Financial Data and Key Metrics Changes - CMC reported net earnings of 25.5millionor0.22 per diluted share on net sales of 1.8billion,whichincluded3.9 million of after-tax charges [10][38] - Adjusted earnings were 29.3millionor0.26 per diluted share, down from 85.9millionor0.73 per diluted share in the prior-year period [11][38] - Consolidated core EBITDA was 131million,adeclinefrom212.1 million in the prior-year period, with consolidated core EBITDA margins at 7.5% compared to 11.5% in the prior-year period [39][41] Business Line Data and Key Metrics Changes - North American Steel Group generated adjusted EBITDA of 128.8million,a420.8 million, an improvement from a loss of 8.6millionintheprior−yearperiod,aidedbycostmanagementandincreasedshipmentvolumes[43]−EmergingBusinessesGroupnetsaleswere158.9 million, a 1.8% year-over-year increase, with adjusted EBITDA increasing by 31% [45] Market Data and Key Metrics Changes - Finished steel shipments in North America increased by 3.3% year-over-year, indicating resilient demand despite economic uncertainty [42] - The Dodge Momentum Index reached an all-time high, reflecting growth in planning across various market segments [16] - The construction and industrial activity driving product consumption remained resilient, with pent-up demand evident in downstream bid volumes [15][16] Company Strategy and Development Direction - CMC aims to achieve sustainably higher, less-volatile margins and returns through operational and commercial excellence initiatives [29] - The company is pursuing both organic and inorganic growth opportunities, targeting segments of the 150billionearly−stageconstructionmarket[36]−CMC′sstrategicinitiativesincludeenhancinglogisticalcapabilitiesandexpandingproductioninspecializedsolutions,whichareexpectedtogeneratesignificantreturns[31][35]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismabouttheupcomingconstructionseason,expectingareboundinconsolidatedfinancialresultsinQ32025[54][55]−ThecompanynotedthatrecentdevelopmentsinNorthAmericanmarkets,includingimprovedscrapmarketconditionsandaninflectioninlongsteelpricelevels,indicateapotentialrecovery[19][55]−ManagementhighlightedtheimportanceofconstructioninadaptingtoeconomicchangesandexpressedconfidenceinthefutureofCMC′smarkets[22][23]OtherImportantInformation−CMC′scashandcashequivalentstotaled758.4 million, with total liquidity just under 1.6billion[47]−Thecompanyreturnedapproximately68 million to shareholders during the second quarter, repurchasing about 907,000 shares [52] - CMC expects to invest between 550millionand600 million in capital expenditures for fiscal 2025, down from previous guidance [50] Q&A Session Summary Question: U.S. rebar market pricing outlook - Management noted that price increases are being seen across the portfolio, with expectations for rebar prices to rise as future orders are booked [62] Question: Financial performance of Arizona 2 mill - The mill did not break even in Q2 due to challenges, but management expects to reach breakeven in Q4 2025 [67] Question: North American margins recovery - Management anticipates a recovery in EBITDA per ton in the coming quarter, driven by improved metal margins and cost management [75] Question: Current supply-demand balance in North American rebar market - The supply-demand balance is currently well balanced, with strong demand supporting price increases [87] Question: Long-term demand drivers and trade policy impact - Management remains optimistic about infrastructure investments and reshoring trends driving substantial rebar demand in the coming years [99][100]
