Commercial Metals Company Stock Earnings Reports

Commercial Metals Company (CMC) reported an exceptionally strong start to fiscal 2026: net earnings of $177.3 million ($1.58/diluted share) and adjusted earnings of $206.2 million ($1.84/diluted share). Consolidated core EBITDA was $316.9 million, up ~52% year-over-year, driven by higher metal margins, improved mill operations, and benefits from the enterprise-wide TAG initiative. TAG delivered roughly $50 million of EBITDA benefit in fiscal 2025 (scrap optimization, yield, alloy use, logistics) and management expects to reach or exceed an annualized run-rate EBITDA benefit of $150 million by the end of fiscal 2026 through expanded operational and commercial excellence. CMC closed transformational precast acquisitions (CP&P and Foley) in December; management expects the Precast platform to contribute about $165–$175 million of incremental EBITDA (for ~8.5 months of ownership in fiscal 2026) and to meaningfully strengthen margins and growth runway. Balance sheet: cash of ~$3.0 billion on Nov 30 (reflecting financing), acquisition cash payments of ~$2.5 billion in December, pro forma net leverage ~2.5x (adjusted EBITDA basis) with a target to return below 2.0x within ~18 months; revolver capacity was increased to $1.0 billion. Capex guidance for fiscal 2026 is ~$625 million (≈$300M to complete Steel West Virginia micro mill, ~$25M for Precast). Tax rate expected 5–10% for FY26 with minimal U.S. federal cash taxes in FY26–much of FY27 due to credits and bonus/accelerated depreciation. Operational notes: North America shipments were broadly stable (shipments down <1% sequential vs a typical 4–5% seasonal decline); management expects Q2 seasonal volume decline (typical 5–10%). Mill margins expected roughly flat Q2; back-half pricing upside expected as price increases flow through and TAG benefits accumulate. AZ2 (Arizona 2) is profitable but still ramping (exited prior year at ~60% utilization; hot commissioning targeted to begin in June; full run rates over time). Europe: Q1 impacted by CO2 credit timing and import flows; management expects CBAM (effective 1/1/26) and revised safeguard quotas/tariffs to support EU long steel pricing through 2026. Trade: favorable preliminary antidumping ruling for Algeria; other AD preliminary rulings expected in March. Risks called out: normal seasonality, integration and purchase-accounting costs, potential import shifts (Turkey, Spain/Portugal), and litigation-related items that affected Q1 expenses.