Commercial Metals Company (CMC) has announced its financial results for the second quarter of fiscal 2025, revealing a net earnings of $25.5 million, or $0.22 per diluted share, and adjusted earnings of $29.3 million, or $0.26 per diluted share. These figures mark a significant decrease from the prior year period net earnings of $85.8 million, or $0.73 per diluted share.
Consolidated core EBITDA for the quarter was reported at $131.0 million, with a core EBITDA margin of 7.5%. This represents a decrease from the prior year period adjusted earnings of $85.9 million, or $0.73 per diluted share.
In terms of business segments, the North American construction demand drove a 3.3% increase in finished steel shipments compared to the prior year second quarter. Additionally, new project awards reached the second highest level since late fiscal 2022, leading to a healthy North America backlog volume that grew sequentially and remained stable on a year-over-year basis.
The Europe steel group achieved adjusted EBITDA breakeven during the quarter, driven by effective cost management and modest margin relief. Profitability in the emerging businesses group also increased both sequentially and on a year-over-year basis, despite seasonal headwinds.
Adjusted EBITDA for the North America steel group decreased to $128.8 million in the second quarter of fiscal 2025 from $222.3 million in the prior year period. The adjusted EBITDA margin for the North America steel group declined from 15.0% in the second quarter of fiscal 2024 to 9.3% in the current quarter.
Furthermore, adjusted EBITDA for the Europe steel group increased to $0.8 million in the second quarter of fiscal 2025 from a loss of $8.6 million in the prior year period. The adjusted EBITDA margin for the Europe steel group also improved from (4.5%) in the second quarter of fiscal 2024 to 0.4% in the current quarter.
Looking ahead, CMC expects consolidated financial results in the third quarter of fiscal 2025 to rebound from the second quarter level. Finished steel shipments within the North America steel group are anticipated to follow normal seasonal trends as the company enters the spring and summer construction seasons. Additionally, adjusted EBITDA for the Europe steel group should remain near breakeven, and financial results for the emerging businesses group are anticipated to improve to levels modestly above the prior year period.
The company's balance sheet and liquidity position remained strong, with cash and cash equivalents totaling $758.4 million as of February 28, 2025, and available liquidity of nearly $1.6 billion. During the quarter, CMC repurchased 906,603 shares of common stock valued at $48.0 million in the aggregate. As of February 28, 2025, $305.3 million remained available under the current share repurchase authorization.
Lastly, CMC declared a quarterly dividend of $0.18 per share of CMC common stock payable to stockholders of record on March 31, 2025. The dividend, to be paid on April 9, 2025, marks the 242nd consecutive quarterly payment by the company. The market has reacted to these announcements by moving the company's shares 0.3% to a price of $47.02. For more information, read the company's full 8-K submission here.
