Overview
Steel solutions provider's fiscal Q1 revenue beat analyst expectations
Adjusted EPS for fiscal Q1 beat analyst expectations
Company completed acquisitions of CP&P and Foley, expanding precast concrete footprint
Outlook
Commercial Metals expects Q2 core EBITDA to decline modestly due to seasonal slowdown
Company anticipates North America Steel Group EBITDA lower due to seasonal trends
Construction Solutions Group financial results should improve with precast business contributions
Result Drivers
FAVORABLE MARKET CONDITIONS - CMC capitalized on stable demand and expanding margins in North America Steel Group, with increased steel product margins and higher average selling prices
STRATEGIC INITIATIVES - CMC's TAG program and acquisitions of CP&P and Foley contributed to improved financial performance, establishing a new growth platform in precast concrete
CONSTRUCTION SOLUTIONS GROWTH - CSG saw significant growth driven by strong demand, cost efficiency, and targeted commercial initiatives, especially in the Tensar division
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $2.12 bln | $2.06 bln (7 Analysts) |
Q1 Adjusted EPS | Beat | $1.84 | $1.56 (9 Analysts) |
Q1 EPS | $1.58 | ||
Q1 Adjusted Net Income | Beat | $206.2 mln | $176.93 mln (4 Analysts) |
Q1 Net Income | $177.3 mln | ||
Q1 Adjusted EBITDA | Beat | $316.9 mln | $295.77 mln (9 Analysts) |
Q1 Adjusted EBITDA Margin | 14.90% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy"
Wall Street's median 12-month price target for Commercial Metals Co is $69.00, about 5.8% below its January 7 closing price of $73.22
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release: ID:nPn8CMlTla
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
