Tear Sheet: Commercial Metals Co.

We expect Commercial Metals Co. (CMC) will generate adjusted EBITDA of at least $1 billion over the next 12-24 months. Our forecast is based on our assumption of a mid- to- high-single-digit percentage increase in volumes in the North American market that we expect will partly compensate for declining steel prices and subdued demand in the challenging European market. Recent supply chain failures sparked by the pandemic has fueled reshoring of key activities in the United States, backed by government funding. The Infrastructure Investment and Jobs Act spending on key infrastructural construction is likely to increase annual rebar demand by about 1.5 million tons. Other rebar-intensive trends such as energy transition and decarbonization will continue to drive demand over the

...January 25, 2024 Favorable long-term structural trends support strong operational performance over our forecast period. We expect Commercial Metals Co. (CMC) will generate adjusted EBITDA of at least $1 billion over the next 12-24 months. Our forecast is based on our assumption of a mid- to- high-single-digit percentage increase in volumes in the North American market that we expect will partly compensate for declining steel prices and subdued demand in the challenging European market. Recent supply chain failures sparked by the pandemic has fueled reshoring of key activities in the United States, backed by government funding. The Infrastructure Investment and Jobs Act spending on key infrastructural construction is likely to increase annual rebar demand by about 1.5 million tons. Other rebar-intensive trends such as energy transition and decarbonization will continue to drive demand over the next four to five years, supported by various federal legislations. We believe CMC is well positioned...

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