Workflow
Commercial Metals Q1 Earnings Meet Estimates, Sales Declines Y/Y
CMCCMC(CMC) ZACKS·2025-01-07 18:41

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 1.49intheprior−yearquarter,aligningwithZacksConsensusEstimate[1][3].FinancialPerformance−CMC′snetsalesforthereportedquarterwere1.49 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 2billioninthesamequarterlastyear,butexceededtheZacksConsensusEstimateof2 billion in the same quarter last year, but exceeded the Zacks Consensus Estimate of 1.89 billion [4]. - The cost of goods sold was 1.6billion,down0.11.6 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 211million,reflectingadeclineof32.8211 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 1.59billionyear−over−year,withadjustedEBITDAofaround1.59 billion year-over-year, with adjusted EBITDA of around 188 million compared to 267millionintheprior−yearquarter[8].−TheEuropeSteelGroupsegmentreportedrevenuesof267 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 25.8million,downfrom25.8 million, down from 38.9 million [9][10]. - The Emerging Businesses Group segment had net sales of approximately 169million,downfrom169 million, down from 177 million year-over-year, with adjusted EBITDA of 22.7millioncomparedto22.7 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 856million,slightlydownfrom856 million, slightly down from 858 million at the end of fiscal 2024 [12]. - Long-term debt remained flat at 1.15billion,whilecashgeneratedfromoperatingactivitieswasapproximately1.15 billion, while cash generated from operating activities was approximately 213 million, down from 261millionintheprior−yearquarter[12].ShareRepurchaseandOutlook−CMCrepurchasedsharesworth261 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].