Financial Data and Key Metrics Changes - CMC reported net earnings of $119.4 million or $1.02 per diluted share on net sales of $2.1 billion, compared to $234 million and $1.98 per diluted share in the prior year [6][27] - Consolidated core EBITDA for the quarter was $256.1 million, down from $384.5 million in the prior year, with a core EBITDA margin of 12.3% [11][27] - The net debt-to-EBITDA ratio improved to 0.5 times, while net debt to capitalization is only 9% [29] Business Line Data and Key Metrics Changes - North American Steel Group generated adjusted EBITDA of $246.3 million, with a margin of 14.7%, down from 20.2% in the prior year due to lower margin over scrap costs [43] - The Emerging Business Group reported net sales of $188.6 million and adjusted EBITDA of $38.2 million, unchanged year-over-year, but up 20.9% sequentially [44] - The Europe Steel Group reported an adjusted EBITDA loss of $4.2 million, an improvement from a loss of $8.6 million in the prior quarter [12] Market Data and Key Metrics Changes - Construction activity in North America remains healthy, with a seasonal uplift in rebar demand and stable to moderately improving steel product margins [7][8] - The Dodge Momentum Index remains 40% above pre-pandemic levels, indicating a strong pipeline of future construction projects [7] - In Europe, the Polish market is showing signs of recovery, with GDP growth expected to reach nearly 3% in 2024 [9] Company Strategy and Development Direction - CMC aims to achieve sustainably higher margins through operational excellence, pursue organic growth opportunities, and consider inorganic growth to broaden its commercial portfolio [22] - The company is focused on capital allocation that balances growth investments and shareholder returns, having returned approximately $186 million to shareholders in the first three quarters of fiscal 2024 [45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable business environment driven by structural demand trends in North America, which are expected to support construction activity for years [5][31] - The company anticipates stable financial results in the fourth quarter, with flat finished steel shipments in North America and continued improvement in Europe [46] Other Important Information - CMC is reducing its fiscal 2024 capital spending outlook to between $400 million and $425 million, down from a previous estimate of $550 million to $600 million [13] - The company is experiencing a significant housing shortage in the U.S., estimated at 1.5 million to 3 million units, which could drive future rebar consumption [8] Q&A Session Summary Question: What is the pricing and margin outlook for North American downstream products? - Management expects margins to remain relatively stable, despite potential downward pricing trends due to historical pricing contracts [48] Question: How should we think about total CapEx for next year? - Initial guidance suggests CapEx for 2025 will likely increase to around $600 million to $650 million [49] Question: What is the market situation in the U.S. regarding construction? - Management noted strong bidding levels and bookings, with stable margins despite some erosion in pricing and scrap costs [54][55] Question: How does the M&A pipeline look, especially in Europe? - Management is exploring opportunities in early-stage construction solutions and is cautious about growth in Europe due to challenging market conditions [64][76] Question: What is the exposure to interest rates in construction? - Approximately half of the portfolio has some exposure to interest rates, with infrastructure demand remaining strong while non-residential and residential sectors are more sensitive [81] Question: What is the expected ramp-up for the Arizona mill? - The Arizona mill is expected to achieve 75% capacity utilization on average for the year, with a focus on rebar production initially [40][77]

Scopes 1&2 Greenhouse Gas Emissions (GHG) Intensity 2.2 1.8 1.0 0.42 Integrated Average Global Average U.S. Average CMC tCO2e per MT of steel 17 Balance Sheet Strength Debt maturity profile provides strategic flexibility Debt Maturity Profile Q3 FY'24 Liquidity (US$ in millions) (US$ in millions) $599 $698 Revolver Cash and Cash Equivalents $45 $150 Poland Credit Facilities Poland Accounts Receivable Facility $300 $300 $300 $145 $600 2024 2025 2026 2027 2028 2029 2030 2031 2032 2047 Revolving Credit Facilit ...

Commercial Metals (CMC) came out with quarterly earnings of $1.02 per share, beating the Zacks Consensus Estimate of $1 per share. This compares to earnings of $2.02 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 2%. A quarter ago, it was expected that this manufacturer and recycler of steel and metal products would post earnings of $0.70 per share when it actually produced earnings of $0.88, delivering a surprise of 25.71%. ...

macroeconomic environment, evidenced by meaningfully lower inflation, faster GDP growth, improved residential construction activity, and increased government sponsored investment. Adjusted EBITDA and adjusted EBITDA margin in our Emerging Businesses Group returned to expected levels during the quarter, benefiting from seasonal improvement in construction activity and strong demand for our proprietary geogrid and performance reinforcing steel solutions." Irving, TX - June 20, 2024 - Commercial Metals Company ...

Third quarter net earnings of $119.4 million, or $1.02 per diluted share Consolidated core EBITDA of $256.1 million; core EBITDA margin of 12.3% Solid seasonal demand and underlying market fundamentals in North America supported healthy shipment volumes and product margins Stable North American downstream backlog volumes due to robust pipeline of new construction projects Emerging Businesses Group adjusted EBITDA and adjusted EBITDA margin rebounded sharply, reflecting continued strong demand for our high m ...

IRVING, Texas, June 19, 2024 /PRNewswire/ -- Today, June 19, 2024, the board of directors of Commercial Metals Company ("CMC" or the "Company") (NYSE: CMC) declared a regular quarterly cash dividend of $0.18 per share of CMC common stock. CMC's 239th consecutive quarterly dividend will be paid on July 10, 2024, to stockholders of record as of the close of business on July 1, 2024. About CMC CMC is an innovative solutions provider helping build a stronger, safer and more sustainable world. Through an extensi ...

Q2 Performance Our model expects the North America Steel Group segment to generate $1.6 billion in revenues in the fiscal third quarter, indicating a year-over-year dip of 12.1%. The estimate for the segment's adjusted EBITDA is pegged at $224 million. The estimate for Europe Steel Group segment's revenues is pegged at $239 million, indicating a 27.8% yearover-year decline . Our model expects the segment's adjusted EBITDA to be a negative $0.1 million. You can uncover the best stocks before they are reporte ...

Core Viewpoint - Commercial Metals is expected to report a year-over-year decline in earnings due to lower revenues, with the upcoming earnings report anticipated to be released on June 20 [6][19]. Earnings Expectations - Revenues for the quarter are projected to be $2.01 billion, reflecting a 14.5% decrease from the same quarter last year [7]. - The consensus EPS estimate for the quarter remains unchanged over the last 30 days, indicating stability in analyst expectations [8]. - The company is expected to post quarterly earnings of $1 per share, which represents a year-over-year change of -50.5% [19]. Earnings Surprise History - Over the last four quarters, Commercial Metals has beaten consensus EPS estimates three times, suggesting a potential for positive surprises [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, indicating no recent analyst revisions that differ from the consensus [14]. Analyst Insights - The stock currently holds a Zacks Rank of 3, which suggests a neutral outlook [2]. - Analysts emphasize that while past performance can provide insights, it does not guarantee future results, making it challenging to predict whether the company will beat the consensus EPS estimate [9][23]. Market Reactions - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment and stock performance [16]. - The management's discussion during the earnings call will be crucial in determining the sustainability of any immediate price changes and future earnings expectations [18].

Commercial Metals (CMC) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. The power ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuat ...