Commercial Metals (NYSE:CMC) Releases Earnings Results

Commercial Metals (NYSE:CMC) posted its quarterly earnings results on Thursday. The basic materials company reported $1.73 EPS for the quarter, beating the consensus estimate of $1.70 by $0.03, FiscalAI reports. Commercial Metals had a net margin of 6.72% and a return on equity of 15.69%. The business had revenue of $2.48 billion for the quarter, compared to analysts’ expectations of $2.40 billion. During the same period in the previous year, the company posted $0.74 EPS. Commercial Metals’s revenue was up 22.9% on a year-over-year basis.

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

• Core EBITDA jumped 78.6% year over year to $353.6 million, with margin expanding to 14.2% as higher metal margins, TAG savings, and precast acquisitions all contributed.
• Management said third-quarter results were held back by temporary factors, including planned outages, higher scrap costs, and weather disruptions, and expects a roughly $40 million-$50 million sequential improvement in fourth-quarter EBITDA.
• The company said its TAG program is tracking ahead of its $150 million FY2026 annualized benefit target, with additional upside expected from commercial excellence and AI-enabled improvements.
• Precast integration is proceeding on plan, and CMC kept its FY2026 precast EBITDA outlook at $165 million-$175 million, supported by a record backlog and improving fourth-quarter conditions.
• CMC reiterated confidence in reducing net leverage below 2x by mid-2027 or sooner, helped by lower capex, precast cash generation, and tax savings, while saying its balance sheet remains highly liquid.

Commercial Metals Price Performance

Shares of CMC opened at $69.10 on Friday. The firm has a market capitalization of $7.66 billion, a PE ratio of 13.01, a P/E/G ratio of 0.42 and a beta of 1.50. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.55 and a current ratio of 2.33. Commercial Metals has a 52-week low of $48.14 and a 52-week high of $84.87. The stock has a 50 day simple moving average of $72.05 and a 200 day simple moving average of $71.27.

Commercial Metals Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Monday, July 6th will be given a dividend of $0.20 per share. The ex-dividend date of this dividend is Monday, July 6th. 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 currently 17.82%.

Hedge Funds Weigh In On Commercial Metals

A number of large investors have recently bought and sold shares of the company. Global Retirement Partners LLC grew its position in shares of Commercial Metals by 110.7% in the 4th quarter. Global Retirement Partners LLC now owns 573 shares of the basic materials company’s stock valued at $40,000 after acquiring an additional 301 shares during the period. Los Angeles Capital Management LLC acquired a new stake in Commercial Metals during the 4th quarter valued at $59,000. EverSource Wealth Advisors LLC boosted its position in Commercial Metals by 84.1% during the second quarter. EverSource Wealth Advisors LLC now owns 1,550 shares of the basic materials company’s stock worth $76,000 after purchasing an additional 708 shares during the period. Colonial Trust Co SC acquired a new position in shares of Commercial Metals in the fourth quarter valued at $81,000. Finally, Advisors Asset Management Inc. increased its holdings in shares of Commercial Metals by 160.0% in the fourth quarter. Advisors Asset Management Inc. now owns 1,178 shares of the basic materials company’s stock valued at $82,000 after purchasing an additional 725 shares during the last quarter. Institutional investors and hedge funds own 86.90% of the company’s stock.

Trending Headlines about Commercial Metals

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

• Positive Sentiment: Commercial Metals beat quarterly earnings and revenue estimates, with adjusted EPS of $1.73 and sales of $2.48 billion, supporting the bullish reaction. CMC Reports Third Quarter of Fiscal 2026 Results
• Positive Sentiment: Core EBITDA jumped nearly 79% year over year and margins expanded, showing stronger profitability across the business and signaling better operating leverage. CMC Q3 Earnings Beat on Strong Core EBITDA & Segment Gains
• Positive Sentiment: Management said temporary Q3 headwinds are easing, backlog remains solid, pricing is improving, and precast integration is helping set up a stronger fiscal fourth quarter. CMC Q3 Earnings Call Flags Stronger Q4 Setup
• Positive Sentiment: Several reports highlighted that Commercial Metals is signaling stronger profits ahead, reinforcing investor confidence in the earnings outlook. Commercial Metals Signals Stronger Profits Ahead
• Neutral Sentiment: The company also announced a quarterly dividend of $0.20 per share, which adds shareholder return support but is unlikely to be the main driver of the stock move. Conference Call and Earnings Materials

Analyst Upgrades and Downgrades

CMC has been the subject of a number of research reports. Wells Fargo & Company raised their price objective on Commercial Metals from $77.00 to $80.00 and gave the stock an “equal weight” rating in a research report on Friday. The Goldman Sachs Group assumed coverage on shares of Commercial Metals in a research report on Wednesday, April 1st. They issued a “neutral” rating and a $74.00 price target for the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Commercial Metals in a report on Tuesday, June 9th. UBS Group raised Commercial Metals from a “neutral” rating to a “buy” rating and increased their target price for the stock from $79.00 to $89.00 in a report on Wednesday, May 13th. Finally, Morgan Stanley boosted their price target on Commercial Metals from $83.00 to $88.00 and gave the company an “overweight” rating in a research note on Monday, June 22nd. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $80.44.

About Commercial Metals

Commercial Metals Company (NYSE: CMC) is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.