Financial Data and Key Metrics Changes - CMC reported net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million in the prior year period [26] - Adjusted earnings for the quarter totaled $206.2 million, or $1.84 per diluted share, compared to $86.9 million in the prior year period [27] - Consolidated Core EBITDA of $316.9 million grew by over 50% from a year ago, reaching its highest level in two years [7][27] - Core EBITDA margin expanded to 14.9%, reflecting improvements year-over-year and sequentially [7] Business Line Data and Key Metrics Changes - North American Steel Group generated Adjusted EBITDA of $293.9 million for the quarter, with an EBITDA margin of 17.7%, up from 12.3% in the prior year [27][28] - Construction Solutions Group net sales grew by 17% year-over-year to $198.3 million, with Adjusted EBITDA increasing by 75% to $39.6 million [28][29] - Europe Steel Group reported adjusted EBITDA of $10.9 million, down from $25.8 million in the prior year, primarily due to a lower CO2 credit [30][31] Market Data and Key Metrics Changes - Shipments of finished steel were virtually unchanged year-over-year, with a less than 1% decline from the previous quarter [12] - The Dodge Momentum Index increased by approximately 50% year-over-year, indicating substantial pent-up demand in non-residential markets [13] - The commercial segment grew by 57% year-over-year, while institutional projects increased by 37% [13] Company Strategy and Development Direction - CMC's strategic focus is on transforming into a stronger organization with higher, more stable margins and returns on capital [5] - The TAG initiative aims to drive operational and commercial excellence, targeting a permanent improvement in margins and cash flows [19][20] - Recent acquisitions of CP&P and Foley Products are expected to broaden CMC's commercial portfolio and enhance financial performance [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to absorb new supply in the market due to stable demand conditions [43] - The company anticipates a modest decline in consolidated Core EBITDA in Q2 due to seasonal trends, but expects contributions from the precast business to offset some of this decline [36] - Management remains optimistic about long-term demand drivers, including infrastructure investment and energy generation [14] Other Important Information - CMC's effective tax rate was 3.1% in Q1, with expectations of a full-year rate between 5% and 10% for fiscal 2026 [34] - The company plans to spend approximately $625 million in capital expenditures for fiscal 2026, focusing on growth investments [35] Q&A Session Summary Question: Insights on CP&P and Foley acquisitions - Management noted positive surprises from the acquisitions, with strong cultural alignment and potential for synergies [40][41] Question: Outlook for North American metal margins - Management is not overly concerned about new supply and expects stable margins, with some seasonal fluctuations [43][44] Question: Seasonal impacts on volumes - Management anticipates typical seasonal declines of 5%-10% from Q1 to Q2, despite stronger than expected Q1 volumes [50][51] Question: Update on West Virginia mill ramp-up - The hot commissioning for the West Virginia mill is expected to begin in June, with a ramp-up planned over the following 12 months [52][54] Question: Outlook for precast business - The precast business is expected to contribute about $30 million of EBITDA in Q2, reflecting seasonal impacts [60] Question: Counterparty risk in fabrication business - Management clarified that counterparty risk is being actively managed to ensure margin preservation [70][72] Question: Impact of CBAM on European pricing - Management expects CBAM to gradually benefit pricing, with significant effects anticipated throughout 2026 [75][76]