Commercial Metals Company (CMC) reported its financial results for the third quarter of fiscal 2025, revealing a decline in net earnings compared to the previous year. For the quarter ending May 31, 2025, CMC posted net earnings of $83.1 million, equivalent to $0.73 per diluted share. This represents a decrease from net earnings of $119.4 million, or $1.02 per diluted share, in the same period last year. The decrease in net earnings is attributed to lower margins over scrap costs, which impacted the North American Steel Group.

Adjusted earnings for the third quarter were $84.4 million, or $0.74 per diluted share, down from $119.6 million, or $1.02 per diluted share, year-over-year. The company incurred estimated net after-tax charges of approximately $1.3 million, primarily related to litigation. Consolidated core EBITDA for the quarter was reported at $204.1 million with a core EBITDA margin of 10.1%, compared to $256.1 million and a 12.3% margin in the year-ago quarter.

In terms of segment performance, the North American Steel Group’s adjusted EBITDA dropped 24% to $186 million compared to the same period last year. This segment’s adjusted EBITDA margin also fell to 11.9% from 14.7%. Notably, steel product metal margins improved sequentially, ending the quarter at $518 per ton, $19 per ton higher than the quarterly average.

Emerging Businesses Group net sales rose by 4.7% year-over-year to $197.5 million, with adjusted EBITDA increasing by 7% to $40.9 million. This segment’s adjusted EBITDA margin improved to 20.7%, reflecting strong demand for proprietary products. The Europe Steel Group reported adjusted EBITDA of $3.6 million, compared to a loss of $4.2 million in the prior year, driven by improved shipment levels and cost management.

For the quarter, CMC’s total net sales amounted to $2.0 billion, contrasting with $2.1 billion the prior year. The company’s cash and cash equivalents were $893 million, with total liquidity exceeding $1.7 billion. Capital expenditures for the third quarter stood at $89.5 million, primarily related to the Steel West Virginia micro mill project.

Looking ahead, CMC anticipates fourth-quarter consolidated financial results will improve relative to the third quarter, supported by normalized seasonal trends in finished steel shipments and expanding adjusted EBITDA margins, particularly within the North American Steel Group. The company has adjusted its fiscal 2025 capital spending outlook to Expect between $425 million and $475 million, down from prior guidance of $550 million to $600 million due to construction delays and tax credit assessments.

During the quarter, CMC returned $71 million to shareholders through share repurchases, acquiring approximately 1.1 million shares at an average price of $45.30. Following these repurchases, $254.9 million remains available under the current authorization. The company declared a quarterly dividend of $0.18 per share, which is set to be paid to stockholders on July 9, 2025, marking the 243rd consecutive quarterly dividend payment.