Latest news with #CommercialMetals
Yahoo
24-06-2025
- Business
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Commercial Metals Co (CMC) Q3 2025 Earnings Call Highlights: Strong EBITDA Performance Amid ...
Net Earnings: $83.1 million or $0.73 per diluted share. Adjusted Earnings: $84.4 million or $0.74 per diluted share. Net Sales: $2 billion. Consolidated Core EBITDA: $204.1 million. Core EBITDA Margin: 10.1%. North American Steel Group Adjusted EBITDA: $186 million. North American Steel Group Adjusted EBITDA Margin: 11.9%. Emerging Business Group Net Sales: $197.5 million. Emerging Business Group Adjusted EBITDA: $40.9 million. Europe Steel Group Adjusted EBITDA: $3.6 million. Cash and Cash Equivalents: $893 million. Total Liquidity: Over $1.7 billion. Cash from Operating Activities: $154.4 million. Capital Expenditures: $89.5 million. Fiscal 2025 Capital Spending Outlook: $425 million to $475 million. Share Repurchases: Approximately 1.1 million shares at an average price of $45.30 per share. Warning! GuruFocus has detected 4 Warning Sign with CMC. Release Date: June 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Commercial Metals Co (NYSE:CMC) reported net earnings of $83.1 million or $0.73 per diluted share on net sales of $2 billion, with adjusted earnings of $84.4 million or $0.74 per diluted share. The company generated consolidated core EBITDA of $204.1 million and a core EBITDA margin of 10.1%, showing meaningful improvement on a sequential basis. CMC's North American Steel Group experienced a good sequential recovery in steel product metal margins, with expectations for further margin expansion in the fourth quarter. The Emerging Business Group saw a 4.7% increase in net sales and a 7% increase in adjusted EBITDA, driven by strong demand for proprietary products. CMC's Europe Steel Group reported an adjusted EBITDA of $3.6 million, a significant improvement from a loss in the prior year period, due to cost management efforts and increased shipment volumes. North American Steel Group's adjusted EBITDA decreased by 24% compared to the prior year period, primarily due to lower margins over scrap cost. The company faced production challenges and higher costs due to outages in the North American segment, impacting shipment volumes and profitability. Fiscal third-quarter net earnings decreased from $119.4 million in the prior year period to $83.1 million, reflecting a decline in profitability. The Europe Steel Group's improvement was moderate, with ongoing challenges in the market backdrop despite some recovery. The company experienced delays in certain projects within the Tensar division, impacting financial performance. Q: What caused the lower-than-expected steel product volumes in North America during the third quarter, and what are the expectations for the fourth quarter? A: Peter Matt, President and CEO, explained that the lower volumes were due to outages late in the quarter, which affected production and led to lower inventories and higher costs. For the fourth quarter, volumes are expected to be flattish to slightly up, following normal seasonal trends. Q: Are recent US rebar price hikes gaining traction, and is there room for further increases? A: Peter Matt stated that while they don't discuss pricing directly, the company focuses on value over volume. They believe they have struck the right balance in their pricing strategy and will continue to monitor and adjust as necessary. Q: Can you provide an update on the Arizona 2 facility's utilization and its impact on EBITDA? A: Peter Matt reported good progress at Arizona 2, with utilization expected to reach 70% to 75% by year-end. The facility is anticipated to be profitable in the fourth quarter, contributing to the targeted $150 million EBITDA improvement. Q: What factors contributed to the delay in the West Virginia project, and how does it affect CapEx for the next fiscal year? A: Peter Matt explained that the delay was due to securing an $80 million grant from the Department of Energy, which required compliance with specific requirements. The delay is not related to market conditions. Paul Lawrence added that CapEx for the next fiscal year is expected to be around $550 million, including $300 million for West Virginia. Q: What are the expected multiples for potential inorganic growth transactions, and how does CMC plan to manage these acquisitions? A: Peter Matt noted that multiples for target businesses are generally higher than CMC's due to their higher margins and growth potential. CMC plans to be disciplined, aiming to bring the effective multiple down to CMC's level over time through synergies and growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
24-06-2025
- Business
- Yahoo
Commercial Metals Co (CMC) Q3 2025 Earnings Call Highlights: Strong EBITDA Performance Amid ...
Net Earnings: $83.1 million or $0.73 per diluted share. Adjusted Earnings: $84.4 million or $0.74 per diluted share. Net Sales: $2 billion. Consolidated Core EBITDA: $204.1 million. Core EBITDA Margin: 10.1%. North American Steel Group Adjusted EBITDA: $186 million. North American Steel Group Adjusted EBITDA Margin: 11.9%. Emerging Business Group Net Sales: $197.5 million. Emerging Business Group Adjusted EBITDA: $40.9 million. Europe Steel Group Adjusted EBITDA: $3.6 million. Cash and Cash Equivalents: $893 million. Total Liquidity: Over $1.7 billion. Cash from Operating Activities: $154.4 million. Capital Expenditures: $89.5 million. Fiscal 2025 Capital Spending Outlook: $425 million to $475 million. Share Repurchases: Approximately 1.1 million shares at an average price of $45.30 per share. Warning! GuruFocus has detected 4 Warning Sign with CMC. Release Date: June 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Commercial Metals Co (NYSE:CMC) reported net earnings of $83.1 million or $0.73 per diluted share on net sales of $2 billion, with adjusted earnings of $84.4 million or $0.74 per diluted share. The company generated consolidated core EBITDA of $204.1 million and a core EBITDA margin of 10.1%, showing meaningful improvement on a sequential basis. CMC's North American Steel Group experienced a good sequential recovery in steel product metal margins, with expectations for further margin expansion in the fourth quarter. The Emerging Business Group saw a 4.7% increase in net sales and a 7% increase in adjusted EBITDA, driven by strong demand for proprietary products. CMC's Europe Steel Group reported an adjusted EBITDA of $3.6 million, a significant improvement from a loss in the prior year period, due to cost management efforts and increased shipment volumes. North American Steel Group's adjusted EBITDA decreased by 24% compared to the prior year period, primarily due to lower margins over scrap cost. The company faced production challenges and higher costs due to outages in the North American segment, impacting shipment volumes and profitability. Fiscal third-quarter net earnings decreased from $119.4 million in the prior year period to $83.1 million, reflecting a decline in profitability. The Europe Steel Group's improvement was moderate, with ongoing challenges in the market backdrop despite some recovery. The company experienced delays in certain projects within the Tensar division, impacting financial performance. Q: What caused the lower-than-expected steel product volumes in North America during the third quarter, and what are the expectations for the fourth quarter? A: Peter Matt, President and CEO, explained that the lower volumes were due to outages late in the quarter, which affected production and led to lower inventories and higher costs. For the fourth quarter, volumes are expected to be flattish to slightly up, following normal seasonal trends. Q: Are recent US rebar price hikes gaining traction, and is there room for further increases? A: Peter Matt stated that while they don't discuss pricing directly, the company focuses on value over volume. They believe they have struck the right balance in their pricing strategy and will continue to monitor and adjust as necessary. Q: Can you provide an update on the Arizona 2 facility's utilization and its impact on EBITDA? A: Peter Matt reported good progress at Arizona 2, with utilization expected to reach 70% to 75% by year-end. The facility is anticipated to be profitable in the fourth quarter, contributing to the targeted $150 million EBITDA improvement. Q: What factors contributed to the delay in the West Virginia project, and how does it affect CapEx for the next fiscal year? A: Peter Matt explained that the delay was due to securing an $80 million grant from the Department of Energy, which required compliance with specific requirements. The delay is not related to market conditions. Paul Lawrence added that CapEx for the next fiscal year is expected to be around $550 million, including $300 million for West Virginia. Q: What are the expected multiples for potential inorganic growth transactions, and how does CMC plan to manage these acquisitions? A: Peter Matt noted that multiples for target businesses are generally higher than CMC's due to their higher margins and growth potential. CMC plans to be disciplined, aiming to bring the effective multiple down to CMC's level over time through synergies and growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
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Commercial Metals Third-Quarter Results Miss Views as North American Steel Sales Fall
Commercial Metals' (CMC) fiscal third-quarter results fell more than expected, weighed down by a dro Melden Sie sich an, um Ihr Portfolio aufzurufen.
Yahoo
23-06-2025
- Business
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Commercial Metals (CMC) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended May 2025, Commercial Metals (CMC) reported revenue of $2.02 billion, down 2.8% over the same period last year. EPS came in at $0.74, compared to $1.02 in the year-ago quarter. The reported revenue represents a surprise of +0.49% over the Zacks Consensus Estimate of $2.01 billion. With the consensus EPS estimate being $0.85, the EPS surprise was -12.94%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Commercial Metals performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: North America - Average selling price (per ton) - Raw materials: $809 compared to the $951.15 average estimate based on three analysts. Europe - Steel products metal margin per ton: $293 compared to the $289.43 average estimate based on three analysts. North America - Average selling price (per ton) - Downstream products: $1,212 compared to the $1,252.19 average estimate based on three analysts. North America - Average selling price (per ton) - Cost of ferrous scrap utilized per ton: $360 compared to the $353.17 average estimate based on three analysts. North America - Average selling price (per ton) - Steel products metal margin per ton: $499 versus $495.12 estimated by three analysts on average. Europe - Steel products (External tons shipped): 359 thousand versus 317.31 thousand estimated by three analysts on average. Europe - Steel products - Rebar: 88 thousand compared to the 97.15 thousand average estimate based on three analysts. Europe - Steel products - Merchant and other: 271 thousand versus 220.17 thousand estimated by three analysts on average. North America - Steel products (tons shipped): 798 thousand versus the three-analyst average estimate of 812.17 thousand. Net sales from external customers- North America: $1.56 billion versus $1.60 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -6.5% change. Net sales from external customers- Corporate and Other: $12.65 million versus $13.13 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +30.1% change. Net sales from external customers- Europe: $247.59 million compared to the $215.88 million average estimate based on three analysts. The reported number represents a change of +18.6% year over year. View all Key Company Metrics for Commercial Metals here>>>Shares of Commercial Metals have returned +5.5% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Commercial Metals Company (CMC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
23-06-2025
- Business
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Commercial Metals (CMC) Misses Q3 Earnings Estimates
Commercial Metals (CMC) came out with quarterly earnings of $0.74 per share, missing the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $1.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -12.94%. A quarter ago, it was expected that this manufacturer and recycler of steel and metal products would post earnings of $0.31 per share when it actually produced earnings of $0.26, delivering a surprise of -16.13%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. Commercial Metals, which belongs to the Zacks Steel - Producers industry, posted revenues of $2.02 billion for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 0.49%. This compares to year-ago revenues of $2.08 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Commercial Metals shares have lost about 1.9% since the beginning of the year versus the S&P 500's gain of 1.5%. While Commercial Metals has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Commercial Metals was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.12 on $2.09 billion in revenues for the coming quarter and $3.02 on $7.76 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Steel - Producers is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Steel Dynamics (STLD), is yet to report results for the quarter ended June 2025. This steel producer and metals recycler is expected to post quarterly earnings of $2.54 per share in its upcoming report, which represents a year-over-year change of -6.6%. The consensus EPS estimate for the quarter has been revised 21.3% lower over the last 30 days to the current level. Steel Dynamics' revenues are expected to be $4.75 billion, up 2.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Commercial Metals Company (CMC) : Free Stock Analysis Report Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
