Financial Data and Key Metrics Changes - The company reported net earnings of $151.8 million or $1.35 per diluted share for Q4 2025, compared to $103.9 million or $0.90 per diluted share in the prior year period, representing a significant increase [35] - Adjusted earnings for the quarter totaled $155 million or $1.37 per diluted share, up from $97.4 million or $0.84 per diluted share in the prior year [35] - Consolidated core EBITDA was $291.4 million for 2025, a 33% increase from $219 million in the prior year [37] - The consolidated core EBITDA margin improved to 13.8% compared to 11% in the prior year [38] Business Line Data and Key Metrics Changes - The North American Steel Group generated adjusted EBITDA of $239.4 million for the quarter, with an adjusted EBITDA margin of 14.8%, up from 13% in the previous year [39] - The Emerging Business Group reported Q4 net sales of $221.8 million, a 13.4% year-over-year increase, with adjusted EBITDA of $50.6 million, up 19.1% [40] - The Europe Steel Group reported adjusted EBITDA of $39.1 million for 2025, compared to a loss of $3.6 million in the prior year, with a segment adjusted EBITDA margin of 14.8% [41] Market Data and Key Metrics Changes - Finished steel shipments increased by 3% year-over-year, with rebar shipments growing at a similar rate [39] - The Dodge Momentum Index reached a record high in September, indicating strong future construction activity [26] - The company noted substantial pent-up demand in non-residential markets, supported by over $2 trillion in announced corporate investments [27] Company Strategy and Development Direction - The company is focused on integrating the recently announced acquisitions of Foley Products Company and CPMP to create a large-scale precast platform [5][6] - The strategic entry into precast is expected to enhance the company's financial profile and growth potential, with anticipated annual run rate synergies of $25 million to $30 million of EBITDA by year three [10] - The company aims to drive meaningful and sustainable improvements to margins, earnings, cash flow, and returns on capital while reducing volatility [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, citing strong construction activity and a favorable supply landscape [25] - The company anticipates continued demand growth in infrastructure, energy generation, and advanced manufacturing, supported by a significant backlog of potential projects [27] - Management expects the first quarter to be strong for the North American Steel Group, but noted seasonal factors may impact other segments [54] Other Important Information - The company modified its method of calculating adjusted EBITDA to exclude unrealized gains and losses from commodity derivatives, providing a more representative view of operating performance [36] - The total consideration for the acquisitions of Foley and CPMP is approximately $2.5 billion, funded through cash on hand and committed bank financing [17] Q&A Session Summary Question: How much of the demand growth is coming from different sectors? - Management indicated strong infrastructure demand driven by the IIJA, with a bullish outlook for non-residential spending due to a large backlog of potential projects [49][50] Question: Why is the first quarter outlook not more positive despite strong current performance? - Management explained that while the North American Steel Group is expected to perform well, the Europe Steel Group will face challenges due to reduced CO2 credits and seasonal maintenance [54][56] Question: Will the focus be on integration and debt reduction after the acquisitions? - Management confirmed that the immediate focus will be on integrating the new assets and reducing debt, with potential for future acquisitions once leverage is back to acceptable levels [61][62] Question: What is the historical growth rate of Foley and its potential for future growth? - Management noted that Foley has a base level of growth related to GDP and additional growth from market share expansion, expecting to grow above GDP levels in the coming years [66] Question: How quickly can CPMP's margins improve to Foley's levels? - Management indicated that margin improvements for CPMP would be achievable over a three to five year horizon, with some quick wins expected [80][81]