Commercial Metals Company will release first-quarter earnings before the market opens on Thursday, Jan. 8, 2025. Analysts from three of the industry’s top forecasting firms have revised their estimates in the past month: Consensus Group lifted its EPS projection by 12% to $0.45, Steel Insights raised its outlook by $0.05 to $0.50 per share, and Metals Analytics bumped its forecast by 10% to $0.48. Revisions reflect stronger-than-expected shipments from the company’s integrated steel mills and mill services segment, which processed over 1.1 million tons of scrap in Q1, up 8% year-over-year.

A sustained rebound in domestic steel plate and rebar prices—up 15% since October—has boosted Commercial Metals’ revenue in both its metal service centers and fabrication business. Construction end-market orders increased by 20% sequentially, driven by infrastructure projects in the Northeast, while automotive customers placed repeat orders for over 300,000 tons of high-strength rebar. Company executives have indicated that utilization at their scrap shredding facilities reached 92% in December, the highest level since mid-2023.

With the stock up over 25% year-to-date, momentum investors are highlighting Commercial Metals’ solid free cash flow generation—$185 million in the first nine months of fiscal 2024—and a debt-to-adjusted-EBITDA ratio of 1.6x, one of the lowest in the steel sector. The company has returned $120 million to shareholders through share repurchases and dividend payouts over the same period. Technical analysts point to a sustained breakout above the 50-day moving average, suggesting further upside if trading volume remains above its three-month average.