Tear Sheet: Commercial Metals Co.

CMC has deployed record cash flow back into its business while keeping debt relatively stable even while ramping up capital spending. CMC has expanded capacity and competitive position in the steel rebar and merchant bar markets with the 2018 acquisition of certain U.S. Gerdau steel assets, 2022 acquisition of Tensar, a manufacturer and provider of ground stabilization and soil reinforcement solutions, and two greenfield expansion projects. Boosted by strong steel market conditions, these investments have resulted in average return on capital of 22% over the last five years. EBITDA has increased to an average of $1 billion from $400 million in 2018. CMC has sustained leverage below 1.5x. CMC?s strong balance sheet gives flexibility to pursue nonorganic growth. It has

...February 19, 2025 Commercial Metals Co. (CMC) has substantially strengthened its business over the last few years through organic and inorganic growth, demonstrated by stronger credit and profitability metrics. CMC has deployed record cash flow back into its business while keeping debt relatively stable even while ramping up capital spending. CMC has expanded capacity and competitive position in the steel rebar and merchant bar markets with the 2018 acquisition of certain U.S. Gerdau steel assets, 2022 acquisition of Tensar, a manufacturer and provider of ground stabilization and soil reinforcement solutions, and two greenfield expansion projects. Boosted by strong steel market conditions, these investments have resulted in average return on capital of 22% over the last five years. EBITDA has increased to an average of $1 billion from $400 million in 2018. CMC has sustained leverage below 1.5x. We believe the company is well positioned for its diversification strategy to expand its portfolio...

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