CMC REPORTS FOURTH QUARTER AND FULL YEAR FISCAL 2025 RESULTS

Rhea-AI Summary

Commercial Metals Company (NYSE: CMC) reported fiscal Q4 net earnings of $151.8M (or $1.35/sh) and adjusted earnings of $155.0M (or $1.37/sh) on net sales of $2.1B. Consolidated core EBITDA for Q4 was $291.4M with a core EBITDA margin of 13.8%. North America steel margins expanded sequentially; Emerging Businesses Group posted record quarterly results led by Tensar; Arizona 2 micro mill generated positive adjusted EBITDA. Full-year net earnings were $84.7M (incl. an after-tax litigation charge of ~$274M). Cash and equivalents were $1.0B and available liquidity ~$1.9B. The board declared a quarterly dividend of $0.18 per share.

Positive

• Q4 adjusted earnings of $155.0M
• Consolidated core EBITDA of $291.4M (13.8% margin)
• North America adjusted EBITDA up 18.0% YoY to $239.4M
• EBG net sales +13.4% YoY and record Tensar performance
• Cash and equivalents of $1.0B and available liquidity ~ $1.9B
• Share buybacks of $50.0M in Q4

Negative

• Full-year net earnings reduced by an after-tax litigation charge of ~ $274M
• Full-year net earnings of $84.7M vs prior-year $485.5M
• Downstream backlog down mid-single digits YoY due to commercial selectivity
• Europe Q4 improvement included a one-time $30.7M CO2 credit

Insights

Corporate Finance Analyst

CMC reported stronger fourth-quarter results but fiscal 2025 was weighed down by a large litigation charge; liquidity and operational metrics remain sturdy.

Fourth-quarter performance shows clear sequential and year-over-year improvement: net earnings of $151.8 million ($1.35 per diluted share) and adjusted earnings of $155.0 million ($1.37 per diluted share), with consolidated core EBITDA of $291.4 million and a core EBITDA margin of 13.8%. The North America Steel Group and Emerging Businesses Group both expanded margins and adjusted EBITDA, and the Arizona 2 micro mill generated positive adjusted EBITDA, demonstrating operating leverage across segments.

Material risks and dependencies remain explicit: full-year net earnings fell to $84.7 million from $485.5 million last year due to an after-tax litigation charge of ~$274 million. The company expects Q1 fiscal 2026 results broadly consistent with Q4, and the Europe Steel Group will receive a ~$15 million CO2 credit in Q1, less than the Q4 $30.7 million credit. Cash, liquidity, buybacks, and dividend continuity support financial flexibility: $1.0 billion cash, ~$1.9 billion available liquidity, $50.0 million of repurchases in the quarter, and a quarterly dividend of $0.18 per share.

Watch near term: integration progress and regulatory clearances for the pending Foley and CP&P acquisitions, sequential margin trends in North America and Europe, and whether litigation-related charges remain fully resolved; monitor results across the first two fiscal quarters of fiscal 2026 for confirmation of margin sustainability.

• Fourth quarter net earnings of $151.8 million, or $1.35 per diluted share and adjusted earnings of $155.0 million, or $1.37 per diluted share
• Consolidated core EBITDA of $291.4 million in the fourth quarter, resulting in core EBITDA margin of 13.8%, up sequentially and year-over-year
• North American steel product metal margins continued to expand steadily during the fourth quarter, setting the stage for a strong start to fiscal 2026
• Emerging Businesses Group ("EBG") delivered its best-ever quarterly results, driven by record Tensar performance
• Arizona 2 micro mill generated positive adjusted EBITDA during the fourth quarter
• Transform, Advance, and Grow ("TAG") program exceeded expectations in fiscal year 2025 with substantial additional opportunities ahead

IRVING, Texas, Oct. 16, 2025/PRNewswire/ -- Commercial Metals Company (NYSE: CMC) today announced financial results for its fiscal fourth quarter and fiscal year ended August 31, 2025.

Peter Matt, President and Chief Executive Officer, commented, "Fiscal 2025 was a pivotal year for CMC as we laid the groundwork of our transformative strategy, which we believe will position our Company for years of value-accretive growth going forward. During fiscal 2025, we invested in the safety and development of our people, began execution of – and outperformed on – our TAG operational and commercial excellence commitments, and made meaningful progress on our micro mill investments. Additionally, after our year-end, we announced our pending acquisitions of Foley Products Company ("Foley") and Concrete Pipe & Precast ("CP&P"), which will establish a powerful new growth platform and broaden our commercial portfolio to create additional value for our people, our customers, and our shareholders. I am pleased with the progress made by the CMC team to-date and remain very confident that we will deliver meaningful and sustained enhancements to our margins, earnings, cash flows, and returns on capital over the long-term."

Mr. Matt added, "Looking at the fourth quarter, we achieved substantial improvement in our financial results both sequentially and year-over-year, underpinned by supportive market conditions across each of our segments, including the continuation of margin recovery within the North America Steel Group, solid demand for our proprietary value added products offered by the Emerging Businesses Group, and improving levels of long steel consumption in the geographies served by our Europe Steel Group. Activity within the domestic construction market remained resilient, as demonstrated by our healthy shipment levels of steel products, downstream products, and several EBG solutions, including geogrid and corrosion resistant reinforcing steel. Signs of new work in the construction pipeline continue to be encouraging with CMC's bid volumes, as well as key external indicators, pointing to pent-up demand. Looking ahead, we are hopeful that the Fed interest rate reduction cycle that began last month will spur the conversion of some of the pent-up demand to real activity during fiscal 2026. Longer-term, we remain confident in the outlook for construction and are poised to benefit from powerful structural trends within our key end markets."

Fourth quarter net earnings were $151.8 million, or $1.35 per diluted share, on net sales of $2.1 billion, compared to prior year period net earnings of $103.9 million, or $0.90 per diluted share, on net sales of $2.0 billion.

For the full fiscal 2025, CMC reported net earnings of $84.7 million, or $0.74 per diluted share, on net sales of $7.8 billion compared to prior year net earnings of $485.5 million, or $4.14 per diluted share, on net sales of $7.9 billion. Included in fiscal 2025 net earnings is an after-tax charge of approximately $274 million related to previously disclosed litigation.

During the fourth quarter of fiscal 2025, the Company recorded net after-tax charges of $3.2 million, related to interest expense on the judgment amount associated with previously disclosed litigation, an impairment charge, and an unrealized gain on undesignated commodity hedges. Excluding these charges, fourth quarter adjusted earnings were $155.0 million, or $1.37 per diluted share, compared to adjusted earnings of $97.4 million, or $0.84 per diluted share, in the prior year period. During fiscal year 2025, the Company recorded estimated net after-tax charges of $274 million to reflect the judgment amount and related interest costs associated with the previously disclosed Pacific Steel Group litigation. "Adjusted EBITDA," "core EBITDA," "core EBITDA margin," "adjusted earnings" and "adjusted earnings per diluted share" are non-GAAP financial measures. Details, including a reconciliation of each such non-GAAP financial measure to the most directly comparable measure prepared and presented in accordance with GAAP, can be found in the financial tables that follow.

The Company's balance sheet and liquidity position remained strong. As of August 31, 2025, cash and cash equivalents totaled $1.0 billion and available liquidity was nearly $1.9 billion. During the quarter, CMC repurchased 974,462 shares of common stock valued at $50.0 million in the aggregate. As of August 31, 2025, $205.0 million remained available under the current share repurchase authorization.

On October 15, 2025, the board of directors declared a quarterly dividend of $0.18 per share of CMC common stock payable to stockholders of record on October 30, 2025. The dividend, to be paid on November 13, 2025, marks the 244^th consecutive quarterly payment by the Company.

Business Segments - Fiscal Fourth Quarter 2025 Review
North America Steel Group product demand remained stable during the quarter. Shipments of finished steel products grew by 3.0% relative to the prior year period and were unchanged relative to the third quarter. The pipeline of potential future construction projects remained healthy as indicated by CMC's downstream bidding activity and the record level of the Dodge Momentum Index, which measures the value of projects entering the planning phase. Downstream backlog volumes declined by a mid-single digit percentage year-over-year due to more disciplined commercial selectivity relating to project margin goals and risk profile. The backlog remains well-sized by historical standards and is positioned to support steel shipments over the coming quarters. Shipments of merchant products grew compared to the fourth quarter of fiscal 2024 as CMC increased its ability to serve West Coast customers from the Arizona 2 micro mill.

Margins on steel products maintained an upward trajectory during the quarter, increasing by $69 per ton on a sequential basis. Compared to the third quarter, the average selling price for steel products improved by $23 per ton, while scrap costs declined by $46 per ton. Price levels increased throughout the quarter, with steel product metal margins exiting the fourth quarter approximately $31 per ton above the average for the period.

Adjusted EBITDA for the North America Steel Group increased 18.0% to $239.4 million in the fourth quarter of fiscal 2025 from $202.9 million in the prior year period and by 33.1% compared to $179.9 million in the third quarter. The year-over-year improvement was driven by higher margins over scrap costs on steel products as well as positive contributions from CMC's TAG program, partially offset by lower margins over scrap on downstream products. TAG benefits during the fourth quarter reflect solid execution across a number of ongoing initiatives, including melt shop and rolling mill yield enhancement, scrap cost optimization, logistics optimization and reduced alloy consumption. Adjusted EBITDA margin for the North America Steel Group was 14.8%, up from 13.0% in the fourth quarter of fiscal 2024.

EBG fourth quarter net sales of $221.8 million increased by 13.4% compared to the prior year period and 12.3% from the third quarter. Adjusted EBITDA for the segment of $50.6 million was up 19.1% year-over-year and 23.8% sequentially. Improved segment profitability on a year-over-year basis was driven by record Tensar performance that benefited from solid demand and enhanced cost efficiency. Financial results for CMC Construction Services, CMC Impact Metals, and Performance Reinforcing Steel ("PRS") also improved on a year-over-year basis. Net sales and margins within CMC Construction Services benefited from initiatives to standardize commercial practices and grow store traffic, while strong project-related demand continued to propel PRS performance. Indications of future market conditions remained encouraging with project quotes and new planning activity at healthy levels. Adjusted EBITDA margin of 22.8% improved by 110 basis points compared to the prior year period and was the highest on record.

Market conditions for the Europe Steel Group improved modestly from the third quarter. Demand continued to normalize as a result of solid Polish economic growth, while on the supply side, import flows ticked up slightly from recent levels, but remained well below the disruptive levels of a year ago. Metal margin expanded by $24 per ton sequentially in the fourth quarter, driven by a $5 per ton increase in average selling price and a $19 per ton decline in scrap costs. Financial results continued to benefit from an extensive cost management program that has meaningfully reduced controllable costs.

Adjusted EBITDA for the Europe Steel Group increased to $39.1 million in the fourth quarter of fiscal 2025 from a loss of $3.6 million in the prior year period and positive adjusted EBITDA of $3.6 million in the third quarter. The year-over-year improvement was driven by the receipt of a $30.7 million CO₂ credit, as well as higher metal margins, increased shipment volumes, and strong cost performance. The adjusted EBITDA margin for the Europe Steel Group of 14.8% increased from (1.6%) in the fourth quarter of fiscal 2024.

Outlook
Mr. Matt said, "We expect consolidated financial results in the first quarter of fiscal 2026 to be generally consistent with those of the fourth quarter. Finished steel shipments within the North America Steel Group are anticipated to follow normal seasonal trends, while our adjusted EBITDA margin is expected to increase sequentially on higher steel product margins over scrap. While we expect financial results for the Emerging Businesses Group to decline on a sequential basis due to seasonality, we believe they will improve year-over-year. Our Europe Steel Group will receive the second tranche of the annual CO₂ credit in the amount of approximately $15 million during the first quarter, but less than the $30.7 million recovered during the fourth quarter of fiscal 2025. Excluding this credit, adjusted EBITDA for our Europe Steel Group is likely to be around breakeven as seasonal factors weigh on profitability." 

Mr. Matt concluded, "As we enter fiscal 2026, I continue to be enthusiastic about the long-term outlook for our company and our ability to create significant value for our shareholders. We remain focused on executing against our strategic plan, which we expect to deliver meaningful and sustained enhancements to our margins, earnings, cash flow generation, and return on capital. We will achieve these results by leveraging our TAG operational and commercial excellence program to get more out of our existing enterprise, continuing to drive value-accretive organic growth projects, and adding complementary early-stage construction solutions that customers value, including the new growth platform that will be provided by our pending acquisitions of Foley and CP&P. We are confident these efforts will position CMC to take full advantage of powerful structural trends in the domestic construction market for years to come."

Conference Call
CMC invites you to listen to a live broadcast of its fourth quarter fiscal 2025 conference call today, Thursday, October 16, 2025, at 11:00 a.m. ET. Peter Matt, President and Chief Executive Officer, and Paul Lawrence, Senior Vice President and Chief Financial Officer, will host the call. The call is accessible via our website at www.cmc.com. In the event you are unable to listen to the live broadcast, the call will be archived and available for replay on our website on the next business day. Financial and statistical information presented in the broadcast are located on CMC's website under "Investors."

About CMC
CMC is an innovative solutions provider helping build a stronger, safer, and more sustainable world. Through an extensive manufacturing network principally located in the United States and Central Europe, we offer products and technologies to meet the critical reinforcement needs of the global construction sector. CMC's solutions support early-stage construction across a wide variety of applications, including infrastructure, non-residential, residential, industrial, and energy generation and transmission.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws with respect to the proposed acquisitions of CP&P and Foley and the timing thereof, the ability to obtain regulatory approvals and meet other closing conditions for the proposed acquisitions, the expected benefits of the proposed acquisitions, general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade actions, the effects of continued pressure on the liquidity of our customers, potential synergies and growth provided by acquisitions and strategic investments, demand for our products, shipment volumes, metal margins, the ability to operate our steel mills at full capacity, particularly during periods of domestic mill start-ups, the future availability and cost of supplies of raw materials and energy for our operations, growth rates in certain reportable segments, product margins within our Emerging Businesses Group segment, share repurchases, legal proceedings, construction activity, international trade, the impact of geopolitical conditions, capital expenditures, tax credits, our liquidity and our ability to satisfy future liquidity requirements, estimated contractual obligations, the expected capabilities and benefits of new facilities, the anticipated benefits and timeline for execution of our growth plan and initiatives, including our TAG operational and commercial excellence program, and our expectations or beliefs concerning future events. The statements in this release that are not historical statements, are forward-looking statements. These forward-looking statements can generally be identified by phrases such as we or our management "expects," "anticipates," "believes," "estimates," "future," "intends," "may," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "forecasts," "outlook" or other similar words or phrases, as well as by discussions of strategy, plans or intentions.

The Company's forward-looking statements are based on management's expectations and beliefs as of the time this news release was prepared. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in our filings with the Securities and Exchange Commission, including, but not limited to, in Part I, Item 1A, "Risk Factors" of our annual report on Form 10-K for the fiscal year ended August 31, 2024, and Part II, Item 1A, "Risk Factors" of our subsequent quarterly reports on Form 10-Q, as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of downstream contracts within our vertically integrated steel operations due to rising commodity pricing; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; the impact of additional steelmaking capacity expected to come online from a number of ongoing EAF projects in the U.S.; the impact of geopolitical conditions, including political turmoil and volatility, regional conflicts, terrorism and war on the global economy, inflation, energy supplies and raw materials; increased attention to environmental, social and governance ("ESG") matters, including any targets or other ESG, environmental justice or regulatory initiatives; operating and startup risks, as well as market risks associated with the commissioning of new projects could prevent us from realizing anticipated benefits and could result in a loss of all or a substantial part of our investments; impacts from global public health crises on the economy, demand for our products, global supply chain and on our operations; compliance with and changes in existing and future laws, regulations and other legal requirements and judicial decisions that govern our business, including increased environmental regulations associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; evolving remediation technology, changing regulations, possible third-party contributions, the inherent uncertainties of the estimation process and other factors that may impact amounts accrued for environmental liabilities; potential limitations in our or our customers' abilities to access credit and non-compliance with their contractual obligations, including payment obligations; activity in repurchasing shares of our common stock under our share repurchase program; financial and non-financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate and integrate acquisitions and realize any or all of the anticipated synergies or other benefits of acquisitions; the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third-party consents and approvals; lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; the impact of goodwill or other indefinite-lived intangible asset impairment charges; the impact of long-lived asset impairment charges; currency fluctuations; global factors, such as trade measures, military conflicts and political uncertainties, including changes to current trade regulations, such as Section 232 trade tariffs and quotas, tax legislation and other regulations which might adversely impact our business; availability and pricing of electricity, electrodes and natural gas for mill operations; our ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; our ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks, including those related to the Pacific Steel Group litigation and other legal proceedings; risk of injury or death to employees, customers or other visitors to our operations; and civil unrest, protests and riots.

 

COMMERCIAL METALS COMPANY AND SUBSIDIARIES FINANCIAL & OPERATING STATISTICS (UNAUDITED)
		Three Months Ended										Year Ended
(in thousands, except per ton amounts)		8/31/2025		5/31/2025		2/28/2025		11/30/2024		8/31/2024		8/31/2025		8/31/2024
North America Steel Group
Net sales to external customers		$ 1,616,078		$ 1,562,286		$ 1,386,848		$ 1,518,637		$ 1,559,520		$  6,083,849		$  6,309,730
Adjusted EBITDA		239,416		179,936		136,954		186,179		202,865		742,485		944,388
Adjusted EBITDA margin		14.8 %		11.5 %		9.9 %		12.3 %		13.0 %		12.2 %		15.0 %
External tons shipped
Raw materials		374		385		312		339		360		1,410		1,452
Rebar		544		534		503		549		522		2,130		2,024
Merchant bar and other		244		264		243		241		237		992		945
Steel products		788		798		746		790		759		3,122		2,969
Downstream products		366		355		298		356		361		1,375		1,394
Average selling price per ton
Raw materials		$           881		$           809		$           956		$           874		$           866		$           876		$           874
Steel products		882		859		814		812		843		842		882
Downstream products		1,214		1,212		1,221		1,259		1,311		1,226		1,346
Cost of raw materials per ton		$           649		$           617		$           713		$           677		$           664		$           661		$           654
Cost of ferrous scrap utilized per ton		$           314		$           360		$           338		$           323		$           321		$           333		$           348
Steel products metal margin per ton		$           568		$           499		$           476		$           489		$           522		$           509		$           534
Emerging Businesses Group
Net sales to external customers		$   221,753		$   197,454		$   158,864		$   169,415		$   195,571		$  747,486		$  717,397
Adjusted EBITDA		50,630		40,912		23,519		22,660		42,519		137,721		129,530
Adjusted EBITDA margin		22.8 %		20.7 %		14.8 %		13.4 %		21.7 %		18.4 %		18.1 %
Europe Steel Group
Net sales to external customers		$   263,294		$   247,590		$   198,029		$   209,407		$   222,085		$   918,320		$   848,566
Adjusted EBITDA		39,098		3,593		752		25,839		(3,622)		69,282		22,517
Adjusted EBITDA margin		14.8 %		1.5 %		0.4 %		12.3 %		(1.6) %		7.5 %		2.7 %
External tons shipped
Rebar		117		88		100		107		98		412		364
Merchant bar and other		257		271		210		206		221		944		870
Steel products		374		359		310		313		319		1,356		1,234
Average selling price per ton
Steel products		$           668		$           663		$           612		$           639		$           667		$          647		$           663
Cost of ferrous scrap utilized per ton		$           351		$           370		$           337		$           370		$           383		$          357		$           383
Steel products metal margin per ton		$           317		$           293		$           275		$           269		$           284		$          290		$           280

 

COMMERCIAL METALS COMPANY AND SUBSIDIARIES BUSINESS SEGMENTS (UNAUDITED)
		Three Months Ended										Year Ended
(in thousands)		8/31/2025		5/31/2025		2/28/2025		11/30/2024		8/31/2024		8/31/2025		8/31/2024
Net sales to external customers
North America Steel Group		$ 1,616,078		$ 1,562,286		$ 1,386,848		$ 1,518,637		$ 1,559,520		$ 6,083,849		$ 6,309,730
Emerging Businesses Group		221,753		197,454		158,864		169,415		195,571		747,486		717,397
Europe Steel Group		263,294		247,590		198,029		209,407		222,085		918,320		848,566
Corporate and Other		13,393		12,654		10,635		12,143		18,973		48,825		50,279
Total net sales to external customers		$ 2,114,518		$ 2,019,984		$ 1,754,376		$ 1,909,602		$ 1,996,149		$ 7,798,480		$ 7,925,972
Adjusted EBITDA
North America Steel Group		$    239,416		$    179,936		$    136,954		$    186,179		$    202,865		$    742,485		$    944,388
Emerging Businesses Group		50,630		40,912		23,519		22,660		42,519		137,721		129,530
Europe Steel Group		39,098		3,593		752		25,839		(3,622)		69,282		22,517
Corporate and Other		(50,716)		(36,952)		(34,852)		(386,245)		(25,189)		(508,765)		(127,758)
Total adjusted EBITDA		$    278,428		$    187,489		$    126,373		$  (151,567)		$    216,573		$    440,723		$    968,677

 

COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED  STATEMENTS OF EARNINGS (UNAUDITED)
		Three Months Ended August 31,				Year Ended August 31,
(in thousands, except share and per share data)		2025		2024		2025		2024
Net sales		$       2,114,518		$         1,996,149		$        7,798,480		$          7,925,972
Costs and operating expenses:
Cost of goods sold		1,721,710		1,673,087		6,578,324		6,567,287
Selling, general and administrative expenses		180,218		170,612		700,234		668,413
Interest expense		12,145		12,142		45,498		47,893
Litigation expense		3,776		—		362,272		—
Asset impairments		3,436		6,558		4,607		6,708
Net costs and operating expenses		1,921,285		1,862,399		7,690,935		7,290,301
Earnings before income taxes		193,233		133,750		107,545		635,671
Income tax expense		41,452		29,819		22,883		150,180
Net earnings		$           151,781		$            103,931		$             84,662		$             485,491
Earnings per share:
Basic		$                 1.36		$                   0.91		$                  0.75		$                    4.19
Diluted		1.35		0.90		0.74		4.14
Cash dividends per share		$                 0.18		$                   0.18		$                  0.72		$                    0.68
Average basic shares outstanding		111,677,574		114,703,599		112,994,381		115,844,977
Average diluted shares outstanding		112,705,122		115,931,570		114,086,750		117,152,552

 

COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share data)		August 31, 2025		August 31, 2024
Assets
Current assets:
Cash and cash equivalents		$        1,043,252		$           857,922
Accounts receivable (less allowance for doubtful accounts of $3,186 and $3,494)		1,201,680		1,158,946
Inventories		934,310		971,755
Prepaid and other current assets		314,372		285,489
Assets held for sale		1,204		18,656
Total current assets		3,494,818		3,292,768
Property, plant and equipment:
Land		170,823		165,674
Buildings and improvements		1,206,672		1,166,788
Equipment		3,477,813		3,317,537
Construction in process		449,616		261,321
		5,304,924		4,911,320
Less accumulated depreciation and amortization		(2,562,151)		(2,334,184)
Property, plant and equipment, net		2,742,773		2,577,136
Intangible assets, net		210,815		234,869
Goodwill		386,846		385,630
Other noncurrent assets		336,582		327,436
Total assets		$        7,171,834		$        6,817,839
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$           358,373		$           350,550
Accrued contingent litigation-related loss		362,272		—
Other accrued expenses and payables		493,879		445,514
Current maturities of long-term debt		44,289		38,786
Total current liabilities		1,258,813		834,850
Deferred income taxes		184,645		276,908
Other noncurrent liabilities		225,044		255,222
Long-term debt		1,310,006		1,150,835
Total liabilities		2,978,508		2,517,815
Stockholders' equity:
Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued      129,060,664 shares; outstanding 111,189,136 and 114,104,057 shares		1,290		1,290
Additional paid-in capital		406,916		407,232
Accumulated other comprehensive loss		(25,251)		(85,952)
Retained earnings		4,507,114		4,503,885
Less treasury stock, 17,871,528 and 14,956,607 shares at cost		(697,003)		(526,679)
Stockholders' equity		4,193,066		4,299,776
Stockholders' equity attributable to non-controlling interests		260		248
Total stockholders' equity		4,193,326		4,300,024
Total liabilities and stockholders' equity		$        7,171,834		$        6,817,839

 

COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED  STATEMENTS OF CASH FLOWS (UNAUDITED)
		Year Ended August 31,
(in thousands)		2025		2024
Cash flows from (used by) operating activities:
Net earnings		$               84,662		$             485,491
Adjustments to reconcile net earnings to net cash flows from operating activities:
Depreciation and amortization		285,877		280,367
Stock-based compensation		37,053		45,066
Deferred income taxes and other long-term taxes		(98,304)		(15,319)
Write-down of inventory		2,473		5,098
Unrealized gain on undesignated commodity hedges		(2,804)		(1,962)
Asset impairments		4,607		6,708
Net loss on sales of assets		1,827		3,321
Litigation expense		362,272		—
Settlement of New Markets Tax Credit transactions		(2,786)		(6,748)
Other		1,644		3,553
Changes in operating assets and liabilities		38,549		94,133
Net cash flows from operating activities		715,070		899,708
Cash flows from (used by) investing activities:
Capital expenditures		(402,821)		(324,271)
Proceeds from government assistance related to property, plant and equipment		50,000		—
Proceeds from insurance		2,237		—
Proceeds from the sale of property, plant and equipment		5,758		756
Other		(1,946)		513
Net cash flows used by investing activities		(346,772)		(323,002)
Cash flows from (used by) financing activities:
Proceeds from issuance of long-term debt, net		147,724		—
Repayments of long-term debt		(41,480)		(36,346)
Debt issuance and extinguishment		(622)		—
Proceeds from accounts receivable facilities		35,979		175,322
Repayments under accounts receivable facilities		(35,979)		(183,347)
Treasury stock acquired		(198,822)		(182,932)
Tax withholdings related to share settlements, net of purchase plans		(8,823)		(7,595)
Dividends		(81,433)		(78,868)
Contribution from non-controlling interest		12		7
Net cash flows used by financing activities		(183,444)		(313,759)
Effect of exchange rate changes on cash		1,495		891
Increase in cash and cash equivalents		186,349		263,838
Cash, restricted cash and cash equivalents at beginning of period		859,555		595,717
Cash, restricted cash and cash equivalents at end of period		$          1,045,904		$             859,555
Supplemental information:
Cash paid for income taxes		$             116,161		$             158,455
Cash paid for interest		51,078		49,463
Cash and cash equivalents		$          1,043,252		$             857,922
Restricted cash		2,652		1,633
Total cash, restricted cash and cash equivalents		$          1,045,904		$             859,555

 

COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL MEASURES (UNAUDITED)

This press release contains financial measures not derived in accordance with U.S. generally accepted accounting principles ("GAAP"). Reconciliations to the most comparable GAAP measure are provided below.

Adjusted EBITDA, core EBITDA, core EBITDA margin and adjusted earnings are non-GAAP financial measures. Adjusted earnings per diluted share is defined as adjusted earnings on a diluted per share basis. Core EBITDA margin is defined as core EBITDA divided by net sales. The adjustment "Settlement of New Markets Tax Credit transactions" represents the recognition of deferred revenue from 2016 and 2017 resulting from the Company's participation in the New Markets Tax Credit program provided for in the Community Renewal Tax Relief Act of 2000 during the development of a micro mill, spooler and T-post shop located in eligible zones as determined by the Internal Revenue Service. The adjustment "Litigation expense" represents a provision recorded in the three months ended November 30, 2024 related to the judgment in the Pacific Steel Group litigation and, with respect to subsequent periods, interest expense on the judgment amount.

During the fourth fiscal quarter of 2025, the Company modified its method of calculating adjusted EBITDA to exclude the impact of unrealized gains and losses on undesignated commodity derivatives. This change was primarily driven by heightened volatility in copper forward markets, which introduced significant non-cash fluctuations unrelated to core operations. By removing this volatility, the revised metric provides a more representative view of operating performance and cash-generating capability. Accordingly, the Company evaluated the impact of this change on prior-period disclosures and has recast adjusted EBITDA, core EBITDA, core EBITDA margin, adjusted earnings and adjusted earnings per diluted share for all periods presented in this press release to conform to this presentation.

Non-GAAP financial measures should be viewed in addition to, and not as alternatives to, the most directly comparable measures derived in accordance with GAAP and may not be comparable to similar measures presented by other companies. However, we believe that the non-GAAP financial measures provide relevant and useful information to management, investors, analysts, creditors and other interested parties in our industry as they allow: (i) comparison of our earnings to those of our competitors; (ii) a supplemental measure of our underlying business operational performance; and (iii) the assessment of period-to-period performance trends. Management uses non-GAAP financial measures to evaluate financial performance.

A reconciliation of net earnings (loss) to adjusted EBITDA and core EBITDA is provided below:

		Three Months Ended										Year Ended
(in thousands)		8/31/2025		5/31/2025		2/28/2025		11/30/2024		8/31/2024		8/31/2025		8/31/2024
Net earnings (loss)		$  151,781		$    83,126		$    25,473		$              (175,718)		$  103,931		$     84,662		$  485,491
Interest expense		12,145		10,864		11,167		11,322		12,142		45,498		47,893
Income tax expense (benefit)		41,452		26,386		10,627		(55,582)		29,819		22,883		150,180
Depreciation and amortization		72,480		72,376		70,584		70,437		72,190		285,877		280,367
Asset impairments		3,436		785		386		—		6,558		4,607		6,708
Unrealized (gain) loss on undesignated commodity hedges		(2,866)		(6,048)		8,136		(2,026)		(8,067)		(2,804)		(1,962)
Adjusted EBITDA		278,428		187,489		126,373		(151,567)		216,573		440,723		968,677
Non-cash equity compensation		9,237		9,546		8,038		10,232		9,173		37,053		45,066
Settlement of New Markets Tax Credit transactions		—		(2,786)		—		—		(6,748)		(2,786)		(6,748)
Litigation expense		3,776		3,776		4,720		350,000		—		362,272		—
Core EBITDA		$  291,441		$  198,025		$  139,131		$  208,665		$  218,998		$   837,262		$  1,006,995
Net sales		$  2,114,518		$  2,019,984		$  1,754,376		$  1,909,602		$  1,996,149		$  7,798,480		$  7,925,972
Core EBITDA margin		13.8 %		9.8 %		7.9 %		10.9 %		11.0 %		10.7 %		12.7 %

 

A reconciliation of net earnings (loss) to adjusted earnings is provided below:

		Three Months Ended										Year Ended
(in thousands, except per share data)		8/31/2025		5/31/2025		2/28/2025		11/30/2024		8/31/2024		8/31/2025		8/31/2024
Net earnings (loss)		$ 151,781		$   83,126		$   25,473		$  (175,718)		$ 103,931		$   84,662		$ 485,491
Asset impairments		3,436		785		386		—		6,558		4,607		6,708
Settlement of New Markets Tax Credit transactions		—		(2,786)		—		—		(6,748)		(2,786)		(6,748)
Litigation expense		3,776		3,776		4,720		350,000		—		362,272		—
Unrealized (gain) loss on undesignated commodity hedges		(2,866)		(6,048)		8,136		(2,026)		(8,067)		(2,804)		(1,962)
Total adjustments (pre-tax)		$     4,346		$   (4,273)		$   13,242		$ 347,974		$   (8,257)		$ 361,289		$   (2,002)
Related tax effects on adjustments		(1,162)		765		(2,946)		(85,325)		1,734		(88,668)		420
Adjusted earnings		$ 154,965		$   79,618		$   35,769		$   86,931		$   97,408		$ 357,283		$ 483,909
Net earnings (loss) per diluted share(1)		$        1.35		$        0.73		$        0.22		$      (1.54)		$        0.90		$        0.74		$        4.14
Adjusted earnings per diluted share(1)		$        1.37		$        0.70		$        0.31		$        0.76		$        0.84		$        3.13		$        4.13

__________________________________
(1)	Net earnings (loss) per diluted share and adjusted earnings per diluted share are calculated independently for each three month period and may not sum to the year to date period due to rounding.

 

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SOURCE Commercial Metals Company

FAQ

What were CMC (NYSE: CMC) fiscal Q4 2025 earnings and adjusted EPS?

CMC reported Q4 fiscal 2025 net earnings of $151.8M (or $1.35 per diluted share) and adjusted earnings of $155.0M (or $1.37 per diluted share).

How large was CMC's consolidated core EBITDA and margin in Q4 fiscal 2025?

Consolidated core EBITDA was $291.4M with a core EBITDA margin of 13.8% in Q4.

What impact did litigation have on CMC's full-year fiscal 2025 results (CMC)?

Fiscal 2025 included an estimated after-tax charge of approximately $274M related to previously disclosed litigation, which materially reduced full-year net earnings.

How much cash and liquidity did CMC report as of August 31, 2025 (CMC)?

As of August 31, 2025, CMC had $1.0B in cash and cash equivalents and nearly $1.9B of available liquidity.

Did CMC return capital to shareholders in Q4 fiscal 2025 (CMC)?

Yes. CMC repurchased 974,462 shares totaling $50.0M in the quarter and the board declared a quarterly dividend of $0.18 per share.

What drove Emerging Businesses Group performance in Q4 for CMC (CMC)?

EBG's Q4 performance was driven by record Tensar results plus improved results at CMC Construction Services, CMC Impact Metals, and Performance Reinforcing Steel, lifting EBG adjusted EBITDA.

What is CMC's near-term outlook for Q1 fiscal 2026 (CMC)?

CMC expects Q1 fiscal 2026 results generally consistent with Q4, with seasonal shipments and higher adjusted EBITDA margin in North America; Europe excluding a ~ $15M CO2 tranche is expected near breakeven.