Commercial Metals Poised For Q4 Growth Amid Favorable Market Trends, Says CEO

Shares of Commercial Metals Co. CMC initially fell Monday after the company reported fiscal third-quarter results that missed Wall Street expectations, but subsequently reversed all of their premarket losses to trade higher.

Net sales rose 2.9% year over year to $2.02 billion, falling short of the $2.05 billion consensus estimate.

Core EBITDA declined to $204.1 million from $256.1 million a year earlier, with the core EBITDA margin narrowing to 10.1% from 12.3%.

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Adjusted earnings per share came in at 74 cents, missing the analysts’ average forecast of 85 cents.

The North America Steel Group demand was solid, with finished steel shipments up 1.6% year over year and 10.4% quarter over quarter on seasonal strength.

Adjusted EBITDA for the North America Steel Group fell to $186 million from $246 million on lower scrap spreads, partly offset by cost-saving initiatives. The margin declined to 11.9% from 14.7%.

The Emerging Businesses Group sales rose 4.7% to $197.5 million; adjusted EBITDA grew 7% to $40.9 million with a 20.7% margin.

The Europe Steel Group experienced a significant turnaround in its third fiscal quarter of 2025, driven by improved market conditions in Poland and reduced import competition, the company said in a press release.

Adjusted EBITDA for the Europe Steel Group surged to $3.6 million from a $4.2 million loss in the prior year, marking the segment’s strongest performance in two years (excluding energy cost rebates). The adjusted EBITDA margin improved to 1.5%.

CMC ended the quarter with $893 million in cash and more than $1.7 billion in liquidity. It repurchased $50.4 million in stock, and as of May 31, 2025, $254.9 million remained available under the current share repurchase authorization.

On June 18, CMC declared a quarterly dividend of 18 cents per share, its 243rd consecutive payment, payable July 9 to shareholders of record as of June 30.

According to Peter Matt, president and CEO, domestic construction markets remain strong. This resilience is evident in healthy shipment levels, robust new project bids, and a stable backlog of work. Given these factors and CMC’s significant involvement in the expanding U.S. public infrastructure market, Matt is confident the company will perform well for the remainder of the fiscal year.

CMC expects improved Q4 financial results, driven by seasonally stronger North American steel shipments, rising steel product margins, and higher adjusted EBITDA across all segments.

The Europe Steel Group will also receive a $28 million CO₂ credit, with a second tranche expected in Q1 FY26. Excluding the CO₂ credit, the group’s adjusted EBITDA is still projected to rise sequentially, supported by favorable market conditions and ongoing cost management.

Emerging Businesses Group results are also expected to improve both year over year and sequentially due to solid project backlogs.

Price Action: CMC shares were trading higher by 0.16% to $48.76 at last check Monday.

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