NYSE$CMC

Commercial Metals Co · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Commercial Metals Company reported strong financial results driven by solid construction activity in North America and improved market conditions in Europe.

Commercial Metals Company (CMC) announced its fiscal second quarter results with net earnings of $85.8 million, or $0.73 per diluted share, on net sales of $1.8 billion. The company's North America and Europe Steel Groups achieved year-over-year improvements in controllable costs, and the Europe Steel Group saw sequential improvements in operating results. Downstream contract awards rebounded, signaling strength in the upcoming construction season.

  • Second quarter net earnings reached $85.8 million, or $0.73 per diluted share.
  • Consolidated core EBITDA was $224.4 million with a core EBITDA margin of 12.1%.
  • Downstream contract awards saw the highest quarterly level in nearly two years.
  • North America and Europe Steel Groups improved controllable costs per ton of finished steel shipped.

Headline financials

Total Revenue

$1.85B

Previous: $2.02B-8.4%
EPS (adj)

$0.88

Previous: $1.44-38.9%
Capital Expenditures

-$161M

Previous: -$289M+44.4%
Free Cash Flow

-$74.9M

Previous: -$109M+31.5%
Net Income

$85.8M

Previous: $180M-52.3%
Operating Income

-$1.76B

Previous: -$1.77B+1.0%
Gross Profit

$296M

Previous: $396M-25.2%
Total Assets

$6.66B

Previous: $6.48B+2.7%
Stock-Based Comp

$15M

Previous: $25.5M-41.3%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$1.85B

Q2 2024-8.4%vs Q2 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

Finished steel shipments within our North America Steel Group are expected to follow a typical seasonal pattern during the third quarter, while adjusted EBITDA margin should be largely stable on a sequential basis. Conditions in Europe are expected to remain challenging, but adjusted EBITDA is anticipated to approach breakeven levels during the third quarter. Financial results for our Emerging Businesses Group should improve meaningfully, driven by the normal seasonal uptick in demand, strong underlying market fundamentals and a healthy order book.

Tailwinds

  • Robust spring and summer construction activity is expected, driven by increased infrastructure investments.
  • Strong demand backdrop is anticipated in both the North America Steel Group and the Emerging Businesses Group.
  • Business conditions for our Europe Steel Group are slowly improving.
  • Europe should further benefit from increased residential construction activity as a government program aimed at first-time homebuyers, and other government sponsored investment programs, begin to impact steel demand.
  • Adjusted EBITDA margin in North America Steel Group should be largely stable on a sequential basis.

Headwinds

  • Conditions in Europe are expected to remain challenging.
  • Adjusted EBITDA in Europe is only anticipated to approach breakeven levels during the third 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 2024

Historical avgQ2 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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