Acquisition StrategyCMC announced the acquisition of Concrete Pipe & Precast, LLC (CP&P), which is expected to be accretive to EPS and free cash flow per share in the first year.
Financial PositionManagement expects post-transaction ND/EBITDA leverage at approximately 1.1x, indicating a strong financial position after the acquisition.
Market ExpansionThe acquisition of CP&P is seen as a potential first step into the fragmented precast concrete business, offering growth opportunities.
Price StrategyCMC has successfully implemented rebar price hikes, totaling $120 per short ton over the past two months, supported by strong supply discipline and lower imports.