NYSE$CMC

Commercial Metals Co · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Commercial Metals' financial performance declined in Q4 2023 compared to the previous year, influenced by weaker conditions in Europe but supported by solid North American demand and strategic initiatives.

Commercial Metals Company reported Q4 2023 net earnings of $184.2 million, or $1.56 per diluted share, on net sales of $2.2 billion. While North America showed strength, European market challenges impacted overall results. The company is progressing with strategic growth initiatives, including the Arizona 2 micro mill and the integration of EDSCO Fasteners.

  • Net earnings for the fourth quarter were $184.2 million, or $1.56 per diluted share.
  • North America segment adjusted EBITDA increased year-over-year due to solid demand and strong margins.
  • Downstream new project bid volumes in North America continued to grow, indicating a robust construction pipeline.
  • Strategic growth initiatives, such as the Arizona 2 production start-up and Tensar earnings, showed meaningful progress.

Headline financials

Total Revenue

$2.21B

Previous: $2.41B-8.2%
EPS (adj)

$1.69

Previous: $2.45-31.0%
Capital Expenditures

-$167M

Previous: $156M-207.2%
Free Cash Flow

$737M

Previous: $303M+143.4%
Net Income

$184M

Previous: $289M-36.2%
Operating Income

$238M

Previous: $339M-29.7%
Gross Profit

$425M

Previous: $508M-16.3%
Cash & Equivalents

$592M

Previous: $673M-11.9%
Total Assets

$6.64B

Previous: $6.24B+6.4%
Stock-Based Comp

$16.5M

Previous: $9.12M+81.2%

Revenue & EPS history

Commercial Metals · Revenue · Quarterly

$2.21B

Q4 2023-8.2%vs Q4 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Commercial Metals · $2.21B total across 3 segments · Q4 2023

  • North America Steel Group
    $1.9B-4.8%
  • Europe Steel Group
    $301M-26.9%
  • Corporate and Other
    $6.31M+322.6%

Forward guidance

The company expects first quarter consolidated financial performance to remain strong by historical standards, but decline from the fourth quarter as a result of seasonally lower shipments, steel product margin compression in North America, and the continuation of challenging market conditions in Europe.

Tailwinds

  • First quarter consolidated financial performance is expected to remain strong by historical standards.
  • Europe operations will receive approximately $60 million from two large government rebate programs.
  • Annual CO2 credit estimated at $25 million, up from the $9.5 million received last year.
  • Reimbursement by the Polish government for elevated energy costs incurred during the European energy crisis is expected to be $35 million.
  • These rebates are expected to drive a sequential improvement in Europe segment adjusted EBITDA.

Headwinds

  • First quarter performance is expected to decline from the fourth quarter.
  • Seasonally lower shipments are anticipated.
  • Steel product margin compression is expected in North America.
  • Challenging market conditions in Europe are expected to continue.
  • Overall, the first quarter outlook suggests a softening compared to the fourth quarter due to various market and seasonal factors.

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 2023

Historical avgQ4 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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