Tristan Gresser: All right. Thank you for the answers. Appreciate it.
Peter Matt: Thank you.
Operator: The next question comes from Phil Gibbs with KeyBanc Capital Markets. Please go ahead.
Phil Gibbs: Hi, good morning.
Peter Matt: Hi, Phil.
Phil Gibbs: Just curious on CapEx cadence for the second half and fiscal ’25 as you complete some of these projects?
Paul Lawrence: Phil, generally, our CapEx process is pretty consistent year after year. We sort of start the year relatively slow and then ramp up over the summer months. And we anticipate that as we complete the civil construction work at West Virginia, we’re certainly going to continue to see increased spend at the — at that site, which is driving most of our CapEx into Q3 and into Q4. So given where we are year-to-date, we anticipate that the Q3 and Q4 will achieve our guidance pretty evenly between those two months.
Phil Gibbs: And as you look into ’25 to complete those projects, how should we think about that?
Paul Lawrence: Yes, there should be probably equal spend left on West Virginia to the $250 million that we anticipate for this year.
Phil Gibbs: And then just on the start-up costs of the mill, I know you said you’ve gotten through some of the initial teething issues on MBQ, which is great, and rebar sounds like you’re maybe being a little bit more measured here in the short-term. How should we think about your start-up costs in Q3 and Q4?
Peter Matt: Well, so on rebar, we’ve largely crossed the bridge in terms of commissioning. I mean we’re in good shape on rebar. So I think this is really about continuing to kind of develop product families on the MBQ side. We’ve had good success already, and we’ll just continue to kind of grow that. As we indicated in our prepared remarks, we are still expecting to be profitable there to be breakeven on the EBITDA front in our fourth fiscal quarter. So I think you’ll see those trail off, and this will be kind of just ongoing commissioning costs as we — but it’s going to be much smaller numbers because we’ll be into profitability.
Phil Gibbs: So this quarter is probably peak start-up and commissioning costs for you all?
Paul Lawrence: Yes, that I say — that we can say confidently that Q2 of this year is the peak and things will tail from here.
Phil Gibbs: Okay. And just on your net working capital outlook for the balance of the year, I think first half might have been a little bit heavier than I expected, but you probably have some bills that you’re letting in the back half as shipments increase and scrap has also gone down. So you’ve got a couple of things working in your favor, but you also have higher levels of business activity. So how should we think about the working capital side?
Paul Lawrence: Yes, Phil, the working capital should — we invested, as I mentioned in my comments, around $60 million of working capital. That was strictly driven from the scrap cost increase that occurred during the second quarter. As our scrap has come off in the third quarter, we do anticipate most of that coming back. And the offset to other factors is, yes, we did build a few — a little bit of quantity of inventory into — in the second quarter for the upcoming construction season. And that should really play off the growth we anticipate in accounts receivable. So I think those two will net. And so we should be in a working capital generation here as we complete the year and certainly, Q3 would start that.
Phil Gibbs: Thank you.
Peter Matt: Thanks, Phil.
Operator: At this time, there appears to be no further questions. Peter Matt, I’ll now turn the call back over to you.
Peter Matt: Okay. Well, I’d like to just thank everyone for joining the call today. We’re really pleased with the results that we’ve been able to generate, and we are continuing to feel really strongly about the construction outlook for, and the demand for our products that results from that. So thank you very much for your interest in CMC, and we look forward to talking to you in the future.
Operator: Thank you for joining us on today’s conference call. We look forward to speaking with many of you during our investor calls in the coming days and weeks. This concludes today’s CMC conference call. You may now disconnect.
