Commercial Metals Company (NYSE:CMC) delivered stronger-than-expected fourth-quarter results on Thursday before market open, driven by higher sales and improved profitability across its operations.
The steel and metal products manufacturer reported quarterly net sales of $2.115 billion, topping analysts’ estimates of $2.084 billion and marking a 6% increase from $2 billion in the same quarter last year.
On the earnings front, the company reported adjusted earnings of $1.37 per share, slightly above Wall Street’s forecast of $1.36 per share. The bottom-line performance represented a 63% surge from 84 cents per share a year earlier.
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Commercial Metals reported fourth-quarter net earnings of $1.35 per diluted share, which include net after-tax charges of $3.2 million related to interest expense on a judgment tied to previously disclosed litigation, an impairment charge, and an unrealized gain on undesignated commodity hedges.
The company reported consolidated core EBITDA of $291.4 million for the quarter, reflecting a core EBITDA margin of 13.8%, which improved both sequentially and year over year.
Further, the company maintained a strong balance sheet and solid liquidity position. As of August 31, 2025, cash and cash equivalents stood at $1.0 billion, with total available liquidity of approximately $1.9 billion.
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.”
North America Steel Group
Commercial Metals reported steady demand in its North America Steel Group during the fourth quarter, supported by higher shipments and improved pricing. Shipments of finished steel products rose 3% year over year and remained flat sequentially, reflecting consistent end-market demand.
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.
Adjusted EBITDA margin for the North America Steel Group was 14.8%, up from 13.0% in the fourth quarter of fiscal 2024.
The company noted higher merchant product shipments, driven by increased capacity and customer reach from its Arizona 2 micro mill, which enhanced service to West Coast markets.
Margins continued to strengthen, with steel product margins up $69 per ton sequentially. The average selling price improved by $23 per ton, while scrap costs declined by $46 per ton.
Emerging Businesses Group
In the Emerging Businesses Group (EBG), fourth-quarter net sales rose 13.4% year over year to $221.8 million 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. Adjusted EBITDA margin of 22.8% improved by 110 basis points compared to the prior year period and was the highest on record.
Improved segment profitability on a year-over-year basis was driven by record Tensar performance that benefited from solid demand and enhanced cost efficiency.
Europe Steel Group
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.
The company said its 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 adjusted EBITDA margin for the Europe Steel Group of 14.8% increased from (1.6%) in the fourth quarter of fiscal 2024.
Quarterly Dividend
Additionally, on October 15, 2025, the board of directors declared a quarterly dividend of $0.18 per share of CMC common stock, payable to shareholders of record as of October 30, 2025. The dividend will be paid on November 13, 2025.
Outlook
The company anticipates that its consolidated financial results for the first quarter of fiscal 2026 will generally be consistent with the previous quarter.
Within the North America Steel Group, finished steel shipments are projected to follow expected seasonal trends, while the adjusted EBITDA margin is expected to see a sequential increase driven by better steel product margins relative to scrap.
Conversely, the Emerging Businesses Group anticipates a sequential decline in financial results due to seasonality, though results are expected to improve year-over-year.
The Europe Steel Group will receive a $15 million CO2 credit (a decrease from the prior quarter’s $30.7 million), but excluding this credit, seasonal factors are likely to limit profitability, resulting in adjusted EBITDA being around breakeven.
Looking ahead, the strategic plan focuses on sustained enhancements to margins, earnings, and cash flow by leveraging the TAG program and integrating complementary acquisitions, including the pending deals for Foley and CP&P. The company remains confident in capitalizing on strong structural trends in the domestic construction market.
Price Action: CMC shares were trading lower by 4.46% to $57.02 at last check Thursday.
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