WS Investor
08 Jan 2026, 16:30
Commercial Metals Company reported a strong start to fiscal 2026, posting sharply higher earnings and margins in its first quarter ended November 30, 2025, supported by favorable market conditions, operational execution, and progress under its Transform, Advance, and Grow (TAG) program.
The company recorded first-quarter net earnings of $177.3 million, or $1.58 per diluted share, compared with a net loss a year earlier. Adjusted earnings rose to $206.2 million, or $1.84 per diluted share. Consolidated core EBITDA climbed about 52% year over year to $316.9 million, resulting in a core EBITDA margin of 14.9%. Net sales increased to $2.1 billion from $1.9 billion in the prior-year period.
CMC said results were driven primarily by strong performance in its North America Steel Group, where margins continued to expand and adjusted EBITDA rose nearly 58% year over year to $293.9 million. Steel product margins improved for a third consecutive quarter, reaching their highest level in almost three years. The Construction Solutions Group, formerly the Emerging Businesses Group, also delivered record first-quarter results, with adjusted EBITDA up nearly 75% year over year, supported by solid demand and improved commercial discipline.
During the quarter, CMC completed the acquisitions of CP&P and Foley, deploying more than $2.5 billion of capital to establish a new growth platform in precast concrete. The company ended the quarter with $3.0 billion in cash and strong liquidity, repurchased $38.9 million of shares, and declared its 245th consecutive quarterly dividend of $0.18 per share.
Looking ahead, management expects a modest seasonal slowdown in the second quarter but anticipates contributions from the newly acquired precast businesses to partially offset weaker volumes. CMC reaffirmed confidence in its outlook, targeting an annualized EBITDA benefit of $150 million from the TAG program by the end of fiscal 2026 and highlighting a positive long-term demand backdrop for construction-related markets.
The company recorded first-quarter net earnings of $177.3 million, or $1.58 per diluted share, compared with a net loss a year earlier. Adjusted earnings rose to $206.2 million, or $1.84 per diluted share. Consolidated core EBITDA climbed about 52% year over year to $316.9 million, resulting in a core EBITDA margin of 14.9%. Net sales increased to $2.1 billion from $1.9 billion in the prior-year period.
CMC said results were driven primarily by strong performance in its North America Steel Group, where margins continued to expand and adjusted EBITDA rose nearly 58% year over year to $293.9 million. Steel product margins improved for a third consecutive quarter, reaching their highest level in almost three years. The Construction Solutions Group, formerly the Emerging Businesses Group, also delivered record first-quarter results, with adjusted EBITDA up nearly 75% year over year, supported by solid demand and improved commercial discipline.
During the quarter, CMC completed the acquisitions of CP&P and Foley, deploying more than $2.5 billion of capital to establish a new growth platform in precast concrete. The company ended the quarter with $3.0 billion in cash and strong liquidity, repurchased $38.9 million of shares, and declared its 245th consecutive quarterly dividend of $0.18 per share.
Looking ahead, management expects a modest seasonal slowdown in the second quarter but anticipates contributions from the newly acquired precast businesses to partially offset weaker volumes. CMC reaffirmed confidence in its outlook, targeting an annualized EBITDA benefit of $150 million from the TAG program by the end of fiscal 2026 and highlighting a positive long-term demand backdrop for construction-related markets.
