Commercial Metals Co (NYSE:CMC) stock rose 2.80% (As on June 24, 11:19:29 AM UTC-4, Source: Google Finance) after the company reported third quarter earnings that missed analyst estimates, while revenue came in slightly below expectations. The steel and metal products manufacturer saw profits decline compared to the prior year period. Net income for the quarter was $83.1 million, down from $119.4 million in the same period last year. The company said steel product metal margins in North America inflected upward during the quarter, exiting at a rate above the $499 per ton average for the period. Commercial Metals’ Emerging Businesses Group saw profitability improve both sequentially and YoY, with adjusted EBITDA margin increasing to 20.7%. The Europe Steel Group exceeded breakeven on improved market fundamentals. The company said its Transform, Advance, Grow program is exceeding targeted EBITDA benefits, with initiatives expected to deliver an annual run-rate above $100 million. As of May 31, 2025, cash and cash equivalents totaled $893.0 million, with available liquidity of over $1.7 billion.
Moreover, demand for the products of North America Steel Group was solid during the quarter. Shipments of finished steel products grew by 1.6% relative to the prior year period and increased by 10.4% relative to the second quarter, reflecting normal seasonality. Downstream backlog volumes were virtually unchanged on a year-over-year basis and finished the quarter at a level that should support solid downstream shipping levels during the 2025 construction season.
CMC in the third quarter of FY25 has reported the adjusted earnings per share of 74 cents, missing the analysts’ estimates for the adjusted earnings per share of 84 cents. The company had reported the adjusted revenue of $2.02 billion in the third quarter of FY25, missing the analysts’ estimates for revenue of $2.05 billion.
Additionally, the company has declared a quarterly dividend of $0.18 per share of CMC common stock payable to stockholders of record on June 30, 2025. As of May 31, 2025, $254.9 million remained available under the current share repurchase authorization.
The adjusted EBITDA margin is expected to increase sequentially on higher steel product margins over scrap. Based on project backlogs, the company expects financial results for the Emerging Businesses Group will improve on both a sequential and year-over-year basis. Europe Steel Group will receive a CO2 credit of approximately $28 million during the fourth quarter as a result of recently signed Polish legislation that divided payments related to calendar 2024 energy cost rebates into two tranches. The company expects to receive the second tranche in the first quarter of fiscal 2026.