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COMMERCIAL METALS COMPANY
RECAST NON-GAAP FINANCIAL MEASURES (UNAUDITED)

This document contains financial measures not derived in accordance with U.S. generally accepted accounting principles (“GAAP”). Reconciliations to the most comparable GAAP measure are provided below.

Adjusted EBITDA, core EBITDA, core EBITDA margin and adjusted earnings, all from continuing operations, are non-GAAP financial measures. Adjusted earnings per diluted share from continuing operations is defined as adjusted earnings on a diluted per share basis. Core EBITDA margin from continuing operations is defined as core EBITDA divided by net sales. The adjustment “Settlement of New Markets Tax Credit transactions” represents the recognition of deferred revenue from 2016 and 2017 resulting from Commercial Metals Company’s (the “Company”) participation in the New Markets Tax Credit program provided for in the Community Renewal Tax Relief Act of 2000 during the development of a micro mill, spooler and T-post shop located in eligible zones as determined by the Internal Revenue Service. As set forth in the respective reconciliations below, for each of the years ended August 31, 2022, 2021, 2020 and 2019, the calculation of core EBITDA from continuing operations included adjustments for certain items to provide a supplemental measure of our ongoing performance. Such adjustments are consistent with the Company’s historical method of calculating core EBITDA from continuing operations for the applicable year.

During the fourth fiscal quarter of 2025, the Company modified its method of calculating adjusted EBITDA, core EBITDA and adjusted earnings, all from continuing operations, 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 recast adjusted EBITDA, core EBITDA, core EBITDA margin, adjusted earnings and adjusted earnings per diluted share, all from continuing operations, for certain historical periods to conform to this presentation.

Non-GAAP financial measures should be viewed in addition to, and not as alternatives to, the most directly comparable measures derived in accordance with GAAP and may not be comparable to similar measures presented by other companies. However, we believe that the non-GAAP financial measures provide relevant and useful information to management, investors, analysts, creditors and other interested parties in our industry as they allow: (i) comparison of our earnings to those of our competitors; (ii) a supplemental measure of our underlying business operational performance; and (iii) the assessment of period-to-period performance trends. Management uses non-GAAP financial measures to evaluate financial performance and set target benchmarks for annual and long-term cash incentive performance plans.

A reconciliation of net earnings from continuing operations to adjusted EBITDA from continuing operations and core EBITDA from continuing operations is provided below:





Three Months EndedYear Ended
(in thousands, except per share data)11/30/20232/29/20245/31/20248/31/20248/31/2024
Net earnings$176,273 $85,847 $119,440 $103,931 $485,491 
Interest expense11,756 11,878 12,117 12,142 47,893 
Income tax expense48,422 31,072 40,867 29,819 150,180 
Depreciation and amortization69,186 68,299 70,692 72,190 280,367 
Asset impairments— 4 146 6,558 6,708 
Unrealized (gain) loss on undesignated commodity hedges2,480 (1,980)5,605 (8,067)(1,962)
Adjusted EBITDA308,117 195,120 248,867 216,573 968,677 
Non-cash equity compensation8,059 14,988 12,846 9,173 45,066 
Settlement of New Markets Tax Credit transactions— — — (6,748)(6,748)
Core EBITDA$316,176 $210,108 $261,713 $218,998 $1,006,995 
Net sales$2,003,051 $1,848,287 $2,078,485 $1,996,149 $7,925,972 
Core EBITDA margin15.8%11.4%12.6%11.0%12.7%
Net earnings$176,273 $85,847 $119,440 $103,931 $485,491 
Asset impairments— 4 146 6,558 6,708 
Settlement of New Markets Tax Credit transactions— — — (6,748)(6,748)
Unrealized (gain) loss on undesignated commodity hedges2,480 (1,980)5,605 (8,067)(1,962)
Total adjustments (pre-tax)$2,480 $(1,976)$5,751 $(8,257)$(2,002)
Related tax effects on adjustments(521)415 (1,208)1,734 420 
Adjusted earnings$178,232 $84,286 $123,983 $97,408 $483,909 
Net earnings per diluted share(1)
$1.49 $0.73 $1.02 $0.90 $4.14 
Adjusted earnings per diluted share(1)
$1.51 $0.72 $1.06 $0.84 $4.13 
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(1) Net earnings per diluted share and adjusted earnings per diluted share are calculated independently for each three month period and may not sum to the year to date period due to rounding.



Three Months EndedYear Ended
(in thousands, except per share data)11/30/20222/28/20235/31/20238/31/20238/31/2023
Net earnings $261,774 $179,849 $233,971 $184,166 $859,760 
Interest expense13,045 9,945 8,878 8,259 40,127 
Income tax expense 76,725 55,641 76,099 53,742 262,207 
Depreciation and amortization51,183 51,216 55,129 61,302 218,830 
Asset impairments9 36 1 3,734 3,780 
Unrealized (gain) loss on undesignated commodity hedges6,459 (554)(6,781)3,998 3,122 
Adjusted EBITDA409,195 296,133 367,297 315,201 1,387,826 
Non-cash equity compensation16,675 16,949 10,376 16,529 60,529 
Settlement of New Markets Tax Credit transactions— (17,659)— — (17,659)
Core EBITDA$425,870 $295,423 $377,673 $331,730 $1,430,696 
Net sales$2,227,313 $2,018,003 $2,344,989 $2,209,228 $8,799,533 
Core EBITDA margin19.1%14.6%16.1%15.0%16.3%
Net earnings $261,774 $179,849 $233,971 $184,166 $859,760 
Asset impairments9 36 1 3,734 3,780 
Settlement of New Markets Tax Credit transactions— (17,659)— — (17,659)
Unrealized (gain) loss on undesignated commodity hedges6,459 (554)(6,781)3,998 3,122 
Total adjustments (pre-tax)$6,468 $(18,177)$(6,780)$7,732 $(10,757)
Related tax effects on adjustments(1,358)3,817 1,424 (1,624)2,259 
Adjusted earnings$266,884 $165,489 $228,615 $190,274 $851,262 
Net earnings per diluted share(1)
$2.20 $1.51 $1.98 $1.56 $7.25 
Adjusted earnings per diluted share(1)
$2.24 $1.39 $1.93 $1.61 $7.18 
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(1) Net earnings per diluted share and adjusted earnings per diluted share are calculated independently for each three month period and may not sum to the year to date period due to rounding.


Three Months EndedYear Ended
(in thousands, except per share data)11/30/20212/28/20225/31/20228/31/20228/31/2022
Net earnings $232,889 $383,314 $312,429 $288,630 $1,217,262 
Interest expense11,035 12,011 13,433 14,230 50,709 
Income tax expense 28,872 126,432 92,590 49,991 297,885 
Depreciation and amortization41,226 41,134 43,583 49,081 175,024 
Asset impairments— 1,228 3,245 453 4,926 
Unrealized (gain) loss on undesignated commodity hedges(2,184)1,641 (2,556)(699)(3,798)
Adjusted EBITDA311,838 565,760 462,724 401,686 1,742,008 
Non-cash equity compensation9,619 16,251 11,986 9,122 46,978 
Acquisition and integration related costs and other3,165 — 4,478 1,008 8,651 
Purchase accounting effect on inventory — — 2,169 6,506 8,675 
Gain on sale of assets— (273,315)— — (273,315)
Loss on debt extinguishment — 16,052 — — 16,052 
Core EBITDA$324,622 $324,748 $481,357 $418,322 $1,549,049 
Net sales$1,981,801 $2,008,888 $2,515,727 $2,407,065 $8,913,481 
Core EBITDA margin16.4%16.2%19.1%17.4%17.4%
Net earnings $232,889 $383,314 $312,429 $288,630 $1,217,262 
Asset impairments— 1,228 3,245 453 4,926 
Acquisition and integration related costs and other3,165 — 4,478 1,008 8,651 
Purchase accounting effect on inventory — — 2,169 6,506 8,675 
Gain on sale of assets— (273,315)— — (273,315)
Loss on debt extinguishment— 16,052 — — 16,052 
Unrealized (gain) loss on undesignated commodity hedges(2,184)1,641 (2,556)(699)(3,798)
Total adjustments (pre-tax)$981 $(254,394)$7,336 $7,268 $(238,809)
International restructuring(36,237)— — — (36,237)
Related tax effects on adjustments(206)59,930 (1,541)(1,526)56,657 
Adjusted earnings$197,427 $188,850 $318,224 $294,372 $998,873 
Net earnings per diluted share(1)
$1.90 $3.12 $2.54 $2.40 $9.95 
Adjusted earnings per diluted share(1)
$1.61 $1.54 $2.59 $2.44 $8.16 
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(1) Net earnings per diluted share and adjusted earnings per diluted share are calculated independently for each three month period and may not sum to the year to date period due to rounding.




Three Months EndedYear Ended
(in thousands, except per share data)11/30/20202/28/20215/31/20218/31/20218/31/2021
Earnings from continuing operations$63,911 $66,233 $130,408 $152,313 $412,865 
Interest expense14,259 14,021 11,965 11,659 51,904 
Income tax expense 21,593 20,941 38,175 40,444 121,153 
Depreciation and amortization41,799 41,573 41,804 42,437 167,613 
Amortization of acquired unfavorable contract backlog(1,523)(1,509)(1,508)(1,495)(6,035)
Asset impairments3,594 474 277 2,439 6,784 
Unrealized (gain) loss on undesignated commodity hedges1,801 381 (360)(5,172)(3,350)
Adjusted EBITDA from continuing operations145,434 142,114 220,761 242,625 750,934 
Non-cash equity compensation9,062 12,696 13,800 8,119 43,677 
Gain on sale of assets— (5,877)(4,457)— (10,334)
Loss on debt extinguishment— 16,841 — — 16,841 
Facility closure5,214 5,694 — — 10,908 
Labor cost government refund(1,348)— — — (1,348)
Core EBITDA from continuing operations$158,362 $171,468 $230,104 $250,744 $810,678 
Net sales$1,391,803 $1,462,270 $1,845,041 $2,030,646 $6,729,760 
Core EBITDA from continuing operations margin11.4%11.7%12.5%12.3%12.0%
Net earnings from continuing operations$63,911 $66,233 $130,408 $152,313 $412,865 
Gain on sale of assets— (5,877)(4,457)— (10,334)
Asset impairments3,594 474 277 2,439 6,784 
Loss on debt extinguishment— 16,841 — — 16,841 
Facility closure5,214 5,694 — — 10,908 
Labor cost government refund(1,348)— — — (1,348)
Unrealized (gain) loss on undesignated commodity hedges1,801 381 (360)(5,172)(3,350)
Total adjustments (pre-tax)$9,261 $17,513 $(4,540)$(2,733)$19,501 
Related tax effects on adjustments(1,972)(3,678)953 574 (4,123)
Adjusted earnings from continuing operations$71,200 $80,068 $126,821 $150,154 $428,243 
Earnings from continuing operations per diluted share(1)
$0.53 $0.54 $1.07 $1.24 $3.38 
Adjusted earnings from continuing operations per diluted share(1)
$0.59 $0.66 $1.04 $1.23 $3.51 
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(1) Earnings from continuing operations per diluted share and adjusted earnings from continuing operations per diluted share are calculated independently for each three month period and may not sum to the year to date period due to rounding.




Three Months EndedYear Ended
(in thousands, except per share data)11/30/20192/29/20205/31/20208/31/20208/31/2020
Earnings from continuing operations$82,755 $63,596 $64,169 $67,782 $278,302 
Interest expense16,578 15,888 15,409 13,962 61,837 
Income tax expense 27,332 22,845 23,804 18,495 92,476 
Depreciation and amortization40,941 41,389 41,765 41,654 165,749 
Asset impairments530 — 5,983 1,098 7,611 
Amortization of acquired unfavorable contract backlog(8,331)(5,997)(4,348)(10,691)(29,367)
Unrealized (gain) loss on undesignated commodity hedges1,380 (1,764)2,232 3,114 4,962 
Adjusted EBITDA from continuing operations161,185 135,957 149,014 135,414 581,570 
Non-cash equity compensation8,269 7,536 6,170 9,875 31,850 
Loss on debt extinguishment— — — 1,778 1,778 
Facility closure6,339 — 1,863 2,903 11,105 
Labor cost government refund— — — (2,985)(2,985)
Acquisition settlement— — — 32,123 32,123 
Core EBITDA from continuing operations$175,793 $143,493 $157,047 $179,108 $655,441 
Net sales$1,384,708 $1,340,963 $1,341,683 $1,409,132 $5,476,486 
Core EBITDA from continuing operations margin12.7%10.7%11.7%12.7%12.0%
Earnings from continuing operations$82,755 $63,596 $64,169 $67,782 $278,302 
Acquisition settlement— — — 32,123 32,123 
Labor cost government refund— — — (2,985)(2,985)
Facility closure6,339 — 1,863 2,903 11,105 
Loss on debt extinguishment— — — 1,778 1,778 
Asset impairments— — 5,983 1,098 7,081 
Unrealized (gain) loss on undesignated commodity hedges1,380 (1,764)2,232 3,114 4,962 
Total adjustments (pre-tax)$7,719 $— $(1,764)$10,078 $38,031 $54,064 
Related tax effects on adjustments(1,621)370 (2,116)(8,046)(11,413)
Adjusted earnings from continuing operations$88,853 $62,202 $72,131 $97,767 $320,953 
Earnings from continuing operations per diluted share(1)
$0.69 $0.53 $0.53 $0.56 $2.31 
Adjusted earnings from continuing operations per diluted share(1)
$0.74 $0.52 $0.60 $0.81 $2.67 
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(1) Earnings from continuing operations per diluted share and adjusted earnings from continuing operations per diluted share are calculated independently for each three month period and may not sum to the year to date period due to rounding.

Three Months EndedYear Ended
(in thousands)11/30/20182/28/20195/31/20198/31/20198/31/2019
Earnings from continuing operations$19,420 $14,928 $78,551 $85,880 $198,779 
Interest expense16,663 18,495 18,513 17,702 71,373 
Income tax expense 5,609 18,141 29,105 16,826 69,681 
Depreciation and amortization35,176 41,245 41,181 41,051 158,653 
Asset impairments— — 15 369 384 
Amortization of acquired unfavorable contract backlog(11,332)(23,476)(23,394)(16,582)(74,784)
Unrealized (gain) loss on undesignated commodity hedges1,835 1,917 (3,938)595 409 
Adjusted EBITDA from continuing operations$67,371 $71,250 $140,033 $145,841 $424,495