NYSE$CMC

Commercial Metals Co · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Commercial Metals Company reported record first quarter fiscal 2022 results driven by strategic transformation and strong market environment.

Commercial Metals Company (CMC) announced record first quarter fiscal 2022 results, with earnings from continuing operations reaching $232.9 million, or $1.90 per diluted share. Net sales increased to $2.0 billion, compared to $1.4 billion in the prior year. The company's performance was driven by strong demand in North America and Europe, with both segments reporting record adjusted EBITDA.

  • Achieved record quarterly Earnings from Continuing Operations of $232.9 million, or $1.90 per diluted share, and record Core EBITDA of $326.8 million.
  • Both North America and Europe segments reported record Adjusted EBITDA.
  • Realized significant per ton sequential increase in downstream products’ average selling price from higher new contract pricing.
  • Continued advancement in CMC's growth strategy — Negotiated acquisition of Tensar Corporation; closed Rancho Cucamonga land sale and received gross proceeds of $313.0 million; and achieved meaningful financial contribution from the new rolling line in Europe

Headline financials

Total Revenue

$1.98B

Previous: $1.39B+42.4%
EPS (adj)

$1.62

Previous: $0.58+179.3%
Capital Expenditures

-$70.2M

Previous: -$37.2M-88.6%
Free Cash Flow

$163M

Previous: $26.9M+505.2%
Net Income

$233M

Previous: $64.1M+263.4%
Operating Income

-$1.71B

Previous: -$1.3B-31.8%
Gross Profit

$395M

Previous: $217M+82.2%
Cash & Equivalents

$415M

Previous: $465M-10.8%
Total Assets

$4.73B

Previous: $4.02B+17.6%
Stock-Based Comp

$16.7M

Previous: $9.62M+73.4%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$1.98B

Q1 2022+42.4%vs Q1 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Commercial Metals · $1.98B total across 3 segments · Q1 2022

  • North America Steel Group
    $1.65B+38.4%
  • Europe Steel Group
    $329M+69.1%
  • Corporate and Other
    -$877K

Forward guidance

The company anticipates strong fiscal year 2022 financial and operational performances. Volumes should remain solid, supported by a growing construction backlog in North America, as well as broad strength across key end markets in both North America and Europe. The fiscal second quarter has historically seen fewer shipping days due to major holidays and winter weather factors. The company expects shipments during the second quarter of fiscal 2022 to follow these typical seasonal trends. Despite additional holidays, CMC anticipates strong financial results, with margins consistent with, or slightly above, recent levels.

Tailwinds

  • Volumes should remain solid.
  • Growing construction backlog in North America.
  • Broad strength across key end markets in both North America and Europe.
  • Anticipate strong financial results.
  • Margins consistent with, or slightly above, recent levels.

Headwinds

  • Fiscal second quarter has historically seen fewer shipping days due to major holidays.
  • Winter weather factors might affect shipping days.
  • Shipments during the second quarter of fiscal 2022 to follow these typical seasonal trends.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.9%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+4.6%

Avg return

30 days after

44%

31 / 70 earnings

Positive

+14.1%

Q2 2020

Best reaction

-14.4%

Q2 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026-0.6%-0.3%
Q1 2026-3.7%+1.4%+13.3%
Q4 2025-7.3%+4.0%-1.2%
Q3 2025-1.8%+1.6%+10.2%
Q2 2025+1.1%+3.6%-9.7%
Q1 2025+0.0%-4.1%-0.4%
Q4 2024+4.5%-0.4%+10.6%
Q3 2024+7.3%+5.8%+13.5%
Q2 2024+3.3%+2.3%-1.4%
Q1 2024+2.3%+3.9%+10.1%
Q4 2023-10.7%-11.7%-6.5%
Q3 2023+8.1%+7.3%+15.4%
Q2 2023+4.5%+4.5%+6.6%
Q1 2023+5.3%+10.8%+11.1%
Q4 2022+4.0%+9.0%+16.3%
Q3 2022-2.2%-1.9%-7.7%
Q2 2022-1.4%-0.3%+8.1%
Q1 2022+1.0%+6.5%+1.2%
Q4 2021-2.4%-2.6%+5.4%
Q3 2021-4.7%-2.4%-4.0%
Q2 2021+1.5%-4.2%+3.5%
Q1 2021+0.6%-5.6%-2.3%
Q4 2020-5.7%-9.1%-9.0%
Q3 2020+4.5%+5.8%+4.8%
Q2 2020+14.1%+23.8%+39.5%
Q1 2020+2.1%+1.9%-2.3%
Q4 2019+0.5%+2.2%+8.7%
Q3 2019+7.6%+5.5%+14.9%
Q2 2019+3.7%+4.3%+9.5%
Q1 2019-6.9%-7.2%+1.7%
Q4 2018+2.7%+4.8%+10.4%
Q3 2018-1.3%-6.6%-7.9%
Q2 2018-14.4%-15.9%-9.4%
Q1 2018+7.5%+11.0%+2.9%
Q4 2017-9.1%-10.0%-12.8%
Q3 2017+4.0%+0.0%+8.9%
Q2 2017-1.1%+3.5%+0.9%
Q1 2017-5.8%-9.8%-7.1%
Q4 2016-5.9%-5.2%+35.4%
Q3 2016-5.1%-3.9%-2.0%
Q2 2016+3.2%
Q1 2016+4.7%
Q4 2015-10.1%
Q3 2015+4.0%
Q2 2015+2.6%
Q1 2015-7.8%
Q4 2014-2.2%
Q3 2014-4.3%
Q2 2014-2.2%
Q1 2014+2.6%
Q4 2013+4.7%
Q3 2013+6.3%
Q2 2013-5.8%
Q1 2013-1.7%
Q4 2012-2.3%
Q3 2012+3.3%
Q2 2012+1.2%
Q1 2012+1.5%
Q4 2011-8.8%
Q4 2009-8.8%
Q2 2009-8.8%
Q3 2009-8.8%
Q1 2009-8.8%
Q3 2010-3.6%
Q3 2011-3.6%
Q2 2011-5.0%
Q1 2011-0.6%
Q1 2010-0.6%
Q2 2010-0.6%
Q4 2010-0.6%

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