Financial Performance - Fourth quarter net earnings were $151.8 million, or $1.35 per diluted share, on net sales of $2.1 billion, compared to $103.9 million, or $0.90 per diluted share, on net sales of $2.0 billion in the prior year[5] - For the full fiscal 2025, net earnings were $84.7 million, or $0.74 per diluted share, on net sales of $7.8 billion, compared to $485.5 million, or $4.14 per diluted share, on net sales of $7.9 billion in the prior year[6] - The company reported net earnings of $151,781,000 for the three months ended August 31, 2025, compared to $103,931,000 in the same period last year, representing a 46.0% increase[28] - Net earnings for the year ended August 31, 2025, were $84,662, a significant decrease from $485,491 in 2024, reflecting a decline of 82.5%[32] - Net earnings for the three months ended August 31, 2025, were $151,781 thousand, compared to a loss of $175,718 thousand for the same period last year[37] EBITDA and Margins - Consolidated core EBITDA for the fourth quarter was $291.4 million, resulting in a core EBITDA margin of 13.8%, an increase both sequentially and year-over-year[4] - Adjusted EBITDA for the North America Steel Group increased 18.0% to $239.4 million in the fourth quarter, with an adjusted EBITDA margin of 14.8%, up from 13.0% in the prior year[12] - The Europe Steel Group reported adjusted EBITDA of $39.1 million in the fourth quarter, a significant improvement from a loss of $3.6 million in the prior year[15] - Adjusted EBITDA for the total company was $278,428,000 for the three months ended August 31, 2025, compared to $216,573,000 in the same period last year[25] - Adjusted EBITDA for the three months ended August 31, 2025, was $278,428 thousand, up from $126,373 thousand in the same period last year, reflecting a significant increase[37] - Core EBITDA margin improved to 13.8% for the three months ended August 31, 2025, compared to 7.9% in the same period last year[37] Sales Performance - Total net sales to external customers for the company reached $2,114,518,000 for the three months ended August 31, 2025, compared to $1,996,149,000 in the same period last year, marking a 5.9% increase[28] - North America Steel Group reported net sales of $1,616,078,000 for the three months ended August 31, 2025, a 3.4% increase from $1,559,520,000 in the same period last year[23] - The Emerging Businesses Group achieved net sales of $221,753,000, a 12.3% increase from $195,571,000 year-over-year[23] - Europe Steel Group's net sales were $263,294,000, up from $222,085,000 in the same quarter last year, reflecting an 18.6% increase[23] - Net sales for the three months ended August 31, 2025, reached $2,114,518 thousand, an increase from $1,754,376 thousand in the same period last year[37] Cash and Liquidity - As of August 31, 2025, cash and cash equivalents totaled $1.0 billion, with available liquidity of nearly $1.9 billion[8] - Cash and cash equivalents at the end of the period were $1,043,252, up from $857,922, representing an increase of 21.6%[32] Dividends and Shareholder Returns - The board declared a quarterly dividend of $0.18 per share, marking the 244th consecutive quarterly payment[9] - Cash dividends per share remained stable at $0.18 for both the three months ended August 31, 2025, and August 31, 2024[28] Liabilities and Expenses - Total current liabilities rose to $1,258,813, compared to $834,850 in the previous year, marking an increase of 50.7%[30] - Long-term debt increased to $1,310,006 from $1,150,835, reflecting a rise of 13.9% year-over-year[30] - The litigation expense recorded was $362,272, which was not present in the previous year, indicating a significant new liability[32] - Litigation expenses for the year ended August 31, 2025, totaled $362,272 thousand, reflecting ongoing legal challenges[37] Capital Expenditures - Capital expenditures for the year were $402,821, an increase from $324,271 in 2024, reflecting a growth of 24.3%[32] Acquisitions and Growth Strategy - The company announced pending acquisitions of Foley Products Company and Concrete Pipe & Precast, aimed at creating a new growth platform and broadening the commercial portfolio[3] Future Outlook - The company expects consolidated financial results in the first quarter of fiscal 2026 to be generally consistent with those of the fourth quarter, with an anticipated increase in adjusted EBITDA margin[16]

Core Insights - Commercial Metals Company (CMC) reported a strong financial performance in the fourth quarter of fiscal 2025, with net earnings of $151.8 million, or $1.35 per diluted share, on net sales of $2.1 billion, compared to $103.9 million, or $0.90 per diluted share, on net sales of $2.0 billion in the prior year period [2][3][4] Financial Performance - Fourth quarter consolidated core EBITDA was $291.4 million, resulting in a core EBITDA margin of 13.8%, which is an improvement both sequentially and year-over-year [1][4] - For the full fiscal year 2025, CMC reported net earnings of $84.7 million, or $0.74 per diluted share, on net sales of $7.8 billion, compared to net earnings of $485.5 million, or $4.14 per diluted share, on net sales of $7.9 billion in the prior year [3][4] Business Segments Performance - The North America Steel Group saw a 3.0% increase in finished steel product shipments year-over-year, with adjusted EBITDA increasing by 18.0% to $239.4 million in the fourth quarter [7][9] - The Emerging Businesses Group (EBG) reported fourth quarter net sales of $221.8 million, a 13.4% increase compared to the prior year, with adjusted EBITDA of $50.6 million, up 19.1% year-over-year [10] - The Europe Steel Group achieved adjusted EBITDA of $39.1 million in the fourth quarter, a significant improvement from a loss of $3.6 million in the prior year period, driven by a $30.7 million CO2 credit and higher metal margins [12] Strategic Initiatives - CMC is focused on a transformative strategy aimed at long-term value-accretive growth, including investments in safety, operational excellence, and micro mill projects [2] - The company announced pending acquisitions of Foley Products Company and Concrete Pipe & Precast, which are expected to broaden its commercial portfolio and create additional value [2] Market Outlook - The company anticipates that the Fed's interest rate reduction cycle will help convert pent-up demand into real activity during fiscal 2026, with a positive long-term outlook for the construction market [2][15] - CMC expects consolidated financial results in the first quarter of fiscal 2026 to be consistent with those of the fourth quarter, with an anticipated increase in adjusted EBITDA margin due to higher steel product margins [13][15]

Core Viewpoint - Commercial Metals Company (CMC) has announced the acquisition of Foley Products Company for $1.84 billion, which is expected to enhance CMC's precast concrete platform and financial profile, providing immediate scale and synergy opportunities [1][2][4]. Strategic and Financial Rationale - The acquisition will position CMC as the third largest player in the U.S. precast market, enhancing its presence in the Mid-Atlantic and Southeast regions [4][5]. - Foley Products is recognized for its industry-leading EBITDA margins and cash flow generation capabilities, which will be integrated into CMC's portfolio [4][5]. - The deal is expected to be immediately accretive to earnings per share and free cash flow per share, with anticipated annual run-rate synergies of $25 million to $30 million by year three [1][4][12]. Market Position and Growth Potential - CMC will operate 35 facilities across 14 states post-acquisition, capturing a 17% share of the growing U.S. concrete market, which has revenues of approximately $30 billion [5][7]. - The acquisition of Foley, along with the pending acquisition of Concrete Pipe & Precast (CP&P), is expected to create a new growth platform and enhance CMC's ability to address construction industry challenges [2][5]. Financial Profile Transformation - The combined precast platform is projected to increase CMC's core EBITDA margin by 210 basis points on a pro forma basis, significantly improving free cash flow [12]. - Following the acquisitions, approximately 32% of CMC's total pro forma segment adjusted EBITDA will come from the Emerging Businesses Group and the precast platform, up from 15% in FY 2025 [12]. Synergy Opportunities - CMC anticipates operational synergies of $25 million to $30 million between Foley and CP&P, with additional commercial synergies expected through cross-selling and enhanced product capabilities [5][12]. - The integration of best practices from both Foley and CP&P is expected to drive meaningful value creation and operational efficiencies [5][12].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of buying low and waiting for recovery [1][2] Group 1: Momentum Investing Strategy - Momentum investors typically do not time the market, instead they capitalize on stocks that are already trending upwards [1] - Identifying the right entry point for fast-moving stocks can be challenging, as they may lose momentum if their valuations exceed future growth potential [2] Group 2: Commercial Metals (CMC) Stock Analysis - CMC has shown a price increase of 3.8% over the past four weeks, indicating growing investor interest [4] - Over the past 12 weeks, CMC's stock gained 12.5%, demonstrating its ability to deliver positive returns over a longer timeframe [5] - CMC has a beta of 1.32, suggesting it moves 32% more than the market in either direction, indicating fast-paced momentum [5] - CMC has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - CMC is trading at a Price-to-Sales ratio of 0.88, indicating it is reasonably valued at 88 cents for each dollar of sales [7] Group 3: Investment Opportunities - CMC is highlighted as a strong candidate for investment due to its favorable momentum characteristics and reasonable valuation [8] - There are additional stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8]

Core Viewpoint - Commercial Metals (CMC) is expected to report quarterly earnings of $1.32 per share, a 46.7% increase year-over-year, with revenues projected at $2.07 billion, reflecting a 3.6% year-over-year growth [1]. Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised upward by 1.6%, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts forecast 'Net Sales - Emerging Businesses Group' to be $195.10 million, a slight decrease of 0.2% year-over-year [5]. - 'Net sales from external customers - North America' is expected to reach $1.59 billion, marking a 1.7% increase from the previous year [5]. - 'Net sales from external customers - Europe' is projected at $243.90 million, reflecting a 9.8% year-over-year increase [6]. - 'Net sales from external customers - Corporate and Other' is estimated at $15.89 million, indicating a 16.3% decline year-over-year [6]. - 'Major product - North America - Other' is expected to reach $101.87 million, a significant increase of 34.1% year-over-year [6]. Pricing Metrics - The average selling price for 'Raw materials' in North America is projected at $847.61 per ton, down from $866.00 in the same quarter last year [7]. - 'Steel products metal margin per ton' in Europe is expected to be $310.42, up from $284.00 year-over-year [7]. - The average selling price for 'Downstream products' in North America is estimated at $1206.93 per ton, down from $1311.00 in the same quarter last year [8]. - The cost of ferrous scrap utilized per ton is projected at $349.19, an increase from $321.00 year-over-year [8]. - 'Steel products metal margin per ton' in North America is expected to be $527.61, slightly up from $522.00 in the same quarter last year [9]. - The estimate for 'Steel products (External tons shipped)' in Europe stands at 350.77 thousand, up from 319.00 thousand year-over-year [9]. - 'Steel products - Rebar' in Europe is projected to reach 97.68 thousand, slightly down from 98.00 thousand in the same quarter last year [10]. Stock Performance - Over the past month, shares of Commercial Metals have decreased by 1.5%, while the Zacks S&P 500 composite has increased by 0.4% [11]. - Currently, CMC holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [11].

Core Viewpoint - Commercial Metals (CMC) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $1.32 per share, reflecting a year-over-year increase of +46.7%, with revenues projected at $2.07 billion, up 3.6% from the previous year [3]. - The consensus EPS estimate has been revised 1.63% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +0.76% for Commercial Metals, suggesting analysts are optimistic about the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 3, indicating a neutral outlook, but the combination of a positive Earnings ESP and this rank suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Commercial Metals was expected to post earnings of $0.85 per share but only achieved $0.74, resulting in a surprise of -12.94% [13]. - The company has not surpassed consensus EPS estimates in any of the last four quarters, indicating a trend of underperformance [14]. Conclusion - While the potential for an earnings beat exists, other factors may also influence stock movement, and it is essential to consider the broader context beyond just earnings results [15][17].

Core Insights - Commercial Metals Company (CMC) has signed a definitive agreement to acquire Concrete Pipe & Precast, LLC (CP&P) for $675 million, aiming to enhance its early-stage construction solutions portfolio [1][8] Deal Details - CP&P is a provider of precast concrete solutions in the Mid-Atlantic and South Atlantic regions of the U.S., fully owned by Eagle Corporation and ECPP, with strong margins and cash flows [2] - The acquisition price of $675 million corresponds to a multiple of 9.5X CP&P's projected EBITDA for 2025, which adjusts to 8.5X when accounting for expected cash tax benefits [3] Transaction Benefits - The acquisition will create a scalable platform for CMC in a fragmented industry with robust profit margins, providing a long-term growth opportunity through both organic and inorganic means [4] - The deal is expected to be immediately accretive to CMC's earnings per share and free cash flow per share, with anticipated annual run-rate synergies of $5 million to $10 million by the third year, primarily from optimization initiatives [5] - The addition of CP&P will enhance CMC's core business by introducing a complementary revenue stream with higher and more stable margins, requiring less capital than traditional steel operations, thus improving cash flow generation [6] Stock Performance - CMC's shares have increased by 9.4% over the past year, contrasting with an 18.4% decline in the industry [7]

Core Viewpoint - Commercial Metals Company (CMC) is discussing its acquisition of Concrete Pipe & Precast during a financial community conference call, highlighting the strategic importance of this acquisition for the company's future operations and financial performance [1][2]. Group 1: Acquisition Details - The acquisition of Concrete Pipe & Precast is expected to enhance CMC's operational capabilities and market presence in the construction materials sector [1]. - The call includes insights from CMC's President and CEO, Peter Matt, and CFO, Paul Lawrence, indicating a high level of executive involvement in the acquisition process [1]. Group 2: Financial Expectations - The company will provide forward-looking statements regarding economic conditions, U.S. construction activity, and the anticipated benefits of the acquisition [2][3]. - These statements are based on current beliefs and conditions but are subject to risks and uncertainties that could affect actual results [3].

Summary of Commercial Metals Company (CMC) Conference Call on Acquisition of Concrete Pipe and Precast (CPNP) Company and Industry - **Company**: Commercial Metals Company (NYSE: CMC) - **Acquisition Target**: Concrete Pipe and Precast LLC (CPNP) - **Industry**: Precast Concrete Industry - **Total Addressable Market**: Approximately $30 billion, growing faster than the broader concrete sector [8][10] Core Points and Arguments 1. **Strategic Acquisition**: The acquisition of CPNP is seen as a significant advancement in CMC's growth strategy, expected to create long-term value for customers and shareholders [4][14] 2. **Complementary Products**: CPNP offers a full suite of precast products that serve critical applications in infrastructure and construction, enhancing CMC's existing product suite [4][5] 3. **Geographical Synergy**: CPNP's operational footprint includes 17 plants located within 100 miles of CMC's mills, allowing for efficient logistics and operational synergies [5][6] 4. **Financial Profile Improvement**: The acquisition is expected to enhance CMC's financial profile by adding a business with higher, more stable margins and lower capital intensity compared to traditional steel operations [7][15] 5. **Market Trends**: The precast industry benefits from trends such as labor scarcity, the need for predictable project timelines, and increasing infrastructure investments, which are expected to drive demand [10][11] 6. **Operational Efficiencies**: CPNP's products are designed to save labor and time on construction sites, which is increasingly valuable in the current construction landscape [10][47] 7. **Fragmented Market**: The precast industry is fragmented, with the top 10 players holding less than 25% of the market, presenting opportunities for CMC to expand through acquisitions [11][12] Financial Metrics and Projections 1. **Transaction Details**: The acquisition is valued at $675 million, representing a 9.5 times multiple on CPNP's expected 2025 EBITDA, which is projected to be slightly above $70 million with margins in the low 20% range [16][44] 2. **EBITDA Growth**: CMC anticipates annual run-rate synergies of approximately $5 to $10 million by the end of year three, with a potential for $20 to $25 million of EBITDA growth by year three [17][23] 3. **Debt Management**: Post-transaction, CMC's net debt to EBITDA ratio is expected to remain modest at approximately 1.1 times, allowing for continued financial flexibility [18][35] Additional Insights 1. **Growth Strategy**: CMC plans to grow CPNP both organically and through further acquisitions, aiming to create regional strongholds and eventually a national platform [20][21] 2. **Market Penetration**: The precast market is expected to grow due to increased adoption and market penetration, driven by the advantages of precast products over traditional methods [28][66] 3. **Barriers to Entry**: The precast industry has established players, technical complexities, and capital requirements that create barriers to entry for new competitors [51][53] 4. **Customer Relationships**: Strong local relationships and technical expertise are crucial for success in the precast market, which CMC aims to leverage [52][60] Conclusion - CMC's acquisition of CPNP is positioned as a strategic move to enhance its portfolio in the precast concrete industry, tapping into a growing market with favorable trends and operational synergies. The company is optimistic about the financial benefits and long-term growth potential this acquisition will bring.

Acquisition Rationale - Expands CMC's market leadership into the precast concrete industry[5] - Enhances CMC's financial profile via higher, more stable margins and cash flows[5] - Extends growth runway and creates a scalable platform[5] CP&P Overview - CP&P has 17 plants and approximately 700 employees serving 7 core states[8] - CP&P is a leading supplier of concrete precast and pipe products in the Mid-Atlantic and South Atlantic regions[10] - CP&P holds the 1 or 2 position in its core regions[8, 10] Market and Financial Highlights - The U S total addressable market for precast concrete is $30 billion[22] - The forecasted demand CAGR (2024 to 2028) is 5% to 7%[22] - CP&P's revenue growth has a last 5-Year CAGR of 14%[54] - CP&P's EBITDA growth has a last 5-Year CAGR of 23%[54] Transaction Details - The purchase price is $675 million on a debt-free, cash-free basis[63] - The transaction represents a 9 5x multiple of 2025E EBITDA, which is effectively reduced to approximately 8 5x due to a cash tax benefit[58, 63] - Estimated synergies of approximately $5 million to $10 million annually by year 3 are expected from identified optimization opportunities[63]