INVENTORIES, NET

6 Months Ended

Feb. 28, 2026

NOTE 5. INVENTORIES, NET

Most of the Company's inventories are in the form of semi-finished and finished steel products. Under the Company’s vertically integrated business model in the North America Steel Group and the Europe Steel Group segments, steel products are sold to external customers in various stages, from semi-finished billets through fabricated steel, so these categories are combined as finished goods.

The components of inventories were as follows:


(in thousands)	February 28, 2026		August 31, 2025
Raw materials	$	244,548	$	204,945
Work in process	3,141		4,165
Finished goods	895,951		725,200
Total	$	1,143,640	$	934,310

As of February 28, 2026 and 2025, the inventory valuation reserve was $2.8 million and $15.7 million, respectively, and primarily related to the Europe Steel Group segment and North America Steel Group segment, respectively. The inventory write-downs were recorded in cost of goods sold in the condensed consolidated statements of earnings (loss).