Commercial Metals Company (NYSE: CMC), a provider of steel and metal products primarily for the construction sector, reported its second-quarter results for fiscal 2025. The company achieved net earnings of $25.5 million, or $0.22 per diluted share, down from earnings of $85.8 million, or $0.73 per diluted share, in the same quarter of the previous year. Net sales remained stable at $1.8 billion.

For the quarter, CMC recorded after-tax charges of approximately $3.9 million primarily related to litigation expenses. Excluding these charges, adjusted earnings totaled $29.3 million, or $0.26 per diluted share, compared to adjusted earnings of $85.9 million, or $0.73 per diluted share, from the year-ago quarter.

Consolidated core EBITDA for the second quarter was $131 million, compared to $212.1 million in the prior-year period. The core EBITDA margin decreased to 7.5% from 11.5% in the prior year. The North American Steel Group reported adjusted EBITDA of $128.8 million, down 42% year-over-year, reflecting reduced margins over scrap costs.

Finished steel shipments increased by 3.3% compared to the prior year, driven by resilient North American construction demand. New project awards saw a sequential increase, reaching the second-highest volume since late fiscal 2022, contributing to a stable year-over-year backlog.

The Europe Steel Group improved its performance, reporting adjusted EBITDA of $0.8 million, a significant turnaround from a loss of $8.6 million in the previous year. This improvement was attributed to effective cost management and a $4 million rebate associated with natural gas costs.

The Emerging Businesses Group also reported gains, with net sales increasing by 1.8% year-over-year to $158.9 million and adjusted EBITDA rising 31% to $23.5 million. The segment benefitted from increased demand for performance reinforcing steel solutions.

As of February 28, 2025, the company had cash and cash equivalents totaling $758.4 million and approximately $815 million available under credit facilities, bringing total liquidity to nearly $1.6 billion. During the quarter, CMC repurchased approximately 907,000 shares for $48 million, maintaining a robust capital allocation strategy.

For the third quarter of fiscal 2025, CMC anticipates consolidated financial results to improve, with expected seasonal increases in finished steel shipments within the North America Steel Group and near-breakeven adjusted EBITDA for the Europe Steel Group. Emerging Businesses Group results are expected to surpass prior-year levels as market conditions show improvement.