CMC REPORTS FOURTH QUARTER AND FULL YEAR FISCAL 2025 RESULTS

Core Insights - Commercial Metals Company (CMC) reported a strong financial performance in the fourth quarter of fiscal 2025, with net earnings of $151.8 million, or $1.35 per diluted share, on net sales of $2.1 billion, compared to $103.9 million, or $0.90 per diluted share, on net sales of $2.0 billion in the prior year period [2][3][4] Financial Performance - Fourth quarter consolidated core EBITDA was $291.4 million, resulting in a core EBITDA margin of 13.8%, which is an improvement both sequentially and year-over-year [1][4] - For the full fiscal year 2025, CMC reported net earnings of $84.7 million, or $0.74 per diluted share, on net sales of $7.8 billion, compared to net earnings of $485.5 million, or $4.14 per diluted share, on net sales of $7.9 billion in the prior year [3][4] Business Segments Performance - The North America Steel Group saw a 3.0% increase in finished steel product shipments year-over-year, with adjusted EBITDA increasing by 18.0% to $239.4 million in the fourth quarter [7][9] - The Emerging Businesses Group (EBG) reported fourth quarter net sales of $221.8 million, a 13.4% increase compared to the prior year, with adjusted EBITDA of $50.6 million, up 19.1% year-over-year [10] - The Europe Steel Group achieved adjusted EBITDA of $39.1 million in the fourth quarter, a significant improvement from a loss of $3.6 million in the prior year period, driven by a $30.7 million CO2 credit and higher metal margins [12] Strategic Initiatives - CMC is focused on a transformative strategy aimed at long-term value-accretive growth, including investments in safety, operational excellence, and micro mill projects [2] - The company announced pending acquisitions of Foley Products Company and Concrete Pipe & Precast, which are expected to broaden its commercial portfolio and create additional value [2] Market Outlook - The company anticipates that the Fed's interest rate reduction cycle will help convert pent-up demand into real activity during fiscal 2026, with a positive long-term outlook for the construction market [2][15] - CMC expects consolidated financial results in the first quarter of fiscal 2026 to be consistent with those of the fourth quarter, with an anticipated increase in adjusted EBITDA margin due to higher steel product margins [13][15]