Commercial Metals Company (CMC) Q3 2024 earnings summary

Executive summary

• Q3 FY24 net earnings were $119.4 million ($1.02 per diluted share) on net sales of $2.08 billion, both down significantly year-over-year but above long-term averages.

• Core EBITDA for Q3 was $256.1 million with a 12.3% margin, and trailing 12-month ROIC was 11.3%.

• North America saw solid demand and shipment volumes, while Europe approached breakeven amid challenging conditions.

• Emerging Businesses Group rebounded sharply, driven by high-margin solutions and seasonally higher activity.

• Balance sheet and cash flow remain strong, supporting capital allocation flexibility.

Financial highlights

• Q3 net earnings: $119.4 million; diluted EPS: $1.02; core EBITDA: $256.1 million; core EBITDA margin: 12.3%.

• North America Steel Group adjusted EBITDA: $246.3 million (14.7% margin); Europe Steel Group adjusted EBITDA: -$4.2 million (-2.0% margin).

• Emerging Businesses Group net sales: $188.6 million; adjusted EBITDA: $38.2 million (20.3% margin).

• Cash and equivalents at quarter-end: $698.3 million; total liquidity near $1.5 billion.

• Quarterly dividend increased to $0.18 per share, up 13% year-over-year; 931,281 shares repurchased in Q3 for $51.8 million, with $458.6 million remaining under authorization.

Outlook and guidance

• Q4 consolidated results expected to be consistent with Q3; North America shipments and margins to remain stable.

• Europe Steel Group anticipated to continue quarter-to-quarter improvement despite ongoing challenges.

• Emerging Businesses Group results should improve modestly, supported by a healthy order book.

• FY24 capital spending guidance reduced to $400–$425 million; FY25 CapEx expected to rise to $600–$650 million, with some spillover into FY26.

• West Virginia micro mill expected to start operations in late 2025.