INVENTORIES, NET

9 Months Ended

May 31, 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)	May 31, 2026		August 31, 2025
Raw materials	$	288,638	$	204,945
Work in process	4,035		4,165
Finished goods	879,891		725,200
Total	$	1,172,564	$	934,310

As of May 31, 2026, the inventory valuation reserve was immaterial. As of May 31, 2025, the inventory valuation reserve was $20.7 million, and primarily related to the North America Steel Group segment. The inventory write-downs were recorded in cost of goods sold in the condensed consolidated statements of earnings (loss).