Commercial Metals Earnings Miss Estimates in Q3, Sales Dip Y/Y

Core Insights - Commercial Metals Company (CMC) reported adjusted earnings per share (EPS) of 74 cents for Q3 fiscal 2025, missing the Zacks Consensus Estimate of 85 cents and reflecting a 27.5% decline year over year [1][10] Financial Performance - Net sales for the quarter were $2.02 billion, slightly down from $2.08 billion in the previous year but exceeding the Zacks Consensus Estimate of $2.01 billion [2] - Cost of goods sold decreased by 1% year over year to $1.72 billion, while gross profit fell 11.9% to $300 million [2] - Core EBITDA was reported at $204 million, down 20.3% year over year [2] Segment Performance - North America Steel Group generated net sales of $1.56 billion, down from $1.67 billion year over year, with adjusted EBITDA of approximately $186 million compared to $246 million in the prior year [3] - Europe Steel Group's revenues increased by 18.6% year over year to $247.6 million, with adjusted EBITDA turning positive at $3.6 million [4] - Emerging Businesses Group reported net sales of $197 million, up from $188.5 million year over year, with adjusted EBITDA growth of 7.9% [5] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of Q3 fiscal 2025 were $893 million, up from $858 million at the end of fiscal 2024 [6] - Long-term debt increased to $1.30 billion from $1.15 billion at the end of fiscal 2024 [6] - Cash generated from operating activities for the nine months ended May 31, 2025, was around $400 million, down from $548 million in the prior year [6] Dividend Declaration - The company declared a quarterly dividend of 18 cents per share, payable on July 9 to shareholders of record as of June 30, 2025 [7] Future Outlook - CMC anticipates improved consolidated financial results in Q4 fiscal 2025 compared to Q3 [8] - The North America Steel Group's adjusted EBITDA margin is expected to increase sequentially, driven by higher steel product margins [9] - Financial results for the Emerging Businesses Group are projected to improve both sequentially and year over year due to project backlogs [9]