CMC(US:CMC)2026-01-08 13:31Financial Performance - First quarter net earnings were $177.3 million, or $1.58 per diluted share, compared to a net loss of ($175.7) million in the prior year period[5]. - Consolidated core EBITDA for the first quarter was $316.9 million, representing a 52% year-over-year increase, with a core EBITDA margin of 14.9%[4]. - The North America Steel Group's adjusted EBITDA increased by 57.9% to $293.9 million, with an adjusted EBITDA margin of 17.7%, up from 12.3% in the prior year[11]. - The Construction Solutions Group achieved first quarter net sales of $198.3 million, a 17.0% increase year-over-year, with adjusted EBITDA of $39.6 million, up 74.7%[13]. - Total net sales to external customers for the three months ended November 30, 2025, reached $2,120,307, an increase from $1,909,602 in the same period last year, representing a growth of approximately 11%[27]. - Adjusted EBITDA for the North America Steel Group was $293,906 for the three months ended November 30, 2025, compared to $186,179 in the same period last year, reflecting a significant increase of 57.7%[26]. - Net earnings for the three months ended November 30, 2025, were $177,282, a turnaround from a net loss of $175,718 in the same period last year[27]. - Adjusted EBITDA for the same period was $288,568 thousand, compared to an adjusted EBITDA loss of $151,567 thousand in November 2024[35]. - Core EBITDA margin increased to 14.9% for the three months ended November 30, 2025, up from 10.9% in the same period of 2024[35]. - Net sales reached $2,120,307 thousand for the three months ended November 30, 2025, compared to $1,909,602 thousand in the same period of 2024, reflecting a year-over-year increase of approximately 11%[35]. Acquisitions and Growth - CMC completed acquisitions of two precast businesses for over $2.5 billion, establishing a new growth platform in the precast concrete industry[4]. - CMC plans to deliver an estimated $165 million to $175 million of EBITDA contributions from the precast businesses in fiscal 2026[18]. Cash and Liquidity - Cash, cash equivalents, and restricted cash totaled $3.0 billion as of November 30, 2025, with available liquidity of nearly $1.9 billion[7]. - The company reported a cash and cash equivalents balance of $1,023,038 as of November 30, 2025, slightly down from $1,043,252 as of August 31, 2025[29]. - Cash and cash equivalents at the end of the period were $3,032,097 thousand, a substantial increase from $856,888 thousand at the end of November 2024[30]. - The company issued $2,000,000 thousand in long-term debt during the three months ended November 30, 2025, with net cash flows from financing activities totaling $1,900,079 thousand[30]. Debt and Financial Leverage - The company’s long-term debt increased to $3,305,262 as of November 30, 2025, up from $1,310,006 as of August 31, 2025, indicating a significant rise in financial leverage[29]. Market and Pricing - Steel products metal margins increased by $53 per ton sequentially, with average selling prices improving by over $145 per ton compared to early fiscal 2025[10]. - The average selling price per ton for steel products in North America increased to $939 in Q4 2025, compared to $812 in Q4 2024, marking a rise of 15.7%[25]. Regional Performance - The Europe Steel Group's adjusted EBITDA was $10.9 million, down from $25.8 million in the prior year, with an adjusted EBITDA margin of 4.4%[16]. - The Europe Steel Group reported net sales of $247,650 for the three months ended November 30, 2025, down from $263,294 in the previous quarter, indicating a decline of approximately 5%[26]. Cost and Expenses - The cost of goods sold for the three months ended November 30, 2025, was $1,713,169, compared to $1,601,722 in the same period last year, representing an increase of 6.9%[27]. - The company reported capital expenditures of $125,437 thousand for the three months ended November 30, 2025, compared to $118,187 thousand in the same period of 2024[30]. - Litigation expenses recorded for the three months ended November 30, 2024, were $350,000 thousand, which significantly impacted prior year earnings[35]. Methodology Changes - The company modified its method of calculating adjusted EBITDA to exclude unrealized gains and losses on undesignated commodity derivatives, providing a clearer view of operating performance[33]. Earnings Per Share - Adjusted earnings per diluted share for the three months ended November 30, 2025, were $1.84, compared to $0.76 in the same period of 2024[35].