Commercial Metals Company (CMC) Q2 2025 earnings summary

Executive summary

• Q2 FY25 net earnings were $25.5M ($0.22/diluted share), with adjusted earnings of $29.3M ($0.26/diluted share), down from $85.8M ($0.73/share) year-over-year; core EBITDA was $131.0M.

• Net sales for Q2 were $1.75B–$1.8B, flat to down 5% YoY; six-month net sales were $3.66B, down 5% YoY.

• All segments contributed to cost optimization and margin enhancement, with North American construction demand driving a 3.3% YoY increase in finished steel shipments.

• Europe Steel Group achieved breakeven adjusted EBITDA, aided by cost management and a $4M gas rebate; Emerging Businesses Group improved profitability, led by Performance Reinforcing Steel.

• Metal margin compression and a $354.7M litigation expense were key drivers of lower profitability and a six-month net loss.

Financial highlights

• Q2 FY25 net earnings: $25.5M; adjusted earnings: $29.3M; core EBITDA: $131.0M (7.5% margin); adjusted EBITDA for North America Steel Group: $128.8M (9.3% margin).

• Net sales: $1.75B–$1.8B in Q2; finished steel shipments: 1,354K tons, up 3.3% YoY.

• Adjusted earnings per diluted share: $0.26, down from $0.73 YoY; core EBITDA per ton: $97, down from $165 YoY.

• Cash and equivalents at $758.4M; total liquidity nearly $1.6B; long-term debt at $1.15B.

• $48M in Q2 share repurchases; $305.3M remains authorized; quarterly dividend of $0.18/share declared.

Outlook and guidance

• Q3 FY25 consolidated results expected to rebound, with higher North American shipments and improved adjusted EBITDA margin.

• Europe Steel Group expected to remain near breakeven; Emerging Businesses Group to improve modestly YoY.

• FY25 capital spending outlook reduced to $550M–$600M, mainly for the West Virginia micro mill.

• Management expects current cash balances and liquidity to be sufficient for at least the next twelve months.