Commercial Metals Company (CMC) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 net earnings were $83.1M ($0.73/diluted share) on $2.02B net sales; adjusted earnings were $84.4M ($0.74/diluted share), with consolidated core EBITDA at $204.1M and a 10.1% margin, reflecting sequential improvement and strong execution of strategic initiatives.

• North American construction and industrial activity remained resilient, with year-over-year growth in finished steel shipments and robust downstream bid volumes; North American steel product metal margins improved sequentially.

• Europe Steel Group exceeded breakeven, with shipment volumes up 20.9% year-over-year and improved cost management, supported by better market fundamentals.

• Emerging Businesses Group profitability improved year-over-year, with adjusted EBITDA margin rising to 20.7%.

• Maintained a strong balance sheet and cash flow, enabling flexible capital allocation and continued shareholder returns.

Financial highlights

• Q3 FY2025 net earnings declined from $119.4M ($1.02/diluted share) in prior year; adjusted EBITDA fell from $256.1M to $204.1M year-over-year; adjusted EBITDA for the quarter was $230.5M, down 18% year-over-year.

• Q3 finished steel shipments: 1,512K tons, up from 1,432K tons in Q3 FY24.

• SG&A expenses increased $7.8M for the quarter, mainly due to higher employee-related costs.

• Cash and cash equivalents at quarter-end were $893M; total liquidity over $1.7B.

• Share repurchases totaled $50.4M for 1,113,014 shares; $254.9M remains under authorization.

Outlook and guidance

• Q4 FY2025 consolidated results expected to improve sequentially, with higher North American steel product margins and increased adjusted EBITDA margin.

• Emerging Businesses Group and Europe Steel Group both forecast to see sequential and year-over-year improvement; Europe to receive a $28M CO2 credit in Q4.

• FY2025 capital spending now expected at $425M–$475M, down from prior guidance due to timing of West Virginia project expenditures.

• Management expects current liquidity and cash flows to be sufficient for operations, capital projects, dividends, and share repurchases over the next twelve months.