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May 31, 2024
Commercial Metals Q3 2024 Earnings Report
Commercial Metals' Q3 2024 financial results were announced, showcasing solid performance driven by strong North American demand and improving European operations.
Key Takeaways
Commercial Metals Company reported net earnings of $119.4 million, or $1.02 per diluted share, on net sales of $2.1 billion for the third quarter of fiscal year 2024. The company benefited from strong seasonal demand in North America and improving conditions in Europe, with core EBITDA reaching $256.1 million and a margin of 12.3%.
Net earnings for the third quarter were $119.4 million, or $1.02 per diluted share.
Consolidated core EBITDA was $256.1 million, with a core EBITDA margin of 12.3%.
North American markets showed solid seasonal demand and healthy shipment volumes.
Europe Steel Group approached breakeven results, indicating improving performance.
Commercial Metals
Commercial Metals
Commercial Metals Revenue by Segment
Commercial Metals Revenue by Geographic Location
Revenue by Segment
NA Steel Group Revenue
CapyFin.comEurope Steel Group Revenue
CapyFin.comEmerging Businesses Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comEurope Revenue
CapyFin.com Forward Guidance
CMC expects consolidated financial results in the fiscal fourth quarter to be consistent with third quarter levels. The company anticipates steady market fundamentals and a healthy order book, with potential for increased infrastructure activity driving demand.
Positive Outlook
- Finished steel shipments within the North America Steel Group are anticipated to be flat on a sequential basis.
- Adjusted EBITDA margin within the North America Steel Group should remain relatively stable.
- Adjusted EBITDA for the Europe Steel Group is likely to continue the quarter-to-quarter improvement trend.
- Financial results for the Emerging Businesses Group should improve modestly.
- Encouraging signs of increased infrastructure activity driving demand.
Challenges Ahead
- Market conditions in Europe are expected to remain challenging.
- Lower margins over scrap costs on steel and downstream products in North America.
- Incurred $11.8 million in costs related to the commissioning of its Arizona 2 micro mill.
- Long-steel consumption in Europe remained substantially below historical levels.
- Potential limitations in customers' abilities to access credit and non-compliance with their contractual obligations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income