Commercial Metals Company (CMC) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered the third-best financial results in company history, with record 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, and the third highest in company history.

• Cash flow from operations was $900 million, enabling increased shareholder returns and continued investment in growth initiatives.

• Shareholder distributions rose 48% year-over-year to $261.8 million, with FY24 returns equaling 54% of net earnings.

• Strategic initiatives advanced, including Arizona 2 micromill ramp-up and Steel West Virginia construction.

Financial highlights

• Q4 net earnings were $103.9 million ($0.90 per diluted share) on $2 billion in sales, with core EBITDA of $227.1 million (11.4% margin).

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

• Cash and equivalents at year-end were $857.9 million, with total liquidity just under $1.7 billion.

• Q4 share repurchases totaled $54.8 million; $403.8 million remains under authorization.

• Q4 dividend increased 13% year-over-year to $0.18 per share, marking the 240th consecutive quarterly payment.

Outlook and guidance

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

• North America Steel Group shipments to follow 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 fiscal 2025 as construction fundamentals improve.