- QQ2 2025: Commercial Metals Company (CMC) reported net earnings of $25.5 million ($0.22 per diluted share) on net sales of $1.754 billion. Excluding after-tax charges of $3.9 million, adjusted earnings were $29.3 million or $0.26 per diluted share. Consolidated core EBITDA was $131 million with a margin of 7.5%, down from $212.1 million a year ago.
- Segment performance was mixed: North American Steel Group delivered EBITDA of $128.8 million (9.3% margin, $123 per ton), Europe Steel Group breakeven (with $4 million gas cost rebate contributing to the improvement), and Emerging Businesses Group (EBG) EBITDA of $23.5 million (up ~31% YoY) driven by higher demand for proprietary products. The combination resulted in a trough EBITDA environment that management expects to improve as volumes recover and pricing centers move higher.
- Year-over-year comparisons reflect tougher scrap-driven margins and weaker seasonality in Q2; however, management highlighted several late-quarter green shoots: improved scrap conditions, inflection in long-steel prices, rising downstream bid activity, and a healthy backlog buildup. Management also signaled a near-term margin floor and expected expansion into Q3 and Q4 2025 as construction activity stabilizes.
- Capital allocation and strategic initiatives (TAG) remain central to a through-the-cycle margin anchor. Management targets approximately $25 million of TAG benefits in the remainder of fiscal 2025 (on top of $15 million achieved to date) and ongoing upside in later years. Arizona 2 micro mill and Steel West Virginia project progress are on track, with WV commissioning expected late 2025. Inorganic adjacencies and higher-value solutions (post-tension cables, Geogrid, GalvaBar) are advancing with scalable returns and modest capital needs.
- Balance sheet and liquidity remain robust: cash and cash equivalents of $758 million, nearly $1.6 billion in total liquidity, net debt to adjusted EBITDA of about 1.0x, and a ~23% debt-to-capitalization ratio. The company reiterated a disciplined capex plan ($550–$600 million for 2025) and a through-the-cycle leverage target at or below 2x adjusted EBITDA. The stock repurchase program and a $68 million of shareholder returns in the quarter reaffirm an accretive capital strategy.