NYSE$CMC

Commercial Metals Co · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Commercial Metals' Q4 2021 performance was marked by record earnings, driven by robust market demand and successful execution across multiple fronts.

Commercial Metals Company reported record fourth-quarter earnings from continuing operations of $152.3 million, or $1.24 per diluted share, and record Core EBITDA from continuing operations of $255.9 million. The company's performance was driven by strong market demand and successful execution, with increased margins and higher shipments in North America and Europe.

  • Achieved record quarterly earnings from continuing operations of $152.3 million, or $1.24 per diluted share.
  • Reported record Core EBITDA from continuing operations of $255.9 million.
  • North America segment generated record adjusted EBITDA of $212.0 million, driven by increased margins and higher shipments.
  • Europe segment reported record adjusted EBITDA of $67.7 million, driven by significant expansion in margin over scrap and volume growth.

Headline financials

Total Revenue

$2.03B

Previous: $1.41B+44.1%
EPS (adj)

$1.26

Previous: $0.79+59.5%
Capital Expenditures

$56.8M

Previous: $53.5M+6.1%
Free Cash Flow

$77.5M

Previous: $791M-90.2%
Net Income

$152M

Previous: $67.6M+125.2%
Operating Income

$193M

Previous: $86.3M+123.4%
Gross Profit

$344M

Previous: $263M+30.5%
Cash & Equivalents

$498M

Previous: $542M-8.2%
Total Assets

$4.64B

Previous: $4.08B+13.6%
Stock-Based Comp

$8.12M

Previous: $9.88M-17.8%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$2.03B

Q4 2021+44.1%vs Q4 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Commercial Metals · $2.03B total across 3 segments · Q4 2021

  • North America Steel Group
    $1.66B+35.6%
  • Europe Steel Group
    $368M+104.8%
  • Corporate and Other
    $1.95M-56.0%

Forward guidance

Based on the current marketplace view, Commercial Metals Company anticipates strong operating and financial performance will continue in fiscal 2022. In the first quarter of fiscal 2022, the company expects finished steel volumes to follow typical seasonal patterns and margins to remain consistent with the historical high levels earned in the fourth quarter.

Tailwinds

  • Volumes should remain solid.
  • Construction backlog replenished in North America.
  • Broad strength across key end markets in both North America and Europe.
  • First quarter margins expected to remain consistent with historical high levels.
  • Strong operating and financial performance anticipated to continue in fiscal 2022.

Headwinds

  • Finished steel volumes expected to follow typical seasonal patterns, which have historically declined modestly from fourth quarter levels.
  • Inflationary pressures for freight and steelmaking consumables may impact controllable costs per ton.
  • Margin over scrap cost on downstream products declined compared to a year ago due to fulfillment of fabrication contracts booked prior to the fiscal 2021 increase in scrap costs.
  • Potential impacts from COVID-19 on the economy, demand, and global supply chain.
  • Uncertainty regarding global factors such as trade measures, military conflicts, and political uncertainties.

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 Q4 2021

Historical avgQ4 2021

-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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