Overview
- Commercial Metals, which reported fiscal Q2 results Thursday, posted $2.1 billion in revenue, $93 million in net income, $297.5 million in core EBITDA and a 14.0% core EBITDA margin.
- North America steel profits rose on a $147-per-ton improvement in metal margins and higher selling prices, lifting the segment’s adjusted EBITDA 96.9% to $269.7 million.
- The newly acquired CP&P and Foley precast businesses contributed $33.6 million of adjusted EBITDA in the quarter, and management guided the platform to $165 million to $175 million for the year as backlog reached its strongest level since fiscal Q3 2023.
- The company raised its quarterly dividend to 20 cents, kept liquidity just over $1.7 billion and cut adjusted net leverage to about 2.3 times, while the CFO logged $47.2 million in pre-tax acquisition and litigation items.
- Following Thursday’s results, shares slipped about 2% and, on Friday, Wells Fargo and JP Morgan lowered price targets, with management saying third-quarter core EBITDA should increase.