Commercial Metals (NYSE:CMC) Issues Earnings Results

Commercial Metals (NYSE:CMC) posted its earnings results on Thursday. The basic materials company reported $2.09 earnings per share for the quarter, beating the consensus estimate of $1.95 by $0.14, FiscalAI reports. Commercial Metals had a return on equity of 15.69% and a net margin of 6.72%. The business had revenue of $2.66 billion during the quarter, compared to the consensus estimate of $2.56 billion. During the same period in the previous year, the business earned $1.37 EPS. The business’s quarterly revenue was up 25.7% on a year-over-year basis.

Here are the key takeaways from Commercial Metals’ conference call:

• Fiscal 2026 results improved substantially: Core EBITDA rose to approximately $1.4 billion from $837 million, while the margin expanded 380 basis points to 14.5%. Fourth-quarter Core EBITDA increased 35.1% year over year to about $394 million.
• North America Steel delivered strong momentum through TAG productivity gains, richer merchant-bar mix, and downstream growth. Downstream volumes rose 8.5% year over year, merchant-bar shipments increased 27.5%, and the steel segment’s EBITDA margin expanded to 16.4%.
• Management expects TAG to remain a durable earnings driver, with more than $250 million of gross run-rate benefits achieved and a path to an additional $100 million by the end of fiscal 2027. Major investments in West Virginia, GalvaBar, and geogrid capacity are transitioning toward return generation.
• Construction Solutions underperformed expectations because residential softness in southeastern markets reduced Precast volumes and pressured regional mix. Management expects additional seasonal weakness in Precast during fiscal first quarter, although nonresidential and infrastructure demand, bookings, pricing, and backlog remain supportive.
• Net leverage fell below the company’s 2.0x target to 1.9x, while fiscal 2027 capital expenditures are expected to decline by roughly $200 million to $400 million. With improving free cash flow and about $700 million remaining under its repurchase authorization, CMC plans to accelerate share buybacks while retaining flexibility for acquisitions.

Commercial Metals Stock Performance

Shares of NYSE CMC opened at $65.25 on Friday. The company has a market cap of $7.22 billion, a PE ratio of 12.29, a price-to-earnings-growth ratio of 0.25 and a beta of 1.53. Commercial Metals has a 12 month low of $53.08 and a 12 month high of $84.87. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.33 and a quick ratio of 1.54. The company has a 50-day simple moving average of $67.00 and a 200-day simple moving average of $68.32.

Commercial Metals Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 11th. Investors of record on Wednesday, October 28th will be paid a dividend of $0.20 per share. The ex-dividend date of this dividend is Wednesday, October 28th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.2%. Commercial Metals’s dividend payout ratio (DPR) is presently 15.07%.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the company. Morgan Stanley increased their target price on Commercial Metals from $83.00 to $88.00 and gave the stock an “overweight” rating in a research note on Monday, June 22nd. The Goldman Sachs Group restated a “buy” rating and issued a $85.00 price target on shares of Commercial Metals in a research note on Thursday, August 6th. Zacks Research upgraded Commercial Metals from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. JPMorgan Chase & Co. reduced their target price on Commercial Metals from $83.00 to $80.00 and set an “overweight” rating for the company in a report on Friday, October 9th. Finally, Wells Fargo & Company decreased their price objective on shares of Commercial Metals from $80.00 to $68.00 and set an “equal weight” rating on the stock in a report on Tuesday, October 6th. Nine equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $80.27.

Commercial Metals News Roundup

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: Quarterly results beat expectations. Commercial Metals reported adjusted earnings of $2.09 per share, above the roughly $1.95–$1.97 consensus, while revenue reached $2.66 billion versus expectations of approximately $2.56 billion. Earnings increased from $1.37 per share a year earlier, and revenue rose 25.7% year over year. Commercial Metals Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Profitability improved substantially for the full year. Fiscal 2026 net earnings totaled $655.8 million, while consolidated core EBITDA increased to $1.4 billion from $837.3 million in fiscal 2025. The stronger operating performance provides fundamental support for CMC shares. CMC Reports Fourth Quarter and Full Year Fiscal 2026 Results
• Positive Sentiment: Management signaled continued demand growth. Commercial Metals cited strong customer demand from data centers, chip factories and related construction, suggesting that infrastructure and reshoring investment could support future volumes and earnings. Commercial Metals Sees Strong Demand From Data Centers, Chip Factories
• Neutral Sentiment: Valuation remains a consideration. One analysis described CMC as improving but not yet attractive, indicating that investors may want clearer evidence of durable growth before assigning the stock a higher valuation multiple. Steel-price volatility and the broader economic cycle also remain risks. Commercial Metals Company: Still Not Attractive, But Getting Better

Commercial Metals declared that its board has initiated a share buyback plan on Wednesday, August 5th that permits the company to buy back $600.00 million in shares. This repurchase authorization permits the basic materials company to reacquire up to 7.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at Commercial Metals

In other Commercial Metals news, Director John McPherson purchased 1,390 shares of Commercial Metals stock in a transaction on Thursday, August 13th. The shares were bought at an average price of $71.92 per share, with a total value of $99,968.80. Following the purchase, the director directly owned 21,927 shares in the company, valued at $1,576,989.84. This trade represents a 6.77% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.62% of the stock is currently owned by corporate insiders.

About Commercial Metals

Commercial Metals Company (NYSE: CMC) is a steel and metals manufacturer, fabricator and recycler headquartered in Irving, Texas. Founded in 1915, the company operates a vertically integrated business that collects and processes ferrous scrap, produces steel and supplies products used in construction and infrastructure projects.

CMC’s product portfolio includes reinforcing bar, merchant bar, wire rod, structural components and other steel products. Through its fabrication and construction services, the company also processes and prepares reinforcing steel for commercial, industrial, transportation and other building projects.