Q2 2025 Commercial Metals Co Earnings Call Transcript
Key Points
- Commercial Metals Co (CMC) achieved a record low incident rate, marking a milestone in safety performance.
- The company reported net earnings of $25.5 million for the second quarter, with adjusted earnings of $29.3 million.
- CMC's Europe Steel Group achieved breakeven performance, showing improvement from previous periods.
- The Emerging Businesses Group saw increased profitability, driven by strong demand for proprietary corrosion-resistant solutions.
- CMC's strategic initiatives, including the TAG program, are expected to provide significant financial benefits, with $25 million anticipated over the remainder of fiscal 2025.
- Net earnings for the second quarter were down from recent levels, reflecting economic uncertainty and its impact on steel pricing.
- The North American Steel Group's results were negatively impacted by lower margins over scrap costs.
- The Arizona 2 micro mill did not achieve breakeven in the second quarter due to operational challenges.
- Uncertainty in the market continues to negatively impact the pace of new project awards for private construction.
- The company faced $8 million of unrealized losses on copper hedging positions due to commodity volatility.
Hello, and welcome, everyone, to the fiscal 2025 Second Quarter Earnings Call for CMC. Joining me today on today's call are Peter Matt, CMC's President and Chief Executive Officer; and Mr. Paul Lawrence, Senior Vice President and Chief Financial Officer. Today's materials, including the press release and supplemental slides that accompany this call can be found on CMC's Investor Relations website. Today's call is being recorded. (Operator Instructions)
I would like to remind all participants that today's discussion contains forward-looking statements, including with respect to economic conditions, effects of legislation and trade actions, US steel import levels, construction activity, demand for finished steel products, the expected capabilities, benefits and time line for construction of new facilities, the company's operations, the company's strategic growth plan and its anticipated benefits, legal proceedings, the company's future results of operations, financial measures and capital spending. These statements reflect the company's beliefs based on current conditions, but are subject to risks
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