Commercial Metals Company (CMC)

In the past six months, CMC's stock has been influenced by several key events. The company reported strong fourth-quarter fiscal year 2025 results, exceeding analyst estimates, although the stock experienced a slight decline. CMC announced the acquisition of Foley Products Company and Concrete Pipe & Precast, LLC, expected to close by the end of calendar year 2025. CMC declared its 243rd and 244th consecutive quarterly cash dividend of $0.18 per share. The company repurchased approximately 1.1 million shares at an average price of $45.30 per share during the third quarter of fiscal 2025. The company's stock received upgrades from Morgan Stanley and Citi.

Demand for CMC's products is subject to seasonality and cyclical trends characteristic of commodity markets. Demand increases during economic growth and declines during recessions. There is an anticipated seasonal sales decline in the fourth quarter for steel products. The "October peak season" for steel has been noted to fade, and finished steel shipments within the North America Steel Group are expected to follow normal seasonal patterns. The Europe Steel Group is projected to face challenges in the first quarter due to seasonal factors and scheduled maintenance outages. The residential construction market is sensitive to interest rates, influencing demand.

Commercial Metals Co. (CMC) is a global leader in the steel and metal recycling industry with a vertically integrated business model. It operates in the Industrial and Basic Materials sectors, producing a diverse range of steel and metal items. The company processes and sells ferrous and non-ferrous scrap metal, produces finished long steel products, and provides fabricated rebar for construction projects. CMC also manufactures and distributes copper, brass, and bronze products, and offers carbon-neutral steel solutions through its "Zero line."

CMC has a significant global presence with operations across North America, Europe, and Asia, with its headquarters in Irving, Texas. The company operates 212 facilities in the United States and Poland, including mini-mills, recycling facilities, and fabrication plants. Key operational locations include the United States, Poland, China, Germany, and Switzerland. In fiscal year 2023, 84% of its sales were in the United States and 16% from its facilities in Poland.

Commercial Metals Co. has maintained a strong brand reputation through its commitment to sustainability and innovation. The company operates one of North America's largest scrap metal recycling operations and utilizes electric arc furnace (EAF) technology. CMC's steel is made from over 98% recycled material. The company introduced its "Zero line" in 2022, offering carbon-neutral steel solutions. CMC emphasizes a best-in-class safety record and active involvement in community initiatives and philanthropic efforts.

Commercial Metals Co. is primarily owned by institutional investors, who hold a significant portion of the company's shares, ranging from approximately 91.23% to 94.4%. Major institutional shareholders include BlackRock, Inc., Vanguard Group Inc, Dimensional Fund Advisors Lp, and State Street Corp. Individual investors hold a smaller percentage, around 1.13% to 12.54% of the stock. Company insiders hold approximately 0.63% to 8.77% of the shares. Stanley A. Rabin is a significant individual shareholder, owning 1.57% of the company's shares.