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May 31
Commercial Metals Q3 2025 Earnings Report
Commercial Metals reported a decline in net income and revenue compared to the prior year but saw improvement in steel product margins and Emerging Businesses Group performance.
Key Takeaways
CMC posted lower earnings and revenue YoY for Q3 FY25, but improved sequentially on the back of stronger steel margins, solid construction demand, and cost optimization initiatives.
Net income was $83.1 million, down from $119.4 million YoY.
Revenue declined to $2.02 billion from $2.08 billion YoY.
Steel product metal margins in North America improved sequentially.
Emerging Businesses Group posted strong adjusted EBITDA margin of 20.7%.
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 stronger Q4 results driven by seasonally higher steel shipments, improved steel margins, and increased contributions from Europe and Emerging Businesses segments.
Positive Outlook
- Steel shipments expected to follow normal seasonal increases
- Improved steel product margins over scrap in North America
- Emerging Businesses Group to improve sequentially and YoY
- Europe segment to benefit from $28M CO2 credit
- TAG initiatives continue to drive margin and cash flow benefits
Challenges Ahead
- Persistent margin compression relative to prior year
- Higher scrap costs may offset some pricing benefits
- Tensar segment impacted by project delays
- Downstream product margins remain pressured
- Litigation-related costs continue to impact bottom line
Revenue & Expenses
Visualization of income flow from segment revenue to net income