Commercial Metals Company (CMC) has reported its first-quarter fiscal 2025 results, revealing a net loss of ($175.7) million, or ($1.54) per diluted share, including a litigation expense of approximately $265.0 million. However, adjusted earnings for the quarter were $88.5 million, or $0.78 per diluted share. The company's net sales for the quarter were $1.9 billion, down from $2.0 billion in the prior year period.
The company's consolidated core EBITDA for the first quarter was $210.7 million, with a core EBITDA margin of 11.0%. CMC reported a year-over-year and sequential growth in North America finished steel shipment volumes, although margins were pressured by declines in average steel and downstream product pricing.
The company's cash flow from operating activities in the first quarter was $213.0 million, equal to 101% of consolidated core EBITDA. CMC returned $71.0 million in cash to shareholders through dividends and share buybacks.
CMC's North America steel group saw a decrease in adjusted EBITDA to $188.2 million in the first quarter of fiscal 2025 from $266.8 million in the prior year period. The adjusted EBITDA margin for this group declined from 16.8% to 12.4% year-over-year.
In the European market, the company reported adjusted EBITDA of $25.8 million for the first quarter, including a $44.1 million annual CO2 credit. Excluding this credit, financial results deteriorated modestly compared to the prior two quarters due to metal margin compression driven by high import volumes.
The emerging businesses group reported a 4.4% decrease in net sales and a 26.6% decrease in adjusted EBITDA for the segment, amounting to $22.7 million. The adjusted EBITDA margin was down 400 basis points compared to the prior year period.
Looking ahead, CMC expects consolidated financial results in the second quarter of fiscal 2025 to decline from the first quarter level. Finished steel shipments within the North America steel group are anticipated to follow normal seasonal trends, while adjusted EBITDA margin is expected to decrease sequentially on lower margins over scrap cost on steel and downstream products.
CMC's balance sheet and liquidity position remained strong, with cash and cash equivalents totaling $856.1 million and available liquidity of nearly $1.7 billion as of November 30, 2024. The company also repurchased 919,481 shares of common stock valued at $50.4 million in the aggregate during the quarter.
The board of directors declared a quarterly dividend of $0.18 per share of CMC common stock, representing an increase of approximately 13% on a year-over-year basis.
CMC is confident in how it conducts its business practices and is pursuing all reasonably available avenues to appeal the verdict and judgment in the lawsuit filed by Pacific Steel Group against CMC and certain subsidiaries.
The company invites stakeholders to listen to a live broadcast of its first quarter fiscal 2025 conference call on January 6, 2025.
Today the company's shares have moved 4.0% to a price of $50.85. For more information, read the company's full 8-K submission here.
