On this page of StockholderLetter.com we present the latest annual shareholder letter from COMMERCIAL METALS Co — ticker symbol CMC. Reading current and past CMC letters to shareholders can bring important insights into the investment thesis.

 •  11/26/2024 Letter Continued (Full PDF)
 •  11/21/2023 CMC Stockholder Letter
 •  More "Non-Precious Metals & Non-Metallic Mining" Category Stockholder Letters
 •  CMC Benford's Law Stock Score = 86

CMC Shareholder/Stockholder Letter Transcript:

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T H E
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P L U S
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F A C T O R
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T

2024
F I N A N C I A L
H I G H L I G H T S
2 0 2 4
(in thousands, except share and per share data)
2024
2023
$7,925,972
$ 8,799,533
Net earnings
485,491
859,760
Adjusted earnings1
485,459
848,796
Diluted earnings per share
4.14
7.25
Adjusted earnings per diluted share1
4.14
7.16
970,639
1,384,704
Core EBITDA1
1,008,957
1,427,574
Net working capital
2,457,918
2,300,441
Year Ended August 31
Net sales
Adjusted EBITDA1
Cash dividends per share
0.68
0.64
Cash dividends paid
78,868
74,936
Stockholders    equity
4,299,776
4,120,873
CMC is an innovative solutions provider helping build a stronger, saffer and more sustainable worll d . Through an
Stockholders    equity attributable to CMC per share
extensive manufacturing n etwork principally located in the United
dS
States and Central Europe, CMC
C offers products
Total assets
and technologies to meet the critical reinforcement needs of the
e g lobal construction sector. CM
M C   s solutions
Average diluted shares outstanding
support construction acro
oss a wide variety of applications, includin
ding inffrastructure, non-reside
e ntiial, residential,
1
37.68
35.37
6,817,839
6,639,094
117,152,552
118,606,271
Refer to page 18 for a reconciliation of GAAP to non-GAAP financial measures.
industrial and energy gene
e ration and transmission.
3

S T O C K H O L D E R S
At CMC, our formula
a for success extends far beyond simply
reaping the e  ciencies
cies of scale we achieved through years
of strategic execution.
ion. While we are incredibly proud of the
company we   ve built,
t, the real opportunity lies in leveraging
Peter R. Matt
President and Chief Executive Officer
the resources and knowledge we   ve gained to embrace new
challenges and pursue new avenues for growth.. In short, to
build a sustainable cycle of success. That   s    The
e Plus Factor.   
Core EBITDA
has grown by a
CMC generated consolidated core EBITDA
of $1.0 billion in   scal 2024, a strong
level for the Company. Net earnings,
core EBITDA margin, and cash   ow from
operating activities were also among the
best on record. These results highlight
the impact of the thoughtful and decisive
actions that we have taken over the last
While we have already built a strong
foundation, we believe there is much more
opportunity ahead. To drive CMC   s next
phase of value-accretive growth, we have
developed a compelling strategy that
focuses on three primary goals, each of
which should provide substantial bene  ts
individually while collectively reinforcing
the others.
First, we aim to achieve sustainably higher,
less volatile, through-the-cycle margins
that are forti  ed by our operational and
commercial excellence initiatives.
We have developed a path to excellence
through the exciting Transform, Advance,
Grow (TAG) initiative, which is designed
to optimize business activities across our
Our third goal is to pursue prudent and
disciplined, but meaningful, inorganic
growth. We have developed a thoughtful
set of criteria for expansion into attractive
adjacencies in which we believe we have
a clear right to play given CMC   s current
commercial participation, customer
knowledge, market positioning, and
operational capabilities. We are targeting
segments of the $150 billion early-phase
construction market that touch the types
of projects we are already servicing and
feature higher, more stable margins.
These adjacencies should also bene  t
from the megatrends that are expected
to drive construction activity for years to
come, including infrastructure investment,
reshoring, and the general scarcity of labor.
P E T E R R. M AT T
President and Chief Executive Officer
N O V E M B E R
s
w
osition us for s
er p
ust
e tt
ain
b
ill
a
2 6 ,
2 0 2 4
bl
CYCLE OF
SUCCESS
growth.
4
Fiscal 2024 was another successful year
for CMC, underscored by record employee
safety performance and the third best
  nancial results in our Company   s
109-year history.
Building Our Own Future
7econd, CMC will reap the bene  t of an
attractive array of organic growth projects
that, in addition to our major steel
mill investments in Arizona and West
Virginia, include a number of smaller
projects aimed at bolstering our portfolio
of proprietary solutions to drive further
penetration into growing markets and
expand our share of customers    wallets.
To run a great company, it all starts
with people. At CMC, we are all about
our people, all 13,178 of them. The safety
and wellbeing of our team members is
our top priority. And beyond this, we are
committed to providing the talent
development opportunities that will
position each of our employees for
exciting career opportunities, and CMC,
for long-term success. With great people,
our commitment to excellence in what
we do, and an exciting growth plan,
we have all the pieces in place to run
a great company.
Fiscal 2024 was a year that every member
of the CMC team can be proud of. We
kept our people safer than ever before
while generating strong   nancial results
and delivering further value to our
stockholders. We also made substantial
progress charting our strategic path
forward, which will position CMC for
continued success in the years to come.
I   ve never been more optimistic about our
potential to reach new heights in the future
as we execute against our growth drivers,
and I hope you share my excitement as
we enter CMC   s next chapter.
erm
g -t
Refer too page
pag 188 for a reconciliation
e onc liat on
of GAAP
P too non-GAAP
non GAAP financial m
measures.
a ure .
Continued Strength
We are proud that we were able to achieve
these strong   nancial results and share
them with our stockholders in the form of
cash distributions. Last year, CMC returned
a record $261.8 million to investors through
a growing dividend and increased share
repurchases.
CMC is already executing the   rst wave
of initiatives related to this program and
our efforts should begin to drive   nancial
bene  ts in   scal 2025. Over the coming
years, we expect the impact of TAG to
be substantial, and I look forward to
updating you on this important program
in the future.
Running a Great Company
In Closing
n
lo
compound
annual rate
over the last
  ve years
Our goal is to continue running a great
company today while laying a stronger,
more expansive foundation for the future.
several years, which have enabled us to
signi  cantly grow ourr Company, remake
our industry, and set us on a path forward
s.
for continued success.
Every line of business and every support
function has been involved in identifying
and quantifying opportunities that now
include over 150 different initiatives.
Taken together, we believe these initiatives
will allow CMC to deliver sustainably
higher and less volatile through-the-cycle
margins, and signi  cant value generation
for our stockholders.
e
15

In fact, we   ve never been more excited
about the future   because we intend to
help build it. Our vision is to be much more
than a steel company. We   ve set a course
to become a comprehensive provider
of value-add, early phase construction
solutions that our customers can trust and
depend on for all their project needs. At the
same time, we   re strivinK to   nd new ways
to do what we already do better, smarter,
and more e  ciently.
organization. TAG is unlike any program ever
launched at CMC due to the breadth and
depth of its reach, as well as its visibility
and the accountability structures built to
support it.
of s
uc
ce
s
T O
Our cycle
L E T T E R
5

2 0 2 4
C O M P A N Y
O V E R V I E W
G L O B A L
NORTH
EUROPE
EMERGING
AMERICA
STEEL
BUSINESSES
STEEL
GROUP
GROUP
F O O T P R I N T
ADJUSTED EBITDA
BY O P E R AT I N G S E G M E N T
GROUP
Our products are found in structures located all over the world. In order to serve
this global market, CMC maintains facilities across the U.S., Europe and Asia.
The blue shaded countries represent locations where our products have been sold.
P R O D U C T I O N
LO C AT I O N S
43
12
4
RECYCLING
OPERATIONS
RECYCLING
OPERATIONS
TENSAR
OPERATIONS
10
1
4
MILL
OPERATIONS
MILL
OPERATIONS
CMC ANCHORING
SYSTEMS
FACILITIES
57
5
DOWNSTREAM
OPERATIONS
DOWNSTREAM
OPERATIONS
2
CMC IMPACT
METALS FACILITIES
86%
North America
Steel Group
12%
Emerging
Businesses Group
2%
Europe
Steel Group
24
CMC
CONSTRUCTION
SERVICES
FACILITIES
REVENUE BY END MARKET TYPE
M A R K E T
P O S I T I O N S
#1 REBAR
#1 REBAR
#1 GEOGRID
#1 REBAR
#1 WIRE MESH
#1 AGGREGATE PIER
FABRICATION
#1 FENCEPOST
#3 MERCHANT
#2 WIRE ROD
#1 MERCHANT
BAR
SOLUTIONS
#1 ANCHOR CAGES
(NORTH AMERICA)
BAR
80

SJ   RMWLIH WXIIP
WLMTQIRXW EVI MRXS
QEVOIXW [MXL
 1 TSWMXMSR 
95

SJ   RMWLIH WXIIP
WLMTQIRXW EVI
MRXS QEVOIXW [MXL
 1 SV    TSWMXMSR  
43

SJ WEPIW MRXS
QEVOIXW [MXL
 1 TSWMXMSR
70%
Construction
18%
Primary Metals
12%
OEM /
Agriculture
CMC LOCATIONS
CMC   s business consists of 213 facilities across our operations and divisions.
*Over the
last 5 years
6
7

TRANSFORM     ADVANCE     GROW
a formula for success
If you   re not moving forward, you   re falling behind. That   s
why CMC is always thinking ahead. To keep our company
focused on the future, we   ve created TAG, a program
specially designed to foster new ideas, explore different
approaches, and rethink what   s possible. In short, our aim
is to make our company smarter, more e  cient, better able
to meet the needs of our customers and, ultimately, more
pro  table. At CMC, we don   t simply anticipate change, we
prepare for it. So no matter what the future throws our way,
we have what it takes to conquer every new challenge and
embrace every new opportunity.
RECYCLING AUGUSTA
4
REBAR LAS VEGAS

CONSTRUCTION SERVICES
BIRMINGHAM
3
1

TENSAR CHINA

1

SYV WEJIX] QIXVMGW
EVI XLI FIWX XLI]
LEZI IZIV FIIR
When it comes to the health and wellbeing
of our employees, it   s safe to say we   re proud
of our record. In   scal 2024, 131 sites went
recordable free.
HOUSTON WEST
3
CONSTRUCTION SERVICES
ROSENBERG

12

running a gre a t company
EMPLOYEE DEVELOPMENT
investing in our most important
asset: our people
EMPLOYEE OPPORTUNITIES
generations of opportunity
unity
Many companies provide jobs. CMC offers team
members the chance to learn, succeed and advance
their careers. It   s what makes our company more than
just    a place to work.    For some, CMC has even become
me
a family tradition. Take the Glass family, for example.
Three generations of Glass men have worked at CMC   s
s
mill in Magnolia, Arkansas. More than thirty years ago,,
Gary Glass even helped build the facility. Seeing   rsthand
nd
the advantages of working for CMC, Gary   s son, Steven,
n,
and grandson, Grant, also accepted positions with the
company. Beginning as electricians, both men eventually
ally
moved into supervisory roles.    At CMC, how much you
want to learn and advance is up to you,    says Steven.
   Everybody here wants you to succeed.   
We   re committed to helping our team members succeed. This year, we introduced
a new learning management system, providing resources ranging from online
training to ethics guidelines and communications channels to assist employees
reach their goals for advancement. At the same time, our    LinkedIn and Learning   
and    Essentials of Management    programs provide management-level team
members the leadership training and soft skills necessary to excel in their current
roles and advance toward their dream positions. At CMC, we build careers.
C E L E B R AT I N G E XC E L L E N C E
our efforts are
gaining attention
At CMC, we      re proud of the culture and
values we   ve
e developed over the years.
It seems oth
hers have noticed too.
8
8
Left to right: Gary Glass, Grant Glass and Steven Glass
9



 11/26/2024 Letter Continued (Full PDF)