NYSE$CMC

Commercial Metals Co · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Commercial Metals Company achieved record quarterly earnings driven by outstanding operational execution and strong end-market demand.

Commercial Metals Company reported record second quarter fiscal 2022 results with earnings from continuing operations of $383.3 million, or $3.12 per diluted share, on net sales of $2.0 billion. The company's core EBITDA from continuing operations increased 89% from the prior year period, and the North America downstream backlog grew 9% year-over-year.

  • Achieved record quarterly Earnings from Continuing Operations of $383.3 million, or $3.12 per diluted share
  • Core EBITDA from continuing operations of $323.1 million increased 89% from the prior year period
  • Trailing twelve-month Core EBITDA from continuing operations totaled over $1.1 billion
  • North America downstream backlog grew 9% year-over-year

Headline financials

Total Revenue

$2.01B

Previous: $1.46B+37.4%
EPS (adj)

$1.53

Previous: $0.66+131.8%
Capital Expenditures

-$192M

Previous: $50.5M-479.4%
Free Cash Flow

$192M

Previous: -$37.2M+615.5%
Net Income

$383M

Previous: $66.4M+477.7%
Operating Income

-$1.76B

Previous: $87.2M-2115.3%
Gross Profit

$394M

Previous: $234M+68.4%
Cash & Equivalents

$847M

Previous: $367M+130.5%
Total Assets

$5.5B

Previous: $4.06B+35.4%
Stock-Based Comp

$16.9M

Previous: $16.3M+4.3%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$2.01B

Q2 2022+37.4%vs Q2 2021
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Commercial Metals · $2.01B total across 2 segments · Q2 2022

  • North America Steel Group
    $1.61B+28.4%
  • Europe Steel Group
    $396M+95.9%

Forward guidance

The company anticipates strong fiscal year 2022 financial and operational performance. Shipment volumes of finished steel products have historically increased from second quarter levels, driven by seasonal factors, and the company expects shipments during the third quarter of fiscal 2022 to follow these trends. The company anticipates strong third quarter financial results, with margins remaining at high levels.

Tailwinds

  • Current robust demand for each of CMC’s major product lines is expected to persist throughout the upcoming spring and summer construction season
  • Growing downstream backlog
  • Solid levels of new work entering the project pipeline
  • Shipment volumes of finished steel products have historically increased from second quarter levels, driven by seasonal factors
  • Anticipate strong third quarter financial results, with margins remaining at high levels

Headwinds

  • The war in Ukraine raises significant geopolitical and economic risks
  • Monitoring the war in Ukraine closely
  • Has not experienced any disruptions to operations, workforce, or end-market demand to date
  • Controllable costs per ton of finished steel shipped increased in comparison to the first fiscal quarter primarily as a result of scheduled routine maintenance, which reduced production levels
  • Shipment volumes of finished steel decreased approximately 10% from the prior year second quarter.

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 Q2 2022

Historical avgQ2 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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