Group 1 - Commercial Metals (NYSE: CMC) initially benefited from the recent U.S. election cycle but has since lost that momentum and is trading near a 52-week low [1] - The company reported a sluggish fiscal Q1, raising concerns about its future performance [1]

Core Viewpoint - Commercial Metals Company (CMC) reported a significant decline in earnings for the first quarter of fiscal 2025, with adjusted earnings per share (EPS) of 78 cents, down 47.7% from $1.49 in the prior-year quarter, aligning with Zacks Consensus Estimate [1][3]. Financial Performance - CMC's net sales for the reported quarter were $1.91 billion, a decrease of 4.7% from $2 billion in the same quarter last year, but exceeded the Zacks Consensus Estimate of $1.89 billion [4]. - The cost of goods sold was $1.6 billion, down 0.1% year-over-year, while gross profit fell 22.8% to approximately $308 million [6][7]. - Core EBITDA for the quarter was $211 million, reflecting a decline of 32.8% from the previous year [6][7]. Segment Performance - The North America Steel Group segment generated net sales of $1.52 billion, down from $1.59 billion year-over-year, with adjusted EBITDA of around $188 million compared to $267 million in the prior-year quarter [8]. - The Europe Steel Group segment reported revenues of $209 million, a 7% decrease from the previous year, with adjusted EBITDA of $25.8 million, down from $38.9 million [9][10]. - The Emerging Businesses Group segment had net sales of approximately $169 million, down from $177 million year-over-year, with adjusted EBITDA of $22.7 million compared to $30.9 million in the prior-year quarter [11]. Cash Flow and Balance Sheet - At the end of the first quarter of fiscal 2025, CMC reported cash and cash equivalents of roughly $856 million, slightly down from $858 million at the end of fiscal 2024 [12]. - Long-term debt remained flat at $1.15 billion, while cash generated from operating activities was approximately $213 million, down from $261 million in the prior-year quarter [12]. Share Repurchase and Outlook - CMC repurchased shares worth $50.4 million during the quarter, with $353.4 million remaining under the current share buyback authorization [13]. - The company anticipates a sequential decline in consolidated financial results for the second quarter of fiscal 2025, with expectations of lower adjusted EBITDA margins due to scrap cost pressures [14]. Stock Performance - CMC's shares have decreased by 2.7% over the past year, contrasting with a 31.5% decline in the industry [16].

Financial Data and Key Metrics - No specific financial data or key metrics were provided in the content [1][2][3][4][5] Business Line Data and Key Metrics - No specific business line data or key metrics were provided in the content [1][2][3][4][5] Market Data and Key Metrics - No specific market data or key metrics were provided in the content [1][2][3][4][5] Company Strategy and Industry Competition - The company discussed forward-looking statements related to economic conditions, effects of legislation, U S steel import levels, construction activity, demands for finished steel products, and the expected capabilities, benefits, and timeline for construction of new facilities [3] - The company also mentioned its strategic growth plan and future results of operations, financial measures, and capital spending [3] Management Commentary on Operating Environment and Future Outlook - The company's forward-looking statements reflect its beliefs based on current conditions but are subject to risks and uncertainties [4] - The company does not assume any obligation to update, amend, or clarify these statements except as required by law [4] Other Important Information - The company's earnings release, most recent annual report on Form 10-K, and other filings with the Securities and Exchange Commission contain additional information concerning factors that could cause actual results to differ materially from those projected in forward-looking statements [4] - Some numbers presented will be non-GAAP financial measures, and reconciliations for such numbers can be found in the company's materials [5] Q&A Session - No Q&A session details were provided in the content [1][2][3][4][5]

Financial Performance - Net sales for the three months ended November 30, 2024, decreased by $93.4 million, or 5%, to $1,909.6 million compared to the corresponding period [88]. - The company incurred a net loss of $175.7 million for the three months ended November 30, 2024, compared to net earnings of $176.3 million in the same period last year, primarily due to a $265.0 million litigation expense [89]. - Adjusted EBITDA decreased by $13.1 million, or 34%, for the three months ended November 30, 2024, compared to the same period in 2023 [99]. - Corporate and Other adjusted EBITDA loss increased by $355.3 million, primarily due to a $350.0 million contingent litigation-related loss during the three months ended November 30, 2024 [103]. Segment Performance - In the North America Steel Group segment, net sales decreased by $74.0 million, or 5%, with a 9% reduction in average selling prices per ton for steel products and downstream products [96]. - Adjusted EBITDA for the North America Steel Group segment decreased by $78.6 million, or 29%, due to metal margin compression, with average selling prices per ton for steel products and downstream products decreasing by $80 and $130, respectively [97]. - In the Europe Steel Group segment, net sales decreased by $15.8 million, or 7%, primarily due to a 9% reduction in steel products shipment volumes [98]. - Net sales to external customers in the Emerging Businesses Group segment decreased by $7.8 million, or 4%, during the three months ended November 30, 2024 [100]. - CMC's Tensar division experienced project delays, contributing to an adjusted EBITDA decrease of $8.2 million, or 27%, for the three months ended November 30, 2024 [101]. Expenses and Costs - Selling, general and administrative expenses increased by $15.3 million during the three months ended November 30, 2024, driven by $8.7 million in employee-related expenses and $6.9 million in legal expenses [90]. - The effective income tax rate for the three months ended November 30, 2024, was 24.0%, compared to 21.6% for the corresponding period [93]. Cash Flow and Capital Expenditures - Net cash flows from operating activities were $213.0 million for the three months ended November 30, 2024, down from $261.1 million in the same period in 2023 [116]. - Net cash flows used by investing activities increased to $113.5 million for the three months ended November 30, 2024, primarily due to $51.2 million of incremental capital expenditures for the construction of the fourth micro mill [117]. - The company anticipates capital spending for 2025 to range from $630 million to $680 million [111]. - The company repurchased $50.4 million of shares during the three months ended November 30, 2024, compared to $28.4 million in the same period in 2023 [112]. - As of November 30, 2024, the company had cash and cash equivalents of $856.1 million [108]. Operational Developments - The company’s third micro mill in Mesa, Arizona, began operations, designed to produce both rebar and merchant bar, with a capacity approximately 40% greater than previous micro mills [80]. - The planned fourth micro mill in Berkeley County, West Virginia, is expected to start operations in late calendar 2025, enhancing the company's market reach [81]. - The company implemented the Transform, Advance and Grow (TAG) initiative in 2024 to enhance operational value and efficiency, with expected financial benefits in 2025 [79]. Risks and Challenges - The company faces risks from changes in economic conditions affecting demand for products and construction activity, particularly in the cyclical steel industry [28]. - Significant fluctuations in metal prices could impair inventory values and reduce profitability of downstream contracts [28]. - The company is impacted by excess capacity in the steel industry, especially in China, and competition from other steel suppliers [28]. - Geopolitical conditions, including regional conflicts and inflation, pose risks to the global economy and raw material supplies [28]. - Increased focus on environmental, social, and governance (ESG) matters may affect operational strategies and compliance costs [28]. - The company is subject to risks associated with acquisitions, including integration challenges and potential impacts on financial leverage [28]. - Future revenue levels may be lower than expected, while costs could exceed projections, impacting overall financial performance [28]. - The company must navigate risks related to hiring and retaining key personnel amid competitive labor markets [28]. - Availability and pricing of essential raw materials, such as scrap metal and energy, are critical factors influencing operational costs [28]. - The company is exposed to market risks, including currency fluctuations and trade regulations that could adversely affect business operations [129].

Group 1 - Commercial Metals (CMC) reported $1.91 billion in revenue for the quarter ended November 2024, reflecting a year-over-year decline of 4.7% [1] - The earnings per share (EPS) for the same period was $0.78, down from $1.63 a year ago, with no EPS surprise as the consensus estimate was also $0.78 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.89 billion, resulting in a surprise of +0.81% [1] Group 2 - Over the past month, shares of Commercial Metals have returned -20.3%, contrasting with the Zacks S&P 500 composite performance [3] - Key metrics for North America include an average selling price per ton of steel products at $812, below the two-analyst average estimate of $836.74 [3] - In Europe, external tons shipped for steel products were 313 thousand, slightly above the average estimate of 306.98 thousand [3] - The metal margin per ton for steel products in Europe was reported at $269, compared to the average estimate of $283.17 [3] - North America shipped 790 thousand tons of steel products, below the average estimate of 802.35 thousand [3] - The average selling price per ton for steel products in Europe was $639, lower than the average estimate of $667.06 [3] - The cost of ferrous scrap utilized per ton in Europe was $370, which is better than the estimated $383.89 [3] - Net sales from external customers in North America were $1.52 billion, slightly above the average estimate of $1.49 billion, but still representing a year-over-year change of -4.7% [3]

Q1 FY 2025 Supplemental Slides Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws with respect to general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade actions, the effects of continued pressure on the liquidity of our customers, potential synergies and growth provided by acquisitions and strategic investments, demand for our products, shipment volumes, metal margins, the ...

Commercial Metals (CMC) came out with quarterly earnings of $0.78 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $1.63 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this manufacturer and recycler of steel and metal products would post earnings of $0.91 per share when it actually produced earnings of $0.90, delivering a surprise of -1.10%.Over the last four quarters, the company has surpassed consensus EPS esti ...

Exhibit No. 99.1 News Release CMC REPORTS FIRST QUARTER FISCAL 2025 RESULTS Irving, TX - January 6, 2025 - Commercial Metals Company (NYSE: CMC) today announced financial results for its fiscal first quarter ended November 30, 2024. First quarter net loss was ($175.7) million, or ($1.54) per diluted share, on net sales of $1.9 billion, compared to prior year period net earnings of $176.3 million, or $1.49 per diluted share, on net sales of $2.0 billion. During the first quarter of fiscal 2025, the Company r ...

First quarter net loss of ($175.7) million, or ($1.54) per diluted share including approximately $265.0 million litigation expense, net of estimated tax; adjusted earnings of $88.5 million, or $0.78 per diluted share Consolidated core EBITDA of $210.7 million in the first quarter; core EBITDA margin of 11.0% Late season construction activity drove year-over-year and sequential growth in North America finished steel shipment volumes; margins pressured by declines in average steel and downstream product pric ...

Commercial Metals Company CMC will release earnings results for the first quarter before the opening bell on Monday, Jan. 6, 2025.Analysts expect the Irving, Texas-based company to report quarterly earnings at 82 cents per share, down from $1.63 per share in the year-ago period. Commercial Metals is expected to report quarterly revenue of $1.88 billion, compared to $2 billion a year ago, according to data from Benzinga Pro.On Dec. 12, UBS analyst Curt Woodworth downgraded Commercial Metals from Buy to Sell ...