NYSE$CMC

Commercial Metals Co · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Achieved strong financial results while managing challenges like weather-related shipment disruptions and planned outage costs.

Commercial Metals Company reported second quarter net earnings of $179.8 million, or $1.51 per diluted share, on net sales of $2.0 billion. The company's key internal indicators remain positive, signaling a strong outlook for demand conditions in North America during the 2023 construction season and beyond.

  • Second quarter net earnings of $179.8 million, or $1.51 per diluted share
  • Core EBITDA of $302.8 million
  • Volume and value of North America downstream backlog near all-time highs
  • Project bid volumes grew by a double-digit percentage year-over-year, signaling strength in upcoming construction season

Headline financials

Total Revenue

$2.02B

Previous: $2.01B+0.5%
EPS (adj)

$1.44

Previous: $1.53-5.9%
Capital Expenditures

-$289M

Previous: -$192M-51.0%
Free Cash Flow

-$109M

Previous: $192M-157.1%
Net Income

$180M

Previous: $383M-53.1%
Operating Income

-$1.77B

Previous: -$1.76B-0.9%
Gross Profit

$396M

Previous: $394M+0.6%
Cash & Equivalents

$604M

Previous: $847M-28.7%
Total Assets

$6.48B

Previous: $5.5B+17.8%
Stock-Based Comp

$25.5M

Previous: $16.9M+50.6%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$2.02B

Q2 2023+0.5%vs Q2 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Commercial Metals · $2.02B total across 3 segments · Q2 2023

  • North America Steel Group
    $1.64B+1.7%
  • Europe Steel Group
    $356M-10.1%
  • Corporate and Other
    $21.4M

Forward guidance

CMC expects to generate sequential improvement in core EBITDA during the third quarter. North America finished steel product shipments are anticipated to improve from second quarter levels due to normal seasonality, the recovery of volumes delayed by weather disruptions, and the support of a historically high downstream backlog.

Tailwinds

  • North America finished steel product shipments are anticipated to improve from second quarter levels due to normal seasonality
  • Recovery of volumes delayed by weather disruptions
  • Support of a historically high downstream backlog
  • Current and new industrial projects will support CMC's North America volumes
  • Growing levels of state and federal infrastructure spending will support CMC's North America volumes

Headwinds

  • Third quarter will be impacted by a scheduled upgrade project similar in magnitude to the planned outage taken during the second quarter.
  • Higher energy costs in Europe
  • Lower metal margins in Europe
  • Modest reduction in shipment volumes in Europe
  • Weather challenges that included freezing and icy conditions in Texas and Oklahoma and flooding in California.

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 2023

Historical avgQ2 2023

-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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