Commercial Metals Earnings Miss Estimates in Q3, Sales Dip Y/Y

Commercial Metals Company CMC reported adjusted earnings per share (EPS) of 74 cents in third-quarter fiscal 2025 (ended May 31, 2025), missing the Zacks Consensus Estimate of 85 cents. However, the bottom line fell 27.5% year over year.Net sales in the reported quarter came in at $2.02 billion compared with the year-ago quarter’s $2.08 billion. The reported figure surpassed the Zacks Consensus Estimate of $2.01 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The cost of goods sold in the quarter fell 1% year over year to $1.72 billion. The gross profit declined 11.9% year over year to $300 million during this period. The core EBITDA was $204 million in the fiscal third quarter, down 20.3% year over year.Commercial Metals Company Price, Consensus and EPS Surprise  Commercial Metals Company price-consensus-eps-surprise-chart | Commercial Metals Company QuoteCommercial Metals’ Q3 Segment PerformanceThe North America Steel Group segment generated net sales of $1.56 billion in the fiscal third quarter compared with $1.67 billion in the year-ago quarter. We expected net sales of $1.59 billion for the quarter. The segment registered an adjusted EBITDA of around $186 million compared with the year-ago quarter’s $246 million. Our model predicted an adjusted EBITDA of $169 million.The Europe Steel Group segment’s revenues were $247.6 million, up 18.6% from the year-ago quarter. Our model predicted net sales of $195 million. The adjusted EBITDA was $3.6 million in the fiscal third quarter against the year-ago quarter’s negative $4.2 million. We expected an adjusted EBITDA of $0.9 million for the quarter.The Emerging Businesses Group segment generated net sales of $197 million in the fiscal third quarter compared with $188.5 million in the year-ago quarter. We expected net sales of $163 million for the quarter. The segment registered an adjusted EBITDA of $41 million, up 7.9% year over year. Our model predicted an adjusted EBITDA of $42 million.CMC’s Q3 Cash Flow & Balance Sheet UpdatesCommercial Metals reported cash and cash equivalents of $893 million at the end of third-quarter fiscal 2025 compared with $858 million at the end of fiscal 2024. The company’s long-term debt came in at $1.30 billion at the end of the fiscal third quarter compared with $1.15 billion at the fiscal 2024 end. Cash generated from operating activities was around $400 million for the nine months ended May 31, 2025, compared with $548 million in the prior-year comparable period.On June 18, the company declared a quarterly dividend of 18 cents per share. The dividend will be paid out on July 9 to shareholders of record as of June 30, 2025.Commercial Metals’ OutlookCMC expects consolidated financial results in the fourth quarter of fiscal 2025 to improve from the third-quarter reported levels. The company anticipates North America Steel Group’s adjusted EBITDA margin to increase sequentially, driven by higher steel product margins over scrap. Emerging Businesses Group’s financial results are expected to increase on a sequential and year-over-year basis, driven by project backlogs. Adjusted EBITDA for the company’s Europe Steel Group is expected to improve sequentially in the fiscal fourth quarter as well.CMC Stock’s Price PerformanceThe company’s shares have lost 6.9% in the past year compared with the industry’s 29.2% fall. Image Source: Zacks Investment Research Commercial Metals’ Zacks RankCommercial Metals currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.CMC’s Peer PerformancesNational Steel SID reported a first-quarter 2025 loss per share of 8 cents, which missed the Zacks Consensus Estimate of earnings of 21 cents. It reported a loss of 9 cents in the prior-year quarter.National Steel’s domestic revenues increased 11% year over year to R$5.52 billion ($1 billion). The company’s international business revenues increased 14% year over year to R$5.39 billion ($0.97 billion). For the March-end quarter, National Steel’s net sales were R$10.91 billion ($1.86 billion), up 12.1% year over year. The company incurred a net loss of R$732 million ($132.2 million) in the first quarter of 2025.ArcelorMittal MT recorded first-quarter 2025 profit of $805 million or $1.04 per share, down from $938 million or $1.16 in the year-ago quarter. Earnings surpassed the Zacks Consensus Estimate of 71 cents.ArcelorMittal’s total sales fell 9.1% year over year to $14,798 million in the quarter. The figure surpassed the Zacks Consensus Estimate of $14,639.7 million. Sales were hurt by lower average steel selling prices.Carpenter Technology Corporation CRS reported earnings of $1.88 per share for third-quarter fiscal 2025, surpassing the Zacks Consensus Estimate of $1.74. The bottom line marked an improvement of 58% from adjusted earnings of $1.19  per share in the year-ago quarter. The upside is driven by ongoing improvements in the product mix and operating efficiencies.Carpenter Technology’s net sales increased 6.1% year over year to $727 million in the reported quarter. However, the figure missed the Zacks Consensus Estimate of $732 million. CRS’ Shipment volumes were down 7% year over year.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report National Steel Company (SID): Free Stock Analysis Report ArcelorMittal (MT): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Commercial Metals Company (CMC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks