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Feb 28, 2023
Commercial Metals Q2 2023 Earnings Report
Achieved strong financial results while managing challenges like weather-related shipment disruptions and planned outage costs.
Key Takeaways
Commercial Metals Company reported second quarter net earnings of $179.8 million, or $1.51 per diluted share, on net sales of $2.0 billion. The company's key internal indicators remain positive, signaling a strong outlook for demand conditions in North America during the 2023 construction season and beyond.
Second quarter net earnings of $179.8 million, or $1.51 per diluted share
Core EBITDA of $302.8 million
Volume and value of North America downstream backlog near all-time highs
Project bid volumes grew by a double-digit percentage year-over-year, signaling strength in upcoming construction season
Revenue by Segment
Forward Guidance
CMC expects to generate sequential improvement in core EBITDA during the third quarter. North America finished steel product shipments are anticipated to improve from second quarter levels due to normal seasonality, the recovery of volumes delayed by weather disruptions, and the support of a historically high downstream backlog.
Positive Outlook
- North America finished steel product shipments are anticipated to improve from second quarter levels due to normal seasonality
- Recovery of volumes delayed by weather disruptions
- Support of a historically high downstream backlog
- Current and new industrial projects will support CMC's North America volumes
- Growing levels of state and federal infrastructure spending will support CMC's North America volumes
Challenges Ahead
- Third quarter will be impacted by a scheduled upgrade project similar in magnitude to the planned outage taken during the second quarter.
- Higher energy costs in Europe
- Lower metal margins in Europe
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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