Commercial METALS (CMC) risk factors, FY2026 10-K

RISKS RELATED TO OUR BUSINESS

1. 01Scrap and other inputs for our business are subject to price fluctuations and limited availability, which may adversely affect our business, results of operations and financial condition
2. 02We rely on the availability of large amounts of electricity and natural gas. Disruptions in delivery or substantial increases in energy costs, including crude oil prices, could adversely affect our business, results of operations and financial condition
3. 03We may encounter labor disputes and shortages for skilled labor and/or qualified employees in operational positions, which could adversely impact our operations
4. 04The loss of, or inability to hire, key employees may adversely affect our ability to successfully manage our operations and meet our strategic objectives
5. 05Our business, financial condition and results of operations may be adversely impacted by macroeconomic conditionsNew
6. 06We may have difficulty competing with companies that have a lower cost structure or access to greater financial resources
7. 07Operating and startup risks, as well as market risks associated with the commissioning of our micro mills and other capital investments, could prevent us from realizing anticipated benefits and could result in a loss of all or a substantial part of our investments71% rewritten
8. 08Our mills require continual capital investments that we may not be able to sustain
9. 09Unexpected equipment failures may lead to production curtailments or shutdowns, which may adversely affect our business, results of operations and financial condition
10. 10We are vulnerable to the economic conditions in the regions in which our operations are concentrated
11. 11Information technology interruptions and breaches in data security could adversely impact our business, results of operations and financial condition39% rewritten
12. 12Attention to ESG matters, including any targets or other ESG, environmental justice or regulatory initiatives, could result in additional costs or risks or adverse impacts on our business86% rewritten
13. 13We are subject to litigation, potential liability claims and contract disputes, and may become subject to additional litigation, claims and disputes in the future, any of which could adversely affect our business, results of operations and financial condition
14. 14Potential limitations on our ability to access credit, or the ability of our customers and suppliers to access credit, may adversely affect our business, results of operations and financial condition
15. 15Geopolitical conditions, including political turmoil and volatility, regional conflicts, terrorism and war have caused disruptions in the global economy, energy supplies and raw materials, which may continue to negatively impact our business and operations34% rewritten
16. 16The failure to successfully execute our transformation initiatives may adversely affect our future results of operations and financial conditionNew
17. 17From time to time in the past, some of our customers have sought to renegotiate or cancel their existing purchase commitments with us. In addition, some of our customers have breached previously agreed upon contracts to buy our products by refusing delivery of the products
18. 18The agreements governing our notes and our other debt contain financial covenants and impose restrictions on our business
19. 19We may not be able to successfully identify, consummate or integrate acquisitions, and acquisitions may adversely affect our financial leverage25% rewritten
20. 20Goodwill or other indefinite-lived intangible asset impairment charges in the future could have a material adverse effect on our business, results of operations and financial condition
21. 21Impairment of long-lived assets in the future could have a material adverse effect on our business, results of operations and financial condition
22. 22Competition from other materials may have a material adverse effect on our business, results of operations and financial condition
23. 23Our operations present significant risk of injury or death
24. 24Our business, financial condition, results of operations, cash flows, liquidity and stock price may be adversely affected by global public health epidemics
25. 25Fluctuations in the value of the U.S. dollar relative to other currencies may adversely affect our business, results of operations and financial condition
26. 26Operating internationally carries risks and uncertainties which could adversely affect our business, results of operations and financial condition
27. 27Hedging transactions may expose us to losses or limit our potential gains
28. 28There can be no assurance that we will repurchase shares of our common stock at all or in any particular amounts

RISKS RELATED TO OUR INDUSTRY

1. 29Our industry and the industries we serve are vulnerable to global economic conditions
2. 30Excess capacity and over-production by foreign producers in the steel industry as well as the startup of new steelmaking capacity in the U.S., could result in lower domestic steel prices, which would adversely affect our sales, margins, profitability, cash flows and liquidity
3. 31Enhanced U.S. tariffs, import/export restrictions or other trade barriers may have a negative effect on global economic conditions, financial markets and our business
4. 32Rapid and significant changes in the price of metals could adversely impact our business, results of operations and financial condition
5. 33Physical impacts of climate change could have a material adverse effect on our costs and results of operations

RISKS RELATED TO THE REGULATORY ENVIRONMENT

1. 34Increased regulation associated with climate change could impose significant additional costs on both our steelmaking and metals recycling operations
2. 35We are subject to governmental, regulatory and compliance risks that expose us to potential litigation and disputes regarding violations, which could adversely affect our business, results of operations and financial condition
3. 36Changes in tax legislation and regulations in the jurisdictions in which we operate may adversely affect our financial condition or results of operations