Financial Analysis

"NOTE 17. COMMITMENTS AND CONTINGENCIES In the ordinary course of conducting its business, the Company becomes involved in litigation, administrative proceedings and governmental investigations, including environmental matters. Legal Proceedings On October 30, 2020, plaintiff Pacific Steel Group (""PSG"") filed a suit in the U.S. District Court for the Northern District of California (the ""Northern District Court"") alleging that CMC, CMC Steel Fabricators, Inc. and CMC Steel US, LLC violated the federal and California state antitrust laws and California common law by entering into an exclusivity agreement for certain steel mill equipment manufactured by one of the Companys equipment suppliers. On November 5, 2024, a jury returned a verdict in favor of PSG in the amount of $110.0 million, which the Northern District Court, in entering its judgment on the verdict, subsequently trebled as a matter of law. PSG is also entitled to petition for and recover its attorneys' fees, costs and post-judgment interest. On December 20, 2024, CMC, CMC Steel Fabricators, Inc. and CMC Steel US, LLC filed a motion with the Northern District Court challenging the jurys verdict and requesting a new trial. On September 29, 2025, the Northern District Court denied this post-trial motion, upholding the jurys verdict. The Company is confident it conducted its business appropriately and intends to vigorously pursue all reasonably available avenues to have the verdict and judgment overturned, includin …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 14. EMPLOYEES' RETIREMENT PLANS Substantially all employees in the U.S. are covered by a defined contribution 401(k) retirement plan. The tax-qualified defined contribution plan is maintained, and contributions are made, in accordance with the Employee Retirement Income Security Act of 1974, as amended (""ERISA""). The Company also provides certain eligible executives benefits pursuant to its Benefit Restoration Plan (""BRP"") equal to amounts that would have been available under the tax qualified ERISA plan but were subject to the limitations of ERISA, tax laws and regulations. Company expenses for these plans, a portion of which are discretionary, totaled $46.6 million, $46.9 million and $40.4 million for 2025, 2024 and 2023, respectively, of which $28.3 million, $27.7 million and $26.1 million were recorded in cost of goods sold and the remainder was recorded in SG&A expenses in the consolidated statements of earnings. The deferred compensation liability under the BRP was $43.4 million and $48.8 million at August 31, 2025 and 2024, respectively, of which $38.0 million and $44.3 million, respectively, was included in other noncurrent liabilities, and the remainder was included in other accrued expenses and payables on the consolidated balance sheets. Though under no obligation to fund the BRP, the Company has segregated assets in a trust with a value of $67.5 million and $67.0 million at August 31, 2025 and 2024, respectively, and such assets were included in othe …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

"NOTE 8. CREDIT ARRANGEMENTS Long-term debt was as follows: Weighted Average Interest Rate as of August 31, 2025 Year Ended August 31, (in thousands) 2025 2024 2030 Notes 4.125% $ 300,000 $ 300,000 2031 Notes 3.875% 300,000 300,000 2032 Notes 4.375% 300,000 300,000 Series 2022 Bonds, due 2047 4.000% 145,060 145,060 Series 2025 Bonds, due 2032 4.625% 150,000 Other 5.100% 10,108 11,910 Finance leases 5.263% 158,917 141,271 Total debt 1,364,085 1,198,241 Less unamortized debt issuance costs (14,051) (13,073) Plus unamortized bond premium 4,261 4,453 Total amounts outstanding 1,354,295 1,189,621 Less current maturities of long-term debt (44,289) (38,786) Long-term debt $ 1,310,006 $ 1,150,835 Senior Notes In January 2022, the Company issued $300.0 million of 4.125% Senior Notes due January 2030 (the ""2030 Notes"") and $300.0 million of 4.375% Senior Notes due March 2032 (the ""2032 Notes""). Interest on the 2030 Notes is payable semiannually on January 15 and July 15. Interest on the 2032 Notes is payable semiannually on March 15 and September 15. In February 2021, the Company issued $300.0 million of 3.875% Senior Notes due February 2031 (the ""2031 Notes""). Interest on the 2031 Notes is payable semiannually on February 15 and August 15. Series 2022 Bonds In February 2022, the Company announced the issuance of $145.1 million in original aggregate principal amount of tax-exempt bonds (the ""Series 2022 Bonds"") by the Industrial Development Authority of the County of Maricopa ( …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 13. STOCK-BASED COMPENSATION PLANS The Company's stock-based compensation plans provide for the issuance of incentive and nonqualified stock options, restricted stock awards and performance-based awards. The Compensation Committee of the Board (the ""Compensation Committee"") approves all awards granted under the Company's stock-based compensation plans. Stock-based compensation expense for 2025, 2024 and 2023 of $37.1 million, $45.1 million and $60.5 million, respectively, was primarily included in SG&A expenses on the consolidated statements of earnings. Total tax benefits recognized in the consolidated statements of earnings related to stock-based compensation expense were $7.9 million, $10.6 million and $14.2 million for the years ended August 31, 2025, 2024 and 2023, respectively. As of August 31, 2025, total unrecognized compensation cost related to unvested stock-based compensation arrangements was $20.6 million, which is expected to be recognized over a weighted average period of 1.42 years. Restricted Stock Units Restricted stock units issued under the Company's stock-based compensation plans may not be sold, transferred, pledged or assigned until service-based restrictions lapse. The restricted stock units generally vest and are converted to shares of the Company's common stock in three equal installments on each of the first three anniversaries of the date of grant. Generally, upon termination of employment, restricted stock units that have not vested are …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"NOTE 11. FAIR VALUE The Company has established a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest-level input that is significant to the fair value measurement. See Note 1, Nature of Operations and Summary of Significant Accounting Policies, for definitions of the three levels within the hierarchy. The Company presents the fair value of its derivative contracts on a net-by-counterparty basis when a legal right to offset exists under an enforceable netting agreement. The following table summarizes the Company's financial assets and financial liabilities measured at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using (in thousands) Total Level 1 Level 2 Level 3 As of August 31, 2025: Assets: Investment deposit accounts (1) $ 902,106 $ 902,106 $ $ Commodity derivative assets 58,901 5,458 53,443 Foreign exchange derivative assets 4,809 4,809 Liabilities: Commodity derivative liabilities 282 282 Foreign exchange derivative liabilities 821 821 As of August 31, 2024: Assets: Investment deposit accounts (1) $ 718,110 $ 718,110 $ $ Commodity derivative assets 40,225 2,196 38,029 Foreign exchange derivative assets 419 419 Liabilities: Commodity derivative liabilities 3,602 3,602 Foreign exchange derivative liabilities 1,885 1,885 __________________________________ (1) Investment deposit accounts are short-term in nature, and the value …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill by reportable segment is detailed in the following table: (in thousands) North America Steel Group Emerging Businesses Group Europe Steel Group Consolidated Goodwill, gross: Balance, September 1, 2023 $ 126,915 $ 265,012 $ 4,075 $ 396,002 Acquisition adjustments (1) (1,808) (1,808) Foreign currency translation 1,364 262 1,626 Balance at August 31, 2024 126,915 264,568 4,337 395,820 Foreign currency translation 955 271 1,226 Balance at August 31, 2025 126,915 265,523 4,608 397,046 Accumulated impairment: Balance, September 1, 2023 (9,542) (493) (146) (10,181) Foreign currency translation (9) (9) Balance at August 31, 2024 (9,542) (493) (155) (10,190) Foreign currency translation (10) (10) Balance at August 31, 2025 (9,542) (493) (165) (10,200) Goodwill, net: Balance, September 1, 2023 117,373 264,519 3,929 385,821 Acquisition adjustments (1) (1,808) (1,808) Foreign currency translation 1,364 253 1,617 Balance at August 31, 2024 117,373 264,075 4,182 385,630 Foreign currency translation 955 261 1,216 Balance at August 31, 2025 $ 117,373 $ 265,030 $ 4,443 $ 386,846 __________________________________ (1) Measurement period adjustments related to the 2023 Acquisitions which impacted the amount of goodwill originally reported. During 2025, 2024 and 2023, the annual goodwill impairment assessments, which were performed as of the first day of the Company's fourth quarter (the ""annual impairment test date""), did not result in an …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 12. INCOME TAX The components of earnings before income taxes were as follows: Year Ended August 31, (in thousands) 2025 2024 2023 United States $ 61,897 $ 631,592 $ 1,095,099 Foreign 45,648 4,079 26,868 Total $ 107,545 $ 635,671 $ 1,121,967 The income taxes included in the consolidated statements of earnings were as follows: Year Ended August 31, (in thousands) 2025 2024 2023 Current: United States $ 83,897 $ 143,462 $ 168,399 Foreign 8,371 163 6,089 State and local 20,669 18,035 32,916 Current taxes 112,937 161,660 207,404 Deferred: United States (76,005) (8,075) 46,008 Foreign 1,126 (7,684) (847) State and local (15,175) 4,279 9,642 Deferred taxes (90,054) (11,480) 54,803 Total income taxes $ 22,883 $ 150,180 $ 262,207 A reconciliation of the federal statutory rate to the Company's effective income tax rate, including material items impacting the effective income tax rate, is presented below: Year Ended August 31, (in thousands) 2025 2024 2023 Income tax expense at statutory rate $ 22,584 $ 133,491 $ 235,613 State and local taxes (1) 4,341 17,629 33,621 Research and development credit (1) (7,255) (1,151) (7,986) Foreign rate differential (1,344) 513 (1,365) Interest expense related to uncertain tax positions 1,314 2,154 1,052 Non-deductible compensation 1,300 1,651 1,825 Nontaxable gain (2,131) (1,786) (1,055) TCJA - Toll charge and related foreign tax credits (2,766) Other 6,840 (2,321) 502 Income tax expense $ 22,883 $ 150,180 $ 262,207 Effective income tax rate 21 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 7. LEASES The following table presents the components of total leased assets and lease liabilities, including their classification in the consolidated balance sheets: (in thousands) Classification in Consolidated Balance Sheets August 31, 2025 August 31, 2024 Assets: Operating assets Other noncurrent assets $ 172,374 $ 178,006 Finance assets Property, plant and equipment, net 189,923 160,361 Total leased assets $ 362,297 $ 338,367 Liabilities: Operating lease liabilities: Current Other accrued expenses and payables $ 37,250 $ 36,675 Long-term Other noncurrent liabilities 136,629 140,109 Total operating lease liabilities 173,879 176,784 Finance lease liabilities: Current Current maturities of long-term debt and short-term borrowings 42,500 36,985 Long-term Long-term debt 116,417 104,286 Total finance lease liabilities 158,917 141,271 Total lease liabilities $ 332,796 $ 318,055 The components of lease cost were as follows: Year Ended August 31, (in thousands) 2025 2024 2023 Operating lease expense $ 48,618 $ 46,515 $ 40,093 Finance lease expense: Amortization of assets 27,966 23,825 16,574 Interest on lease liabilities 7,690 5,712 3,642 Total finance lease expense 35,656 29,537 20,216 Variable and short-term lease expense 20,901 19,481 20,810 Total lease expense $ 105,175 $ 95,533 $ 81,119 The weighted average remaining lease terms and discount rates for operating and finance leases are presented in the following table: August 31, 2025 August 31, 2024 Weighted average rema …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Issued and Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires that an acquirer recognize and measure contract assets and liabilities acquired in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The Company adopted this standard on a prospective basis for the annual period beginning September 1, 2023. The adoption did not have an impact on the Company's consolidated financial statements at the time of adoption. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (""ASU 2023-07""). ASU 2023-07 requires, among other updates, enhanced disclosures about significant segment expenses that are regularly provided to the Chief Operating Decision Maker (""CODM""), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and requires retrospective adoption. The Company adopted the amendments in ASU 2023-07 for its fiscal year ended August 31, 2025. Based on the Company's assessment of significant seg …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 4. REVENUE RECOGNITION Revenue from Contracts with Customers The majority of the Company's revenue is recognized at a point in time, concurrent with the transfer of control, which usually occurs, depending on shipping terms, upon shipment or customer receipt. See Note 19, Segment Information, for more information about disaggregated revenue by the Company's major product lines. Certain revenue from sales of downstream products in the North America Steel Group segment is recognized over time, as discussed below. Remaining revenue from sales of downstream products in the North America Steel Group segment is recognized based on the amount the Company has a right to invoice as a practical expedient. Each of the North America Steel Group segment's fabrication contracts represents a single performance obligation. Revenue from certain fabrication contracts for which the Company provides downstream products and installation services is recognized over time using an input measure. This revenue represented 8% of net sales in the North America Steel Group segment in 2025, 2024 and 2023. Revenue from fabrication contracts for which the Company does not provide installation services is recognized over time using an output measure, and represented 10% of net sales in the North America Steel Group in both 2025 and 2024, compared to 12% in 2023. The following table provides information about assets and liabilities from contracts with customers: (in thousands) August 31, 2025 August 31, …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 19. SEGMENT INFORMATION The Company's operating segments engage in business activities from which they may earn revenues and incur expenses and for which discrete financial information is available. The Company's CODM is the President and Chief Executive Officer. The CODM uses adjusted EBITDA to evaluate the underlying operational performance of the Companys reportable segments and to guide strategic decisions aligned with Company-wide objectives, as it provides a consistent and comparable view of operating results across segments. In doing so, the CODM considers the performance of this measure relative to historical, planned and forecasted financial information when making decisions about capital and personnel allocation. Adjusted EBITDA is the sum of the Company's earnings before interest expense, income taxes, depreciation and amortization expense, impairment expense and unrealized gains and losses on undesignated commodity hedges. During the fourth quarter of 2025, the Company modified its method of calculating adjusted EBITDA to exclude the impact of unrealized gains and losses on undesignated commodity derivatives. This change was primarily driven by heightened volatility in copper forward markets, which introduced significant non-cash fluctuations unrelated to core operations. By removing this volatility, the revised metric provides a more representative view of operating performance and cash-generating capability. The Company has recast adjusted EBITDA for all pe …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 15. CAPITAL STOCK Treasury Stock In October 2021, the Board approved a share repurchase program under which CMC was authorized to repurchase up to $350.0 million of shares of common stock. In January 2024, the Board authorized an increase of $500.0 million to the existing share repurchase program. The share repurchase program does not require the Company to purchase any dollar amount or number of shares of CMC common stock and may be modified, suspended, extended or terminated by the Company at any time without prior notice. During 2025, 2024 and 2023, the Company repurchased 3,913,560, 3,499,225 and 2,309,452 shares of CMC common stock, respectively, at average purchase prices of $50.80, $52.28 and $43.91 per share, respectively. CMC was authorized to purchase $205.0 million of common stock at August 31, 2025. Preferred Stock The Company has 2,000,000 shares of preferred stock, par value of $1.00 per share, authorized. The Company may issue preferred stock in series, and the shares of each series may have such rights and preferences as determined by the Board when authorizing the issuance of that particular series. There are no shares of preferred stock outstanding.

StockholdersEquityNoteDisclosureTextBlock

"NOTE 20. SUBSEQUENT EVENTS On September 17, 2025, the Company entered into an Equity Purchase Agreement to acquire Concrete Pipe and Precast, LLC (""CP&P""), a portfolio company of Eagle Corporation, and a leading supplier of precast concrete solutions to the U.S. Mid-Atlantic and South Atlantic markets, for aggregate consideration of $675.0 million, subject to customary purchase price adjustments. The transaction will be funded with cash on hand and is not contingent on any financing arrangements. The transaction is subject to customary regulatory review and closing conditions. On October 15, 2025, the Company entered into a Securities Purchase Agreement (the ""Foley Purchase Agreement"") to acquire Foley Products Company, LLC (""Foley""), a leading provider of precast concrete products and reinforced concrete pipe to southeastern and western U.S., for aggregate consideration of approximately $1.84 billion, subject to customary purchase price adjustments. The transaction is subject to customary regulatory review and closing conditions. Concurrently with the execution of the Foley Purchase Agreement, the Company entered into the Commitment Letter with Bank of America, BofA, and Citi, pursuant to which, subject to the terms and conditions set forth therein, Bank of America and Citi agreed to provide the Bridge Facility and the Backstop Facility. The Company may borrow under the Bridge Facility if proceeds from other financing sources sufficient to consummate the Foley acq …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

"NOTE 2. ACQUISITIONS The Company accounts for business combinations by recognizing the assets acquired and liabilities assumed at the acquisition date fair value. In valuing certain acquired assets and liabilities, fair value estimates were determined using Level 3 inputs, including expected future cash flows and discount rates. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the acquisition date, the Companys estimates are inherently uncertain and subject to refinement. The results of operations of the acquired businesses are reflected in the Companys condensed consolidated financial statements from the applicable acquisition date. The financial statements are not retrospectively adjusted for any adjustments that occur during the allowable one-year measurement period (the ""Measurement Period""). Rather, any adjustments to provisional amounts identified during the Measurement Period will be recorded in the reporting period in which the adjustment is determined. During the quarter ended February 28, 2026, we acquired two businesses in the precast concrete industry. Precast concrete and concrete pipe products (together, the ""precast platform"") are construction components formed by pouring concrete into a reusable mold that contains steel reinforcement, then curing it in a controlled manufacturing environment. The component is then transported in its fi …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 14. COMMITMENTS AND CONTINGENCIES In the ordinary course of conducting its business, the Company becomes involved in litigation, administrative proceedings and governmental investigations, including environmental matters. Legal Proceedings On October 30, 2020, plaintiff Pacific Steel Group (""PSG"") filed a suit in the U.S. District Court for the Northern District of California (the ""Northern District Court"") alleging that CMC, CMC Steel Fabricators, Inc. and CMC Steel US, LLC violated the federal and California state antitrust laws and California common law by entering into an exclusivity agreement for certain steel mill equipment manufactured by one of the Companys equipment suppliers. On November 5, 2024, a jury returned a verdict in favor of PSG in the amount of $110.0 million, which the Northern District Court, in entering its judgment on the verdict, subsequently trebled as a matter of law. PSG is also entitled to petition for and recover its attorneys' fees, costs and post-judgment interest. On December 20, 2024, CMC, CMC Steel Fabricators, Inc. and CMC Steel US, LLC filed a motion with the Northern District Court challenging the jurys verdict and requesting a new trial. On September 29, 2025, the Northern District Court denied this post-trial motion, upholding the jurys verdict. The Company is confident it conducted its business appropriately and intends to vigorously pursue all reasonably available avenues to have the verdict and judgment overturned. On Octob …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 8. CREDIT ARRANGEMENTS Long-term debt was as follows: (in thousands) Weighted Average Interest Rate as of May 31, 2026 May 31, 2026 August 31, 2025 2030 Notes 4.125% $ 300,000 $ 300,000 2031 Notes 3.875% 300,000 300,000 2032 Notes 4.375% 300,000 300,000 2033 Notes 5.750% 1,000,000 2035 Notes 6.000% 1,000,000 Series 2022 Bonds, due 2047 4.000% 145,060 145,060 Series 2025 Bonds, due 2032 4.625% 150,000 150,000 Short-term borrowings 4.630% 33,012 Other 4.811% 8,819 10,108 Finance leases 5.132% 192,029 158,917 Total debt 3,428,920 1,364,085 Less unamortized debt issuance costs (32,551) (14,051) Plus unamortized bond premium 4,116 4,261 Total amounts outstanding 3,400,485 1,354,295 Less current maturities of long-term debt (88,792) (44,289) Long-term debt $ 3,311,693 $ 1,310,006 The Company's credit arrangements require compliance with certain covenants, including interest coverage and debt to capitalization ratios, and as of May 31, 2026, the Company was in compliance with all financial covenants. Capitalized interest was $6.0 million and $14.9 million during the three and nine months ended May 31, 2026, respectively, compared to $3.0 million and $7.5 million, respectively, during the corresponding periods. Senior Notes Activity In November 2025, the Company issued $1.0 billion of 5.750% senior unsecured notes due November 2033 (the ""2033 Notes"") and $1.0 billion of 6.000% senior unsecured notes due December 2035 (the ""2035 Notes""). Interest on the 2033 Notes is payable …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 12. STOCK-BASED COMPENSATION PLANS The Company's stock-based compensation plans are described in Note 13, Stock-Based Compensation Plans, to the consolidated financial statements in the 2025 Form 10-K. In general, restricted stock units awarded to executive officers and other employees vest ratably over a period of three years. Subject to the achievement of performance targets established by the Compensation Committee of the Company's Board of Directors (the ""Board""), performance stock units vest after a period of three years. Information for restricted stock units and performance stock units accounted for as equity awards during the nine months ended May 31, 2026 is as follows: Shares Weighted Average Fair Value Outstanding as of August 31, 2025 1,369,205 $ 50.37 Granted 770,033 63.88 Vested (768,951) 48.40 Forfeited (75,767) 58.31 Outstanding as of May 31, 2026 1,294,520 $ 59.12 The Company granted 107,771 equivalent shares in the form of restricted stock units and performance stock units accounted for as liability awards during the nine months ended May 31, 2026. As of May 31, 2026, the Company had outstanding 256,100 equivalent shares accounted for under the liability method. The Company expects 247,059 equivalent shares to vest. Total stock-based compensation expense, including fair value remeasurements, which was primarily included in SG&A expenses in the condensed consolidated statements of earnings (loss), was $11.4 million and $37.4 million for the three …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"NOTE 10. FAIR VALUE The Company has a fair value hierarchy that prioritizes inputs for valuation techniques into three levels, based on the lowest level input that is significant to the fair value measurement. Levels within the hierarchy are defined within Note 1, Nature of Operations and Summary of Significant Accounting Policies, to the consolidated financial statements in the 2025 Form 10-K. Further discussion regarding the Company's use of derivative instruments is included in Note 9, Derivatives. The Company presents the fair value of its derivative contracts on a net-by-counterparty basis when a legal right to offset exists under an enforceable netting agreement. The following table summarizes information regarding the Company's financial assets and financial liabilities that were measured at fair value on a recurring basis: Fair Value Measurements at Reporting Date Using (in thousands) Total Level 1 Level 2 Level 3 As of May 31, 2026: Assets: Investment deposit accounts (1) $ 419,150 $ 419,150 $ $ Commodity derivative assets 50,096 50,096 Foreign exchange derivative assets 1,027 1,027 Liabilities: Commodity derivative liabilities 4,687 4,687 Foreign exchange derivative liabilities 802 802 As of August 31, 2025: Assets: Investment deposit accounts (1) $ 902,106 $ 902,106 $ $ Commodity derivative assets 58,901 5,458 53,443 Foreign exchange derivative assets 4,809 4,809 Liabilities: Commodity derivative liabilities 282 282 Foreign exchange derivative liabilities 821 821 …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"NOTE 6. GOODWILL AND OTHER INTANGIBLES Goodwill by reportable segment is detailed in the table below: (in thousands) North America Steel Group Construction Solutions Group Europe Steel Group Consolidated Goodwill, gross Balance, September 1, 2025 $ 126,915 $ 265,523 $ 4,608 $ 397,046 Foreign currency translation 261 23 284 Acquisitions 1,749,379 1,749,379 Balance, May 31, 2026 126,915 2,015,163 4,631 2,146,709 Accumulated impairment Balance, September 1, 2025 (9,542) (493) (165) (10,200) Foreign currency translation Balance, May 31, 2026 (9,542) (493) (165) (10,200) Goodwill, net Balance, September 1, 2025 117,373 265,030 4,443 386,846 Foreign currency translation 261 23 284 Acquisitions 1,749,379 1,749,379 Balance, May 31, 2026 $ 117,373 $ 2,014,670 $ 4,466 $ 2,136,509 Other indefinite-lived intangible assets consisted of the following: (in thousands) May 31, 2026 August 31, 2025 Trade names $ 55,026 $ 54,813 In-process research and development 2,400 2,400 Non-compete agreements 750 750 Total $ 58,176 $ 57,963 The change in the balance of indefinite-lived intangible assets from August 31, 2025 to May 31, 2026 was due to foreign currency translation adjustments. Finite-lived intangible assets subject to amortization are detailed in the following table: May 31, 2026 August 31, 2025 (in thousands) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 307,589 $ 42,055 $ 265,534 $ 75,304 $ 24,663 $ 50,641 D …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 11. INCOME TAX The Companys effective income tax rates for the three and nine months ended May 31, 2026 were 8.4% and 7.9%, respectively, compared to the 24.1% and 21.7% in the corresponding periods. The effective tax rate is determined by computing the estimated annual effective tax rate, adjusted for discrete items, if any, which are taken into account in the appropriate period. The Company's effective tax rate can vary from period to period depending on, among other factors, the mix and amount of global earnings, the impact of loss companies for which no tax benefit is available due to valuation allowances, income tax credits, and the impact of permanent tax adjustments. On January 10, 2025, the Company was awarded a Qualifying Advanced Energy Project Tax Credit in connection with the construction of the West Virginia micro mill under section 48C of the Internal Revenue Code. The amount awarded is a non-refundable transferable investment tax credit allocation equal to 30% of qualified expenditures for certified projects that meet prevailing wage and apprenticeship requirements. The Company elected to account for its non-refundable transferable investment tax credits under ASC 740 using the flow-through method. Under the flow-through method, the credit is recognized in the fiscal year that the qualifying assets are placed in service, which is currently expected to occur upon commissioning of the West Virginia micro mill during 2026. The Company intends to utilize the …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 7. LEASES As part of the Foley Acquisition and the CP&P Acquisition, as outlined in Note 2, Acquisitions, the Company assumed leases. Further, upon closing, the Company entered into real property leases with the former owner of CP&P that were not included in the CP&P Acquisition. Total operating lease assets related to the precast platform were $65.3 million as of May 31, 2026. The Company entered into an additional $3.7 million and $19.1 million of operating lease assets and $18.6 million and $67.3 million of finance lease assets unrelated to the precast platform in the three and nine months ended May 31, 2026, respectively. The following table presents the components of the total lease assets and lease liabilities and their classification in the condensed consolidated balance sheets: (in thousands) Classification in Condensed Consolidated Balance Sheets May 31, 2026 August 31, 2025 Assets: Operating assets Other noncurrent assets $ 221,904 $ 172,374 Finance assets Property, plant and equipment, net 231,864 189,923 Total leased assets $ 453,768 $ 362,297 Liabilities: Operating lease liabilities: Current Other accrued expenses and payables $ 43,535 $ 37,250 Long-term Other noncurrent liabilities 180,846 136,629 Total operating lease liabilities 224,381 173,879 Finance lease liabilities: Current Current maturities of long-term debt 53,898 42,500 Long-term Long-term debt 138,131 116,417 Total finance lease liabilities 192,029 158,917 Total lease liabilities $ 4 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Issued Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (""FASB"") issued Accounting Standards Update (""ASU"") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (""ASU 2023-09""). ASU 2023-09 requires enhanced annual disclosures regarding the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and may be adopted on a prospective or retrospective basis. The Company intends to adopt this standard on a prospective basis, beginning with the annual reporting of 2026. The guidance only impacts disclosures and will not have an impact on the Company's financial condition or results of operations. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (""ASU 2024-03""). ASU 2024-03 requires disaggregated income statement expense disclosures related to functional or natural expense line items within continuing operations. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, and permits either prospective or retrospective adoption. The guidance only impacts disclosures and will not have an impact on the Company's financial condition or results of operations. In November 2025, the FASB issued ASU 2025-09, …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 4. REVENUE RECOGNITION The majority of the Company's revenue is recognized at a point in time, concurrent with the transfer of control, which usually occurs, depending on shipping terms, upon shipment or customer receipt. See Note 15, Segment Information, for more information about disaggregated revenue by the Company's major product lines. Certain revenue resulting from sales of downstream products in the North America Steel Group segment is recognized over time, as discussed below. Remaining revenue from sales of other downstream products in the North America Steel Group segment is recognized based on the amount the Company has a right to invoice as a practical expedient. Each of the North America Steel Group segment's fabrication contracts represents a single performance obligation. Revenue from certain fabrication contracts for which the Company provides downstream products and installation services is recognized over time using an input measure, and represented 6% and 8% of net sales in the North America Steel Group segment in the three and nine months ended May 31, 2026, respectively, and represented 7% of net sales in the North America Steel Group segment in each of the three and nine months ended May 31, 2025. Revenue from fabrication contracts for which the Company does not provide installation services is recognized over time using an output measure, and represented 9% of net sales in the North America Steel Group segment in each of the three and nine months en …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

"NOTE 15. SEGMENT INFORMATION The Company's operating segments engage in business activities from which they may earn revenues and incur expenses and for which discrete financial information is available. The Company's Chief Operating Decision Maker (""CODM"") is the President and Chief Executive Officer. The CODM uses adjusted EBITDA to evaluate the underlying operational performance of the Companys reportable segments and to guide strategic decisions aligned with Company-wide objectives, as it provides a consistent and comparable view of operating results across segments. In doing so, the CODM considers the performance of this measure relative to historical, planned and forecasted financial information when making decisions about capital and personnel allocation. Adjusted EBITDA is equal to earnings or losses before interest expense, income taxes, depreciation and amortization expense, impairment expense and unrealized gains and losses on undesignated commodity hedges. The Company structures its business into three reportable segments: North America Steel Group, Construction Solutions Group and Europe Steel Group. See Note 1, Nature of Operations and Summary of Significant Accounting Policies herein as well as in the 2025 Form 10-K, for more information about the reportable segments, including the types of products and services from which each reportable segment derives its net sales. Corporate and Other contains earnings or losses on assets and liabilities related to the C …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"NOTE 1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (""GAAP"") on a basis consistent with that used in the Annual Report on Form 10-K for the year ended August 31, 2025 (the ""2025 Form 10-K"") filed by Commercial Metals Company (""CMC,"" and together with its consolidated subsidiaries, the ""Company"") with the United States (""U.S."") Securities and Exchange Commission (the ""SEC"") and include all normal recurring adjustments necessary to present fairly the condensed consolidated balance sheets and the condensed consolidated statements of earnings (loss), comprehensive income (loss), cash flows and stockholders' equity for the periods indicated. These notes should be read in conjunction with the consolidated financial statements and notes included in the 2025 Form 10-K. The results of operations for the three and nine months ended May 31, 2026 are not necessarily indicative of the results expected for the full fiscal year. Any reference in this Quarterly Report on Form 10-Q for the quarter ended May 31, 2026 (""Form 10-Q"") to the ""corresponding period"" relates to the relevant three or nine months ended May 31, 2025. Any reference in this Form 10-Q to a year refers to the fiscal year ended August 31st of that year, unless otherwise stated. Nature of Operations CMC is …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing