# Commercial Metals Company (NYSE: CMC) Q3 Fiscal 2025 Results
On June 23, Commercial Metals Company (CMC) reported its financial results for the third quarter of fiscal 2025. Here’s a summary of the key points highlighted in the press release:
– **Net Earnings**:
– Third quarter net earnings were **$83.1 million**, or **$0.73 per diluted share**.
– Adjusted earnings for the quarter stood at **$84.4 million**, or **$0.74 per diluted share**.
– **Core EBITDA**:
– Consolidated core EBITDA for the quarter was **$204.1 million** with a **core EBITDA margin of 10.1%**.
– North American steel product metal margins showed positive growth during the quarter.
– **Segment Performance**:
– Emerging Businesses Group saw profitability improvement, with an **adjusted EBITDA margin of 20.7%**.
– Europe Steel Group exceeded breakeven and showed signs of improvement.
– Adjusted EBITDA benefits from the TAG program exceeding expectations, targeting annual benefits exceeding **$100 million**.
– **Financials**:
– Quarterly net sales were **$2.0 billion**, compared to **$2.1 billion** in the same quarter last year.
– Strong balance sheet and liquidity position with **cash and cash equivalents of $893.0 million**.
– **Outlook**:
– Improvement in consolidated financial results expected for Q4 of fiscal 2025.
– Anticipated increase in adjusted EBITDA margin sequentially for the North American Steel Group.
– Europe Steel Group to receive a **CO2 credit of approximately $28 million** in Q4.
– **Dividend**:
– The board declared a quarterly dividend of **$0.18 per share**, marking the **243rd consecutive quarterly payment**.
– **Non-GAAP Financial Measures**:
– Adjusted EBITDA, core EBITDA, core EBITDA margin, and adjusted earnings were provided as non-GAAP financial measures.
– Reconciliation of these measures to the most comparable GAAP measures was included.
– **Balance Sheet**:
– Total assets as of May 31, 2025, were **$6.99 billion**.
– Total liabilities and stockholders’ equity amounted to **$6.99 billion**.
– **Cash Flows**:
– Net cash provided by operating activities for the nine months ended May 31, 2025, was **$399.9 million**.
– Capital expenditures in investing activities were **-$293.9 million** for the same period.
– **Forward-Looking Statements**:
– The company provided forward-looking statements on market conditions, trends, growth strategies, and financial performance.
In conclusion, Commercial Metals Company’s Q3 fiscal 2025 showed sequential improvement across segments driven by better market conditions, profitability enhancements, and strategic initiatives like the TAG program. The company expects continued growth and value creation in the future.
For more information, you can contact Susan Gerber at (214) 689-4300.
*(Percentages from the financial statistics have been highlighted throughout the summary.)*
### COMBINED CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
All amounts are in thousands, except share and per share data
| Three Months Ended May 31, | Nine Months Ended May 31, | |||
|---|---|---|---|---|
| Net sales | $2,019,984 | $5,683,962 | ||
| Costs and operating expenses: | ||||
| Cost of goods sold | $1,720,063 | $4,856,614 | ||
| Selling, general and administrative expenses | $175,769 | $521,187 | ||
| Interest expense | $10,864 | $33,353 | ||
| Litigation expense | $3,776 | $358,496 | ||
| Net costs and operating expenses | $1,910,472 | $5,769,650 | ||
| Earnings (loss) before income taxes | $109,512 | -$85,688 | ||
| Income tax expense (benefit) | $26,386 | -$18,569 | ||
| Net earnings (loss) | $83,126 | -$67,119 | ||
| Earnings (loss) per share: | ||||
| Basic | $0.74 | -$0.59 | ||
| Diluted | $0.73 | -$0.59 | ||
| Cash dividends per share | $0.18 | $0.54 | ||
| Average basic shares outstanding | 112,700,136 | 113,437,950 | ||
| Average diluted shares outstanding | 113,559,456 | 113,437,950 |
### COMMERCIAL METALS COMPANY AND SUBSIDIARIES
#### CONDENSED CONSOLIDATED BALANCE SHEETS
All amounts are in thousands
| May 31, 2025 | August 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $892,998 | $857,922 |
| Accounts receivable | $1,155,995 | $1,158,946 |
| Inventories, net | $1,005,290 | $971,755 |
| Other current assets | $303,222 | $285,489 |
| Total current assets | $3,358,709 | $3,292,768 |
| Property, plant and equipment, net | $2,690,050 | $2,577,136 |
| Intangible assets, net | $216,464 | $234,869 |
| Goodwill | $386,544 | $385,630 |
| Other noncurrent assets | $342,056 | $327,436 |
| Total assets | $6,993,823 | $6,817,839 |
| Liabilities and stockholders’ equity | ||
| Current liabilities | ||
| Accounts payable | $363,980 | $350,550 |
| Accrued contingent litigation-related loss | $358,496 | – |
| Other accrued expenses and payables | $411,546 | $445,514 |
| Total current liabilities | $1,175,416 | $834,850 |
| Deferred income taxes | $186,643 | $276,908 |
| Other noncurrent liabilities | $231,167 | $255,222 |
| Long-term debt | $1,302,835 | $1,150,835 |
| Total liabilities | $2,896,061 | $2,517,815 |
| Stockholders’ equity: | $4,097,762 | $4,300,024 |
| Total liabilities and stockholders’ equity | $6,993,823 | $6,817,839 |
### END OF TABLES
