# Commercial Metals Company (CMC) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/CMC/thesis · /stocks/CMC/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: CMC
step: "04"
title: Financial Snapshot
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Three-Year Income Statement Summary

*All figures in USD millions unless noted. Fiscal year ends August 31.*

| Metric | FY2022 | FY2023 | FY2024 |
|--------|--------|--------|--------|
| **Revenue** | $7,244M | $7,300M | $6,779M |
| Cost of Goods Sold | $5,403M | $5,605M | $5,381M |
| **Gross Profit** | $1,841M | $1,695M | $1,398M |
| Gross Margin | 25.4% | 23.2% | 20.6% |
| SG&A | $380M | $385M | $395M |
| **Operating Income (EBIT)** | $1,461M | $1,310M | $1,003M |
| Operating Margin | 20.2% | 17.9% | 14.8% |
| Interest Expense, net | $55M | $65M | $75M |
| Other Income/(Expense) | ($10M) | ($5M) | ($5M) |
| **Pre-Tax Income** | $1,396M | $1,240M | $923M |
| Income Tax Expense | $325M | $287M | $215M |
| Effective Tax Rate | 23.3% | 23.1% | 23.3% |
| **Net Income** | $1,071M | $953M | $708M |
| **EPS (Diluted)** | $8.77 | $8.26 | $6.32 |
| Shares Diluted (avg) | 122M | 115M | 112M |

#### Adjusted EBITDA

| Metric | FY2022 | FY2023 | FY2024 |
|--------|--------|--------|--------|
| Net Income | $1,071M | $953M | $708M |
| + Interest Expense | $55M | $65M | $75M |
| + Tax | $325M | $287M | $215M |
| + D&A | ~$230M | ~$250M | ~$270M |
| **EBITDA** | ~$1,681M | ~$1,555M | ~$1,268M |
| Adjusted EBITDA (excl. one-time) | ~$1,680M | ~$1,550M | ~$1,250M |
| **Adjusted EBITDA Margin** | 23.2% | 21.2% | 18.4% |

**Note**: FY2022 represents the peak of the steel mini-mill profit cycle, with margins well above through-cycle averages. Management considers ~15–18% EBITDA margin as "normalized" at mid-cycle pricing and volumes.

#### Key Profitability Metrics

| Metric | FY2022 | FY2023 | FY2024 |
|--------|--------|--------|--------|
| Gross Margin | 25.4% | 23.2% | 20.6% |
| EBITDA Margin | 23.2% | 21.2% | 18.4% |
| EBIT Margin | 20.2% | 17.9% | 14.8% |
| Net Margin | 14.8% | 13.1% | 10.4% |
| ROIC (adj.) | 35–40% | 28–32% | 22–25% |
| ROE | ~55% | ~40% | ~28% |

#### Three-Year Cash Flow Summary

| Metric | FY2022 | FY2023 | FY2024 |
|--------|--------|--------|--------|
| Operating Cash Flow | ~$1,050M | ~$1,150M | ~$1,100M |
| Capital Expenditures | ($775M) | ($680M) | ($540M) |
| **Free Cash Flow** | ~$275M | ~$470M | ~$560M |
| FCF Margin | 3.8% | 6.4% | 8.3% |
| FCF Conversion (FCF/Net Income) | 25.7% | 49.3% | 79.1% |

**Note on CapEx elevation**: FY2022–FY2023 CapEx was elevated due to the Arizona 2 micro-mill construction ($500M+ total project). As that project wound down in FY2024, FCF conversion improved significantly. FY2025 CapEx guidance is ~$400–450M (Poland expansion + maintenance), pointing to continued FCF improvement.

#### Balance Sheet Snapshot (FY2024)

| Item | Balance |
|------|---------|
| Cash & equivalents | ~$820M |
| Total debt (gross) | ~$1,550M |
| Net debt | ~$730M |
| Net Debt / EBITDA | ~0.6x |
| Total equity | ~$3,000M |
| Total assets | ~$5,800M |
| Book value per share | ~$27.50 |

#### Revenue & Earnings Trends

##### Revenue Trend
```
FY2020: $4.4B  ↗
FY2021: $5.7B  ↗
FY2022: $7.2B  ↗ PEAK (high prices + high volume)
FY2023: $7.3B  → (price decline offset by volume)
FY2024: $6.8B  ↘ (price normalization continues)
FY2025E: $6.5–7.0B (stabilization + IIJA ramp)
```

##### EPS Trend (Diluted)
```
FY2020: $1.54  ↗
FY2021: $5.34  ↗
FY2022: $8.77  ↗ PEAK
FY2023: $8.26  ↘ (slight)
FY2024: $6.32  ↘ (normalization)
FY2025E: $5.50–6.00 (consensus range)
```

#### Segment P&L Breakdown (FY2024)

##### North America Steel
| Metric | Value |
|--------|-------|
| Revenue | ~$5.1B |
| Adjusted EBITDA | ~$960M |
| EBITDA Margin | ~18.8% |
| Tons Shipped | ~5.2M |
| Revenue per Ton | ~$980 |
| EBITDA per Ton | ~$184 |

##### Europe Steel
| Metric | Value |
|--------|-------|
| Revenue | ~$1.7B |
| Adjusted EBITDA | ~$195M |
| EBITDA Margin | ~11.5% |
| Tons Shipped | ~2.3M |
| Revenue per Ton | ~$739 |
| EBITDA per Ton | ~$85 |

#### Key Financial Ratios

| Ratio | FY2024 Value | Notes |
|-------|-------------|-------|
| P/E (LTM) | ~7–8x | Cyclical steel multiple |
| EV/EBITDA (LTM) | ~5–6x | Mid-cycle normalization |
| P/Book | ~1.7x | Premium to book for quality operator |
| Debt/Equity | ~0.52x | Conservative leverage |
| Current Ratio | ~2.5x | Strong liquidity |
| Interest Coverage | ~13x | Well-covered |

#### Financial Quality Assessment

**Earnings Quality: High**
- Cash flow conversion improving as CapEx normalizes post Arizona 2 completion
- No material off-balance sheet obligations
- Conservative revenue recognition (delivery-based)
- No significant pension obligations (defined contribution plan)

**Balance Sheet Quality: High**
- Investment-grade credit rating (BBB- / Baa3)
- Net debt/EBITDA well below 1x — substantial debt capacity
- Revolving credit facility (~$600M) largely undrawn
- Manageable debt maturity schedule

**Earnings Cyclicality Risk: Significant but Managed**
- CMC's earnings have ~4–5x range between trough and peak EPS through the cycle
- The company maintained profitability through the 2015–2016 steel trough and COVID downturn
- Structural improvements (Arizona 2, downstream integration) have raised the trough floor

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/CMC/fundamental

## Navigation

- Overview: /stocks/CMC
- Financials (this page): /stocks/CMC/financials
- Thesis: /stocks/CMC/thesis
- Investment Memo: /stocks/CMC/memo
- Coverage universe: /stocks