Bloomberg Finance: Bloomberg Q4 Revenue Down 11% YoY to $1.03bln

• Bloomberg financial analyst summarizes article on digital data. • Bonus targets for executives in 2009 Key Employee Incentive Plan. • Bonus payout based on "GAAP Revenue" and "non-GAAP Profit Before Tax" variables. • "GAAP Revenue" and "non-GAAP PBT" are defined by the annual operating plan. • Items excluded from GAAP PBT calculation to determine non-GAAP PBT. • Compensation Committee may adjust calculation of Revenue or non-GAAP PBT due to extraordinary events.

Commercial Metals Company (CMC), a leading provider of steel and related services, recently reported its third-quarter fiscal 2025 results. The company reported net earnings of $83.1 million, or $0.73 per diluted share, on net sales of $2.0 billion. Adjusted earnings, excluding non-recurring charges, were $84.4 million, or $0.74 per diluted share. The company's core EBITDA was $204.1 million, representing a margin of 10.1%.

Key Highlights

- North America Steel Group: The group saw solid demand for its products, with shipments of finished steel products growing by 1.6% year-over-year. The adjusted EBITDA margin decreased to 11.9%, driven by lower margins over scrap costs but offset by benefits from the Transform, Advance, Grow (TAG) program.
- Emerging Businesses Group: This segment reported a 7.0% year-over-year increase in adjusted EBITDA to $40.9 million, driven by strong project-related shipments of Performance Reinforcing Steel.
- Europe Steel Group: The group exceeded breakeven, with adjusted EBITDA increasing to $3.6 million from a loss of $4.2 million in the prior year period. The adjusted EBITDA margin improved to 1.5%.
- TAG Program: The company's TAG program exceeded targeted EBITDA benefits, with an annual run-rate expected to exceed $100 million.

Outlook

CMC expects consolidated financial results to improve in the fourth quarter, with finished steel shipments following normal seasonal trends and adjusted EBITDA margins expected to increase on higher steel product margins over scrap. The company also anticipates improved financial results for the Emerging Businesses Group and an adjusted EBITDA increase for the Europe Steel Group, excluding a CO2 credit of approximately $28 million.

Reference List

[1] https://www.prnewswire.com/news-releases/cmc-reports-third-quarter-fiscal-2025-results-302487944.html