Core Insights - Commercial Metals (CMC) reported revenue of $2.02 billion for the quarter ended May 2025, a decrease of 2.8% year-over-year, with EPS at $0.74 compared to $1.02 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.01 billion by 0.49%, while the EPS fell short of the consensus estimate of $0.85 by 12.94% [1] Financial Performance Metrics - Average selling price per ton for raw materials in North America was $809, below the estimated $951.15 [4] - Steel products metal margin per ton in Europe was $293, slightly above the estimated $289.43 [4] - Average selling price per ton for downstream products in North America was $1,212, lower than the estimated $1,252.19 [4] - Cost of ferrous scrap utilized per ton in North America was $360, compared to the estimated $353.17 [4] - Steel products metal margin per ton in North America was $499, slightly above the estimated $495.12 [4] - External tons shipped for steel products in Europe totaled 359 thousand, exceeding the estimated 317.31 thousand [4] - Steel products tons shipped in North America were 798 thousand, below the estimated 812.17 thousand [4] Sales Performance - Net sales from external customers in North America were $1.56 billion, below the estimated $1.60 billion, representing a 6.5% decrease year-over-year [4] - Net sales from external customers in Corporate and Other were $12.65 million, slightly below the estimated $13.13 million, but showed a 30.1% increase year-over-year [4] - Net sales from external customers in Europe were $247.59 million, exceeding the estimated $215.88 million, reflecting an 18.6% year-over-year increase [4] Stock Performance - Shares of Commercial Metals have returned +5.5% over the past month, outperforming the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

This presentation contains forward-looking statements within the meaning of the federal securities laws with respect to general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade actions, the effects of continued pressure on the liquidity of our customers, potential synergies and growth provided by acquisitions and strategic investments, demand for our products, shipment volumes, metal margins, the ability to operate our steel mills at full capacity, parti ...

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 ...

[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 ...

Analysts on Wall Street project that Commercial Metals (CMC) will announce quarterly earnings of $0.75 per share in its forthcoming report, representing a decline of 26.5% year over year. Revenues are projected to reach $2.01 billion, declining 3.3% from the same quarter last year.Over the last 30 days, there has been a downward revision of 5.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forec ...

The market expects Commercial Metals (CMC) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended May 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

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]