CMC Stock Down On Weak Q3 Results Below Market; Sees Q4 Results To Improve Sequentially - Update

(RTTNews) - Shares of Commercial Metals Co. (CMC) were losing around 8 percent in the pre-market activity on the NYSE, after the firm on Monday reported weak third-quarter results below market estimates.

Looking ahead, Peter Matt, President and Chief Executive Officer, said, "We expect consolidated financial results in the fourth quarter of fiscal 2025 to improve compared to the third quarter. Finished steel shipments within the North America Steel Group are anticipated to follow normal seasonal trends, while our adjusted EBITDA margin is expected to increase sequentially on higher steel product margins over scrap. Based on project backlogs, we expect financial results for the Emerging Businesses Group will improve on both a sequential and year-over-year basis."

The third-quarter net earnings declined to $83.13 million or $0.73 per share from prior year's net earnings of $119.44 million or $1.02 per share.

Adjusted earnings were $84.4 million or $0.74 per share, compared to $119.6 million or $1.02 per share in the prior year period.

The Wall Street analysts on average expected the company to report earnings of $0.85 per share. Analysts' estimates typically exclude special items.

Consolidated core EBITDA of $204.1 million in the third quarter was lower than $256.11 million last year. Core EBITDA margin of 10.1 percent declined from 12.3% a year earlier.

The third-quarter net sales edged down to $2.02 billion from prior year net sales of $2.08 billion. The Street expected sales of $2.07 billion for the quarter.

Mong regions, North America Steel Group's shipments of finished steel products grew 1.6 percent relative to the prior year period, while adjusted EBITDA decreased to $186.0 million from $246.3 million in the prior year period.

Emerging Businesses Group's third-quarter net sales of $197.5 million increased by 4.7 percent from last year, and adjusted EBITDA for the segment grew 7 percent from last year to $40.9 million.

On June 18, the board of directors declared a quarterly dividend of $0.18 per share of CMC stock, payable on July 9 to stockholders of record on June 30.

In pre-market activity on the NYSE, CMC shares were losing around 7.6 percent to trade at $45.00.

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