NYSE$CMC

Commercial Metals Co · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Commercial Metals' third quarter performance was marked by strong financial results, driven by robust North American construction activity and effective cost management.

Commercial Metals Company reported strong third quarter fiscal 2023 results with net earnings of $234.0 million, or $1.98 per diluted share, on net sales of $2.3 billion. The North America segment achieved EBITDA growth both sequentially and year-over-year. The company's balance sheet and liquidity position remained strong with cash and cash equivalents totaling $475.5 million.

  • Third quarter net earnings increased 30% from the previous quarter.
  • Core EBITDA increased 29% sequentially.
  • North America segment adjusted EBITDA grew sequentially and year-over-year.
  • North America new project bid volumes increased by a double-digit percentage vs. prior year.

Headline financials

Total Revenue

$2.34B

Previous: $2.52B-6.8%
EPS (adj)

$2.02

Previous: $2.61-22.6%
Capital Expenditures

-$440M

Previous: -$294M-49.4%
Free Cash Flow

-$206M

Previous: $18.1M-1237.9%
Net Income

$234M

Previous: $312M-25.1%
Operating Income

-$2.03B

Previous: -$2.1B+3.7%
Gross Profit

$483M

Previous: $559M-13.7%
Cash & Equivalents

$475M

Previous: $410M+15.9%
Total Assets

$6.52B

Previous: $6.1B+6.8%
Stock-Based Comp

$10.4M

Previous: $10.4M+0.0%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$2.34B

Q3 2023-6.8%vs Q3 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Commercial Metals · $2.34B total across 3 segments · Q3 2023

  • North America Steel Group
    $1.99B-2.2%
  • Europe Steel Group
    $353M-27.1%
  • Corporate and Other
    $4.16M+309.4%

Forward guidance

The company expects financial performance to remain strong during the fourth quarter of fiscal 2023. North America finished steel product shipments are anticipated to be consistent with the third quarter, and margin levels in North America should be similar to the third quarter. Results in the Europe segment are expected to be relatively unchanged from the third quarter.

Tailwinds

  • North America finished steel product shipments are anticipated to be consistent with the third quarter.
  • Healthy end market demand in North America.
  • Historically high downstream backlog in North America.
  • Margin levels in North America should be similar to the third quarter.
  • CMC will leverage its market leading cost position to maintain profitability in Europe.

Headwinds

  • Continued economic uncertainty in Europe.
  • Europe end market conditions softened during the quarter.
  • Polish construction activity decelerated.
  • Industrial production across Central Europe remained muted.
  • Lower margins over scrap in Europe.

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 Q3 2023

Historical avgQ3 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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