Commercial Metals: Improving Demand, But Supply Growth And Valuation Are Both Concerns
Portfolio Pulse from
Commercial Metals Company (CMC) reported mixed fiscal Q1 results with revenue declines and margin pressures. However, the North American steel business outperformed expectations due to stronger pricing and cost control. While destocking may continue for a few quarters, long-term indicators are positive with expected growth in highway spending and a recovery in Germany.
January 15, 2025 | 10:45 am
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Commercial Metals Company (CMC) reported mixed fiscal Q1 results with revenue declines and margin pressures. The North American steel business outperformed expectations, but destocking could be an issue for a few more quarters. Long-term growth is expected with highway spending and a recovery in Germany.
CMC's mixed results show revenue declines and margin pressures, but the North American steel business performed well. The potential for destocking issues in the short term is balanced by positive long-term growth indicators, such as increased highway spending and a recovery in Germany.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100