And to answer your question on Poland, Poland is a very important asset in our portfolio. And I've said this on earnings calls, but let me just reiterate the point. When you operate in an environment like our Polish team has operated, it forces you to make different decisions and to be even more frugal than we are, in many cases, in operating our North American system. And let me just give you an example of that. Energy costs in Europe are double what they are here. And so the polls have been incredibly creative about lowering energy costs. And what we're doing is, through our TAG framework, is we're utilizing that to look at what precisely are we doing and how can we apply it in North America as well. And remember, when we apply it across North America, we get a 10x benefit from it. So Poland is, we acknowledge the fact that it's a different market and Europe's been difficult. There are some green shoots. But I think it's really important to acknowledge the value that they bring to our portfolio. Thank you for the question.

Morning. Alex Hacking from City. A couple of questions. I guess first one for Peter, when you talk about more acquisitions in CSG, is that going to be opportunistic or are you targeting something specific like more precast and so on? And then second question, I guess, for Ty O'Brien. And, you know, TAG has a lot of components, but part of it is standardization, centralization. How do you balance the upside from that with the sort of risks of taking away autonomy from the mill GMs? You know, because you think about the history of mini mill steelmaking and Ken Iverson's philosophy and all that. It's always been about decentralization, not centralization. Thank you very much.

Thanks, Alex. Good question. So with respect to your first question, when we think about M&A, by definition, these are opportunistic. And we need to have a willing party on the other side that wants to transact with us. In terms of the areas that we're focused on, we've opened up this lane in precast. I described it in my presentation as it's a big addressable market and one we've really just put our feet down in the southeast in. So we would love to grow that business. But I would also say that we would love to grow our Tensar business. So I think it depends a little bit on kind of what comes our way. But what I can tell you is that in the near term, there are enough opportunities in areas that we're already in, existing capabilities, that that will be our near-term focus. I don't think in the near-term, of course, we'll update you if that changes, but I don't think in the near-term we'll be opening up a new front, so to speak. I don't know who wanted to say.

I'll start with that, and I love the question, because when we started to design TAG, that's one of the things that we had to wrestle with. As I noted in my prepared remarks, we've operated very decentralized in the past. But that's one of the reasons that we brought in the operators to help build the program. And I think if you look at what our operations are doing now, we will take a mill director from Florida and he'll have an impact in Arizona at this point. And some of that comes down to that vast expertise we talk about. So I think early on there was some hesitation, Alex. There was hesitation that are you taking decision rights away from me? We're not. We're supplementing best practices. We're supplementing enterprise-wide capabilities to come help you be better in your business. And there's nothing like good results to get people on board.

And as you start to see the results improve mill by mill the operators got on board with this because as i said they they've helped build it so i don't think they feel alienated whatsoever yeah it's some additional color on that is most of what's in tag i said we have 70 initiatives in north american steel group that are underway in all three lines of business most of that these plant managers and mill directors and fabrication superintendents they've been working on this for a year and when i was talking about how we were super pleased on how the teams are utilizing the new org structure across the line of business. That's what I was referencing, is that they now were bringing to bear more resources to help them execute on the things that they know are important to drive the performance of their business. So, it's the way that we've gone about it. It's more of a supplemental expertise and help to help them do the things that they want to do anyway.

Timna?

Yeah. Hey, good morning. Timna Tanners with Wells Fargo. I wanted to ask about tag. When I hear the descriptions, to me, it's a lot of cost cutting. It's a lot of taking costs out of the business, which is great, but costs are running hot, right? Energy, machinery, et cetera. How is tag not more than just offsetting some of those costs? So that's my first question. And the second one is just simply following up on something Peter said about divestitures. Can you give us a little more color about that? I mean, I think CMC historically has had a lot of little businesses like Copper Wire, forget about some of the other ones that don't get lumped, you know, don't get called out as regularly? Are there some other, like, legacy businesses maybe that you don't talk about that could be better in other hands?

Thank you. Yeah, thanks, Tim. I'll start on the tag side and then these guys can supplement what I say, but in the prepared remarks, I said this is not a one-time cost-out program. And what I mean by that is when the goals that we have set and what you have seen today for 2027, I consider that more of a milestone because we're going to continue this program. And the reason it's not just a cost-out program is the EBITDA was actually translated from the improvement in metrics in the organization. So if you were to take a tons per load as I said or a melt yield and you said we want to improve that yield from x to y we just simply then converted that to what that EBITDA uplift would be so we didn't go in and say cut these costs take this out it's it's truly improving the process which naturally costs will fall out of that but the other thing I might I might mention is when we look at the breakdown of the the current tag roadmap about 70 percent of it is operations and about 30 percent of it is currently in the commercial realm and those operation initiatives it's more tangible more quickly than what we would see on the commercial side so we're maturing on the commercial side right now and I think as we as we march towards that 350 you see kind of more upside on the commercial side than you did early in the program. So I don't know if that's helping or not, but it's really in the basis of what we built and how it's more metric driven, not just EBITDA driven, cost driven.

I think it's also maybe helpful to think about the, and this maybe goes back to the earlier question about decentralization. And one of the things that's been so great about what Brian and Ty have brought through this TAG program to the North American Steel Group is it's been a concerted effort among all the mills to work together to be their best. And I've been in this industry long enough to know that, you know, if you were the mill superintendent, you're the king of the jungle, right? And no one challenges you. Well, that's not the mentality in our company right now. And that is a very exciting opportunity because each mill is different and they all have strengths and they all have weaknesses. And when they get together to bring their weaknesses to the table, you can address some really critical issues. The other thing too, Timna, that I think is an important point, and Ty said it in his presentation, but I'll just reiterate it, is that what we are committing to, first point is we believe there is more beyond the 350 that we have of gross takeout so far that we will have achieved by the end of next year. However, at some point, we are going to get to, certainly on the cost side, an optimization level that is kind of where we can get to with our portfolio of assets. What we are committing to is to sustain that net benefit. So in other words, when our costs start to or stop exceeding inflation, we will at least take out the inflationary impact on our costs. That is durable margin improvement. And that's what we are committing to do going forward. To your second question on divestitures, what I can tell you is that, again, you are right. There are a number of smaller businesses. Some of these, the copper business, for example, is no longer in the portfolio. That one's gone. But there are some smaller businesses in the portfolio. And I guess at this point, I would just say, We know which businesses are core and which ones are not core, and at the right time, we will make a move. We're very focused on kind of creating value for all of you. We don't want to sell assets when it's not a good time to sell assets, if they're assets that we should sell. And so we're going to be measured in how we do it. But we are focused on that, and what I will say is we are not about accumulating assets. In a lot of instances, these assets that are hanging around are lower return assets that actually retard our ability to improve our return on invested capital. And if you hear one thing from us today, we hope you take away the fact that we are committed to driving returns sustainably higher in our business. Thank you for the question.

Hi, Satish from Bank of America. My first question is on the fabrication side. So you mentioned that you are implementing a number of tag initiatives that should double the profitability over the next few years. Can you maybe talk about where are you today in that roadmap and when do you expect that to be achieved and maybe share what the magnitude of EBITDA improvement that we should expect from that business side? And then the second question is on the import picture. If you can talk about how you see the current import situation. Obviously, with all the trade cases that we have seen over the last five years, the mills have been successful in limiting some of the countries. But then if you look at the current situation, we are on track to analyze to 2023, 2024 levels, high levels. So any thoughts on how you see the import situation today? Thank you.

So, Peter, maybe I'll take the first question, and then we can talk more about the import situation. Fabrication, specifically, we don't comment on segment-level reporting. But let me tell you this. We set a three-year goal for the tag goals of Fab Full Potential. That's how we're executing this Fab Full Potential strategy. And this team came out of the gates sprinting. So within a little more than a year, we'll be on pace to achieve the three-year targets that we set. That's why we're so incredibly encouraged by what the team's been able to do. And for more detail on that, today we have Steven Pinney here. He's the transformation director for the fabrication business. He's been very instrumental in implementing the FabFool potential and making it so successful early on. But the expectation, I will tell you without specific numbers, is that this, as I mentioned, we expect a fair return on this business. It provides a lot of value in the early stage construction supply chain. So we, by achieving these goals, will create returns in excess of our cost of capital.

So we're really excited about this. yeah and on the on the trade cases we were really pleased with the the final rulings that came out of course it's got to be finally approved by the ITC there's 45 days for that to happen but again as I said in my remarks this is if you take the average of those four countries it's 500,000 tons that are out of the market and I think when you look at the tariff levels they're really out of the market for the next five, ten years, right? Because I think everyone knows that the first period is five years and then there's an extension, and typically it gets extended for another five. So that is a durable barrier. You know, if we look at the imports this year, I know it's been the talk of the town because South Korea has obviously brought a lot of material into this country. and we believe that that's going to trail off in the second half of the year. We're confident it will. When we look at the economics of bringing the material here, we don't think it makes sense to do that but I'll say two things. One is that we are not going to be shy about pursuing countries that violate our trade laws and we've been very successful over the last several years of doing at doing this, and we must protect our domestic industry. We will not be shy. That's the whole point of our level the playing field. You're seeing that wind in through the USMCA negotiations where the U.S. government is basically asking Mexico to adopt trade laws that are similar to ours. And that is that you can be assured that you're hearing our voice and other voices in that position.

Great. Thank you. That'll conclude our first Q&A session. I want to make sure everyone has the time for a break. We'll resume at around 1045. So it's a little bit less than 10 minutes. Try to be back in your seat in about 10 minutes. Thanks.

All right. Thank you, Peter.

Good job. if everyone can start to find their way back to their seats would appreciate it welcome back uh halfway through and you've heard peter reintroduce a transforming cmc ty brought tag to life and brian share with you the exciting prospects for our steel franchise next up is a deep dive into our construction solutions group Paul will then cover all financial matters and then Peter will wrap things up with some brief concluding remarks we'll have an extended Q&A session at the end so those again those on the webcast continue to submit your questions via the Q&A portal I'll do a better job of weaving those into the discussion alright with that let me now invite to the stage our senior vice president of our precast group Keith Haas Keith Thanks, Andy, and welcome back again, everyone.

I hope you enjoyed the morning session. I know I certainly did, and I look forward to working with Mike and Paul to complete our session and then to get into Q&A later on. As Andy said and Peter mentioned earlier, my name is Keith Haas. I am the SVP of our new precast group. I came to CMCU via the acquisition of Foley Products in December of last year, having been the CEO of that business for a few years beforehand. So I'm relatively new to CMC, new to the management team, love the people that I get to work with. It's a fantastic business and operation. But I do have, as Peter mentioned, a deep history and experience, not only in precast, but in various types of building products, probably about 30 years in different products, different in-segments, different geographies in North America and in other parts of the world as well. So while I'm new to the team, I have deep experience in the industry and love concrete products and what they do for the economy and the kind of businesses that we can build around them. So what I'm going to do is I'm going to kick off the introduction to the Construction Solutions Group and then later hand it off to Mike and then do a bit of a deep dive on our precast business. It's new to the company, so we'll take some time to explain what it is and then where we're going with it. But before we get into much detail, I just want to hit on a few key messages. And these key messages are not just about the precast business. I'm up here to represent Precast, but it's really to kick off and frame the larger discussion around construction solutions. And these are messages that will flow through my part of the presentation and through Mike's as well about the key aspects of our business. And I think first and foremost, what I want to talk about is we're a portfolio of high margin, high growth businesses. And we are building scalable leadership positions in the early stage construction market. And the role we play in that is we really bring to the market the ability to solve problems and address the challenges in early-stage construction. And we do that by bringing mission-critical, essential products and solutions to that market that solve problems for contractors. And we'll talk about a little bit later on what those problems and challenges are and how our solutions, our products, and our people meet those challenges. And even though we're high-growth businesses and we're high-margin businesses, We also are pursuing a relentless and aggressive process, as Ty outlined through TAG and the principles of TAG, on improving our businesses. So optimizing our operational performance, optimizing our commercial performance, and really finding the ways that we can continue to grow through expanding our addressable market and our penetration of those markets. And that's backed up by, I think, a long-term view toward a growth pathway, both inorganic, by going out and adding new products or new companies to our portfolio, but also organic growth where we find, continue to find challenges where our products and our solutions can address the needs of customers that will continue to allow us to grow and take market share in the broader early stage construction business. As I mentioned, the Construction Solutions Group is really based on two businesses now, Precast, which I run, which as you know is new to the group, and the Emerging Businesses Group, which later on Mike will give details around a number of our businesses inside of that. So before I really kick off and talk about the precast group, I kind of want to frame it a little bit and kind of like how did we get here a bit because, again, we're new and I want to give you a bit of the background. So as you know, CMC acquired two businesses in December of last year. First was a company called CP&P, and CP&P was the market leader in pipe and precast products, kind of call it in the mid-Atlantic region. So think sort of Washington, D.C. metro area down through the Carolinas, number one player, very great, strong company. And then shortly thereafter, acquired the company that I was running, Foley Products, which had similar market positions, but in complementary states in Georgia, Alabama, Tennessee, Florida, and with some seed corns for growth out west of the Mississippi. And what I think is super interesting about it is having run the Foley business for a number of years and being involved in the industry even before that, it was clear to me that one of the best opportunities, not only for growth, but for realization of market and operational synergies, would be the combination of Foley and CP&P. They're complementary geographies, a little bit of overlap, but same products, same customers, same sort of focus on delivering quality, exceptional customer experience, operating at scale, and being the best in the industry. So my dream kind of had always been for the two companies to be able to come together. And thankfully, and I'm just delighted that CMC and the team here that preceded me was able to put that together and make it happen, because it's an unbeatable combination of businesses. We'll go through what that means for the market and what it means for synergy delivery as we move through the presentation. I'm honored to lead it and just very excited about the opportunities it holds for the businesses that were acquired and the people in those businesses, the value it delivers for our customers, and also the value that it will deliver to CMC and its shareholders. In terms of the presentation about Precast Group, I'm going to kind of, I'm not going to break it, it won't be a hard separation, but the first part will be about framing kind of who we are, because it is new, and kind of where we are today, and the second part will build on the strategic themes that Peter and Ty and Brian have already talked about, which kind of lays the roadmap of where we're going in the group, before I turn it over to Mike. So kind of first and foremost, you know, what and who are we in precast, and what do we do? If you had a chance to stop by our booth outside, you saw small-scale versions of the products that we manufacture. But what we do at its essence is we provide products that are structures that protect and contain critical infrastructure for the economy. And these products, as you've seen, are typically made out of concrete. They're buried underground, so you don't see them every day. You might drive by a construction site and see our pipes or our structures there, but they're soon installed underground. And as you've seen, they can range in size from a box that's three foot by three foot to structures that might weigh 50,000 pounds. So a wide variety of things that we do. Many things we do are standard, but more often than not, we customize them for applications for the job site. So the size, the number of outlets, the configuration is often highly customized to the needs of a particular project or to a particular job site. The key markets that we serve, I talk about critical utilities. So, really, our business is driven by the needs of water infrastructure, energy infrastructure, data and communication infrastructure, and transportation infrastructure. And if those look familiar, they are because they are the essence of the drivers of our early-stage construction strategy across CMC. So, basically, all the products we make are going to contain or convey those in-market segments that, again, if you step back from it, are well aligned not only to our strategy, but to the growth drivers in the economy, energy investment, data and technology investment, investment in our transportation networks, and key investment in our water management capabilities as climates change and the needs of stormwater management grow over time. So we're really excited about how Precast fits into CMC and how it allows us to expand our execution and a broader early-stage construction strategy. So why Precast? I mean, what do we bring to the table? What do we mean in terms of the overall sort of construction solutions group? And again, as I mentioned before, what we do and what we feel our businesses do in construction solutions is they provide solutions to customers' challenges. And our customers tend to be contractors. So we make our product in factories. We ship it relatively short distances. We sell it to site development contractors. And what are they dealing with? Typically, their challenges are around workforce. These projects are complex, and they need a lot of labor. They're dealing with schedule. Am I going to be able to get my portion of the job on time so that I can get off the site and I can get paid? Are they dealing with quality? Am I going to have a product that's going to install easily, work in the field, or is it going to fail in the field? And what about certainty? Can I depend on the supplier of the products that I need to be able to do my job on time? And so in the precast world, we take job site construction and we move it to a factory. And we have heavy products, they're not easy to ship long distances, so we have lots of You'll see when I put the dots on the map. So the value we bring is we address some of those challenges that contractors have. Because our products are made in a factory, there's labor savings on the job. Labor savings mean time savings, where our products come out ready to install. They're made in factory control conditions, so the quality is higher than if they had been fabricated and poured in the field. We can manufacture year-round. We're not subject to weather delays. It doesn't rain inside our plant. So we're able to produce year-round. And that allows us to give supply chain certainty to our customers that when the product's needed, it's going to be available from our yard to be delivered to the job site. And because we're using concrete, which is a highly durable material, we're able to have a lower lifecycle cost through the entire project life because our products are there really for the duration. So that's the advantages that Precast plays, and I think it's a compelling value proposition for CMC as we move forward. So who are we in the Precast group? We're new, but we're already a scale player. We have 35 plants, already talked about being the number one player in the southeast and the number one player in the mid-Atlantic and the number one player in the deep south part of the markets. As I said, there's a lot of dots on the map. We have to have a lot of factories to cover the markets and have leadership positions. and we are a strong contributor already to CMC's financial performance as evidenced by the numbers that you see on the right-hand side. So a great start. We're number one in certain markets but we've planted seeds to be number one in other markets and as you can tell a lot of white space on the map to fill out over time. And just to touch again a bit on this and Paul will talk more about it later. We're bringing to the company a strong financial performance but it is having an effect just beyond just the level of EBITDA that it brings, we feel like we'll have less earnings volatility as precast as part of the portfolio, mainly through a stable price environment. So as you can see, that dark blue bar on the left is sort of just generalized pricing for precast products over the last decade and cycle. And so we've seen this consistent ability to get more revenue value based on what we bring to our contractor customers and the value delivered through the cycle. We have structurally higher margins, as evidenced here, and they, again, have been very durable over the last cycle and a very high cash conversion rate. We'll talk a little bit why that is, but it's primarily because we have high margins and relatively low ongoing capex needs in the business. So it results in a high degree of cash being generated from every dollar of EBITDA. And again, as I said before, Paul will kind of detail more what that means for our long-term financial projections that we've already presented. And maybe to wrap up this little mini part of kind of the presentation on sort of status of where we are in precast, just a reminder that we compete in a large market. So, you know, you heard Peter talk about early stage construction, addressable market, 150 billion. Well, we're 20 billion of that. And that was meaningful in terms of expansion of CMC's opportunity, but think about it in terms of the opportunity that we have. It's a $20 billion market. As you saw before, our revenue is less than a billion, so we've got a long runway to grow both organically and through acquisitions over time. Moving forward, you've seen this chart before. This is the foundation of what we're doing at CMC globally and CMC in every business that we participate in, and Precast is no exception for that. We have a clear focus going forward, and I'll talk in detail about each one of these. about capturing the full potential of our business, harvesting the benefits of the capital already deployed. There have been significant financial commitments made by CMC in the precast industry, and I'll kind of give some examples on how we're leveraging that to continue to grow with just a limited amount of capital back in the business. And finally, our portfolio. What are we going to do to shape and grow our portfolio going forward? So first, around capturing full potential of our business. For us right now, you've heard a lot of talk about tag and the principles of TAG both operationally and commercially to drive improvement in the business. The first order of business for us in precast is capturing the value of the synergies of the acquisitions that were made. So they've been well documented and well communicated out in terms of the magnitude of what we're going for and I'll talk a little bit about how we're going to achieve the synergies that targets have been set out. First is really about our manufacturing best practices and our network optimization. You saw we have 35 plants there. Every single one of those plants can get better at something. And I think Ty put it very well earlier around TAG, which was our best operation becomes the benchmark operation for the group. And that's the principle and the idea that we're applying inside the precast group. So even within Foley and within CP&P, these oftentimes were companies that were built up through acquisition, so there's still a lot of opportunity to take the very best of what we do in a pipe operation, or the very best of what we do in a wet cast, you know, precast structure operation, and set that as those benchmarks in terms of productivity, in terms of material usage, in terms of everything that we do inside that fence line, and make that our standard and lay out roadmaps to achieve, you know, that level of performance and production at every one of the facilities to the largest extent possible. And we're also looking at our network. You know, we bought companies that I wouldn't say really competed against each other, but there were some opportunities to make some changes in our networks in terms of both manufacturing and logistics to ensure that the products were made at the right most economical plants and at the right place and at the right time. And that the jobs were shipped from the most economical plants so that we're capturing value, not paying logistics partners to move product past plants. So we've made a lot of changes to that so far. We're getting early benefits to that. I think Peter talked about integration and quick wins, and that's where we feel we're ahead because we have great teams. They're super willing to understand what's going on beyond their immediate realm of responsibility and work together to drive value for our customers. And when you can drive value for your customers, it drives value for your shareholders. Along with that, we're evaluating targeted implementation of automation and technology. The ability to apply automation and AI and other tools that are emerging in manufacturing now is really relevant nowadays to the precast industry. If you'd probably talked 10 or 20 years ago, maybe not as much. but things are changing so rapidly that there are real opportunities for us in plants where we've identified gaps to optimum performance to, in a very smart and disciplined manner, apply automation and technology to improve both our productivity, but importantly, improve our output. Because if we can improve an output in an existing facility, that gives us the ability to grow without having to go build new plants. And that's really important for our strategy going forward. Third, we're looking at everything we do. All our processes, sales, pricing, estimating, everything we do to find best practice, implement best practice so they're most effective of what we do for our customers inside the business. And fourth, our simplification and reduction in SG&A. We've got three sort of integrations going on, CPMP, Foley, and in CMC, there's opportunities there to reduce and eliminate redundant tasks and activities. So when you take all that together, it's going very well. We're ahead of schedule, and I can kind of recommit today that our target is achievable by the end of year three, which is $30 to $40 million of run rate gross synergies, as I said, by the end of year three.

So what does it look like in practice?

So I'll just kind of do a case study real quick. Anyway, this is a case study of a job that happened a couple of three months ago where we had a customer who wanted to buy a job from us south of Charlotte. The legacy team there at CPMB was going to have a bit of trouble being able to supply the whole job. The customer was known to our team in Atlanta at Foley. I won't go into great detail here. But in essence, what happened was the teams figured out that we had an addressable problem with our customer and we didn't want to lose the job. So we had the ability with this new network of plants to supply one set of products, the precast products from our CPMP team, different set of products, the pipe products from our Foley team in a market that was just in the middle of our strike zone and we were at the risk of losing that job if we didn't work together as two teams. And if we had been two separate teams, it probably would have been lost and it would have gone to somebody else. But at the end of the day, we were able to capture a $3 million job, and a $3 million job is important in the pipe and precast industry, let me tell you, have a very satisfied customer, and it built a muscle that we're going to use going forward of leveraging this new network of plants that we have for our customers who are increasingly, as they grow, they're crossing over traditional sort of state boundaries. So we need to be able to work together as a connected and coordinated network of plants to satisfy that level of demand in those customer needs. But it's not just the integration of CPMB and Foley that matters. It's the integration of these businesses into CMC. And we talked about, I think Brian mentioned it before, that fab is sort of the tip of the spear for you in terms of early stage construction. Well, our products and our businesses flow directly into that. So if you think about it, the overlapping footprints we have between fab and precast and Tenzar and some other businesses, broader footprint, better ability to serve complex problems and projects, We're going to coordinate on lead sharing, project bidding, and access to key decision makers. That's that commercial engine and coordinated commercial approach that Ty talked about before. And all of that's going to leave us the ability to value engineer, have better discussions with our customers, get more at-bats as a company, and be able to close more jobs as a company. I'm going to give you a quick example of what that can look like as we move forward based on what's happened in the past. So the second case study I want to look at is a major project that was taken on in Atlanta. Some of you might be familiar with the north side of Atlanta and the traffic challenges that are there. But it was an expansion and improvement of a major interchange. And while this project was commenced before CMC owned Precast, you can see the opportunity for us to replicate this and grow and do better as we move forward. I think, Brian, you mentioned the complexities of the project that you had. Well, this was extremely complex and the challenges in the marketplace, and a lot of people wanted to know part of it. But we were able to, both in precast, supply a range of pipe and precast products as well as rebar and performance steel into it as different teams back then. And think about the scale of this. We were picked as vendors separately because of the technical expertise we brought, the redundant manufacturing and fabrication network that we brought to it to be able to compete at scale. And we delivered 23,000 tons of precast. Again, our average order size is less than 200 tons. So think about that kind of scale into a project. 10,000 tons of rebar, very valued by our customers in both respects. And we have become a preferred partner to all the people in the chain, engineers, specifiers, contractors. And what that means for us going forward is our teams now are precast teams, our fab teams, and others throughout the CMC portfolio are working together now years in advance of some of these projects. And just in Georgia, there are major projects like this that are coming up in the pipeline, and our teams are talking about those and coordinating on how we're going to execute against those literally years before they go out for a hard bid. So we feel that the ability to work together is going to provide, again, much more opportunity for us and a much greater ability to capitalize on those opportunities together rather than separately. When I kind of look at changing from sort of optimizing and realizing the full potential of the business into quickly talking about how are we leveraging the capital already deployed, and I mentioned a couple things already, but I'll give three very quick examples that really are an investment of about $35 million. We hope for, and we're really targeting and feel certain about less than a three-year One, a brownfield expansion in Colorado. Peter mentioned it earlier in the presentation. We only made pipe. We want to sell a package. We deliver our best value and our best pricing when we sell a package. So we had extra space in the plant. We had to reconfigure some things. But we're now in the precast business. So it was a relatively modest capital investment now to have a full product line. And the reception that we've got from our customers is, thank you for being in the marketplace. We've been wanting it for a long time. And we're ready to do business with you. And Brad Gamble, who's sitting here, he's the general manager of those operations, amongst many others. for us, and you guys are doing a great job, and thank you for that, and look forward to a great future as a full-line provider in that marketplace. In Florida, it's a strong market. We had a small pipe plant. We bought a precast plant, again, to offer the full package. We had extra land, and we had the ability, we believe, to grow that business aggressively. So on that extra land, we're building a new pipe plant. It's a significant investment for us, but there's huge opportunity for us to capture share in that marketplace. And one further synergy from Precast being part of CMC, as Ty mentioned earlier, there's a capital projects management team inside of CMC that is now managing that project for us. And what that does is it frees up our local team to start working now to avail ourselves of the available capacity and capture share. So Ty, thank you for your team stepping in and helping us with that. But that's just, again, part of the great fit and the synergy by precast being part of CMC and vice versa. And finally, talked early in the day, and maybe a few people had questions about dry utility products. We converted a plant from a non-core product into making dry utilities for the I-95 corridor, if you will, kind of through the mid-Atlantic and down into the Carolinas. And that's really important for us because it's a super growth area being driven by energy and data center demand. And we just very quickly, in a very low capital way, was able to convert capacity to put to that market. And our backlogs are building. We're going to have great success there going forward. And finally, as I kind of wrap up, is kind of what's the runway ahead of us in terms of growth? So I mentioned before we compete in a very large market, $20 billion. The attractive thing about that large market is it's still very fragmented. So the top 10 players, including us, only have about 25% market share. So we see the ability with our knowledge of the market, at the synergies that we bring, we have a low-cost operating model, we can bring immediate synergies to acquired companies, a long runway to fill in the map and to increase our presence in the precast industry. And really, I think the question might have been asked earlier, but we see it in three ways. They can be bolt-ons to our existing operations where we already have market strength and we can expand that incrementally or solidify it where need be. It could be the acquisition of other regional leaders, companies like CP&P, companies like Foley, or even, and maybe just as importantly, extensions of our product lines, where we can buy technology or we can buy products that allow us to have a greater set of products for customer solutions, that in fact probably does even expand our addressable market going forward. So when you put that together with a focus on long-term growth areas and areas that need infrastructure and are sort of in favor of the kind of products that we bring to the marketplace, we see a long runway of growth and a repeatable growth model for the precast business over the next many years. And we look forward to being a bigger part of CMC's business and the value that CMC brings to the marketplace, mostly for our customers and, again, as we talked about to our shareholders. So I hope you can tell I'm excited about it. I hope you guys share my enthusiasm for this, I couldn't foresee a better owner of the businesses that have been acquired than CMC, and we are going to be set up for a fantastic future. So with that, I'm going to turn it over to Mike Doucette, our Senior Vice President for the Emerging Businesses Group, and thank you very much for your time.

Thanks, man. Well, hello. As Keith said, I'm Mike Doucette. I'm the Senior Vice President of the Emerging Businesses Group. I've been with CMC a little over 20 years in various operational and commercial leadership roles. And I'm really excited to talk to you about the Emerging Businesses Group today and why we think it represents a compelling growth platform for the company. So as we dive into this, there are three things I'd really like for you to remember from today's discussion. One is that these businesses are a group of capital-like, high-margin businesses with diversified products and solutions that can grow faster than the markets they serve. The second thing is that these businesses and their products and solutions position CMC earlier in the construction lifecycle where we can influence design and specification and address our customers' most critical challenges and create value for the customer and the company. And the third thing is that these businesses are more valuable as a platform than they are individually by being connected to the broader CMC capabilities. So let's jump into the Emerging Businesses Group. And you'll hear me refer to this as EBG. I apologize for that, but that's how we say it internally. And so I'll use that instead of saying Emerging Businesses Group over many times. As we get started, I really want to take a step back and look at back to 2023. We're delivering our third year of results. So we were formed in 2023 as a portfolio. And the vision was simple then, which was to organize and invest around businesses that could be the next chapter of growth for the company. And so it was built on these businesses that were highly diversified, that connected us to early stage construction, and that could expose us to where we wanted to be and where we wanted to compete. So in year three, I'm happy to say that we're delivering double-digit top-line and bottom-line growth. Our revenue increased by 12% year over year to $809 million. And our adjusted EBITDA grew over 19% while delivering 19.1 adjusted EBITDA margins. So today we're highlighting three of the six businesses in the portfolio that represent around 85% of the portfolio revenue. Tensar is our ground stabilization and ground improvement business. We have an exhibit out here. John Henderson, who runs that business, is here. Raise your hand, John. So if you have questions about that business, we'll be able to talk to you about that. They hold a number one position in geogrid solutions, as Peter said. The next business is Performance Reinforcing Steel. If you want to see an example of what that looks like, there's some shiny rebar out there called Galvabar you can take a look at. But this is our group of proprietary rebar products, such as Galvabar, Chromex, and Cryosteel. and that holds a number one position in corrosion reinforcement products when you combine it with epoxy the third business is our construction services business which is our distribution business for concrete related products it holds the number three position in that space and so this is a unique combination or this portfolio is a unique combination of market leadership customer access and connectivity to the broader cmc and the capabilities within it And you can see that capability, that connectivity within performance reinforcing steel. Chromex is manufactured in our steel mill in South Carolina. Galva Bar starts with material that's made out of our Oklahoma steel mill and will soon be using steel manufactured in our Knoxville, Tennessee mill. And 60% of our performance reinforcing steel products are sold through our rebar fabrication network. At the same time, TENSAR and Construction Services participate on many of the same projects and same relationships as our rebar business and our precast business, as Keith mentioned earlier. The other thing I'd like you to know about these businesses, they share a common go-to-market model and common stakeholders. That includes engineers, EPCs, general contractors, and subcontractors, even asset owners, public and private asset owners. and so that common go-to-market and common stakeholder audience actually creates commercial synergies we're going to talk about a little bit later and we you've heard some themes of that with commercial excellence throughout the presentations today we're going to hit on that as a driver for how we capture the full value of the portfolio not just within the emerging business group but from the enterprise and so we think about year three for us and the double digit top line and bottom line growth, I submit to you that this is a platform with real scale, real momentum, and significant runway ahead. So as we look at our historical performance over the last three years, I first want to talk about how the portfolio was built intentionally over time through strategic investments. With the acquisition of Chromex and Galvabar, we rounded out our portfolio to become a number one provider in corrosion-resistant rebar. With the acquisition of Tensar gave us access to an earlier entry point in early stage construction, earlier than any other businesses on the design and specification side. The acquisition of our anchoring systems business gave us access to the transmission and distribution market that we didn't have access to before. And then within the last couple of years, we actually have a startup within the portfolio called Bridge Systems. It actually gives us access to deliver turnkey bridges for reinforced concrete bridges in a modular pre-engineered form to address some 33,000 bridges that are deficient in rural America. And so each one of these investments follow the same discipline criteria. These are value-added products and solutions. They connect to our core business and our early stage construction strategy. They're scalable and they're value accretive. And so as you look at our performance over the last three years, 6% CAGR and a revenue with really the most of that momentum coming in this last year. And you can see that the organic growth strategies that we set in place in year one and year two are starting to bear fruit in year three. At the same time, our EBITDA, adjusted EBITDA grew by 9% from $130 million to $155 million, while improving EBITDA margins by 100 basis points. And so we gain share through market penetration and product innovation, really, by creating value for our customers. And so as we do that, every time we expand the platform, every time we've added new capabilities, we actually create more opportunities to leverage our commercial synergies, strengthen relationships with our customers, and capture more value at the project level. So when you think about this, we're not simply growing the business, We're actually compounding future earnings. Every time we've done this, it's created a bigger platform for us and more opportunities. Each investment strengthens a platform. Each improvement creates a larger base to drive future earnings. This is the power of a connected portfolio of capital-light, high-margin businesses, a highly diversified portfolio that can solve our customers' problems. And so as we look at the sizable opportunity ahead, seeing this slide, different versions of it for the emerging businesses group this is a 25 billion dollar service addressable market for us and we think we can grow faster continue to grow faster than the markets we serve and the reason is simple we're addressing those customer challenges earlier in the cycle where project risk is the highest schedule risk is the highest and so our customers as you've heard before under pressure to deliver projects faster or lower cost highly complex build more resiliency and to the projects and mitigate execution risk. Our solutions, as you'll see throughout the presentation, hit that head on. We reduce costs, reduce labor costs, accelerate schedules, and mitigate execution risk. This is particularly important in the energy and transportation markets where the products in our portfolio bring tremendous value. And so we gain share, since we gain share from traditional construction methods by creating value through our solutions, we have a lot of confidence in our ability to continue to grow faster than the markets we serve. So as we look at this slide you've seen a few times today, I won't go into each one of these again, but we're going to jump into each category. And for the emerging businesses group, this is really about building a larger capital-like growth platform that can consistently deliver above-market growth at an attractive return on invested capital. So let's jump into how we're capturing the full potential of the businesses. So you've heard a lot about the lead generation and lead sharing today. I'm going to give you a little bit bigger look at this whole commercial engine. And so one of the ways that having the common go-to-market and the common stakeholders, one avenue that's open to capture full potential is through commercial excellence. And with the Tensor acquisition came this really unique commercial capability, at least it's unique to our industry. And they call it a commercial engine. You've heard that terminology a little bit. Because Tensar's product is disruptive and competes against traditional construction methods. They built a commercial engine that systematically educates and builds awareness of their products, creates demand, and then drives market penetration. And so the exciting thing for us, as you've heard today, we're starting to extend that capability well beyond Tensar into the entire portfolio, not just in the emerging businesses group, but across the enterprise. We're in early stages of this or early innings, as Ty said earlier, but this goes back to that third kind of takeaway I've asked you to remember for the day, which is the platform value really exceeds the value of the individual businesses when we can leverage capabilities more broadly across the portfolio. I mean, each new contact creates opportunities to sell their products and educate. Each new project creates opportunities for revenue. So an example how we're doing this today is around building awareness for our engineered products. So TENSAR has had a strong history of delivering high quality technical content to the engineering community. It's put them in the position to be a trusted advisor in that space. And so we're replicating that same model from demand generation to nurturing to demand capture. And how that's having an impact today on our performance reinforcing steel products prior to leveraging this model, our attendance to our webinars was somewhat anemic. It's increased by 15 times using this model. At the same time, as we think about building demand and leveraging building awareness, we've captured over 15,000 new contacts in the past 12 months and identified 5,000 new project opportunities. That's 15,000 opportunities to tell someone about Precast, about Bridge, about Tensar, about Rebar, about whatever. So we're really cross-pollinating these. So this engine, again, in early innings, we have a lot of confidence that this is an accelerator driver to capture the full potential of the portfolio as we go forward. We're really excited about this, and we believe it has a lot of promise. The other way that we're driving or capturing the full potential you heard today is from TAG. And for us, and again, going through the EBG lens, this is and you heard a little bit from Keith, but this is about having a process to systematically improve the value of the businesses, not only that are in our legacy businesses, but the ones we've acquired and then we will acquire. And for me, this is a pretty simple formula. Commercial excellence is about how we create and capture value and grow our top line and our bottom line from a margin standpoint. And then the operational excellence side, this is really about how we lower our conversion cost, and improve reliability, increase reliability. So in the EBG, we've identified initiatives that will drive $35 million of value when they're fully realized. And so some examples of this right now on the commercial excellence side and our lead generation, leads are up 27% year over year, with the volume associated lead generation in our geogrid business up 34%. At the same time, we have line of sight in our distribution business to increase EVET at about 12% through lead sharing and cross-selling. On the operational excellence side, we have line of sight to improve our manufacturing costs by $10 million through improving our yield. And you can see, when you see a piece of GeoGrid out there, you'll see a sheet that's got a lot of holes in it. So yield means a lot of dollars for us. And then lowering conversion costs. at the same time one of the things that that is a benefit of this is as we go in and improve these businesses and invest in operational excellence and our employees see this we actually drive higher engagement and lower turnover we've seen this happen in tensile our turnover is down 15 percent in that business so we we are become a right it's a right to own and i think he says you know cmc's a good good owner of these businesses and we are so we actually go and improve and invest and we're able to use this framework to create more value. So these are structural improvements that strengthen the earnings power of these businesses, which, again, gives us confidence and the ability to deliver attractive returns consistently with really modest capital requirements. So as we go into how we're harvesting the benefits of capital deployed, for us, this is really about supporting and sustaining the growth that we see in the businesses, TENSAR and PRS in particular. And so in Tensar, we're actually right now commissioning our second Blackwell, our second geogrid line in Blackwell, Oklahoma at that plant. It's capable of producing 20 million square yards of our Interax product family. Now, if you go, you'll see some Interax product out in the hallway. This is our most recent product. It's the most advanced. It's the highest performing, and it's in really strong demand right now. And so this Blackwell line is timely for us. The other area that we're capturing the harvesting benefits is through performance and enforcing steel. And in this fall, we will be commissioning our second Galva Bar plant in Knoxville, Tennessee, right next to our Tennessee steel mill. And so this plant's capable of producing 40,000 tons of Galva Bar that is really supporting the demand for a resilient infrastructure like bridges with 150-year service life. So again, these are capitalized investments. So the total investment here is about $65 million between both of these, and it's going to deliver about $35 million of EBITDA at full run rate. So again, supporting the sustained growth while delivering these results at attractive returns. And then as far as reshaping the portfolio for us, this is about strengthening our leadership position that we mentioned earlier in these three businesses. So our priorities, as Peter mentioned earlier, and I think maybe in the Q&A, we have a lot a runway organically in these businesses, and really that's our priority. And you've seen the results in our growth over the last three years where this is really starting to take hold right now with momentum. And these are all organic growth strategies. And you saw through our service addressable market, we have plenty of runway there. And so that's our priority right now is to scale these businesses. At the same time, we are looking for inorganic growth opportunities in two particular areas. One is through expanding our capabilities. So if we have an opportunity to look in the white space between TENSAR, which is kind of the earliest part of the early stage construction, and maybe a structural frame, and there's white space in there, we're going to look at opportunities to round out our portfolio where we have a right to win. And then the other piece is where we can expand geographically and address more of the service addressable market. And so each one of these investments will follow the same criteria we mentioned earlier. These will be value accretive, value-added products and solutions, connecting to our core, connecting to our early stage strategy, and contribute to our scale. So as we move forward, we're about to go into the last part of my section, but this is kind of exiting the EBG, and I just want to say that I'm really excited about what we've delivered over the last three years within the Emerging Business Group, and just want to say thank you to our customers and our employees. But I'm telling you, I think the next three years are going to be better than the last three years. And so as we move over to the early stage construction and really construction solutions to kind of wrap up this portion of the day, we talked about why CMC has a right to win here. And we've talked about this today about the customer's challenges that they're facing. And I think one of the biggest ones on the page is the labor constraints. You know, the most recent study said there's 500,000 workers shortage in the construction industry right now with more retirements looming and less people coming into the market. This is a real issue in the space. Other thing is the rising cost, and I would say the volatility of input cost is another issue. And then, of course, we've talked a lot about schedule risk and delays and performing and mitigating execution risk. And there's the growing need for reliable engineering solutions. Well, the CMC solutions, we address each one of these by lowering cost, improving reliability, becoming a good vendor onsite or being a good vendor onsite and being reliable. There's two areas I want to really highlight here that really drive this home. One is on precast and the other one's on Tensar. In the precast business, as you heard Keith talk about, these components are manufactured offsite, so they become ready to install onsite. Because of that, we can reduce onsite labor by up to 30%. In addition, because these are manufactured and the forming and the steel placement and the concrete pouring and curing happens in the plant, it doesn't happen in the field, you can reduce the construction schedule by up to 30 days. Tensar can also contribute to this by lowering total life cycle costs for pavement by using up to 65% less aggregate and 33% less asphalt, while increasing design life by three to six times. So these are real tangible results and advantages versus traditional construction methods. And again, these businesses grow because they gain share, not just by market growth, but by market penetration versus traditional construction methods. That's a key value driver for us is really that value that our products and solutions bring to the customer and to the company. And so, oops, there we go. So as we take a look at a case study here, I'm real proud of this case study. This really shows the full value that CMC can deliver to a project. This is an LNG plant in Louisiana. It's $28 billion plant. It's over 1,100 acres. It has a really tight time frame, a 24-month construction schedule, and multiple contractors working on-site at once in different areas. And to put this kind of the scale of the project in scope for you all, a typical geogrid project may take around 16,000 square yards. This one took 4.7 million square yards. A typical rebar project, as you heard from Brian earlier, is about 500 tons. This one's over 50,000 tons and included cryo-steel, which is our proprietary bar within PRS for LNG tanks. And then for our construction services business, we would sell about $250,000 worth of product to a project. This one took over $5 million. And for a precast, as you heard from Keith, about 150 tons of precast for a project, this is well over 50,000 tons of precast. And this is a great project, but it demonstrates something that I think is more important, which is how CMC as a one CMC can create value at the project level for the customer. You see, on this project, we engaged early as one CMC, brought multiple capabilities to bear to address our customers' most critical challenges, and created more value as a company than we could individually. In addition, as Peter talked about, the pent-up demand as these infrastructure and energy projects and manufacturing projects emerge out of the pipeline, this one CMC approach can scale across all different types of opportunities. This isn't just about a mega project either. We can scale up and down from a size range, small to mega. And so this is not just a project for us. It begins to be a proof point for how our scalable growth model works across the portfolio of businesses. So wrapping things up, I'll kind of end where we started, which is Construction Solutions is a capital-light portfolio of businesses. when you look at Precast and the Emerging Business Group, a capital-like portfolio of businesses, the diverse products and solutions that can grow faster than the markets they serve, the connectivity, and I'm sorry, and these businesses position us earlier in the cycle where we can influence design specification and address customers' critical challenges and create more value for the customer and the company. And then the connectivity of these businesses actually strengthens our competitive advantage. Now, when you combine this with North American Steel Group, you get a differentiated early-stage construction platform that's really difficult to replicate. It has substantial runway for growth, will continue to deliver attractive returns, and create long-term shareholder value. It's been a pleasure to be able to speak with you today about the EBG and construction solutions. Thank you for your time. I'm going to hand it over to Paul Lawrence, our CFO.

Well, thank you, Mike, and thank you all for investing the time to hear about the transformation that we are undertaking at CMC. You've heard from Peter, from Ty, from Brian, from Keith and Mike around the opportunities that we have in front of us. My goal is to relate those to financial outcomes that together with our capital allocation framework will drive towards shareholder value. You've heard them before, but there's three key data points that I want to reiterate. It's been a little bit since this morning's session. We've got a mid-cycle 2029 EBITDA, core EBITDA target of between $1.65 and $1.8 billion. We have free cash flow target of between $1.4 and $1.5 billion. And we'll deliver returns on invested capital of between 13 and 14.5%. Clearly, this represents a materially different CMC. We believe this represents the financial profile of a high-performing construction materials company. The levers you've all heard throughout the morning around what's going to drive these opportunities. It starts with expanding our margin. It starts with TAG. This is not a cyclical enhancement to our margins. This is a structural, durable enhancement and repeatable process to our margins to maintain a different profile from where we are today. This is about getting value from the capital that we've already deployed. This is about the end of our mill investment cycle and the benefits we will reap from a cash flow perspective. This is about the continuation of a disciplined capital allocation strategy that's focused on delivering shareholder value. And finally, we'll provide a little bit more insights in terms of the financial targets and the peer group that we think most represents the end market profile as well as the financial profile of who we see ourselves being. The exciting thing is about today is you're not hearing new things. This is not a new launch. The transformation is already well underway. You see it in our results. If we look at, and I ask most of you, sort of what was CMC's capability from an EBITDA perspective, sort of the post-industry consolidation, post-232, so the 2019 to the 2025 period, excluding the 22 and 23 years. I think there'd be near consensus that it was somewhere between $900 and $1 billion. So we sort of plugged the middle point, 950. Today, we're already operating at 30% above that level. The foundation of the transformation is well established. It starts with a strategy, the strategy that Peter outlined, It's evolved over our 111-year history. Today, the strategy is focused on performance, and it's focused on growth. TAG. Everybody's talked about TAG. TAG within the organization. Talk to all the people here from CMC. The maturation of TAG over the two-year period that it's been in place is phenomenal. It's demonstrating results. We've executed the precast acquisition, providing a much larger addressable market for us to go forward. And as Brian outlined, we've invested a tremendous amount of time and effort in trade and have a much more supportive environment going forward. The transformation is well established, and the transformation will deliver long-term shareholder value. You can see clearly why today represents the right day to do an investor day. There's a lot of exciting messages to deliver and tangible proof of those results. If I spend a moment to talk about each one of our segments and how they drive towards this vision, towards growth. We haven't talked much about Europe. It's been a difficult environment in Europe for the last couple of years. However, we're very confident that we're at a point of improved earnings going forward. Effective January 1st, the carbon border adjustment went into place. Effective July 1st, the strengthened safeguard measures that doubled the tariff and halved the quotas went into place. Finally, the EU is addressing the global overcapacity of steel, something the U.S. market has done many years ago. The combination of a more balanced playing field, strengthening demand, and the institution of the TAG benefits focused on further optimizing the cost structure while driving further commercial benefits, we're very confident in the path of the Polish operations to improved results. Our best-known segment, clearly, is our North American Steel Group. That's what most customers know us for. It's that modern, low-cost network of facilities that span across all of the U.S. that really provide us this position of growth and harvesting from two aspects. One is from a cost perspective, a relentless pursuit of low-cost manufacturing, as well as ensuring we get the value capture for the leadership position that we have in the industry. It's also critical that we get the value for the benefits of the capital that we've deployed. So as we end the mill investment cycle, as we look forward, what we envision is a much lesser capital intensity environment in the North American Steel Group, one much more focused on productivity, cost efficiency, and strengthening the core offerings of the North American Group. And the final segment, the Construction Solutions Group, you've heard from Mike, you've heard from Keith, this is about a portfolio of value-enhancing products that have a tremendous growth runway in terms of these are high-value generating solutions for customers, low market penetration. So our opportunity here is to deepen the market penetration, expand the geographies in which they serve, as well as extending the offerings. These segments really do position us from a position of great strength to go forward. If we look at how we see our results driving towards superior performance, I think I've provided the breadcrumbs already. It starts with our profitability enablers. It starts with leveraging the scale that we have to drive enhancements that others cannot. That's TAG. The second growth enabler is growth. It really is around the strong tailwinds of demand that Peter outlined that are not just for 2026, but will fuel demand for the coming years ahead. It's about getting the benefits of the capital that we've deployed. As West Virginia ramps up, that will drive growth. And it's about, as we've recently completed, the precast acquisition and ensuring we get the synergies from the precast acquisition, bringing that into our overall early stage construction model. From a financial perspective, our margins today are far more stable than where they've been in the past. The lower capital intensity of our business going forward helps drive cash flows. And all of that supports a very strong balance sheet that we have today. So the results, this results in a business that's going to drive higher margins, higher free cash flows, driving towards enhanced returns on invested capital. And I think you'll all believe and all agree that those are the key aspects to driving shareholder value. So let's dive into a few of those key enablers and start with TAG. As Ty said, end of this year, run rate of $250 million. End of next year, goal is at least $350 million. Two critical factors. One, this has been achieved with little to no capital that has been deployed. And secondly, this is far in excess of any inflation that we've seen in our business. We've done detailed analysis of our various costs and metrics, and what we have concluded is out of the $350 million goal, we believe $200 million of that will be durable, sustainable margin improvement over and above inflation. So to say that more clearly, that's $350 million of gross benefits offset by approximately $150 million of inflation. Going forward, as has been said many times, we expect to continue to improve to offset inflation. As I said on a recent earnings call, the benefits of TAG can really be seen throughout our financial statements and our KPIs. In metal margins, from enhanced value capture on the revenue side, from a lower cost scrap mix used in the furnace, from an operating cost perspective, from better freight utilization, from lower alloy consumptions, from higher yields in our operations, and also in SG&A in terms of efficiencies that we're gaining as well as able to scale as CMC continues to grow. But the other key aspect is that when we talk about TAG benefits, we talk about things that are within our control and as stated in the Q&A, we really benchmark back to things from 2024. So as an example, if the cost of scrap were to decrease, as an example, that would not be a tag benefit by itself. What drives a tag benefit is, as Jacob said on the video, we're using a lower cost scrap recipe or lower cost mix. That is a durable, sustainable benefit that will, no matter what the economic environment, will be something that we can continue to deliver better than we did in the past. That is a TAG benefit. Talked a lot about how Construction Solutions Group is certainly an additive to our financial profile. The benefit is incredible. The Construction Solutions Group today represents around 30% of our business. It drives higher margins, higher cash flows, and lower earnings volatility. If we look at these two metrics here from a profitability perspective, you guys have all seen historically the EBG business. Thanks for defining that, Mike. I can now use it. The EBG business has always had a high teens EBITDA margin. The precast business that we bought, the combined businesses in the mid 30%. So overall, those businesses on a weighted average basis will be just south of 30% in terms of an EBITDA margin. From a free cash flow perspective, you know, EBG is in the 80% range, precasts around 90%, midpoint around 85%. So you see the free cash flow conversion and the impact that from what the construction solutions group does as a percentage of CMC, but also as we end the mill investment cycle, the overall financial profile of our cash flow will change dramatically. And what this segment does is it really materially strengthens the consistency and durability of our financial performance at CMC. And the last detailed dive I'll do with respect to the enablers is the balance sheet. It truly does represent an asset for CMC. We have no maturities for four years. Our average cost of debt is around 5%. When we announced the transaction, our net leverage was around 2.7. Happy to report that by the end of the fiscal year, we will achieve our goal of two times net leverage. That has been achieved far faster than what we anticipated at least six months and give us a position back to what we committed to. We will use the balance sheet as needed to take advantage of great opportunities to lever up as long as we have a path back to our target of two times within 18 to 24 months. The strong balance sheet also gives us great confidence. You see with the liquidity of 1.7 billion, we can operate and execute our strategy in any economic environment with the strength of the balance sheet that we have. So now let's move on to the financial targets. We have four levers in terms of the growth our EBITDA reflected here on this bridge. But it starts from a position well-grounded in terms of our trailing 12-month May results. What's included in this bridge, or more importantly, what's not included in this bridge, is this bridge does not reflect a major economic expansion from where we are today. It doesn't reflect, as Peter has said a couple times today, any further acquisitions. It doesn't reflect new investments in mills or, frankly, for that matter, capital that needs to be deployed. The items reflected here are from initiatives already well underway, capital already deployed. In other words, things that are very much in our control to deliver. So if we start with each of these, it starts with the first lever, which is simply the trailing 12-month balance includes a little under $100 million from the precast business. What we bought with the precast acquisitions was around $250 million, so it's the annualization of the acquired precast businesses. You've heard this morning from everybody around the organic growth projects that we have going on, and most, let me tell you, are well underway. What's included in this bar are the benefits from Steel West Virginia, the benefits from Galvabar and the geogrid line that Mike spoke of, the synergies from the precast acquisition, to name just a few. But again, these are initiatives that are well underway and very much will deliver results in the coming quarters. And the last bucket represents incremental TAG savings. Again, starting from the trailing 12, there's just under $100 million benefit of TAG benefits, net benefits, in the trailing 12. So this is an incremental $100 million or so for what's to come in the next three years. Again, our TAG benefits are really focused on getting to that finish line for the initial committed phase in 2027. So if we look at the first three bars on this bridge, I said they're within our control. It's also important to say there is no market expansion in this. We've talked about how our business is driving towards solutions for customers in an increasingly complex construction world. That's not reflected in any of these three. What we have is, in the last bar, a market-related factor. What's critical is the low end of our range reflects a 25% steel tariff environment. So this growth over the three-year period represents a CAGR between 10% and 13%. Very exciting and ultimately the culmination of a tremendous amount of work that's been done over the last few years to get us to a stage where we have the confidence to deliver this as a commitment to you going forward. The value that we will unleash as this earnings growth continues is exciting for us to talk about. While earnings growth is exciting, the cash flow change, the inflection is probably the real story that you should take away from today. Much of the last decade, we've been investing in our business. Now, looking forward, we will be reaping the benefits of those investments. The time that we have an increase in our earnings and a significant decrease in our CapEx spend will generate, as Peter said earlier, almost a two times increase in our free cash flow defined as EBITDA less CapEx to make it comparable to how others disclose this number. It's also important to note that while we're providing three-year targets, we anticipate this ramp up of free cash flow to be much more front-end loaded. CapEx related to West Virginia will drop dramatically in the coming quarters. So this increased free cash flow really provides us a couple things. It provides us a tremendous opportunity to drive value for shareholders, but it also provides us tremendous flexibility as we operate our business going forward, knowing the cash that we are going to generate from the portfolio of assets that we have put together. And just to provide a little bit more insight in terms of the Construction Solutions Group, as I said earlier, it is a key contributor to the overall improvement in the financial profile. Now, as we've said, with the organic growth that we anticipate from this business, that's the Galvabar and GeoGrid line, the capture of the synergies with the market growth that we anticipate, we expect this business to generate around $500 million of EBITDA within the existing assets. incrementally we do expect inorganic growth however you never can tell those in order to to include them in financial targets but we see a clear path to being have seeing this as at least 40 percent of our business by fiscal 29 we look at the margins high 29 percent or so EBITDA margin and the free cash flow that I spoke of earlier. This will provide a tremendous influence on our financial profile, also helping us from a stability perspective in terms of the margin profile in relation to the steel environment. If we move on to capital allocation, both our historical performance on capital allocation as well as our philosophy is one that's very balanced. Our top priority is reinvesting in the business, looking at low capital intensity, high return projects. We're looking to invest in M&A. You've heard from Peter and others this morning around what we're looking for as businesses that strengthen the portfolio and drive synergies. We're committed to providing attractive returns to our shareholders in the forms of dividends and buybacks, and I'll click into this in a following slide. And we're committed to maintaining the strength of the balance sheet. As I said earlier, as we We are approaching our target leverage, net leverage level.