NYSE$CMC

Commercial Metals Co · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Commercial Metals' Q1 2024 performance marked by solid financial results, driven by strong North America Steel Group demand and strategic growth initiatives.

Commercial Metals Company reported net earnings of $176.3 million, or $1.49 per diluted share, on net sales of $2.0 billion for the first quarter of fiscal year 2024. The company's performance was supported by healthy construction activity in North America and continued progress on strategic growth initiatives, including the Arizona 2 micro mill and the Steel West Virginia project.

  • Net earnings reached $176.3 million, with diluted earnings per share of $1.49.
  • Consolidated core EBITDA stood at $325.3 million, reflecting a 16.2% core EBITDA margin.
  • Cash flow from operating activities was $261.1 million, resulting in free cash flow of $194.1 million.
  • North America Steel Group experienced healthy demand, with finished steel volumes increasing by 1.1% year-over-year.

Headline financials

Total Revenue

$2B

Previous: $2.23B-10.1%
EPS

$1.49

Previous: $2.24-33.5%
Capital Expenditures

-$67M

Previous: -$133M+49.7%
Free Cash Flow

$109M

Previous: $129M-15.1%
Net Income

$176M

Previous: $262M-32.7%
Operating Income

-$1.77B

Previous: -$1.88B+5.7%
Gross Profit

$399M

Previous: $508M-21.4%
Total Assets

$6.7B

Previous: $6.27B+6.7%
Stock-Based Comp

$8.06M

Previous: $8.1M-0.5%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$2B

Q1 2024-10.1%vs Q1 2023
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Commercial Metals · $2.48B total across 4 segments · Q3 2026

  • North America Steel Group
    $1.79B
  • Construction Solutions Group
    $395M
  • Europe Steel Group
    $291M
  • Corporate and Other
    $8.06M

Forward guidance

Margins on steel products are likely to experience some further compression during the second quarter, however, recent price announcements should support an inflection and improved margins going forward. Downstream product margins should exhibit good sequential stability. Conditions in Europe are expected to remain challenging, but adjusted EBITDA excluding energy rebates should improve from the levels of the past two quarters.

Tailwinds

  • Recent price announcements should support an inflection and improved margins going forward.
  • Downstream product margins should exhibit good sequential stability.
  • Adjusted EBITDA excluding energy rebates should improve from the levels of the past two quarters.
  • Robust spring and summer construction activity driven by increased infrastructure investments.
  • Increasing levels of residential and infrastructure construction should drive sequential improvements in financial results beginning in the spring construction season.

Headwinds

  • Margins on steel products are likely to experience some further compression during the second quarter.
  • Conditions in Europe are expected to remain challenging.
  • Lower new contract awards have driven a year-over-year reduction in the volume and value of CMC’s downstream backlog from the peak experienced last year.
  • Demand from industrial end markets, which is important for merchant products, was mixed, with certain applications experiencing slower activity compared to the prior year quarter.
  • Weather delays in the Central U.S. and lower construction activity in Europe and the Middle East.

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 2024

Historical avgQ1 2024

-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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