CMC Reports 12% Growth in Steel Shipments Amid Spring Market Recovery

Strong Steel Shipments Offset Profit Dip for CMC

Commercial Metals Co. (CMC), a Texas-based steel and recycling firm, reported a 12% increase in external net steel sales revenue in its latest quarter. The growth reflects improving market conditions across its North American and Emerging Business segments, as cited by CEO Peter Matt.

Despite the uptick in shipments, CMC’s net income for spring 2025 dropped 30% compared to the same period in 2024. The company posted $83 million in earnings, down from $116 million the year prior. Still, leadership remains confident in a robust pipeline, especially driven by demand from the U.S. public infrastructure sector.

CMC’s steel is produced using recycled scrap in its electric arc furnace (EAF) operations, positioning the firm as a key player in sustainable steelmaking. The average scrap purchase cost also rose 6.5%, reaching $360 per ton.

Ferrous Scrap and Infrastructure Demand Drive Momentum

Raw material sales also saw gains. CMC shipped 385,000 tons of ferrous and nonferrous scrap externally this spring, a 24% increase from the prior quarter. This sharp rise underscores healthy construction activity and the company’s advantage in vertical integration.

Peter Matt highlighted solid bid volumes and stable downstream backlogs, particularly in domestic infrastructure. These indicators provide a buffer against margin pressure and support long-term strategic execution. The company’s continued investment in proprietary products and operational efficiency appears to support this vision.

As the U.S. infrastructure market continues expanding, CMC is strategically positioned to benefit. With increasing public investment and demand for sustainable construction materials, the outlook remains optimistic.

SuperMetalPrice Commentary:

CMC’s shipment growth reflects a strengthening North American steel market, even as profitability faces headwinds. The company’s emphasis on infrastructure exposure and EAF steel production aligns with macro trends favoring decarbonized materials. Watch for improving margins as CMC executes its multi-year strategic plan.