The Commercial Metals Company net worth reflects its significant role in the steel and construction sectors.
From rebar production to global acquisitions, we delve into the revenue streams driving growth.
Join me, Ando Money, as we break down CMC’s recent performance, exploring regional contributions and facility expansions that shape their financial success.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Commercial Metals Company |
| Full Name | Commercial Metals Company (CMC) |
| Industry | Steel and Metal Manufacturing |
| Traded As | NYSE: CMC |
| ISIN | N/A |
| Founded | 1915 |
| Founders | Jacob Feldman |
| Country/Territory | United States |
| Headquarters | Irving, Texas, United States |
| Chief Executive Officer | Peter Matt |
| Number of Employees | 13,022 |
| Market Cap | $6.11 billion |
| Total Assets | $6.71 billion |
| Total Equity | $4.26 billion |
| Revenue | $2.08 billion (Q3 2024) |
| Net Income | $119.4 million (Q3 2024) |
What is the Net Worth/Market Cap of Commercial Metals Company in 2024?
As of October 2024, the Commercial Metals Company (CMC) has a market cap of $6.11 billion. This figure places CMC among other prominent steel producers in the industry.
While the valuation signifies CMC’s steady position in the global market, comparing it to other companies helps place its financial significance in perspective. Below are other notable players related to CMC:
- Gerdau
- Nucor
- Tensar Corporation
- Advanced Steel Recovery
- U.S. Securities and Exchange Commission
- EDSCO Fasteners LLC
- Owen Steel Company
- Rancho Cucamonga, California
For an expanded list of the most successful companies globally, check out our curated page on major firms and their net worth.
Commercial Metals Company Financial Performance Overview
Key Revenue Streams
Commercial Metals Company saw substantial growth in revenue across the most recent fiscal year. The company recorded $2.08 billion in revenue for Q3 2024 alone.
This growth was mainly due to the increased demand for steel products, particularly rebar, in the construction industry, both in the U.S. and Europe.
The main revenue contributors included foundational systems for large-scale infrastructure projects and significant revenue streams from new facility expansions.
Steel Production and Fabrication
One of the significant pillars driving the financial performance of CMC is its steel production and fabrication operations.
The North America Steel Group was the most prominent segment in terms of revenue generation, contributing $246.3 million in adjusted EBITDA for Q3 2024.
Products like rebar and downstream steel products, which have high demand in construction, have been vital in stabilizing CMC’s margins over the fiscal period.
Regional Performance Impacting Revenue
The North American market remains the backbone of CMC’s revenue, with 84% of sales occurring in the United States.
This performance is attributed to strong demand for construction materials in both infrastructure and residential projects.
On the other hand, Europe Steel Group has seen improved results, despite challenging economic conditions, such as in Poland. The gradual improvement in Polish macroeconomic factors also helped boost local operations.
The Impact of Recent Acquisitions
Acquisitions have played a crucial role in boosting CMC’s revenue in recent times.
The acquisition of Tensar Corporation for $550 million has enhanced CMC’s offerings in construction solutions, thus expanding its profit margins in high-demand products like geogrid.
Similarly, the acquisition of Advanced Steel Recovery strengthened its recycling business, leading to cost-effective raw material procurement and improved financial outcomes.
Emerging Businesses Group and Its Contribution to Revenue
The Emerging Businesses Group contributed $38.2 million to the company’s EBITDA, with proprietary products like geogrid and performance reinforcing steel driving this success.
Seasonal improvements in construction activity further pushed revenues, with projects across North America increasing the demand for specialized construction materials.
Facility Expansion and Operational Efficiency Enhancements
CMC has been making strategic investments in expanding its production capacity to increase revenue potential.
The Arizona 2 (AZ2) micro mill, capable of producing both rebar and merchant bar quality steel, is one such example.
These expansions have enhanced production capacity, with AZ2 capable of handling 200 different merchant bar SKUs. These facilities are projected to improve the operational efficiency and future earnings of CMC substantially.
Infrastructure and Construction Sector Demand as a Revenue Catalyst
The demand from the infrastructure and construction sectors is a consistent catalyst for CMC’s financial health.
The company has experienced increased downstream backlog volumes, supported by a robust pipeline of new construction projects.
This demand directly impacts sales of rebar and other steel products, thus contributing significantly to quarterly revenue growth. The healthy construction season across North America has only further reinforced this positive trajectory.
Financial Outcomes of Steel Market Conditions and Product Pricing
Fluctuations in the steel market have significantly impacted Commercial Metals Company’s revenue.
The third quarter saw stable steel pricing with minor price hikes, leading to margin improvements, especially in Europe.
Although scrap costs varied slightly across periods, the overall metal margin per ton for steel products was approximately $538.
This consistency helped in offsetting lower shipment volumes compared to the prior year period.
Effect of International Market Performance
With operations in Poland showing signs of a macroeconomic improvement, the Europe Steel Group experienced reduced losses and approached breakeven, reporting an adjusted EBITDA loss of just $4.2 million.
Improvements in economic conditions, such as reduced inflation and an increase in construction activities, have helped drive better financial performance in the region.
Contributions from Scrap Recycling and Raw Material Management
The role of scrap recycling in CMC’s overall financial performance cannot be understated.
Raw material costs per ton for Q3 2024 stood at $717, while scrap recycling facilities helped manage expenses efficiently.
This part of the business provides a solid cost advantage, ensuring the company’s products remain competitively priced in the market.
Influence of Corporate Strategies
CMC has also undertaken several corporate initiatives to drive shareholder value, such as repurchasing 931,281 shares worth $51.8 million during Q3 2024.
The company also announced a dividend of $0.18 per share, marking a 13% increase year-over-year.
These actions not only bolster investor confidence but also contribute to financial stability.
FAQs about Commercial Metals Company
What Products Contribute Most to CMC’s Revenue?
Rebar and downstream steel products are key contributors, supported by increased infrastructure demand.
How Does the Emerging Businesses Group Impact CMC’s Finances?
The Emerging Businesses Group, with high-margin products like geogrid, significantly bolsters EBITDA.
Which Acquisitions Have Recently Enhanced CMC’s Revenue?
Acquisitions like Tensar and Advanced Steel Recovery have expanded revenue streams, enhancing profitability.
How Important is the North America Steel Group for CMC?
The North America Steel Group is the primary revenue generator, contributing the most to EBITDA and financial performance.
How Does Facility Expansion Influence CMC’s Earnings?
Facilities like the Arizona 2 micro mill expand production capacity, directly impacting revenue and efficiency.
Conclusion
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