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Feb 28
Commercial Metals Q2 2025 Earnings Report
Commercial Metals reported a challenging Q2 2025 with lower net income and margins due to margin compression and litigation expenses but showed resilience in core EBITDA and improved conditions in Europe and emerging businesses.
Key Takeaways
Commercial Metals Company reported Q2 2025 revenue of $1.75 billion, with net income of $25.47 million and EPS of $0.22. Adjusted earnings per share were $0.26. The company faced margin pressures in North America but benefited from improved market conditions in Europe and steady growth in Emerging Businesses.
Revenue was $1.75 billion, stable compared to the prior year.
Net income reached $25.47 million, significantly down from $85.85 million last year.
EPS was $0.22, with adjusted EPS of $0.26.
Core EBITDA margin stood at 7.5% with strong backlog growth in North America.
Commercial Metals
Commercial Metals
Commercial Metals Revenue by Segment
Revenue by Segment
Corporate & Other Revenue
CapyFin.com Forward Guidance
Commercial Metals expects Q3 fiscal 2025 results to rebound, with higher margins over scrap and improved profitability across business segments.
Positive Outlook
- Finished steel shipments in North America are expected to follow seasonal upward trends.
- Adjusted EBITDA margins are projected to increase sequentially.
- European Steel Group results should remain near breakeven with seasonal strength.
- Emerging Businesses Group profitability is expected to improve.
- Margin and demand trends across markets are anticipated to strengthen.
Challenges Ahead
- Ongoing margin compression in certain steel product lines remains a risk.
- Litigation-related expenses could continue to impact earnings.
- Macroeconomic uncertainties may affect customer spending and project timelines.
- Potential volatility in scrap and raw material prices could pressure margins.
- Seasonal headwinds could still impact shipment volumes in some regions.