Earnings Performance - Commercial Metals (CMC) reported quarterly earnings of $0.74 per share, missing the Zacks Consensus Estimate of $0.85 per share, and down from $1.02 per share a year ago [1] - The earnings surprise was -12.94%, and the company has not surpassed consensus EPS estimates over the last four quarters [2] - The company posted revenues of $2.02 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.49%, but down from $2.08 billion year-over-year [3] Stock Performance - Commercial Metals shares have declined approximately 1.9% since the beginning of the year, while the S&P 500 has gained 1.5% [4] - The current Zacks Rank for the stock is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $2.09 billion, and for the current fiscal year, it is $3.02 on revenues of $7.76 billion [8] - The outlook for the Steel - Producers industry is positive, ranking in the top 34% of over 250 Zacks industries, suggesting potential for outperformance [9]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) CMC reported Q3 FY2025 net earnings of $83.1 million, with sequential improvement driven by better North America steel margins and the exceeding targets of the TAG program Q3 FY2025 Key Financial Metrics | Metric | Q3 FY2025 | Q3 FY2024 | | :--- | :--- | :--- | | Net Sales | $2.0 billion | $2.1 billion | | Net Earnings | $83.1 million | $119.4 million | | Diluted EPS | $0.73 | $1.02 | | Adjusted Earnings | $84.4 million | $119.6 million | | Adjusted Diluted EPS | $0.74 | $1.02 | | Consolidated Core EBITDA | $204.1 million | $256.1 million | | Core EBITDA Margin | 10.1% | 12.3% | - Strategic initiatives and market conditions are key drivers: - The Transform, Advance, Grow ("TAG") program is gaining momentum and delivering EBITDA benefits ahead of schedule, with an expected annual run-rate to exceed **$100 million**[3](index=3&type=chunk)[4](index=4&type=chunk) - Domestic construction markets remained resilient, with healthy shipment levels and a stable downstream backlog[3](index=3&type=chunk)[4](index=4&type=chunk) - The company is confident in its performance for the remainder of the fiscal year, supported by its exposure to the growing U.S. public infrastructure market and structural trends like reshoring and energy transition[3](index=3&type=chunk)[4](index=4&type=chunk) [Business Segment Review](index=2&type=section&id=Business%20Segments%20-%20Fiscal%20Third%20Quarter%202025%20Review) The company's segments showed varied results, with North America improving, Emerging Businesses growing, and Europe returning to profitability [North America Steel Group](index=2&type=section&id=North%20America%20Steel%20Group) North America Steel Group's Adjusted EBITDA decreased year-over-year but improved sequentially due to increased shipments and rising margins North America Steel Group Performance (Q3 FY2025 vs Q3 FY2024) | Metric | Q3 FY2025 | Q3 FY2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $186.0 million | $246.3 million | -24.5% | | Adjusted EBITDA Margin | 11.9% | 14.7% | -280 bps | | Steel Products Metal Margin | $499 / ton | $538 / ton | -$39 / ton | - Demand remained solid, with finished steel shipments growing **1.6% year-over-year** and **10.4% sequentially**[8](index=8&type=chunk) - The pipeline for future construction projects is healthy, supported by robust bidding activity and stable downstream backlog volumes[8](index=8&type=chunk) [Emerging Businesses Group (EBG)](index=3&type=section&id=Emerging%20Businesses%20Group) The Emerging Businesses Group reported strong results with net sales and Adjusted EBITDA growth, driven by Performance Reinforcing Steel demand Emerging Businesses Group Performance (Q3 FY2025 vs Q3 FY2024) | Metric | Q3 FY2025 | Q3 FY2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $197.5 million | $188.6 million | +4.7% | | Adjusted EBITDA | $40.9 million | $38.2 million | +7.0% | | Adjusted EBITDA Margin | 20.7% | 20.3% | +40 bps | - Profitability was driven by strong project-related shipments of Performance Reinforcing Steel[11](index=11&type=chunk) - Future market condition indicators, such as project quotes and new planning activity, remain at healthy levels[11](index=11&type=chunk) [Europe Steel Group](index=3&type=section&id=Europe%20Steel%20Group) The Europe Steel Group achieved a significant turnaround, returning to profitability due to improved market conditions and cost control Europe Steel Group Performance (Q3 FY2025 vs Q3 FY2024) | Metric | Q3 FY2025 | Q3 FY2024 | Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $3.6 million | ($4.2 million) | N/A (Turnaround) | | Adjusted EBITDA Margin | 1.5% | (2.0%) | +350 bps | - Market conditions improved due to solid Polish economic conditions and reduced imports, leading to better supply-demand balance[12](index=12&type=chunk) - The average selling price increased by **$51 per ton** sequentially[12](index=12&type=chunk) [Financial Condition and Liquidity](index=2&type=section&id=Financial%20Condition%20and%20Liquidity) The company maintained a strong balance sheet and liquidity, continuing capital returns via share repurchases and consistent dividends - **Liquidity:** As of May 31, 2025, cash and cash equivalents totaled **$893.0 million**, with over **$1.7 billion** in available liquidity[7](index=7&type=chunk) - **Share Repurchases:** Repurchased **1,113,014 shares** for **$50.4 million** during the quarter, with **$254.9 million** remaining under current authorization[7](index=7&type=chunk) - **Dividends:** The board declared a quarterly dividend of **$0.18 per share**, marking the **243rd consecutive quarterly payment**[8](index=8&type=chunk) [Outlook](index=3&type=section&id=Outlook) Management expects Q4 FY2025 results to improve, driven by higher North America steel margins, strong Emerging Businesses, and improved European fundamentals - **North America Steel Group:** Adjusted EBITDA margin is expected to increase sequentially due to higher steel product margins over scrap[14](index=14&type=chunk)[15](index=15&type=chunk) - **Emerging Businesses Group:** Financial results are expected to improve on both a sequential and year-over-year basis[14](index=14&type=chunk)[15](index=15&type=chunk) - **Europe Steel Group:** Expected to receive a CO2 credit of approximately **$28 million**; excluding this, adjusted EBITDA is still projected to increase sequentially[14](index=14&type=chunk)[15](index=15&type=chunk) - The long-term strategy focuses on enhancing margins and cash flow through the TAG program, value-accretive organic growth projects, and complementary acquisitions to capitalize on structural trends in the domestic construction market[15](index=15&type=chunk) [Financial Statements (Unaudited)](index=7&type=section&id=Financial%20Statements%20%28Unaudited%29) This section provides unaudited condensed consolidated financial statements, with nine-month results impacted by a significant litigation expense [Condensed Consolidated Statements of Earnings (Loss)](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings%20%28Loss%29) For Q3 FY2025, net earnings were $83.1 million on $2.02 billion net sales, with a nine-month net loss due to a $358.5 million litigation expense Q3 Statement of Earnings Summary (in thousands) | Account | Three Months Ended May 31, 2025 | Three Months Ended May 31, 2024 | | :--- | :--- | :--- | | Net sales | $2,019,984 | $2,078,485 | | Earnings before income taxes | $109,512 | $160,307 | | Net earnings | $83,126 | $119,440 | | Diluted EPS | $0.73 | $1.02 | Nine-Month Statement of Earnings Summary (in thousands) | Account | Nine Months Ended May 31, 2025 | Nine Months Ended May 31, 2024 | | :--- | :--- | :--- | | Net sales | $5,683,962 | $5,929,823 | | Litigation expense | $358,496 | $0 | | Loss before income taxes | ($85,688) | $501,921 | | Net (loss) earnings | ($67,119) | $381,560 | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of May 31, 2025, the balance sheet shows total assets of $7.0 billion and total liabilities of $2.9 billion, impacted by a new $358.5 million litigation loss Balance Sheet Summary (in thousands) | Account | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $892,998 | $857,922 | | Total current assets | $3,358,709 | $3,292,768 | | Total assets | $6,993,823 | $6,817,839 | | Total current liabilities | $1,175,416 | $834,850 | | Total liabilities | $2,896,061 | $2,517,815 | | Total stockholders' equity | $4,097,762 | $4,300,024 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended May 31, 2025, net cash from operating activities decreased, with significant cash used for investing and financing activities Cash Flow Summary (Nine Months Ended, in thousands) | Category | May 31, 2025 | May 31, 2024 | | :--- | :--- | :--- | | Net cash flows from operating activities | $399,865 | $547,891 | | Net cash flows used by investing activities | ($262,621) | ($240,947) | | Net cash flows used by financing activities | ($102,978) | ($202,662) | | Increase in cash | $35,573 | $104,793 | [Non-GAAP Financial Measures](index=13&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP measures, primarily adjusting for litigation-related expenses and provisions - The primary adjustment is a "Litigation expense" which represents a provision recorded related to the judgment in the Pacific Steel Group litigation and subsequent interest expense on the judgment amount[31](index=31&type=chunk) Reconciliation of Net Earnings to Core EBITDA (Q3 FY2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net earnings | $83,126 | | (+) Interest expense | $10,864 | | (+) Income tax expense | $26,386 | | (+) Depreciation and amortization | $72,376 | | **Adjusted EBITDA** | **$193,537** | | (+) Non-cash equity compensation | $9,546 | | (-) Settlement of New Markets Tax Credit | ($2,786) | | (+) Litigation expense | $3,776 | | **Core EBITDA** | **$204,073** | Reconciliation of Net Earnings to Adjusted Earnings (Q3 FY2025, in thousands) | Line Item | Amount | | :--- | :--- | | Net earnings | $83,126 | | (+) Total adjustments (pre-tax) | $1,775 | | (-) Related tax effects on adjustments | ($505) | | **Adjusted earnings** | **$84,396** |

Core Insights - Commercial Metals Company (CMC) reported financial results for the fiscal third quarter ended May 31, 2025, showing sequential improvement in performance driven by better market conditions across all segments [1][2] - The company achieved net earnings of $83.1 million, or $0.73 per diluted share, on net sales of $2.0 billion, compared to net earnings of $119.4 million, or $1.02 per diluted share, on net sales of $2.1 billion in the prior year [2][3] Financial Performance - Adjusted earnings for the third quarter were $84.4 million, or $0.74 per diluted share, down from $119.6 million, or $1.02 per diluted share, in the prior year [3] - The company's consolidated core EBITDA was $204.1 million with a core EBITDA margin of 10.1% [6] - Cash and cash equivalents totaled $893.0 million, with available liquidity exceeding $1.7 billion as of May 31, 2025 [4] Business Segments Overview - North America Steel Group saw a 1.6% increase in finished steel product shipments year-over-year and a 10.4% increase compared to the second quarter [6] - The Emerging Businesses Group reported net sales of $197.5 million, a 4.7% increase year-over-year, with adjusted EBITDA margin improving to 20.7% [10] - The Europe Steel Group achieved adjusted EBITDA of $3.6 million, recovering from a loss of $4.2 million in the prior year, with an adjusted EBITDA margin of 1.5% [12] Strategic Initiatives - The TAG program is gaining momentum, exceeding targeted EBITDA benefits, with an annual run-rate expected to exceed $100 million [6][14] - The company is positioned to benefit from structural trends in infrastructure investment, reshoring, and energy transition [2][14] Market Outlook - CMC anticipates improved consolidated financial results in the fourth quarter, with expectations for increased finished steel shipments and adjusted EBITDA margins [13] - The company expects to receive a CO2 credit of approximately $28 million in the fourth quarter due to Polish legislation [13]

Commercial Metals Company CMC will release earnings results for the third quarter, before the opening bell on Monday, June 23.Analysts expect the Irving, Texas-based company to report quarterly earnings at 84 cents per share, down from $1.02 per share in the year-ago period. Commercial Metals projects to report quarterly revenue of $2.04 billion, compared to $2.08 billion a year earlier, according to data from Benzinga Pro.On March 20, Commercial Metals reported second-quarter 2025 results on Thursday, with ...

Core Viewpoint - Analysts project that Commercial Metals (CMC) will report quarterly earnings of $0.75 per share, reflecting a 26.5% decline year over year, with revenues expected to reach $2.01 billion, down 3.3% from the same quarter last year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised downward by 5.1%, indicating a collective reassessment by covering analysts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Projections - Analysts estimate that 'Net Sales- Emerging Businesses Group- Net sales from external customers' will be $185.76 million, a year-over-year decline of 1.5% [5]. - 'Net sales from external customers- North America' are projected to be $1.60 billion, reflecting a year-over-year decrease of 4.5% [5]. - 'Net sales from external customers- Europe' are expected to reach $215.88 million, indicating a year-over-year increase of 3.4% [6]. - 'Net sales from external customers- Corporate and Other' are estimated at $13.13 million, showing a significant year-over-year increase of 34.9% [6]. Key Metrics - The consensus estimate for 'Major product- North America- Other' is $37.24 million, reflecting a year-over-year increase of 18.4% [7]. - The average selling price (per ton) for 'Raw materials' in North America is forecasted to be $951.15, down from $970 in the same quarter last year [7]. - The estimated 'Steel products metal margin per ton' in Europe is projected at $289.43, slightly down from $292 year-over-year [7]. - The average selling price (per ton) for 'Downstream products' in North America is expected to be $1,252.19, down from $1,330 in the same quarter last year [8]. - The 'Steel products metal margin per ton' in North America is projected to be $495.12, down from $538 in the same quarter last year [9]. - 'Europe - Steel products (External tons shipped)' is expected to reach 317.31 thousand, up from 297 thousand year-over-year [9]. - The average prediction for 'Europe - Steel products - Rebar' is 97.15 thousand, up from 80 thousand in the same quarter last year [10]. Stock Performance - Over the past month, Commercial Metals shares have recorded a return of +0.8%, compared to the Zacks S&P 500 composite's +1.4% change, indicating potential underperformance in the upcoming period [11].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Commercial Metals (CMC) due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Commercial Metals is expected to report quarterly earnings of $0.75 per share, reflecting a year-over-year decrease of 26.5% [3]. - Revenues are projected to be $2.01 billion, down 3.3% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 5.13% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +14.67% suggests recent bullish sentiment among analysts, despite the stock holding a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Earnings Surprise History - In the last reported quarter, Commercial Metals was expected to earn $0.31 per share but only achieved $0.26, resulting in a surprise of -16.13% [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Conclusion - While the company does not appear to be a strong candidate for an earnings beat, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [17].

Group 1 - Commercial Metals Company (NYSE: CMC) is positioned to benefit from substantial tailwinds due to infrastructure investments in highway construction, data center buildouts, LNG terminal builds, and increased defense spending in Europe [1] - The efficiency gains from the company's TAG initiative are contributing positively to its operational performance [1]

Company Overview - Commercial Metals Company (CMC) is an innovative solutions provider focused on building a stronger, safer, and more sustainable world [3] - The company operates an extensive manufacturing network primarily located in the United States and Central Europe [3] - CMC offers products and technologies that meet the critical reinforcement needs of the global construction sector [3] Upcoming Events - CMC will host a conference call on June 23, 2025, at 11:00 a.m. Eastern Time to discuss its third quarter earnings for fiscal 2025 [1] - The call will feature Peter Matt, President and CEO, and Paul Lawrence, Senior Vice President and CFO [1] - The teleconference will be available via webcast for listen-only access on CMC's website [2]

Group 1 - The thesis focuses on Commercial Metals Company (NYSE: CMC) and follows a previous analysis on Steel Dynamics, Inc. (STLD), indicating a broader discussion on the basic materials sector [1] - The author, Joseph Noko, has a strong track record with +70% annualized portfolio returns since 2024 and 74.5% accuracy in decade-ahead S&P 500 forecasting, showcasing expertise in financial modeling and equity research [1] - The work includes actionable buy/sell recommendations and is aimed at buy-side analysts, portfolio managers, and industry leaders, indicating a professional approach to investment analysis [1] Group 2 - The article does not contain any stock, option, or derivative positions in the companies mentioned, nor does it plan to initiate any such positions within the next 72 hours, emphasizing an unbiased perspective [2] - The content expresses the author's own opinions and is not influenced by compensation from any company, reinforcing the independence of the analysis [2] - The article does not provide recommendations or advice on investment suitability, highlighting the importance of individual investor discretion [3]

Core Viewpoint - Cielo Waste Solutions Corp. is set to settle an aggregate debt amount of $1,797,195 through the issuance of securities, pending approval from the TSX Venture Exchange [1] Group 1: Debt Settlement Details - The company plans to issue 35,943,847 units at a price of $0.05 per unit to settle $1,671,656.67 of the aggregate debt amount, with each unit consisting of one common share and one warrant [3] - The remaining balance of $125,535.79 will be settled with an insider through the issuance of 2,510,715 common shares at the same price of $0.05 per share, with no warrants issued to the insider [4] - Both the units for debt transactions and the shares for debt transaction are subject to approval from the Exchange, and upon approval, will have a hold period of four months [6] Group 2: Related Party Transaction - The transaction with the insider is classified as a "related party transaction" under Multilateral Instrument 61-101, and the company will rely on exemptions from certain requirements as the fair market value does not exceed 25% of the company's market capitalization [5] Group 3: Company Overview - Cielo Waste Solutions Corp. focuses on transforming waste materials into high-value products, aiming to address global waste challenges and contribute to the circular economy while reducing carbon emissions [9]