Commercial Metals Company (CMC) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered the third-best financial results in company history, with record employee safety performance and significant strategic progress, including the launch of the TAG program and realignment of operating segments.

• Core EBITDA for FY24 reached $1.01 billion (12.7% margin), 40% above any pre-pandemic year, despite a decline from $1.4 billion in 2023.

• Strong cash flow from operations totaled $899.7 million for the year, enabling increased shareholder returns and ongoing investments.

• Shareholder distributions rose 48% year-over-year to $261.8 million, with share repurchase authorization increased by $500 million and $403.8 million remaining.

• Strategic initiatives advanced, including Arizona 2 micromill ramp-up, Steel West Virginia construction, and over 150 TAG initiatives targeting margin enhancement.

Financial highlights

• Q4 net earnings were $104 million ($0.90 per diluted share) on $2 billion in sales.

• Q4 core EBITDA was $227.1 million (11.4% margin); annual core EBITDA was $1.01 billion (12.7% margin).

• Cash and equivalents at year-end totaled $857.9 million; total liquidity was just under $1.7 billion.

• FY24 capital expenditures totaled $324.3 million; Q4 share repurchases reached $55 million, with FY24 repurchases totaling $182.9 million.

• Annual net sales declined to $7.93 billion from $8.80 billion year-over-year.

Outlook and guidance

• Q1 FY25 consolidated results expected to decline sequentially due to construction market softness, seasonality, and macro uncertainty.

• North America Steel Group shipments to follow normal seasonal trends; margins expected to decrease.

• Europe Steel Group adjusted EBITDA to rise sequentially from a $35–$40 million CO2 credit, but underlying performance to remain flat.

• Emerging Businesses Group results anticipated to decline due to seasonality and economic uncertainty.

• Financial rebound expected in the second half of FY25 as construction fundamentals improve.