• Commercial Metals Company (NYSE:CMC) reported earnings per share (EPS) of $0.78 (adjusted EPS which excluded the $265 million after-tax litigation expense), missing the estimated $0.83 but generated revenue of approximately $1.91 billion, surpassing the estimated $1.83 billion.
• The company faced a net loss of $175.7 million due to a $265 million litigation expense, contrasting sharply with the previous year's net earnings of $176.3 million.
• CMC's consolidated core EBITDA for the quarter was $210.7 million, with a core EBITDA margin of 11.0%, and generated $213 million in cash flow from operating activities.

Commercial Metals Company (NYSE:CMC) is a prominent player in the steel and metal industry, known for its production and recycling of steel and metal products. The company operates in North America and Europe, providing a range of products including rebar, wire rod, and merchant bar. CMC competes with other industry giants like Nucor Corporation and Steel Dynamics.

On January 6, 2025, CMC reported earnings per share (EPS) of $0.78 (adjusted EPS which excluded the $265 million after-tax litigation expense), which fell short of the estimated $0.83. Despite this, the company generated revenue of approximately $1.91 billion, surpassing the estimated $1.83 billion. This performance aligns with the Zacks Consensus Estimate, although it marks a significant decrease from the previous year's EPS of $1.63.

The company's first-quarter fiscal 2025 results revealed a net loss of $175.7 million, or $1.54 per diluted share, primarily due to a $265 million litigation expense. In contrast, the previous year's first quarter saw net earnings of $176.3 million, or $1.49 per diluted share. Despite the loss, CMC achieved adjusted earnings of $88.5 million, or $0.78 per diluted share.

CMC's consolidated core EBITDA for the quarter was $210.7 million, with a core EBITDA margin of 11.0%. Late-season construction activity contributed to growth in North American finished steel shipment volumes, although margins were pressured by declines in average steel and downstream product pricing. The North American downstream backlog volumes remained stable, with a strong pipeline for future projects.

The company generated $213 million in cash flow from operating activities, equaling 101% of its consolidated core EBITDA. CMC returned $71 million to shareholders through dividends and share buybacks. The company continues to focus on its strategic growth plan, including organic growth investments and its "TAG" program, which is expected to yield financial benefits in fiscal 2025.