4Q25 Earnings Release February 24th, 2026 DISCLAIMER This document may contain forward-looking statements. These statements are based on estimates, information or methods that may be incorrect or inaccurate and that may not occur. These estimates are also subject to risks, uncertainties, and assumptions that include, among other factors, general economic, political, and commercial conditions in Brazil and in the markets where we operate, as well as existing and future government regulations. Potential inves ...

Summary of Key Points from the Conference Call Industry Overview - The discussion revolves around global tariffs, particularly the implications of the Supreme Court ruling on the International Emergency Economic Powers Act (IEEPA) and its replacement with Section 122 tariffs. Core Insights and Arguments - **Tariff Levels**: Headline tariffs peaked in late 2025, with estimates indicating a reduction from approximately 13% to 11% due to the replacement of IEEPA with Section 122. Without Section 122, tariffs could fall to around 6-7% [6][12][27]. - **Complicated Path Ahead**: The path to higher tariffs is now more complex, with a risk skew towards lower tariffs, which supports expectations for lower US inflation in the second half of 2026 [6][10][29]. - **Sector vs. Country Tariffs**: The ruling suggests a shift from country-based tariffs to sector-based tariffs, which may have more legal grounding and could accelerate the tariff adjustment process [6][10][47]. - **Effective Tariff Rates**: The effective tariff rate remained subdued near 10%, and both nominal and effective rates are expected to decline post-IEEPA ruling [11][12][20]. Important but Overlooked Content - **Refunds Outlook**: The process for refunds related to tariffs remains unclear, with expectations that any refunds will be limited and delayed, potentially amounting to around $85 billion [31][30]. - **Bilateral Trade Agreements**: The ruling may not significantly alter existing bilateral agreements, as many countries are already facing lower tariff levels than before [32][66]. - **US-China Trade Relationship**: The US-China trade relationship is expected to remain stable, with a significant portion of tariffs tied to fentanyl and Section 301 investigations. Any reduction in IEEPA tariffs could be offset by increases in Section 301 tariffs [36][60]. - **Sector-Level Implications**: The transition to Section 122 tariffs is likely to reduce the dispersion in product-level tariffs, particularly benefiting consumer sectors, although the overall boost may be smaller than previously anticipated [68][69]. Conclusion - The Supreme Court ruling on IEEPA has significant implications for tariff structures, with a shift towards Section 122 tariffs expected to lower overall tariff levels and complicate future tariff adjustments. The focus on sector-based tariffs may provide a more stable framework moving forward, while the economic impact remains to be fully realized in the coming quarters.

Core Insights - President Trump's new 10% universal tariff is impacting global markets and could squeeze margins for companies reliant on overseas manufacturing [1] - Companies with domestic supply chains are less exposed to import tariffs, providing them with a structural advantage as global trade costs increase [2] Company-Specific Insights - Tesla's localized manufacturing footprint reduces its exposure to cross-border tariffs and enhances control over production costs amid volatile global supply chains [3] - Nucor Corp., a domestic steel producer, benefits from its majority U.S.-based production, making it less reliant on imported materials and strengthening its competitive position against global competitors [4] Market Trends - As tariff uncertainty alters the global trade landscape, there is a growing investor preference for companies with supply chains closer to home, making domestic manufacturing a significant competitive advantage [5]

Group 1 - BMO Capital raised the price target on Ryerson (RYI) to $31 from $29 while maintaining a Market Perform rating after the company's Q4 results [1] - The Q4 results were negatively impacted by transitory margin compression, but market activity has improved, and earnings are expected to trend higher [1] - The focus moving forward will be on delivering expected synergies, with capital allocation likely remaining tilted towards reducing leverage in the near term [1]

Company Leadership Changes - Cleveland-Cliffs Inc. has appointed Ralph "Mike" Michael III as Lead Independent Director of the Board, effective immediately, succeeding Douglas Taylor who resigned due to a change in professional circumstances [1] - Lourenco Goncalves, Chairman, President, and CEO of Cleveland-Cliffs, expressed gratitude for Douglas Taylor's contributions and highlighted Mike Michael's strategic perspective and extensive knowledge of the steel industry as beneficial for the company [1] - Edilson Camara has been named Chairman of the Compensation and Organization Committee, replacing Mr. Taylor, and is recognized for his reputation among CEOs and Boards globally [1] Company Overview - Cleveland-Cliffs is a leading North America-based steel producer, focusing on value-added sheet products, particularly for the automotive industry [1] - The company is vertically integrated, covering the entire process from iron ore mining to primary steelmaking and downstream finishing [1] - Cleveland-Cliffs employs approximately 30,000 people across its operations in the United States and Canada [1] Financial Performance - In 2021, Cleveland-Cliffs reported revenues of $20.40 billion and a net income of $3.0 billion [1]

Core Viewpoint - Tenaris S.A. has decided to terminate the second tranche of its Share Buyback Program effective March 3, 2026, due to market volatility and potential financial implications [1][3]. Group 1: Share Buyback Program Details - The second tranche of the Share Buyback Program was initially announced on May 27, 2025, with a total value of USD 600 million [2]. - This tranche commenced on November 3, 2025, and was scheduled to conclude by April 30, 2026 [2]. - As of the announcement, Tenaris has repurchased 29,295,219 ordinary shares at an aggregate cost of approximately USD 583.6 million, nearing the completion of its targeted repurchases [2]. Group 2: Rationale for Termination - The decision to terminate the buyback program was influenced by high market volatility, which could lead to significant additional payouts to the counterparty under the existing buyback agreement [3]. - The termination was executed following the expiration of the blackout period related to the company's annual earnings release on February 20, 2026 [3]. Group 3: Future Considerations - The board of directors of Tenaris will evaluate the possibility of pursuing additional buyback programs in the future [4].

Group 1 - The UK government has promoted its trade relationship with the US as a significant achievement, with a framework allowing UK goods to enter the US market at approximately 10% tariff levels, which is more favorable compared to most countries [2] - The US has proposed increasing the general tariff rate to 15%, which would significantly weaken the UK's competitive advantage, as it faces the largest potential tariff increase among major trading partners [2] - UK businesses estimate that an overall increase in tariffs could raise export costs to the US by approximately £3 billion, affecting around 40,000 companies, particularly impacting manufacturers, consumer goods firms, and small exporters [2] Group 2 - The UK government is engaging in intensive diplomatic communication with the US to seek clearer exemption arrangements or to extend previous favorable treatment, but businesses must budget for higher tariffs, complicating future operational planning [3] - Certain sectors like steel, automotive, and some pharmaceuticals are expected to retain special arrangements, while more consumer goods and general manufacturing will face the same tariff environment as other countries [3] - The stability of UK-US relations is affected by the US government's focus on multiple global trade negotiations and geopolitical issues, making it more challenging for the UK to secure priority treatment and special arrangements in the coming months [3] Group 3 - In the long term, the UK's export structure may adjust passively, with some companies considering shifting focus to EU or Asia-Pacific markets to mitigate risks, while small businesses reliant on cross-border orders may adopt a more conservative approach due to cost and demand uncertainties [4] - Increased trade uncertainty typically leads to more cautious capital flows, and if export expectations weaken, it may raise market expectations for looser UK monetary policy, constraining the upward potential of the currency [4] - The volatility from fluctuating policies may temporarily boost demand for the US dollar, with international market opportunities arising more from volatility than from unilateral trends [4]

Core Insights - Carpenter Technology Corporation (CRS) is investing $400 million in a brownfield expansion project in Athens to enhance high-purity primary and secondary melt capacity, which is expected to drive long-term growth [1][10] Expansion Project Details - The project aims to add 9,000 additional tons of melt capacity, representing a 7% increase from Carpenter Technology's 2019 shipments [2] - As of the second quarter of fiscal 2026, the project is on schedule and budget, with commissioning expected to start in early fiscal 2028 [3][10] - Production is anticipated to begin immediately after commissioning, with a ramp-up as additional qualifications are secured [3] Financial Projections - Carpenter Technology expects the brownfield expansion to contribute to earnings growth, although it will not significantly affect the supply-demand imbalance [4][10] - The company projects capital expenditures for fiscal 2026 to be between $300 million and $315 million, with $175 million to $185 million allocated for the brownfield expansion [5] Market Performance - CRS shares have increased by 95.4% over the past year, slightly trailing the industry's growth of 98.1% [9] - The Zacks Consensus Estimate for fiscal 2026 sales is $3.07 billion, reflecting a 6.6% year-over-year increase, while earnings are estimated at $10.28 per share, indicating a 37.4% rise [11] Valuation Metrics - Carpenter Technology is currently trading at a forward price/sales ratio of 5.96, compared to the industry's ratio of 2.07 [12]

Retail and Consumer - Best Buy, Ralph Lauren, and Nike are expected to benefit from the new 15% tariff, which is 4% lower than previous rates, according to Jefferies analysts [1] - Other retailers like Target and Elf Beauty may also see positive impacts from the tariff reduction [1] E-Commerce Companies - Small and midcap e-commerce stocks may experience mixed effects; Etsy is noted to be the most insulated from tariff volatility due to its diversified trade routes [1] - Chewy and Wayfair are expected to be least impacted as they have already adapted to previous tariffs [1] Paper, Lumber, and Packaging - Local packaging and lumber companies may lose their competitive edge due to the new tariffs, with companies like Clearwater Paper and Rayonier flagged for negative impacts [1] - A survey indicated that U.S. buyers reported lower containerboard prices in February, intensifying pricing pressure from increased European imports [1] Automobiles - Legacy automakers such as Ford and General Motors are unlikely to see relief from tariffs, as most tariffs on the industry remain unaffected by the recent ruling [1] Steel, Aluminum, and Copper - Producers in these sectors, including Steel Dynamics and Alcoa, are expected to remain unaffected as tariffs will continue under Section 232 [1] Emerging Markets - China is anticipated to benefit significantly from the tariff changes, with analysts expecting tariff rates to decline from 32% to around 24% and 27% [1] - Other regions like India and Southeast Asia are also expected to see tariff reductions, with estimates of 4-5% for Southeast Asia and a drop to 14% for India [1]

Core Insights - The article highlights the successful launch of the "Waterfront Show · Leap into the New Year" series at Shougang Park during the Spring Festival, showcasing a blend of industrial aesthetics, intangible cultural heritage, winter sports, and national trends [1][3]. Visitor Statistics - From February 15 to February 23, 2026, Shougang Park welcomed a total of 300,000 visitors, representing a 2.3% increase compared to the previous year [1]. - The total consumption during this period reached approximately 20 million yuan, which is a 1.2% increase year-on-year [1]. Media Coverage - The event received extensive coverage from major media outlets such as China National Radio, Xinhua News Agency, and Beijing Daily, with a total of 6,616 reports published [3]. - The online engagement was significant, with a reported 1.168 million views on Xinhua's coverage, enhancing public awareness and interest in the activities [3]. Event Highlights - The "Waterfront Living Room" light show transformed the industrial landscape into a cyberpunk-like night scene, showcasing the unique visual appeal of Shougang Park [4]. - The "Vibrant Show Horse Year Exhibition" creatively combined the spirit of the horse with steel industry symbols, attracting numerous visitors and photographers [9]. - The "Flying Snow Leap New" ice festival allowed families to engage in winter sports, maintaining the Olympic spirit and providing interactive experiences [10]. Cultural and Commercial Integration - The "Fortune Leap New" intangible cultural heritage market offered visitors hands-on experiences with traditional crafts, enhancing cultural engagement [11]. - The transformation of Shougang Park into a vibrant urban space has attracted over 1,000 enterprises, with projected visitor numbers exceeding 14 million by 2025 [13]. - The integration of industrial heritage with cultural tourism and technological innovation is a key focus for the future development of Shougang Park [13].