Weekly insights + SMS alerts
Commercial Metals Company (CMC) reported stronger fiscal fourth-quarter 2026 results Thursday, beating Wall Street's earnings and revenue estimates as profitability improved.
Adjusted earnings of $2.09 per share beat the analyst consensus estimate of $1.97.
Revenue rose 25.7% year over year to $2.658 billion, topping expectations of $2.572 billion.
GAAP diluted earnings increased to $1.91 per share from $1.35 a year earlier.
Net earnings climbed 40% to $212.5 million, while adjusted earnings rose 50.7% to $233.6 million.
Core EBITDA increased 35.1% to $393.7 million. Core EBITDA margin expanded 100 basis points to 14.8%, driven by stronger metal margins and contributions from the precast business.
For fiscal 2026, net earnings totaled $655.8 million. Core EBITDA rose to $1.36 billion from $837.3 million a year earlier, while margin improved to 14.5% from 10.7%.
North America Steel Group adjusted EBITDA climbed 32.6% to $317.5 million. Its margin improved to 16.4% from 14.8%.
Commercial Metals said strong demand across energy, semiconductor manufacturing, industrial production and public infrastructure drove downstream backlog growth of 15.5% year over year and 5% sequentially, while backlog pricing continued to improve.
Finished-goods shipments increased 5.3%, supported by a 27.5% jump in merchant bar volumes. Meanwhile, downstream backlog volumes rose 15.5% year over year.
Construction Solutions Group sales surged 94.5% to $431.4 million. Adjusted EBITDA more than doubled to $101.7 million, with margin reaching 23.6%.
The precast business generated $190.8 million in sales and $57 million in adjusted EBITDA.
Although weaker residential demand in the Southeast pressured volumes, bookings increased year over year and 12.6% sequentially.
Strong demand from data centers, energy and infrastructure drove growth, although an unplanned Galvabar outage hurt shipments. Commercial Metals expects a second Galvabar line, scheduled for commissioning later in 2026, to support future growth.
Commercial Metals said integration efforts remain on track, with synergies meeting or exceeding expectations.
However, Europe Steel Group adjusted EBITDA declined to $15.6 million from $39.1 million. The comparison partly reflected a $30.7 million carbon dioxide credit recorded in the prior-year quarter.
Operating cash flow totaled $1.06 billion for fiscal 2026.
Commercial Metals ended the year with $778.9 million in cash, cash equivalents and restricted cash. Adjusted net leverage stood at 1.9 times.
The company repurchased $26.7 million in shares during the fourth quarter, leaving $702.1 million available under its buyback authorization.
Commercial Metals said commissioning and startup activities at its West Virginia mill remain on schedule.
The company expects structurally higher free cash flow in fiscal 2027. It also targets approximately $100 million in incremental gross annualized EBITDA benefits from its TAG initiatives.
For the first quarter, Commercial Metals expects North America Steel adjusted EBITDA to remain nearly flat sequentially.
Meanwhile, Construction Solutions adjusted EBITDA is expected to decline due to seasonal factors, while Europe Steel adjusted EBITDA is projected to grow meaningfully.
Commercial Metals President and CEO Peter Matt said fiscal 2026 marked a major turning point for the company, driven by precast acquisitions, its Transform, Advance, Grow (TAG) program and investments such as the West Virginia micro mill.
Matt attributed fourth-quarter core EBITDA growth to strong North American steel operations and continued benefits from TAG initiatives. Although weak residential demand weighed on the precast business, he said supportive market conditions, near-record backlogs and a stronger portfolio position Commercial Metals for continued growth in fiscal 2027.
The company also outlined a strategic roadmap through fiscal 2029, focused on improving profitability and delivering long-term shareholder value.
CMC Stock Price Activity: Commercial Metals shares were up 0.06% at $65.34 at the time of publication Thursday, according to market data.
Real-time alerts on price moves, news, and trading opportunities.
Join 20,000+ investors. No spam, ever.
