CMC

Nucor (NYSE:NUE) is scheduled to report its earnings on Monday, October 26, 2026. The company has a market value of about $58.9 billion. Over the last twelve months it generated $36.1 billion in revenue and $4.2 billion in operating profit, with net income of $2.9 billion. The reaction will turn on how the results and guidance land against expectations. Before the release, it helps to know how the stock has behaved after previous reports, and whether an early move has tended to carry on. See the earnings reaction history of all stocks Nucor's Historical Odds Of A Positive Post-Earnings Return Some observations on one-day (1D) post-earnings returns, measured from the last close before each release: - There are 19 earnings releases in the last five years, with 14 positive and 5 negative one-day (1D) returns. Positive 1D returns were seen 74% of the time. - Over the last three years that share falls to 55%, across 11 releases. - The median of the 14 positive 1D returns is 4.7%, and the median of the 5 negative ones is -2.7%. - The largest one-day reactions were 9.1% and -8.9%. The table below shows the 1D, 5-day (5D) and 21-day (21D) returns after each release, followed by summary statistics. Earnings Date | 1D | 5D | 21D 7/27/2026 | 7.2% | 5.4% | -0.1% 4/27/2026 | 4.7% | 5.0% | 14.6% 1/26/2026 | -2.3% | 1.9% | -1.2% 10/27/2025 | 5.4% | 2.7% | 8.4% 7/28/2025 | -2.7% | -5.2% | 2.4% 4/28/2025 | 1.9% | 3.4% | -6.6% 1/27/2025 | 3.8% | 7.6% | 10.3% 10/21/2024 | -6.5% | -5.4% | -7.3% 7/22/2024 | -1.1% | -2.4% | -12.2% 4/22/2024 | -8.9% | -8.6% | -10.2% 1/29/2024 | 6.9% | 3.2% | 8.8% 10/23/2023 | 4.8% | 6.0% | 12.3% 7/24/2023 | 3.7% | 3.3% | 1.1% 4/20/2023 | 5.5% | -2.1% | -5.0% 1/26/2023 | 8.4% | 11.7% | 3.7% 10/20/2022 | 2.5% | 12.4% | 16.6% 7/21/2022 | 9.1% | 8.1% | 21.1% 4/21/2022 | 3.7% | -6.1% | -28.7% 1/27/2022 | 4.0% | 20.4% | 39.8% Statistic | 1D | 5D | 21D # Positive | 14 | 13 | 11 # Negative | 5 | 6 | 8 Median Positive | 4.7% | 5.4% | 10.3% Median Negative | -2.7% | -5.3% | -7.0% Max Positive | 9.1% | 20.4% | 39.8% Max Negative | -8.9% | -8.6% | -28.7% Does The First Move Carry On? Another approach is to wait for the initial reaction and ask whether it tends to continue. The table below shows the correlation between the 1D return and the return over the following 5 and 21 trading days, and between the 5D return and the following 21 trading days. A value near 1 means the first move has tended to continue; near -1, to reverse; near 0, no consistent pattern. The strongest relationship over five years is between the 5D and the following 21 days, at 0.67 across 19 releases: the early move has tended to continue in the same direction. That is a tendency, not a rule, and it can break on any given report. History | 1D vs next 5D | 1D vs next 21D | 5D vs next 21D 5 Years | 0.06 | 0.05 | 0.67 3 Years | 0.01 | 0.15 | 0.23 Is There Any Correlation With Peer Earnings? Steel Dynamics (STLD) usually reports a few days before Nucor, and reported this season on October 20, 2026; its stock fell 0.3% the next day. The table compares Steel Dynamics' one-day reaction to its own earnings with Nucor's one-day reaction to the report that followed. It covers the 12 quarters in which Steel Dynamics reported shortly before Nucor. The correlation is -0.04, close to zero: Steel Dynamics' reaction has told you little about how Nucor's stock would react. NUE Earnings Date | NUE 1D | STLD 1D 7/27/2026 | 7.2% | 1.3% 4/27/2026 | 4.7% | 3.3% 10/27/2025 | 5.4% | 5.2% 7/28/2025 | -2.7% | -1.7% 4/28/2025 | 1.9% | 4.0% 1/27/2025 | 3.8% | -0.4% 10/21/2024 | -6.5% | 4.0% 7/22/2024 | -1.1% | -0.7% 1/29/2024 | 6.9% | -0.5% 10/23/2023 | 4.8% | -0.3% 7/24/2023 | 3.7% | -3.0% 1/27/2022 | 4.0% | 2.3% Correlation | - | -0.04 Trading around earnings is a bet on a single event. If you want upside with a smoother ride than an individual stock such as NUE can offer, consider the Trefis High Quality (HQ) Portfolio: about 30 stocks selected for consistent cash generation, strong margins and resilient balance sheets, with a track record of outperforming a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000.

Commercial Metals stock barely flinched after its latest numbers, easing just 0.6% to US$64.98 even though the new quarter landed with real force. Q4 2026 earnings per share came in at US$1.92 on revenue of US$2.66b, both paired with a trailing net margin of 7% that now looks very different from where this business was a year ago. Short term traders saw a quiet tape. Long term holders saw a metals producer that is quietly turning higher profitability and a lower 10.9x P/E into a very different multi‑year story. Like the mix of steady Q4 earnings and a 10.9x P/E at Commercial Metals but want a broader set of solid balance sheet industrials to compare it against? Scan the list of solid balance sheet and fundamentals stocks (25 results). - Revenue (Q4 2026 vs. Q4 2025): US$2,658.3m vs. US$2,114.5m (higher period on period) - Net Income (Excl. Extra Items, Q4 2026 vs. Q4 2025): US$212.5m vs. US$151.8m (higher period on period) - Basic EPS (Q4 2026 vs. Q4 2025): US$1.92 vs. US$1.36 (higher period on period) - Net Margin (Trailing 12 Months vs. Prior Year): 7% vs. 1.1% (higher profitability level) Earnings only tell part of Commercial Metals' story, because cash flows show how much money actually stays in the business for debt, capex, and shareholder returns. Based on Commercial Metals' recent cash flows alone, the stock could be a meaningful 27% undervalued. Supporters argue Commercial Metals is on the verge of a cash rich phase, not just a bigger mill footprint. "The main thing that has to go right is Commercial Metals executing on its shift toward higher margin, capital light Construction Solutions while sustaining TAG run rate savings and disciplined mill capex so that the projected free cash flow inflection from 2027 is realized." Q4 and FY26 results show that thesis starting to hit real milestones. Core EBITDA reached about US$1.4b for FY26 with a 14.5% margin, TAG has already delivered roughly US$250m of run rate benefits, precast EBITDA is building, and capex is stepping down toward FY27, all while leverage moved below the 2x target. The price and this Narrative do not agree. → Uncover what this Narrative says Commercial Metals is actually worth. Bearish investors argue that Commercial Metals could see its Construction Solutions push backfire if project timing and weather keep earnings choppy. "While management positions the shift toward Construction Solutions, including precast and Tensar, as a move to higher margin and capital light earnings, the effect of weather related shipment delays that left precast EBITDA below expectations in FY26 Q3 suggests that rising mix toward these businesses could bring more project timing volatility that keeps EBITDA and free cash flow conversion below the level implied by a 40% EBITDA contribution target." Q4 results partly validate that concern. Precast EBITDA for the quarter came in below management's own Q3 expectations due to softer residential markets. Yet bookings, backlog and pricing in that unit all moved higher, while group core EBITDA and margins strengthened. The mix shift is hitting bumps, not breaking, which means the volatility risk is real but not yet thesis breaking. Commercial Metals just reported earnings that showed consistent execution while the share price stayed muted. The real opportunity could be locating stocks that seem mispriced before the market narrows the valuation gap. - Company 1 - 26% below our estimate - runs injectable therapies that patients and doctors use for weight management and diabetes care. - Company 2 - 23% below our estimate - supplies testing equipment and components that support utility and aerospace upgrades to grids and fleets. - Company 3 - 46% below our estimate - builds a relationship-focused banking model designed to retain productive lenders through a major merger. Those are three of them. See the full list of 33 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CMC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Steel Dynamics (NASDAQ:STLD) is scheduled to report its earnings on Monday, October 19, 2026. The company has a market value of about $34.7 billion. Over the last twelve months it generated $20.5 billion in revenue and $2.2 billion in operating profit, with net income of $1.6 billion. How the stock moves after the release will depend on how the results and outlook compare with expectations. What history can offer is the base rate: how often, and how far, the stock has moved after past reports. See the earnings reaction history of all stocks How Often Has Steel Dynamics Stock Risen After Earnings? Some observations on one-day (1D) post-earnings returns, measured from the last close before each release: - There are 20 earnings releases in the last five years, with 10 positive and 10 negative one-day (1D) returns. Positive 1D returns were seen 50% of the time. - Over the last three years that share rises to 58%, across 12 releases. - The median of the 10 positive 1D returns is 4.2%, and the median of the 10 negative ones is -1.8%. - The largest one-day reactions were 10.0% and -4.1%. The table below shows the 1D, 5-day (5D) and 21-day (21D) returns after each release, followed by summary statistics. Earnings Date | 1D | 5D | 21D 7/21/2026 | 1.3% | 8.6% | 8.4% 4/21/2026 | 5.2% | 7.5% | 6.7% 1/27/2026 | 1.3% | 7.6% | 10.5% 10/21/2025 | 5.2% | 8.0% | 5.7% 7/22/2025 | -1.7% | -3.2% | -4.7% 4/23/2025 | 4.3% | 10.1% | 12.6% 1/23/2025 | -0.4% | 5.1% | 6.4% 10/17/2024 | 4.0% | -0.9% | 6.1% 7/18/2024 | -0.7% | -5.2% | -9.2% 4/24/2024 | -3.2% | -3.0% | -1.1% 1/24/2024 | 0.3% | 5.4% | 7.4% 10/19/2023 | -4.1% | -3.5% | 6.3% 7/20/2023 | -3.0% | -1.5% | 0.1% 4/21/2023 | -1.3% | -6.4% | -12.9% 1/26/2023 | 10.0% | 13.5% | 7.3% 10/20/2022 | 6.2% | 21.5% | 25.2% 7/21/2022 | 3.9% | 6.9% | 24.0% 4/22/2022 | -0.3% | -4.3% | -12.8% 1/26/2022 | -1.8% | 6.4% | 16.9% 10/21/2021 | -3.1% | -0.8% | -2.2% Statistic | 1D | 5D | 21D # Positive | 10 | 11 | 14 # Negative | 10 | 9 | 6 Median Positive | 4.2% | 7.6% | 7.4% Median Negative | -1.8% | -3.2% | -7.0% Max Positive | 10.0% | 21.5% | 25.2% Max Negative | -4.1% | -6.4% | -12.9% Do Early Post-Earnings Moves Continue? Another approach is to wait for the initial reaction and ask whether it tends to continue. The table below shows the correlation between the 1D return and the return over the following 5 and 21 trading days, and between the 5D return and the following 21 trading days. A value near 1 means the first move has tended to continue; near -1, to reverse; near 0, no consistent pattern. None of these correlations is strong enough to trade on: all are below 0.40 in absolute terms over five years, so the early post-earnings move has not reliably predicted what followed. History | 1D vs next 5D | 1D vs next 21D | 5D vs next 21D 5 Years | 0.28 | 0.09 | 0.28 3 Years | 0.20 | -0.03 | -0.12 Do Peers That Report First Offer A Clue? Commercial Metals (CMC) usually reports a few weeks before Steel Dynamics, and has already reported this season: its stock rose 0.1% the day after its October 15 report. The table compares each peer's one-day reaction to its own earnings with Steel Dynamics' one-day reaction to the report that followed, for the 14 quarters in which CMC reported first. The correlation is -0.14; the closer to 1, the more the peer's reaction has foreshadowed Steel Dynamics', and a negative value means it has tended to point the other way. STLD Earnings Date | STLD 1D | CMC 1D 7/21/2026 | 1.3% | 3.9% 4/21/2026 | 5.2% | -4.7% 1/27/2026 | 1.3% | -3.6% 10/21/2025 | 5.2% | -7.3% 7/22/2025 | -1.7% | 1.2% 1/23/2025 | -0.4% | 3.1% 7/18/2024 | -0.7% | 3.8% 1/24/2024 | 0.3% | 7.5% 10/19/2023 | -4.1% | -9.6% 7/20/2023 | -3.0% | 8.8% 4/21/2023 | -1.3% | 3.1% 1/26/2023 | 10.0% | -0.6% 10/20/2022 | 6.2% | 6.1% 1/26/2022 | -1.8% | 0.6% Correlation | - | -0.14 An earnings release can move one stock sharply in either direction. A diversified portfolio spreads that risk. The Trefis High Quality (HQ) Portfolio holds about 30 quality businesses, rebalanced with rules, and has a track record of outperforming a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000.

Commercial Metals has rewarded long term holders, yet the share price around US$64.98 today puts a fresh spotlight on whether the underlying cash flows really back up that market value. With management highlighting solid conditions for the business after its latest results, the question now is how those operating gains translate into long term cash generation. - Over the past 5 years the stock has returned about 120.7%, which makes the current valuation hinge heavily on what its future cash streams can support. - Recent full year results, including stronger earnings and core EBITDA from the North America Steel Group, may support expectations for more resilient cash flow even as some precast activities face softer residential demand. - Prefer to judge Commercial Metals on earnings? See what Commercial Metals's 10.9x P/E says about the price. For investors, the debate is whether the present share price is justified by the intrinsic value suggested by Commercial Metals' cash flows when viewed through a Discounted Cash Flow (DCF) lens. If you want a broader starting point for ideas built around cash flow and valuation, run the same test across 32 high quality undervalued stocks. The Discounted Cash Flow (DCF) approach looks at what Commercial Metals can return to shareholders in cash over time and then discounts that back to today. On this model, the group is generating last twelve month free cash flow of about $570.2 million, with analysts and internal estimates pointing to free cash flow that grows in stages rather than in a straight line. The projections build in rising cash generation toward the early 2030s, followed by a flatter profile that fits a more mature cycle for Commercial Metals. Because the recent fiscal 2026 update highlighted stronger net earnings and core EBITDA from the North America Steel Group, the current DCF assumptions lean on that operating performance to justify higher future cash flow while still acknowledging softer precast activity. The DCF output puts the estimated intrinsic value meaningfully above the current share price of $64.98. This indicates that the recent earnings strength helps explain why the valuation model suggests more support from cash flows than the market price implies. Find out what Commercial Metals could be worth using our Discounted Cash Flow (DCF) estimate. Simply Wall St Narratives for Commercial Metals pick up where the DCF puzzle leaves off and explain which paths for earnings, margins and growth would need to occur for the stock to be worth materially more or less than today's price, all housed on the company's Community page. Each scenario links its valuation number to a concrete view on how Commercial Metals' growth, profitability and risks might evolve, giving you something specific to revisit as new information is released. One of the top community narratives on Commercial Metals: 18% undervalued "The main thing that has to go right is that Commercial Metals executes on the TAG operating system and Construction Solutions mix shift…" Discover why this Narrative puts Commercial Metals at 18% undervalued. Cash flow models only go so far when the real day to day choices come from specific people in charge, and what they are rewarded for can tilt every decision they make. See who runs Commercial Metals and how they are paid. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CMC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. - Core EBITDA: Fiscal 2026 core EBITDA approximately $1.4 billion, up from $837 million in fiscal 2025; Q4 core EBITDA approximately $394 million, up 35.1% year-over-year. - Core EBITDA Margin: Fiscal 2026 core EBITDA margin 14.5%, up 80 basis points; Q4 core EBITDA margin 14.8%, up 100 basis points year-over-year and 60 basis points sequentially. - Net Earnings: Q4 net earnings approximately $213 million, or $1.91 per diluted share. - Adjusted Earnings: Increased 21% sequentially in Q4. - Excluded Pretax Expenses: Approximately $26.8 million in Q4, including $19.8 million of noncash amortization related to acquired backlog. - North America Steel Group Adjusted EBITDA: Q4 adjusted EBITDA $317 million, up 25.2% sequentially. - North America Steel Group Adjusted EBITDA Margin: Q4 margin 16.4%, up 220 basis points sequentially and 160 basis points year-over-year. - Metal Margin: Q4 metal margin $652 per ton, up $42 per ton sequentially; average selling price up $32 per ton sequentially; scrap costs down $10 per ton sequentially. - Finished Steel Shipments: Q4 shipments up 7.1% sequentially. - Merchant Bar Shipments: Up 27.5% year-over-year in Q4. - Downstream Product Volumes: Grew 8.5% year-over-year in Q4. - Downstream Backlog: Up 15.5% year-over-year and 5% sequentially. - Construction Solutions Group Net Sales: Q4 net sales up 94.5% year-over-year. - Construction Solutions Group Adjusted EBITDA: More than doubled year-over-year in Q4; adjusted EBITDA margin expanded 80 basis points. - Precast Adjusted EBITDA: $57.1 million in Q4; approximately $150 million since acquisition, excluding purchase accounting impact. - Europe Metal Margin: Expanded $32 per ton year-over-year; average selling prices up $44 per ton year-over-year and $15 per ton sequentially; energy costs up approximately $10 per ton in Q4. - Europe CO2 Credits: $30.7 million received in Q4 fiscal 2025 and $20.4 million in Q3 fiscal 2026; no credits in current quarter. - Net Leverage: Reduced to 1.9x, below target of 2x. - Capital Expenditures: Fiscal 2026 total capital spend approximately $580 million; fiscal 2027 expected roughly $400 million, a decline of nearly $200 million. - Share Repurchase Authorization: Approximately $700 million remaining; company intends to accelerate pace of activity. - Effective Tax Rate: Expected approximately 24% for fiscal 2027. - Acquired Backlog Amortization: Approximately $20 million in Q1 fiscal 2027 and roughly $2 million in Q2 fiscal 2027. - TAG Benefits: More than $250 million of gross run rate benefits achieved exiting fiscal 2026; clear line of sight to an additional $100 million by end of fiscal 2027. - Warning! GuruFocus has detected 5 Warning Signs with CMC. - Is CMC fairly valued? Test your thesis with our free DCF calculator. Release Date: October 15, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Core EBITDA increased to approximately $1.4 billion in fiscal 2026, up from $837 million in fiscal 2025, with core EBITDA margin expanding 80 basis points to 14.5%. - North American Steel Group adjusted EBITDA increased 25.2% sequentially to $317 million, driven by TAG benefits, metal margin expansion, and growth in merchant bar shipments. - Precast integration is on track with synergies meeting or exceeding expectations, and the business has contributed roughly $150 million of adjusted EBITDA since acquisition. - Net leverage adjusted for acquisitions reduced to below target at 1.9x, providing greater financial flexibility for growth and shareholder returns. - Strong demand outlook for nonresidential and infrastructure construction, with backlog up 3% year-over-year and 4% sequentially, and pricing trending higher. - Construction Solutions Group fourth-quarter results were below expectations due to residential softness in certain Southeastern markets, impacting precast volumes and margins. - Precast adjusted EBITDA of $57.1 million in Q4 was about $20 million short of previous guidance, and Q1 is expected to be down mid- to high single digits sequentially. - Europe adjusted EBITDA comparisons were affected by the absence of CO2 credits in the current quarter, and energy costs are expected to remain elevated, potentially increasing by $10 to $15 per ton in Q1. - An unplanned outage at the Galvabar facility affected shipments in the quarter, and start-up costs for the West Virginia mill are expected to increase to $3-5 million in Q1. - Residential construction remains muted, particularly new single-family, and the residential portion of the precast portfolio is running at only 50-60% of normal levels, with recovery timing uncertain. Q: After a relatively soft third quarter, the fourth quarter precast EBITDA number came in about $20 million short of the number you intimated on the last call. Just given the residential market challenges, is annual run rate EBITDA around that $240 million, $250 million still the right way to be thinking about this business before you make any more acquisitions?A: Peter Matt, President and CEO: We believe it is, and we think that it's a good target for this year. When we look at the backlogs in the business, the progress we've had on integration, and overall momentum, we feel like we can achieve that. We will have some near-term seasonal weakness in Q1, which probably leads to a Q1 that's down mid- to high single digits. But overall, we remain very positive. As residential has declined, it's been filled in by a strong slug of non-res and infrastructure, which is supporting our backlog. Pricing remains very strong and continues to rise across the portfolio. Q: You mentioned that the South Korean long product imports finally took a big step down in September. How do you think about the sustainability of these trends? And do you expect any sort of government action now that South Korea has also made itself a meaningful importer of flat products this year?A: Paul Lawrence, CFO: We did see the significant decrease. When you stack up the costs of getting rebar to the US from South Korea, it's not competitive with where our pricing is, even with recent price increases. Economics are taking care of the issue for the short term. Where we see someone violating our trade laws, we are not going to be shy about going after them, but right now we're comfortable with where things stand. The countries against which we filed antidumping and countervailing duty cases have effectively gone away from the import market, which supports the point that this is durable supply management. Those duties have a duration of at least 5 years. Q: Can you walk us through some of the moving parts for the first quarter guidance, especially how much CO2 credits do you expect in EU, and what is the magnitude of start-up costs you're assuming for the West Virginia mill?A: Paul Lawrence, CFO: In Europe, we are expecting somewhere between $10 million and $15 million of CO2 credits. Offsetting that will be higher energy costs of around $10 to $15 a ton, which will erode a little bit into earnings. We still expect a meaningful increase in overall European results. On West Virginia start-up costs, we anticipate an extra $3 million to $5 million of incremental cost in Q1, versus the $9 million to $10 million range incurred in the fourth quarter. Q: Can you give some additional color on how you see the cadence of ramp-up at the West Virginia mill? When do you expect the first commercial shipments, and are you still on track for 250,000 to 300,000 tonnes of volumes?A: Peter Matt, President and CEO: We had some construction weather delays, but we are making great progress on hot commissioning. We have rolled our first billet and are progressing with the start-up. We expect the startup to occur over a 12-month period, and we should be breakeven after about 6 months. We're pleased to have brought it in effectively on time and on budget. Paul Lawrence, CFO: On volume, it will be a little less than indicated given commissioning is ongoing. We'll probably be a little under 200,000 tons of production in the current year. Q: On precast, if you took the quarterly numbers and annualized that, you were ahead on sales but behind on profitability. Can you characterize what's going on relative to the markets you're operating in? Is there some cost pressure or mix-related areas to call out?A: Peter Matt, President and CEO: This is really about weakness in residential in the Southeast, and it's about volume weakness in that region. Volumes in the CMC portfolio are up and almost offsetting all of the volume decline in the Southeast. There was a sharp discrepancy between margins on the acquired portfolio and the CMC portfolio, which is one of the opportunities we saw. Losing volumes in the Southeast magnified the EBITDA impact. Price is not the issue; it has been going up quarter-over-quarter and year-over-year. Our margins in spite of that volume loss remained at 30%. Bookings were up 12.5% in the fourth quarter and have continued to rise in September. Backlog is up 4% year-over-year. The residential portion of our portfolio is running at about 50% to 60% of a normal environment, so we feel we've taken much of the pain on the residential side. Q: On North American steel, merchant bar shipments look to be at least at a 5-year high. Is there further opportunity to shift more volume to merchant bar, and how should we think about the cadence of rebar versus merchant bar, especially with West Virginia ramping?A: Peter Matt, President and CEO: We see a nice opportunity in merchant bar. Our portfolio gives us latitude to control supply and demand by producing fewer rebar tons and more of other products. We have been shipping materially more merchant bar. As we start West Virginia, it will free up South Carolina to produce more merchant products. As a starting objective, we can get up to 1 million tons of merchant shipments, implying about 150,000 to 200,000 tons of incremental merchant shipments. Paul Lawrence, CFO: When we disclose merchant bar and other, that includes merchant bar and wire rod principally from our Florida facility, about 150,000 tons of wire rod on an annualized basis, which supplements the 1 million-ton target. Q: On the recent move up in October for #1 heavy melt scrap, does that get fully passed through with the recent increase in rebar prices you announced? Any thoughts on the timing impact into the November quarter?A: Peter Matt, President and CEO: It will. We feel confident that as we go into the November quarter, you're going to see a gradually improving top line from an ASP perspective and gradually improving metal margins. We believe we will outpace the move in scrap as it filters through our portfolio. Q: On Europe, you talked about recovery from low levels with better demand and favorable trade policies. How much of that is volume driven, how much is better demand, and how much is from tariff actions?A: Peter Matt, President and CEO: Demand is good and has been good in Poland. The challenge has been on the supply side, which is where we've been For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Investing.com --On Thursday, Commercial Metals Company (NYSE:CMC) reported fourth quarter adjusted earnings per share of $2.09, exceeding analyst estimates of $1.96. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » The steel and construction solutions provider's shares gained 3.81% in pre-market trading following the results. The company posted revenue of $2.65 billion, above the consensus estimate of $2.56 billion. Revenue increased 25.7% YoY from $2.11 billion in the prior year period. The company reported net earnings of $212.5 million, or $1.91 per diluted share, up from $1.35 per share in the year-ago quarter. Consolidated core EBITDA rose 35.1% YoY to $393.7 million, with core EBITDA margin expanding 100 basis points to 14.8%. Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » "Our fourth quarter core EBITDA performance delivered solid year-over-year growth, driven by strong execution of our North American steel franchise and continued momentum of enterprise-wide TAG benefits," said Peter Matt, President and Chief Executive Officer. The North America Steel Group posted adjusted EBITDA of $317.5 million, up 32.6% YoY, with adjusted EBITDA margin expanding to 16.4% from 14.8%. Metal margins increased $84 per ton to $652, while finished goods shipment volumes rose 5.3% YoY. Merchant bar shipment volumes surged 27.5% YoY. The Construction Solutions Group reported net sales of $431.4 million, up 94.5% YoY, with adjusted EBITDA of $101.7 million, up 100.9%. However, precast operations fell below management expectations due to regional residential softness. For the first quarter of fiscal 2027, CMC expects the North America Steel Group's adjusted EBITDA to be nearly flat compared to the fourth quarter, as improved pricing largely offsets higher scrap costs and seasonal volume declines. The Construction Solutions Group is expected to see sequential adjusted EBITDA decline due to typical seasonal trends. The company reduced net leverage adjusted for acquisitions to 1.9x, below its 2x target. CMC repurchased 383,333 shares valued at $26.7 million during the quarter and declared a quarterly dividend of $0.20 per share. Original Article CMC shares rise 4% on fourth quarter earnings beat U.S. Bancorp beats earnings despite revenue miss Marsh shares rise 2% after beating third quarter estimates on strong revenue growt

- Fiscal 2026 net earnings of $655.8 million. Consolidated core EBITDA increased to $1.4 billion, from $837.3 million in fiscal 2025. Core EBITDA margin increased by 380 basis points to 14.5%. - Fourth quarter net earnings of $212.5 million, or $1.91 per diluted share, and adjusted earnings of $233.6 million, or $2.09 per diluted share - Fourth quarter consolidated core EBITDA increased 35.1% year-over-year to $393.7 million and core EBITDA margin increased by 100 basis points to 14.8% - Improved results were driven by strong growth in the North America Steel Group, the inclusion of the acquired precast operations, and benefits from Transform, Advance, Grow ("TAG") initiatives - Precast integration on track - Reduced net leverage adjusted for acquisitions1 to below 2x target IRVING, Texas, Oct. 15, 2026 /PRNewswire/ -- CMC (NYSE: CMC) (the "Company") today announced financial results for its fiscal fourth quarter and fiscal year ended August 31, 2026. CEO Commentary "Fiscal 2026 marked a transformational step forward for CMC. We continued to build organizational strength and enhance margin durability in our early-stage construction portfolio through our precast acquisitions, our successful TAG program, and our key growth investments, including our West Virginia micro mill. We also established a clear roadmap to fiscal 2029, setting ambitious and achievable targets with a focus on delivering long-term shareholder value," said Peter Matt, President and Chief Executive Officer. "Our fourth quarter core EBITDA performance delivered solid year-over-year growth, driven by strong execution of our North American steel franchise and continued momentum of enterprise-wide TAG benefits. While broader demand conditions remain supportive, residential softness weighed on precast results in the period. With backlogs near record levels, a differentiated portfolio of solutions, and multiple value creation levers, we are well-positioned to deliver strong financial results and achieve our strategic goals in fiscal 2027." Fourth Quarter Operational and Financial Highlights | | Three Months Ended | | | | (in thousands, except per share data) | | 8/31/2026 | | 5/31/2026 | | 8/31/2025 | | QoQ Change | | YoY Change Net sales | | $ 2,658,334 | | $ 2,483,245 | | $ 2,114,518 | | 7.1 % | | 25.7 % Net earnings | | $ 212,520 | | $ 173,015 | | $ 151,781 | | 22.8 % | | 40.0 % Core EBITDA | | $ 393,658 | | $ 353,596 | | $ 291,441 | | 11.3 % | | 35.1 % Core EBITDA margin | | 14.8 % | | 14.2 % | | 13.8 % | | 60bps | | 100bps Net earnings per diluted share | | $ 1.91 | | $ 1.55 | | $ 1.35 | | 23.2 % | | 41.5 % Adjusted earnings | | $ 233,590 | | $ 193,025 | | $ 154,965 | | 21.0 % | | 50.7 % Adjusted earnings per diluted share | | $ 2.09 | | $ 1.73 | | $ 1.37 | | 20.8 % | | 52.6 % For the fourth quarter of fiscal 2026, the Company reported consolidated net earnings of $212.5 million or $1.91 per diluted share, up from $1.35 in the prior year period, due in part to a lower effective tax rate. Adjusted earnings were $233.6 million, or $2.09 per diluted share, an increase of 52.6% on a per-share basis versus the comparable prior year period. Consolidated core EBITDA for the fiscal fourth quarter increased 35.1% year-over-year to $393.7 million, while core EBITDA margins expanded 100 basis points to 14.8%, driven by metal margin expansion and the inclusion of the higher-margin precast business. Relative to the fiscal third quarter, 11.3% core EBITDA growth was led by the North America Steel Group, where stronger margins and volume growth drove 60 basis points of core EBITDA margin expansion. Business Segments - Fiscal Fourth Quarter 2026 Review North America Steel Group Fourth quarter North America Steel Group adjusted EBITDA increased 32.6% year-over-year to $317.5 million, while adjusted EBITDA margin increased to 16.4%, up from 14.8% in the prior year period. Segment performance reflects a combination of higher average selling price for steel products, merchant bar-led volume growth, and ongoing benefits from the Company's TAG program. Compared with the prior year period, metal margins increased $84 per ton to $652. Sequentially, metal margins improved by $42 per ton, driven primarily by a $32 per ton increase in average selling price while scrap costs declined $10 per ton. Sequential pricing growth reflects a balanced supply-demand environment, continued momentum in rebar and MBQ pricing, and ongoing commercial discipline. Finished goods shipment volumes for the North America Steel Group increased 5.3% versus the prior year period. Merchant bar shipment volumes surged 27.5% year-over-year, and 16.0% sequentially, driven by continued strength in industrial applications, including data center-related activity, as well as our expanded merchant bar production capabilities at the Arizona 2 micro mill. Taken together, rebar and downstream product shipment volumes were essentially flat year-over-year and up 4.4% sequentially, reflecting our commercial discipline as well as our differentiated capabilities that position us well to meet the complexity associated with large-scale megaproject demand. Market conditions remain solid, with demand strength across the energy build-out, semiconductor manufacturing, industrial manufacturing, and key public infrastructure markets. These conditions have contributed to a healthy and growing backlog, with downstream backlog volumes increasing 5.0% sequentially and 15.5% year-over-year. Similarly, backlog pricing continues to trend higher, reflecting disciplined execution, healthy demand, and our differentiated market position across core end markets. Construction Solutions Group Construction Solutions Group ("CSG") fourth quarter net sales increased 94.5% to $431.4 million and adjusted EBITDA of $101.7 million was up 100.9% year-over-year. Adjusted EBITDA margin of 23.6% was up 80 basis points relative to the prior year period. In the period, precast sales and adjusted EBITDA were $190.8 million and $57.0 million, respectively. Precast adjusted EBITDA fell below management's prior expectations, primarily due to regional residential softness, which reduced volumes and created regional margin mix headwinds. Precast shipments decreased year-over-year with weakness in the Southeast that more than offset strong shipment growth in the Mid-Atlantic. Underlying precast demand remains healthy, with strong momentum in non-residential and infrastructure end markets. In the fourth quarter, bookings were up year-over-year and up 12.6% sequentially. Backlog increased roughly 3% from the prior year and nearly 4% from the fiscal third quarter, and average selling price continued to move higher, reflecting solid market fundamentals. These indicators reinforce our confidence in the outlook for the precast business and its ability to deliver higher growth, greater earnings stability, and stronger returns for CMC in 2027. Tensar delivered results that were largely consistent with both the prior quarter and the year-ago period, capping off a strong fiscal 2026 in which profitability increased approximately 50%. Performance was driven by favorable construction activity across several key end markets, including data centers, energy, and infrastructure. Construction Services and Impact Metals also delivered strong revenue and adjusted EBITDA growth year on year. Performance Reinforcing Steel's results were lower due to a significant unplanned outage at Galvabar that impacted shipments during the quarter. Encouragingly, bookings, backlogs and pricing trends for that business remain strong, and the operational flexibility coming from the second Galvabar line, which will be commissioned later in calendar 2026, will further enhance our ability to serve demand and support future growth. Europe Steel Group For the fourth quarter, Europe Steel Group generated adjusted EBITDA of $15.6 million, versus $39.1 million in the prior year period, with the year-over-year comparison impacted by a $30.7 million CO₂ credit recognized in the prior year, while no credit was recognized in the current period. Metal margin expanded by $32 per ton year-over-year as average selling price increased $44 per ton and outpaced scrap costs, which increased $12 per ton over the same period. Finished goods shipment volumes for the Europe Steel Group increased 0.8% as lower rebar volumes were more than offset by strong growth in merchant bar and wire rod. Improved trade policies via the EU Carbon Border Adjustment Mechanism ("CBAM") as well as the tariff-rate quota ("TRQ") system implemented July 1, 2026 are supporting a more constructive operating environment. Combined with gradually improving end-market demand trends, these developments reinforce our confidence in a return to mid-cycle performance levels. Balance Sheet & Capital Allocation As of August 31, 2026, cash, cash equivalents and restricted cash totaled $778.9 million and available liquidity was over $2.0 billion. Net leverage adjusted for acquisitions ended the quarter at 1.9x reflecting strong cash generation and balance sheet discipline. During the quarter, CMC repurchased 383,333 shares of common stock valued at $26.7 million in the aggregate. As of August 31, 2026, $702.1 million remained available under the current share repurchase authorization. On October 13, 2026, the board of directors declared a quarterly dividend of $0.20 per share of CMC common stock payable to stockholders of record on October 28, 2026. The dividend, to be paid on November 11, 2026, will mark the 248th consecutive quarterly payment by the Company. Outlook Mr. Matt added, "We expect fiscal 2027 will be another strong year for CMC, supported by a healthy and balanced market backdrop and the growing contribution from our value creation levers, including TAG, our growth investments, and an evolving early-stage construction portfolio. Our focus remains on delivering profitable growth, improving free cash flow generation, enhancing shareholder returns, and, above all, continuing to advance our strategic agenda for a stronger CMC." For the first quarter of fiscal 2027, we continue to expect healthy operating performance across the portfolio with normal seasonal factors and input cost dynamics to impact results sequentially: - For the North America Steel Group, improved pricing is expected to largely offset higher scrap costs, startup expenses, and a slight seasonal decline in shipments, resulting in adjusted EBITDA that is expected to be nearly flat in comparison to the fourth quarter. - Within the Construction Solutions Group, adjusted EBITDA is expected to be down sequentially reflecting typical seasonal trends impacting the end market activity of this segment. - Meaningful sequential growth in adjusted EBITDA is anticipated for the Europe Steel Group with the first quarter benefiting from improving operating conditions and a CO2 credit. Conference Call CMC invites you to listen to a live broadcast of its fourth quarter fiscal 2026 conference call today, Thursday, October 15, 2026 at 11:00 a.m. ET. Peter Matt, President and Chief Executive Officer, and Paul Lawrence, Senior Vice President and Chief Financial Officer, will host the call. The call is accessible via our website at www.cmc.com. In the event you are unable to listen to the live broadcast, the call will be archived and available for replay on our website on the next business day. Financial and statistical information presented in the broadcast are located on CMC's website under "Investors." About CMC CMC is a Fortune 500® company headquartered in Irving, Texas, and a leading provider of early-stage construction solutions that support the foundational phases of modern infrastructure and building projects. Founded in 1915, CMC has grown from a single-site recycling operation to one of the largest U.S. manufacturers of steel reinforcing bar ("rebar"), a leading producer of subgrade soil stabilization and foundation enhancement solutions and a major supplier of concrete pipe and precast products. Through an extensive manufacturing network primarily located in the United States and Central Europe, with strategic operations in the United Kingdom, Europe and Asia, CMC serves infrastructure, non-residential, residential, industrial and energy markets. While often unseen, CMC's products are essential to highways, bridges, airports, commercial buildings and other critical structures that support everyday life. From Fortune Magazine. © 2025 Fortune Media IP Limited. All rights reserved. Used under license Forward-Looking Statements This news release contains forward-looking statements within the meaning of the federal securities laws with respect to the expected performance of our recently acquired precast platform, general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade actions, the effects of continued pressure on the liquidity of our customers, potential synergies and growth provided by acquisitions and strategic investments, demand for our products, shipment volumes, metal margins, backlog volumes, the ability to operate our steel mills at full capacity, particularly during periods of domestic mill start-ups, the future availability and cost of supplies of raw materials and energy for our operations, growth rates in certain reportable segments, product margins within our Construction Solutions Group segment, share repurchases, legal proceedings, construction activity, international trade, the impact of geopolitical conditions, the effects of CBAM and other EU trade measures on European demand and pricing, capital expenditures, tax credits, the timing, amount and recurrence of CO2 or emissions-related credits, our liquidity and our ability to satisfy future liquidity requirements, our ability to achieve our stated deleveraging target within the anticipated timeframe, estimated contractual obligations, the expected capabilities and benefits of new facilities, the anticipated benefits and timeline for execution of our growth plan and initiatives, including our TAG operational and commercial excellence program, and our expectations or beliefs concerning future events. The statements in this release that are not historical statements are forward-looking statements. These forward-looking statements can generally be identified by phrases such as we or our management "expects," "anticipates," "believes," "estimates," "intends," "may," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "forecasts," "outlook" or other similar words or phrases, as well as by discussions of strategy, plans or intentions. The Company's forward-looking statements are based on management's expectations and beliefs as of the date this news release. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in our filings with the U.S. Securities and Exchange Commission, including, but not limited to, in Part I, Item 1A, "Risk Factors" of our annual report on Form 10-K for the fiscal year ended August 31, 2025, as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of downstream contracts within our vertically integrated steel operations due to rising commodity pricing; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; the impact of additional steelmaking capacity expected to come online from a number of ongoing electric arc furnace projects in the U.S.; the impact of geopolitical conditions, including political turmoil and volatility, regional conflicts, terrorism and war on the global economy, inflation, energy supplies and raw materials; global factors, such as trade measures, military conflicts and political uncertainties, including changes to current trade regulations, such as Section 232 trade tariffs and quotas, tax legislation and other regulations which might adversely impact our business; operating and startup risks, as well as market risks associated with the commissioning of new projects could prevent us from realizing anticipated benefits and could result in a loss of all or a substantial part of our investments; our ability to successfully execute our TAG operational and commercial excellence program and other transformation initiatives, including the realization of anticipated benefits within the expected timeframes; attention to environmental, social and governance ("ESG") matters, including any targets or other ESG, environmental justice or regulatory initiatives; impacts from global public health crises on the economy, demand for our products, global supply chain and on our operations; compliance with and changes in existing and future laws, regulations and other legal requirements and judicial decisions that govern our business, including increased environmental regulations associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; evolving remediation technology, changing regulations, possible third-party contributions, the inherent uncertainties of the estimation process and other factors that may impact amounts accrued for environmental liabilities; potential limitations in our or our customers' abilities to access credit and non-compliance with their contractual obligations, including payment obligations; activity in repurchasing shares of our common stock under our share repurchase program; financial and non-financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate and integrate acquisitions and realize any or all of the anticipated synergies or other benefits of acquisitions; the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third-party consents and approvals; lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; the impact of goodwill or other indefinite-lived intangible asset impairment charges; the impact of long-lived asset impairment charges; currency fluctuations; availability and pricing of electricity, electrodes and natural gas for mill operations; our ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; our ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks, including those related to the Pacific Steel Group litigation and other legal proceedings; risk of injury or death to employees, customers or other visitors to our operations; and civil unrest, protests and riots. | | 1 Net leverage adjusted for acquisitions is a non-GAAP financial measure and is defined as net debt divided by modified consolidated EBITDA, both of which are also non-GAAP financial measures. Net debt is calculated as total debt minus cash and cash equivalents. Modified consolidated EBITDA is calculated as adjusted EBITDA for the trailing 12-month period, adjusted to (a) eliminate the impact of approximately $15.4 million of interest expense related to the judgment in the Pacific Steel Group litigation, (b) eliminate actual results from the precast business since the respective acquisition dates and (c) include $212 million of annualized EBITDA contribution from the precast business. Reconciliations to the most directly comparable measures prepared and presented in accordance with GAAP can be found in the financial tables that follow. COMMERCIAL METALS COMPANY AND SUBSIDIARIESFINANCIAL & OPERATING STATISTICS (UNAUDITED) | | Three Months Ended | | Year Ended (in thousands, except per ton amounts) | | 8/31/2026 | | 5/31/2026 | | 2/28/2026 | | 11/30/2025 | | 8/31/2025 | | 8/31/2026 | | 8/31/2025 North America Steel Group | | | | | | | | | | | | | | Net sales to external customers | | $ 1,939,404 | | $ 1,789,381 | | $ 1,608,321 | | $ 1,661,058 | | $ 1,616,078 | | $ 6,998,164 | | $ 6,083,849 Adjusted EBITDA | | 317,473 | | 253,487 | | 269,674 | | 293,906 | | 239,416 | | 1,134,540 | | 742,485 Adjusted EBITDA margin | | 16.4 % | | 14.2 % | | 16.8 % | | 17.7 % | | 14.8 % | | 16.2 % | | 12.2 % | | | | | | | | | | | | | | External tons shipped | | | | | | | | | | | | | | Raw materials | | 460 | | 482 | | 358 | | 384 | | 374 | | 1,684 | | 1,410 Rebar | | 507 | | 482 | | 481 | | 544 | | 544 | | 2,014 | | 2,130 Merchant bar and other | | 311 | | 268 | | 235 | | 251 | | 244 | | 1,065 | | 992 Steel products | | 818 | | 750 | | 716 | | 795 | | 788 | | 3,079 | | 3,122 Downstream products | | 397 | | 384 | | 335 | | 350 | | 366 | | 1,466 | | 1,375 | | | | | | | | | | | | | | Average selling price per ton | | | | | | | | | | | | | | Raw materials | | $ 981 | | $ 873 | | $ 985 | | $ 900 | | $ 881 | | $ 935 | | $ 876 Steel products | | 1,021 | | 989 | | 974 | | 939 | | 882 | | 981 | | 842 Downstream products | | 1,288 | | 1,260 | | 1,242 | | 1,236 | | 1,214 | | 1,258 | | 1,226 | | | | | | | | | | | | | | Cost of raw materials per ton | | $ 754 | | $ 660 | | $ 741 | | $ 648 | | $ 649 | | $ 701 | | $ 661 Cost of ferrous scrap utilized per ton | | $ 369 | | $ 379 | | $ 351 | | $ 318 | | $ 314 | | $ 354 | | $ 333 | | | | | | | | | | | | | | Steel products metal margin per ton | | $ 652 | | $ 610 | | $ 623 | | $ 621 | | $ 568 | | $ 627 | | $ 509 | | | | | | | | | | | | | | Construction Solutions Group | | | | | | | | | | | | | | Net sales to external customers | | $ 431,375 | | $ 394,574 | | $ 314,425 | | $ 198,277 | | $ 221,753 | | $ 1,338,651 | | $ 747,486 Adjusted EBITDA | | 101,725 | | 97,411 | | 53,420 | | 39,581 | | 50,630 | | 292,137 | | 137,721 Adjusted EBITDA margin | | 23.6 % | | 24.7 % | | 17.0 % | | 20.0 % | | 22.8 % | | 21.8 % | | 18.4 % | | | | | | | | | | | | | | Europe Steel Group | | | | | | | | | | | | | | Net sales to external customers | | $ 281,222 | | $ 291,235 | | $ 200,014 | | $ 247,650 | | $ 263,294 | | $ 1,020,121 | | $ 918,320 Adjusted EBITDA | | 15,586 | | 34,665 | | (1,428) | | 10,929 | | 39,098 | | 59,752 | | 69,282 Adjusted EBITDA margin | | 5.5 % | | 11.9 % | | (0.7) % | | 4.4 % | | 14.8 % | | 5.9 % | | 7.5 % | | | | | | | | | | | | | | External tons shipped | | | | | | | | | | | | | | Rebar | | 106 | | 136 | | 69 | | 119 | | 117 | | 430 | | 412 Merchant bar and other | | 271 | | 265 | | 215 | | 243 | | 257 | | 994 | | 944 Steel products | | 377 | | 401 | | 284 | | 362 | | 374 | | 1,424 | | 1,356 | | | | | | | | | | | | | | Average selling price per ton | | | | | | | | | | | | | | Steel products | | $ 712 | | $ 697 | | $ 672 | | $ 651 | | $ 668 | | $ 684 | | $ 647 | | | | | | | | | | | | | | Cost of ferrous scrap utilized per ton | | $ 363 | | $ 367 | | $ 356 | | $ 345 | | $ 351 | | $ 359 | | $ 357 | | | | | | | | | | | | | | Steel products metal margin per ton | | $ 349 | | $ 330 | | $ 316 | | $ 306 | | $ 317 | | $ 325 | | $ 290 COMMERCIAL METALS COMPANY AND SUBSIDIARIESBUSINESS SEGMENTS (UNAUDITED) | | Three Months Ended | | Year Ended (in thousands) | | 8/31/2026 | | 5/31/2026 | | 2/28/2026 | | 11/30/2025 | | 8/31/2025 | | 8/31/2026 | | 8/31/2025 Net sales to external customers | | | | | | | | | | | | | | North America Steel Group | | $ 1,939,404 | | $ 1,789,381 | | $ 1,608,321 | | $ 1,661,058 | | $ 1,616,078 | | $ 6,998,164 | | $ 6,083,849 Construction Solutions Group | | 431,375 | | 394,574 | | 314,425 | | 198,277 | | 221,753 | | 1,338,651 | | 747,486 Europe Steel Group | | 281,222 | | 291,235 | | 200,014 | | 247,650 | | 263,294 | | 1,020,121 | | 918,320 Corporate and Other | | 6,333 | | 8,055 | | 9,258 | | 13,322 | | 13,393 | | 36,968 | | 48,825 Total net sales to external customers | | $ 2,658,334 | | $ 2,483,245 | | $ 2,132,018 | | $ 2,120,307 | | $ 2,114,518 | | $ 9,393,904 | | $ 7,798,480 | | | | | | | | | | | | | | Adjusted EBITDA | | | | | | | | | | | | | | North America Steel Group | | $ 317,473 | | $ 253,487 | | $ 269,674 | | $ 293,906 | | $ 239,416 | | $ 1,134,540 | | $ 742,485 Construction Solutions Group | | 101,725 | | 97,411 | | 53,420 | | 39,581 | | 50,630 | | 292,137 | | 137,721 Europe Steel Group | | 15,586 | | 34,665 | | (1,428) | | 10,929 | | 39,098 | | 59,752 | | 69,282 Corporate and Other | | (52,356) | | (49,654) | | (70,410) | | (55,848) | | (50,716) | | (228,268) | | (508,765) Total adjusted EBITDA | | $ 382,428 | | $ 335,909 | | $ 251,256 | | $ 288,568 | | $ 278,428 | | $ 1,258,161 | | $ 440,723 COMMERCIAL METALS COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) | | Three Months Ended August 31, | | Year Ended August 31, (in thousands, except share and per share data) | | 2026 | | 2025 | | 2026 | | 2025 Net sales | | $ 2,658,334 | | $ 2,114,518 | | $ 9,393,904 | | $ 7,798,480 Costs and operating expenses: | | | | | | | | Cost of goods sold | | 2,156,827 | | 1,721,710 | | 7,642,218 | | 6,578,324 Selling, general and administrative expenses | | 230,857 | | 180,218 | | 881,961 | | 700,234 Interest expense | | 37,356 | | 12,145 | | 143,337 | | 45,498 Litigation expense | | 3,776 | | 3,776 | | 15,356 | | 362,272 Asset impairments | | 21 | | 3,436 | | 21 | | 4,607 Net costs and operating expenses | | 2,428,837 | | 1,921,285 | | 8,682,893 | | 7,690,935 Earnings before income taxes | | 229,497 | | 193,233 | | 711,011 | | 107,545 Income tax expense | | 16,977 | | 41,452 | | 55,162 | | 22,883 Net earnings | | $ 212,520 | | $ 151,781 | | $ 655,849 | | $ 84,662 | | | | | | | | Earnings per share: | | | | | | | | Basic | | $ 1.92 | | $ 1.36 | | $ 5.92 | | $ 0.75 Diluted | | 1.91 | | 1.35 | | 5.86 | | 0.74 | | | | | | | | Cash dividends per share | | $ 0.20 | | $ 0.18 | | $ 0.76 | | $ 0.72 Average basic shares outstanding | | 110,570,463 | | 111,677,574 | | 110,857,469 | | 112,994,381 Average diluted shares outstanding | | 111,542,800 | | 112,705,122 | | 111,864,867 | | 114,086,750 COMMERCIAL METALS COMPANY AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share data) | | August 31, 2026 | | August 31, 2025 Assets | | | | Current assets: | | | | Cash and cash equivalents | | $ 775,676 | | $ 1,043,252 Restricted cash | | 3,174 | | 2,652 Accounts receivable (less allowance for doubtful accounts of $3,867 and $3,186) | | 1,440,260 | | 1,200,881 Income tax receivable | | 131,557 | | 799 Inventories | | 1,104,719 | | 934,310 Prepaid and other current assets | | 352,441 | | 312,924 Total current assets | | 3,807,827 | | 3,494,818 Property, plant and equipment: | | | | Land | | 246,300 | | 170,823 Buildings and improvements | | 1,626,950 | | 1,206,672 Equipment | | 4,172,111 | | 3,477,813 Construction in process | | 188,637 | | 449,616 | | 6,233,998 | | 5,304,924 Less accumulated depreciation and amortization | | (2,780,284) | | (2,562,151) Property, plant and equipment, net | | 3,453,714 | | 2,742,773 Intangible assets, net | | 431,681 | | 210,815 Goodwill | | 2,138,616 | | 386,846 Other noncurrent assets | | 426,059 | | 336,582 Total assets | | $ 10,257,897 | | $ 7,171,834 Liabilities and stockholders' equity | | | | Current liabilities: | | | | Accounts payable | | $ 540,901 | | $ 358,373 Accrued contingent litigation-related loss | | 377,251 | | 362,272 Other accrued expenses and payables | | 642,946 | | 493,879 Current maturities of long-term debt | | 67,147 | | 44,289 Total current liabilities | | 1,628,245 | | 1,258,813 Deferred income taxes | | 354,298 | | 184,645 Other noncurrent liabilities | | 264,420 | | 225,044 Long-term debt | | 3,313,728 | | 1,310,006 Total liabilities | | 5,560,691 | | 2,978,508 Stockholders' equity: | | | | Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 110,316,995 and 111,189,136 shares | | 1,290 | | 1,290 Additional paid-in capital | | 423,334 | | 406,916 Accumulated other comprehensive loss | | (29,175) | | (25,251) Retained earnings | | 5,078,714 | | 4,507,114 Less treasury stock, 18,743,669 and 17,871,528 shares at cost | | (777,231) | | (697,003) Stockholders' equity | | 4,696,932 | | 4,193,066 Stockholders' equity attributable to non-controlling interests | | 274 | | 260 Total stockholders' equity | | 4,697,206 | | 4,193,326 Total liabilities and stockholders' equity | | $ 10,257,897 | | $ 7,171,834 COMMERCIAL METALS COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | | Year Ended August 31, (in thousands) | | 2026 | | 2025 Cash flows from (used by) operating activities: | | | | Net earnings | | $ 655,849 | | $ 84,662 Adjustments to reconcile net earnings to net cash flows from operating activities: | | | | Depreciation and amortization | | 395,921 | | 285,877 Stock-based compensation | | 43,932 | | 37,053 Write-off of committed financing fees | | 11,563 | | — Deferred income taxes and other long-term taxes | | 158,351 | | (98,304) Write-down of inventory | | 333 | | 2,473 Unrealized loss (gain) on undesignated commodity hedges | | 7,871 | | (2,804) Unrealized loss (gain) on undesignated foreign exchange hedges | | 5,091 | | (5,453) Amortization of debt issuance costs | | 4,812 | | 1,529 Asset impairments | | 21 | | 4,607 Net loss (gain) on sale of net assets | | (741) | | 1,827 Litigation expense | | 15,356 | | 362,272 Settlement of New Markets Tax Credit transaction | | — | | (2,786) Other | | 2,110 | | 5,568 Changes in operating assets and liabilities | | (241,506) | | 38,549 Net cash flows from operating activities | | 1,058,963 | | 715,070 Cash flows from (used by) investing activities: | | | | Acquisitions, net of cash acquired | | (2,516,424) | | — Capital expenditures | | (579,844) | | (402,821) Proceeds from government assistance related to property, plant and equipment | | 15,000 | | 50,000 Proceeds from the sale of property, plant and equipment | | 11,250 | | 5,758 Proceeds from insurance | | 9,602 | | 2,237 Other | | (1,698) | | (1,946) Net cash flows used by investing activities | | (3,062,114) | | (346,772) Cash flows from (used by) financing activities: | | | | Proceeds from issuance of long-term debt, net | | 1,985,000 | | 147,724 Repayments of long-term debt | | (47,689) | | (41,480) Debt issuance costs | | (8,489) | | (622) Committed financing fees | | (11,563) | | — Proceeds from accounts receivable facilities | | 173,257 | | 35,979 Repayments under accounts receivable facilities | | (164,328) | | (35,979) Treasury stock acquired | | (102,811) | | (198,822) Tax withholdings related to share settlements, net of purchase plans | | (3,111) | | (8,823) Dividends | | (84,249) | | (81,433) Contribution from non-controlling interest | | 14 | | 12 Net cash flows from (used by) financing activities | | 1,736,031 | | (183,444) Effect of exchange rate changes on cash | | 66 | | 1,495 Increase (decrease) in cash and cash equivalents | | (267,054) | | 186,349 Cash, restricted cash and cash equivalents at beginning of period | | 1,045,904 | | 859,555 Cash, restricted cash and cash equivalents at end of period | | $ 778,850 | | $ 1,045,904 COMMERCIAL METALS COMPANY NON-GAAP FINANCIAL MEASURES (UNAUDITED) This press release contains financial measures not derived in accordance with U.S. generally accepted accounting principles ("GAAP"). Reconciliations to the most comparable GAAP measure are provided below. Adjusted EBITDA, core EBITDA, core EBITDA margin and adjusted earnings are non-GAAP financial measures. Adjusted earnings per diluted share is defined as adjusted earnings on a diluted per share basis. Core EBITDA margin is defined as core EBITDA divided by net sales. The adjustment "Settlement of New Markets Tax Credit transactions" represents the recognition of deferred revenue from 2016 and 2017 resulting from the Company's participation in the New Markets Tax Credit program provided for in the Community Renewal Tax Relief Act of 2000 during the development of a micro mill, spooler and T-post shop located in eligible zones as determined by the Internal Revenue Service. The adjustment "Litigation expense" represents a provision recorded in the three months ended November 30, 2024 related to the judgment in the Pacific Steel Group litigation and, with respect to subsequent periods, primarily represents interest expense on the judgment amount. The adjustments "Acquisition and integration related costs" and "Acquisition, integration and financing related costs" represent nonrecurring fees associated with the Foley Products Company, LLC ("Foley") and Concrete Pipe and Precast, LLC ("CP&P") acquisitions. The adjustment "Purchase accounting effect on inventory" represents a one time fair value adjustment on inventory associated with the Foley and CP&P acquisitions. The adjustment "Amortization of acquired contract backlog" represents the amortization of the contract backlog intangible asset from the Foley and CP&P acquisitions. Net leverage adjusted for acquisitions is a non-GAAP financial measure and is defined as net debt divided by modified consolidated EBITDA, both of which are also non-GAAP financial measures. Net debt is calculated as total debt minus cash and cash equivalents. Modified consolidated EBITDA is calculated as adjusted EBITDA for the trailing 12-month period, adjusted to (a) eliminate the impact of approximately $15.4 million of interest expense related to the judgment in the Pacific Steel Group litigation, (b) eliminate actual results from the precast business since the respective acquisition dates and (c) include $212 million of annualized EBITDA contribution from the precast business. The estimated annualized EBITDA contribution from the precast business was derived by annualizing the precast business's actual results from the respective acquisition dates through August 31, 2026. The calculation also excludes the impact of the purchase accounting effect on inventory. The annualized figure assumes that the precast platform's results for the post-acquisition period are representative of a full fiscal year. The figure does not reflect actual results the precast platform generated or will generate in any 12-month period, and it was not prepared in accordance with Article 11 of Regulation S-X. Results for future periods may differ materially. Non-GAAP financial measures should be viewed in addition to, and not as alternatives to, the most directly comparable measures derived in accordance with GAAP and may not be comparable to similar measures presented by other companies. However, we believe that the non-GAAP financial measures provide relevant and useful information to management, investors, analysts, creditors and other interested parties in our industry as they allow: (i) comparison of our earnings to those of our competitors; (ii) a supplemental measure of our underlying business operational performance; and (iii) the assessment of period-to-period performance trends. Furthermore, management believes net leverage adjusted for acquisitions provide useful information to investors, analysts, creditors and other interested parties about the Company's financial condition. Management uses non-GAAP financial measures to evaluate financial performance and, more specifically, uses net leverage adjusted for acquisitions to monitor the Company's balance sheet and make capital allocation decisions. We have not reconciled the forward-looking estimates of TAG-related EBITDA benefits to comparable GAAP measures because applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding, and the potential variability of metal margins, U.S. trade policy, cost levels of key production inputs, construction activity and related product demand and other factors. Accordingly, reconciliations of the forward-looking estimates of TAG-related EBITDA benefits to net earnings are not available at this time without unreasonable effort. A reconciliation of net earnings to adjusted EBITDA and core EBITDA is provided below: | | Three Months Ended | | Year Ended (in thousands) | | 8/31/2026 | | 5/31/2026 | | 2/28/2026 | | 11/30/2025 | | 8/31/2025 | | 8/31/2026 | | 8/31/2025 Net earnings | | $ 212,520 | | $ 173,015 | | $ 93,032 | | $ 177,282 | | $ 151,781 | | $ 655,849 | | $ 84,662 Interest expense | | 37,356 | | 40,205 | | 40,928 | | 24,848 | | 12,145 | | 143,337 | | 45,498 Income tax expense | | 16,977 | | 15,824 | | 16,708 | | 5,653 | | 41,452 | | 55,162 | | 22,883 Depreciation and amortization | | 113,210 | | 107,422 | | 102,567 | | 72,722 | | 72,480 | | 395,921 | | 285,877 Asset impairments | | 21 | | — | | — | | — | | 3,436 | | 21 | | 4,607 Unrealized (gain) loss on undesignated commodity hedges | | 2,344 | | (557) | | (1,979) | | 8,063 | | (2,866) | | 7,871 | | (2,804) Adjusted EBITDA | | 382,428 | | 335,909 | | 251,256 | | 288,568 | | 278,428 | | 1,258,161 | | 440,723 Non-cash equity compensation | | 6,506 | | 11,384 | | 14,806 | | 11,236 | | 9,237 | | 43,932 | | 37,053 Settlement of New Markets Tax Credit transactions | | — | | — | | — | | — | | — | | — | | (2,786) Litigation expense | | 3,776 | | 3,778 | | 4,067 | | 3,735 | | 3,776 | | 15,356 | | 362,272 Acquisition and integration related costs | | 948 | | 2,525 | | 20,605 | | 13,379 | | — | | 37,457 | | — Purchase accounting effect on inventory | | — | | — | | 6,739 | | — | | — | | 6,739 | | — Core EBITDA | | $ 393,658 | | $ 353,596 | | $ 297,473 | | $ 316,918 | | $ 291,441 | | $ 1,361,645 | | $ 837,262 | | | | | | | | | | | | | | Net sales | | $ 2,658,334 | | $ 2,483,245 | | $ 2,132,018 | | $ 2,120,307 | | $ 2,114,518 | | $ 9,393,904 | | $ 7,798,480 Core EBITDA margin | | 14.8 % | | 14.2 % | | 14.0 % | | 14.9 % | | 13.8 % | | 14.5 % | | 10.7 % A reconciliation of net earnings to adjusted earnings is provided below: | | Three Months Ended | | Year Ended (in thousands, except per share data) | | 8/31/2026 | | 5/31/2026 | | 2/28/2026 | | 11/30/2025 | | 8/31/2025 | | 8/31/2026 | | 8/31/2025 Net earnings | | $ 212,520 | | $ 173,015 | | $ 93,032 | | $ 177,282 | | $ 151,781 | | $ 655,849 | | $ 84,662 Asset impairments | | 21 | | — | | — | | — | | 3,436 | | 21 | | 4,607 Settlement of New Markets Tax Credit transactions | | — | | — | | — | | — | | — | | — | | (2,786) Litigation expense | | 3,776 | | 3,778 | | 4,067 | | 3,735 | | 3,776 | | 15,356 | | 362,272 Unrealized (gain) loss on undesignated commodity hedges | | 2,344 | | (557) | | (1,979) | | 8,063 | | (2,866) | | 7,871 | | (2,804) Acquisition, integration and financing related costs | | 948 | | 2,525 | | 20,605 | | 24,942 | | — | | 49,020 | | — Amortization of acquired contract backlog | | 19,750 | | 19,750 | | 17,729 | | — | | — | | 57,229 | | — Purchase accounting effect on inventory | | — | | — | | 6,739 | | — | | — | | 6,739 | | — Total adjustments (pre-tax) | | $ 26,839 | | $ 25,496 | | $ 47,161 | | $ 36,740 | | $ 4,346 | | $ 136,236 | | $ 361,289 Related tax effects on adjustments | | (5,769) | | (5,486) | | (10,046) | | (7,846) | | (1,162) | | (29,147) | | (88,668) Adjusted earnings | | $ 233,590 | | $ 193,025 | | $ 130,147 | | $ 206,176 | | $ 154,965 | | $ 762,938 | | $ 357,283 Net earnings per diluted share(1) | | $ 1.91 | | $ 1.55 | | $ 0.83 | | $ 1.58 | | $ 1.35 | | $ 5.86 | | $ 0.74 Adjusted earnings per diluted share | | $ 2.09 | | $ 1.73 | | $ 1.16 | | $ 1.84 | | $ 1.37 | | $ 6.82 | | $ 3.13 | | | (1) Net earnings per diluted share is calculated independently for each three month period and may not sum to the year to date period due to rounding. As described above, net leverage adjusted for acquisitions represents net debt divided by modified consolidated EBITDA. Reconciliations of (i) net earnings to modified consolidated EBITDA and (ii) long-term debt to net debt are provided below: Modified Consolidated EBITDA (as used in the calculation of net leverage adjusted for acquisitions) | | Year Ended (in thousands) | | 8/31/2026 Net earnings | | $ 655,849 Interest expense | | 143,337 Income tax expense | | 55,162 Depreciation and amortization | | 395,921 Asset impairments | | 21 Unrealized loss on undesignated commodity hedges | | 7,871 Adjusted EBITDA | | 1,258,161 Plus: Litigation expense | | 15,356 Less: Precast EBITDA contribution (actual) | | 143,540 Plus: Annualized precast EBITDA contribution | | 212,159 Modified consolidated EBITDA | | $ 1,342,136 | | Net Debt (as used in the calculation of net leverage adjusted for acquisitions) | | 8/31/2026 Long-term debt | | $ 3,313,728 Plus: Current maturities of long-term debt | | 67,147 Less: Short-term borrowings | | 8,642 Total debt | | 3,372,233 Less: Cash and cash equivalents | | 775,676 Net debt | | $ 2,596,557 | | Net leverage adjusted for acquisitions | | 1.9 View original content to download multimedia:https://www.prnewswire.com/news-releases/cmc-reports-fourth-quarter-and-full-year-fiscal-2026-results-302909411.html

- Interested in Commercial Metals Company? Here are five stocks we like better. - Commercial Metals reported a strong fiscal 2026: Full-year core EBITDA rose to approximately $1.4 billion from $837 million, while fourth-quarter core EBITDA increased 35.1% year over year to about $394 million, driven by margin expansion, TAG program benefits and the Precast acquisition. - North America Steel delivered significant improvement, with adjusted EBITDA up 25.2% sequentially to $317 million as higher selling prices, lower scrap costs, stronger shipments and merchant-bar growth lifted metal margins. - CMC expects lower capital spending and increased shareholder returns in fiscal 2027: Capital expenditures are projected at roughly $400 million, net leverage has fallen to 1.9 times, and management plans to accelerate share repurchases using the approximately $700 million remaining authorization. - Commercial Metals Stock Price Poised to Slingshot Higher in Q3 Commercial Metals (NYSE:CMC) reported stronger fiscal 2026 fourth-quarter and full-year profitability, citing margin expansion, benefits from its Transform, Advance and Grow, or TAG, program, and contributions from its recently acquired Precast operations. For the full year, core EBITDA rose to approximately $1.4 billion from $837 million in fiscal 2025, while core EBITDA margin increased 380 basis points to 14.5%, President and Chief Executive Officer Peter Matt said. Fourth-quarter core EBITDA increased 35.1% year over year to about $394 million, and core EBITDA margin reached 14.8%. → A Silent Winner: Texas Instruments Anchors the AI Supercycle - 3 Discounted Steel Stocks You Can DCA Into Today Fourth-quarter net earnings were approximately $213 million, or $1.91 per diluted share, according to Senior Vice President and Chief Financial Officer Paul Lawrence. The company incurred $26.8 million of pre-tax expenses excluded from adjusted earnings, including $19.8 million of non-cash amortization associated with acquired backlog. Adjusted earnings rose 21% sequentially. CMC's North America Steel Group generated adjusted EBITDA of $317 million, up 25.2% sequentially. Lawrence attributed the increase to TAG benefits, higher metal margins and increased merchant bar shipments. → A Chinese Rival Just Spooked Memory Stocks—How Worried Should Micron Investors Be? - Cleveland-Cliffs Stock Rises On Earnings, New Momentum? Metal margin increased $42 per ton sequentially to $652 per ton, as average selling prices rose $32 per ton and scrap costs declined $10 per ton. Finished steel shipments increased 7.1% from the prior quarter, with growth in merchant products, downstream products and rebar. North America Steel Group adjusted EBITDA margin reached 16.4%, increasing 220 basis points sequentially and 160 basis points from the prior-year period. Downstream product volume rose 8.5% year over year in the fourth quarter, while downstream backlog increased 15.5% from a year earlier and 5% sequentially. → Delta's Guidance Cut Could Spell Trouble for the Airline Industry Merchant bar shipments climbed 27.5% year over year, supported by the Arizona 2 micro-mill. Matt said the company's network provides flexibility to shift production between rebar and merchant products, which currently carry a meaningful pricing premium to rebar. CMC said it sees a starting objective of reaching 1 million tons of merchant shipments, implying an additional 150,000 to 200,000 tons of volume over time. Management said rebar imports from South Korea declined during September as arbitrage economics weakened. Matt said imports from countries subject to the company's anti-dumping and countervailing-duty cases have largely left the market. The Construction Solutions Group's fourth-quarter sales increased 94.5% year over year, while adjusted EBITDA more than doubled and adjusted EBITDA margin expanded 80 basis points. The year-over-year comparison reflected the addition of Precast businesses. However, CMC said Precast results fell below its expectations because of softer residential demand in certain southeastern markets. Precast generated $57.1 million of adjusted EBITDA during the quarter and has contributed roughly $150 million of adjusted EBITDA since the acquisitions, excluding purchase-accounting effects. Matt said the pressure was principally volume-related and concentrated in southeastern residential construction, rather than pricing. He said pricing continued to rise across the portfolio, while non-residential and infrastructure demand helped offset some residential weakness. The residential portion of the Precast portfolio is operating at roughly 50% to 60% of what management considers a normal environment, he said. Bookings rose year over year and increased 12.6% sequentially. Backlog was about 3% higher than a year earlier and 4% above the third quarter, while average backlog pricing also increased. Matt said the company continues to view annual Precast EBITDA of about $240 million to $250 million as an appropriate target for the current year, although first-quarter Precast EBITDA is expected to decline by the mid- to high-single-digit percentage range sequentially on seasonal factors. CMC said functional integration of the Precast platform is substantially complete, and expected synergies are meeting or exceeding expectations. The company identified additional opportunities in operations, procurement, footprint optimization and commercial execution. CMC expects fiscal 2027 capital expenditures of roughly $400 million, down nearly $200 million from about $580 million in fiscal 2026. About one-quarter of the expected fiscal 2027 spending is tied to growth projects, primarily the West Virginia micro-mill along with GalvaBar and geogrid investments. The company said its West Virginia mill has rolled its first billet and is progressing through hot commissioning. CMC expects startup to unfold over about 12 months and expects the operation to reach EBITDA breakeven about six months after startup. Production for fiscal 2027 is expected to be below 200,000 tons as commissioning continues, Lawrence said. First production at the GalvaBar Tennessee facility is expected in November, while the new Tensar geogrid line in Blackwell, Oklahoma is already in startup. CMC expects the Tennessee facility to more than double GalvaBar production capacity. TAG produced more than $250 million of gross run-rate benefits exiting fiscal 2026, according to Matt. The company expects to achieve an additional $100 million in run-rate benefits by the end of fiscal 2027. CMC reduced net leverage, adjusted for acquisitions, to 1.9 times, below its target of two times. With capital expenditures declining and cash flow expected to improve, management said it plans to accelerate activity under its share repurchase program. The company has approximately $700 million remaining under its authorization. For the fiscal first quarter, CMC expects North America Steel Group adjusted EBITDA to be nearly flat sequentially. Improved pricing is expected to largely offset higher scrap costs, startup costs and a modest seasonal decline in shipments. Management expects Construction Solutions Group adjusted EBITDA to decline sequentially on normal seasonal trends. Europe's adjusted EBITDA is expected to increase meaningfully from the fourth quarter, aided by improving operating conditions and an anticipated €10 million to €15 million in carbon-dioxide credits. Lawrence said higher energy costs, expected to rise by roughly $10 to $15 per ton, will offset part of that benefit. The company expects an effective tax rate of approximately 24% in fiscal 2027 and said it does not anticipate significant U.S. federal cash tax payments through much of the year because of 48C program benefits, bonus depreciation related to the West Virginia mill and accelerated depreciation from the Precast acquisitions. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Commercial Metals Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Commercial Metals Company (NYSE:CMC) reported stronger-than-expected fourth-quarter earnings and revenue on Thursday, supported by improved performance across its North American steel operations and substantial growth in its Construction Solutions business. Shares in the US steel and construction solutions provider rose 3.81% in pre-market trading following the announcement. Adjusted earnings per share reached $2.09, exceeding analysts' consensus estimate of $1.96 by $0.13. Quarterly revenue increased 25.7% year-on-year to $2.65 billion, compared with $2.11 billion in the corresponding period last year. The result also exceeded market expectations of $2.56 billion. The company reported net earnings of $212.5 million, equivalent to $1.91 per diluted share, compared with earnings per share of $1.35 a year earlier. Commercial Metals reported consolidated core earnings before interest, tax, depreciation and amortisation (EBITDA) of $393.7 million for the fourth quarter, representing a 35.1% increase from the previous year. The company's core EBITDA margin expanded by 100 basis points to 14.8%, reflecting improved operating performance and contributions from its business improvement initiatives. President and Chief Executive Officer Peter Matt attributed the results to stronger execution across the company's North American steel operations and progress under its enterprise-wide TAG programme. "Our fourth quarter core EBITDA performance delivered solid year-over-year growth, driven by strong execution of our North American steel franchise and continued momentum of enterprise-wide TAG benefits," Matt said. The improvement in profitability accompanied higher shipment volumes and stronger metal margins, helping the company deliver earnings growth above the rate of revenue expansion. Commercial Metals' North America Steel Group generated adjusted EBITDA of $317.5 million during the quarter, an increase of 32.6% year-on-year. The division's adjusted EBITDA margin improved to 16.4%, compared with 14.8% in the prior-year period. Metal margins increased by $84 per ton to $652 per ton, providing an important contribution to the division's profitability. Finished goods shipment volumes rose 5.3% compared with the same quarter last year, reflecting increased activity across the company's steel operations. Merchant bar shipments recorded particularly strong growth, increasing 27.5% year-on-year. The combination of higher volumes and improved margins supported the division's earnings performance, reinforcing the importance of North American steel operations to Commercial Metals' overall financial results. The Construction Solutions Group reported fourth-quarter net sales of $431.4 million, representing a 94.5% increase from the previous year. Adjusted EBITDA rose 100.9% to $101.7 million, reflecting substantial growth in the division's earnings contribution. Despite the overall improvement, the company's precast concrete operations performed below management expectations. Commercial Metals attributed the weaker performance to softness in residential construction activity in certain regional markets. The mixed performance highlights the different demand conditions affecting the company's construction-related businesses. While the broader Construction Solutions Group delivered significant revenue and earnings growth, weaker residential activity remained a constraint on parts of its operations. Commercial Metals provided guidance for the first quarter of fiscal 2027, indicating that seasonal trends and changes in raw material costs are likely to influence profitability. The company expects adjusted EBITDA in its North America Steel Group to remain broadly unchanged from the fourth quarter. Improved steel pricing is anticipated to largely offset higher scrap costs and the seasonal decline in shipment volumes typically experienced during the period. For the Construction Solutions Group, management expects adjusted EBITDA to decline sequentially as a result of normal seasonal patterns. The outlook suggests that the company anticipates relatively stable earnings from its main steel operations, while construction-related activity may moderate following the stronger fourth-quarter performance. Commercial Metals also reported progress in reducing its financial leverage. Net leverage, adjusted for acquisitions, declined to 1.9 times, bringing the measure below the company's target of 2.0 times. The reduction indicates an improvement in the company's debt position relative to its earnings base, following its recent acquisition-related adjustments. During the fourth quarter, Commercial Metals repurchased 383,333 shares for a total of $26.7 million. The company also declared a quarterly dividend of $0.20 per share. The capital returns accompanied stronger earnings and improved leverage, reflecting the company's continued focus on shareholder distributions while maintaining its financial targets. Commercial Metals' fourth-quarter results demonstrated growth across its principal operating divisions, with higher steel margins, increased shipment volumes and substantial expansion in Construction Solutions supporting the earnings beat. Looking ahead, investors will be monitoring whether improved pricing and operational efficiencies can offset higher scrap costs and seasonal fluctuations in demand during the first quarter of fiscal 2027. Commercial Metals Company stock price

Image source: The Motley Fool. Thursday, Oct. 15, 2026 - Vice President of Investor Relations - Andy Larkin - President and Chief Executive Officer - Peter R. Matt - Senior Vice President and Chief Financial Officer - Paul J. Lawrence Operator: Good morning, and welcome to the Commercial Metals Company Fiscal 26 Fourth Quarter Earnings Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. To ask a question, Please note this event is being recorded. I would now like to turn the conference over to Andy Larkin, Vice President of Investor Relations. Please go ahead. Andy Larkin: Hello, and welcome to the Commercial Metals Company fiscal 26. Fourth Quarter and Year End Earnings Call. Joining me on today's call are Peter R. Matt, CMC's President and Chief Executive Officer and Paul J. Lawrence, Senior Vice President and Chief Financial Officer. Today's materials include the press release, supplemental slides that accompany this call, which can be found on CMC's Investor Relations website. As a reminder, today's call is being recorded. Peter will begin our prepared remarks with a high level overview of the year and fourth quarter, and comment on the progress against our strategic objectives. Paul will then provide a detailed discussion of our quarterly results as well as capital allocation. Peter will wrap up with our view on the path ahead. We will then provide instructions for the question and answer session to follow. Today's discussion contains forward looking statements. Including with respect to economic conditions, effect of legislation and trade actions, U. S. Steel import levels, construction activity, demand for finished steel products and precast concrete products, the expected capabilities, benefits, costs, and timeline for construction and commissioning of new facilities, the expected performance and integration of our recently acquired Precast platform, the company's operations, the company's strategic growth plans and its anticipated benefits, company's ability to achieve its stated deleveraging targets within the anticipated timeframe legal proceedings, the impact of tax credits on future results, the company's future results of operations, financial measures, and capital spending, including expected share repurchase activity These statements reflect the company's beliefs based on current conditions that are subject to risks and uncertainties. Company's earnings release, most recent annual report on Form 10-K, other filings with the U. S. Securities and Exchange Commission contain additional information concerning factors that could cause actual results to differ materially from those projected in forward looking statements. Except as required by law, CMC does not assume any obligation to update, amend or clarify these statements. Some numbers presented will be non GAAP financial measures. And reconciliations for such numbers can be found in the company's earnings release supplemental slide presentation or on the company's website. Unless stated otherwise, all references made to year or quarter end are references to the company's fiscal year, or fiscal quarter. With that, I would like to turn the call over to CMC's President and CEO, Peter R. Matt. Peter R. Matt: Thank you, Andy, and good morning to everyone joining us for today's call. We will discuss many accomplishments today, but none is more important than safety. I want to thank our employees for their continued focus and commitment to our most important company value. Our total recordable incident rate for fiscal 2026 remained near a historic low point and better than industry averages. During the year, we put significant effort into embedding CMC safety first culture across our newly acquired Precast operations and strengthening safety performance throughout the organization. While we are proud of that progress, our standard is higher. Our goal is zero harm, and we will be relentless in striving for it. Now stepping back fiscal 2026 was a defining year for CMC. We made significant progress executing the strategy we laid out at our Investor Day. Strengthening the quality and durability of our earnings profile, expanding margins, reducing leverage enhancing free cash flow generation and positioning the company for sustained shareholder value creation. For the full year, core EBITDA increased to approximately $1.4 billion up from $837 million for fiscal 2025, while core EBITDA margin expanded 380 basis points to 14.5%. These results reflect meaningful progress across each of our strategic priorities, including the execution of our Transform Advance and Grow program, the advancement of key growth investments and the ongoing successful integration of our Precast acquisitions. Just as importantly, we have strengthened our balance sheet Since completing our precast acquisitions, we have reduced leverage as adjusted for acquisitions to below our target range providing greater financial flexibility to invest in growth while returning capital to shareholders. Our momentum carried into the fourth quarter with core EBITDA increasing 35.1% year over year to approximately $394 million while core EBITDA margin expanded to 14.8%. Results in the quarter were driven by strong North American Steel Group performance, where execution against strategic priorities has created clear value for our business. Segment margins increased 22 basis points sequentially driven by strong TAG contributions including operational and commercial excellence initiatives. We are also seeing that as the market and our customers pursue larger and more complex projects in energy, industrial reshoring, data center and institutional sectors, CMC's scale, capabilities and network are increasingly making CMC a preferred partner. Our downstream expertise with its customized solutions and customer focused approach has us positioned to win in this increasingly complex environment. Downstream product volumes grew 8.5% year-over-year in the fourth quarter expanding margins reflecting this dynamic. At the same time, our 27.5% year-over-year demonstrating the capabilities of the Arizona II plant and the flexibility it provides to optimize product mix to capitalize on strong market conditions and balance supply with demand. For our Construction Solutions Group, fourth quarter results were below our expectations. Due primarily to our Precast business with residential softness in certain Southeastern markets. Notably, we have seen the same regional softness in our fabrication book though it is not visible externally given the geographic diversification of our fab footprint. As residential activity moderated, lower volumes and regional margin mix headwinds weighed on adjusted EBITDA performance. Precast generated adjusted EBITDA of $57.1 million during the quarter and excluding the purchase accounting impact, has contributed roughly $150 million of adjusted EBITDA since our acquisition. The leading indicators for the business remain positive. The demand environment especially in non residential and infrastructure remains healthy with strong bidding activity in key markets like Atlanta, picking up in recent months. Bookings were up year over year and increased 12.6% sequentially. Backlog levels are up roughly 3% versus the prior year and 4% versus Q3. While average backlog pricing has also trended higher. These factors position the business for solid performance in the year ahead. Strategically, as we close 2027 and look ahead to fiscal 2020, we are highly confident in our direction and in the 3 powerful drivers of value creation we laid out at our Investor Day. First, we will continue capturing the full potential of our business through TAG. Second, we will begin harvesting returns from significant growth capital deployed over the last several years. And third, we will continue reshaping our portfolio as a leading provider of early stage construction solutions. Together, these initiatives which are within our control, will power a stronger, CMC both operationally and financially. We have made significant progress in fiscal 2026 as TAG continued to evolve from a program into a core operating system for CMC. Across the enterprise, we realized meaningful productivity gains through yield improvements, scrap optimization, logistics efficiencies, manufacturing excellence initiatives and an increasing focus on commercial excellence. Looking ahead, the opportunity set remains substantial with a full pipeline of initiatives that will drive additional earnings growth and margin expansion. We exited fiscal 26 with more than $250 million of gross run rate benefits achieved and a clear line of sight on an additional $100 million of run rate benefits by the end of fiscal 2027. We view TAG as a durable source of margin expansion and an increasingly important competitive advantage for CMC. Turning to growth investments, fiscal 2027 will mark an important transition. For several years, we have invested significant capital to strengthen and modernize our asset base. Nearly $1.5 billion of capital has been deployed to modernize and complete our coast to coast mill network both improving our competitiveness and providing network flexibility. As we enter fiscal 2027, those investments increasingly shift from consuming capital to generating returns. At Steel West Virginia, commissioning and startup activities continued to progress well. The team is executing a disciplined commissioning process keeping its focus on safely increasing production developing the workforce and realizing the full potential of the mill. As production increases, Steel West Virginia will strengthen the flexibility of our whole network, enabling us to flex and optimize production cost and product mix to better serve customer demand for different products across our footprint. Before moving on, I would like to recognize the team leading the construction and commissioning of our West Virginia micromill. Their efforts have been outstanding and reflect the disciplined approach to capital deployment and project execution that defines CMC. At Tensar, the new GeoGrid line in Blackwell, Oklahoma is well into its startup. And will increase geogrid production capacity enhance service levels and fuel growth in higher value non residential and infrastructure applications. We are equally encouraged by the construction progress at GalvaBar, Tennessee, we expect first production of our GalvaBar corrosion-resistant product beginning this November. The facility is expected to more than double our GalvaBar production capacity, expanding our presence in this attractive higher margin market segment. Beyond our organic growth investments, we are reshaping our portfolio and diversifying our earnings profile, most recently with our precast platform investments. Turning to our Precast business, integration activities remain on track and synergy capture is meeting or exceeding expectations. A great example of this is where through best practice sharing across our network, we have implemented several new operational practices that will improve our safety performance and eliminate millions of dollars of waste from our supply chain. To date, we have substantially completed the functional integration of the creating a strong foundation to drive value creation. Utilizing a tag approach and mindset, we are advancing a broad range of operational excellence and commercial excellence initiatives and have identified further opportunities across operations, procurement footprint optimization and commercial execution that will enhance growth over time. Precast plays a critical role in strengthening CMC's position in early stage construction solutions. The business enhances our portfolio with leading positions in attractive growth markets and in demand infrastructure applications. It brings compelling financial characteristics stronger more durable margins, lower capital intensity and attractive free cash flow generation. Precast also expands our growth runway through both organic opportunities and acquisition opportunities in a highly fragmented industry. With sound execution, we expect Precast to play a vital role in building a stronger CMC. Let's shift from our 3 value creation levers to the current operating environment. Regarding demand for early stage construction products, the direction of travel remains unchanged. We see constructive conditions for all of our product categories across the majority of the markets we serve. Beginning with infrastructure, demand remains elevated. Significant federal and state funding continues to support a multiyear pipeline of projects, and with a substantial portion of available funding yet to be spent we have strong visibility into future activity. Nonresidential construction demand varies by market, but remains a source of strength for CMC. Activity related to areas like data centers, power generation utility infrastructure, semiconductor manufacturing and institutional markets is solid. And the Dodge Momentum Index remains near record levels suggesting a robust and extensive project pipeline. Many of these nonresidential projects are larger, more complex and increasingly requiring diverse solutions. As noted earlier, this plays directly to CMC's strengths. Our vertically integrated network downstream capabilities and broad early stage construction portfolio are differentiators and position us to meet the complexity and scale of these mega project opportunities better than ever before. While residential remains mostly muted, particularly in new single family construction, we remain optimistic for this market over the long term where the housing shortage in The U. S. Will be a meaningful source of multiyear demand. On the steel supply side, our low cost and flexible North American steel network is well positioned to win in this environment. The domestic rebar market remains highly consolidated and the import landscape has materially improved compared to just a few years ago. Existing Section 232 measures have proven both effective and durable. While recently finalized trade cases against unfairly traded imports have effectively removed hundreds of thousands of tons from the market. Importantly, rebar imports are beginning to show signs of moderation as arbitrage opportunities diminish. Notably, South Korean imports decreased in September as we have been expecting, and the imports from other sources continue at a fraction of prior year levels. Meanwhile, we continue to see heightened focus across the industry on trade enforcement and ensuring that imported material competes on a level playing field. Taken together, we believe these dynamics support a more rational and sustainable competitive environment where CMC can reap the benefits from its investments made and to more fully capture the value we bring to the market. Now, before providing our outlook, I will ask Paul to go through the quarter in more detail. Paul? Paul J. Lawrence: Thank you, Peter. I will pick up on Slide 13. Briefly, at the consolidated level, CMC reported fourth quarter net earnings of approximately $213 million. or $1.91 per diluted share. Similar to the third quarter, we incurred approximately $26.8 million of pretax expenses excluded from adjusted earnings. Including $19.8 million of noncash amortization related to acquired backlog. Adjusted earnings increased 21% sequentially. Core EBITDA margin remains an important indicator of the progress we are making. The benefits of our portfolio diversification strategy and TAG initiatives are becoming increasingly evident in this metric. In the fourth quarter, core EBITDA margin increased 100 basis points year-over-year to 660 basis points sequentially, capping a very strong fiscal year and underscoring the enhanced earnings power of the business. Within the North American Steel Group, adjusted EBITDA increased 25.2% sequentially to $317 million driven by TAG benefits, metal margin expansion and growth in merchant bar shipments. Metal margin increased $42 per ton sequentially to $652 driven primarily by a $32 per ton increase in average selling price. The improvement in average selling price benefited from a richer product mix including higher merchant bar volumes, which currently carry a meaningful premium to rebar prices. Meanwhile, scrap costs declined $10 per ton sequentially, Regarding scrap, we expect a relatively stable environment with some upward pressure in the near term correlated to the higher diesel cost we are incurring. Finished steel shipments increased 7.1% sequentially with strong growth across merchant products as well as downstream and rebar volumes. Our downstream backlog increased 15.5% year over year and 5% sequentially, demonstrating the value of our differentiated capabilities particularly on large, more complex projects. North America Steel Group adjusted EBITDA margin expanded to 16.4%, an increase of 22 basis points sequentially and 160 basis points compared to the same period of the prior year. For the Construction Solutions Group, net sales increased 94.5% year over year. Adjusted EBITDA more than doubled. And adjusted EBITDA margin expanded 80 basis points. Beside precast, which Peter discussed earlier, Tensar delivered results that were largely consistent with both the prior quarter and the year ago period, capping a strong fiscal 26. In which profitability increased approximately 50%. This performance reflects solid commercial execution and healthy activity levels across its core end markets. Construction Services and Impact Metals also delivered strong year on year revenue and EBITDA growth during the quarter. Performance Reinforcing Steel results were lower due to an unplanned outage at our GalvaBar facility that affected shipments during the period. The outage is now resolved and customer demand remains robust. With bookings, backlog and pricing trends continuing to support a positive outlook for the business. In Europe, adjusted EBITDA comparisons were affected by CO2 credits received in prior periods. We received credits totaling $30.7 million in the fourth quarter of fiscal 25 and $20.4 million in the third quarter of fiscal 26, while the current quarter did not benefit from any credits. Excluding these impacts, underlying business fundamentals in Poland continue to improve. Metal margin expanded $32 per ton year over year supported by strengthening steel prices, Average selling prices increased $44 per ton versus the prior year and $15 per ton sequentially in the fourth quarter. Offsetting a portion of this benefit energy costs increasing approximately $10 per ton in the quarter. We anticipate energy costs to remain elevated in the first quarter and could potentially increase by a further $10 to $15 per ton. Market conditions in Europe are becoming increasingly constructive. The implementation of the CBAM and enhancements to the tariff rate quota framework are helping create a more favorable trade environment. Combined with gradually improving demand fundamentals these developments reinforce our confidence in a continued recovery toward mid cycle profitability. Over time. Lastly, a few comments on the balance sheet and capital allocation and key modeling considerations for fiscal 2027. Starting with the balance sheet. In less than a year, we have successfully reduced net leverage adjusted for acquisitions to below our target of 2x. At 1.9x, this represents significant progress from post close levels and positions us to pursue our long term balance capital deployment priorities of growth shareholder returns. We expect the balance sheet to strengthen further in fiscal 27, supported by improving cash flow as capital expenditures moderate. In fiscal 2026, total capital spend was approximately $580 million. For fiscal 2027, we anticipate capital expenditures to decline by nearly $200 million to roughly $400 million as we cycle past the elevated investment levels associated primarily with the West Virginia micro mill project. Roughly a quarter of our anticipated fiscal 2027 spend is associated with growth CapEx that we expect will further decrease in fiscal 2028. As a result, free cash flow and free cash flow conversion is expected to improve in fiscal 27 and again in fiscal 28. This increased financial flexibility creates opportunity to further enhance shareholder returns and reinforces a topic we first discussed at Investor Day. At that time, we announced a significantly expanded share repurchase authorization which currently has approximately $700 million remaining. Since then, our conviction has only strengthened. With our strong cash generating capabilities and the opportunity we see in the current share price, we intend to accelerate our pace of activity under the program. This action reflects our confidence in CMC's outlook and our conviction that investing in our own shares represents a compelling value creation opportunity. Lastly, as you think about your fiscal 2027 models, there are 2 items worth noting. First, we have just over 1 quarter remaining of the acquired backlog amortization This will amount to $20 million in the first quarter and roughly $2 million in the second quarter. Second, CMC will continue to benefit from meaningful cash tax savings associated with the 48C program. Bonus depreciation related to our West Virginia mill investment and accelerated depreciation on assets acquired through the Precast acquisitions. As a result, do not anticipate paying significant U.S. federal cash taxes through much of fiscal 2027. For modeling purposes, we expect our effective tax rate to be approximately 24% for fiscal 2027. With that, I will hand it back to Peter for our outlook. Peter? Peter R. Matt: Thanks, Paul. As we look ahead to fiscal 2027, we are in encouraged by both the external environment and the opportunities within our control. Domestic steel supply remains disciplined. Demand for early stage construction products is supported by strong backlogs at attractive prices and our value creation initiatives continue to gain momentum. TAG remains a significant source of earnings growth Our recent growth investments are transitioning from capital deployment to return generation and our evolving portfolio is enhancing both the quality and the durability of our earnings. Together, these factors support our confidence that fiscal 2027 will be another solid year for CMC. Specifically, for the first quarter, we continue to expect healthy operating performance across the portfolio, though normal seasonal factors and costs will impact results sequentially. Within our North American Steel Group, improved pricing is expected to largely offset higher scrap costs start up expenses and a slight seasonal decline in shipments resulting in adjusted EBITDA that is expected to be nearly flat in comparison to the fourth quarter. Within our Construction Solutions Group, adjusted EBITDA is expected to be down sequentially reflecting typical seasonal trends impacting the end market activity in this segment. In Europe, adjusted EBITDA is expected to meaningfully increase sequentially benefiting from the improving operating conditions and a CO2 credit. All in all, we remain confident in the operating environment animated by our priorities and above all eager to deliver on the financial and strategic opportunities ahead of us in fiscal 2027. With that, I will ask the operator to provide instructions before fielding your questions. Thank you very much. Operator: We will now begin the question and answer session. The first question today comes from Samuel McKinney with KeyBanc Capital Markets. Please go ahead. Samuel McKinney: Hey, good morning, Peter and Paul. Peter R. Matt: Good morning. Samuel McKinney: Hey, after a relatively soft third quarter, you said it was challenged by weather. The fourth quarter precast EBITDA number came in about $20 million short of the number you intimated on the last call. Just given the residential market challenges, is annual run rate EBITDA around that $240 million to $250 million still the right way to be thinking about this business before you make any more acquisitions? Peter R. Matt: Hey, thank you very much for the question. We believe it is. And we think that it is a good target for this year. When we look at the backlogs in the business, when we look at the progress we have had on integration, and kind of overall momentum, we feel like we can achieve that. We will have some near term-- and by near term, I am talking Q1 we will have some seasonal weakness. And that seasonal weakness probably leads to a Q1 that is going to be down mid- to high- single digits from where it is in Q4. But overall, we remain very positive on this business. I think 1 thing that is interesting about this is that as residential has declined, it is been filled in by a strong slug of non res and infrastructure. And so again, that is what is supporting our backlog and giving us a lot of confidence in this. And pricing remains very strong in the business. We continue to see pricing rise across the portfolio. So I guess, all in all, we remain very confident and we see this as a continuing strong contributor to our portfolio. Samuel McKinney: Okay. And then you did mention that the South Korean long product imports finally took a big step down in September. How do you think about the sustainability of these trends? And do you expect any sort of government action now that South Korea has also made itself a meaningful importer of flat products this year? Peter R. Matt: Yeah. Well, I will not speak to flat products, but I will kind of keep my comments on the products that impact our business. Yes, we did see the significant decrease. We expected it to be a little sooner, but it did happen. And I think the reality is that when you kind of stack up the cost in the current environment of getting rebar to The U. S. From South Korea, it is not competitive with where our pricing is even with the current price increases that we have just recently put in place. And so I think economics are taking care of taking care of the issue for us for the short term. As I have said in prior calls and engagements and at the Investor Day, where we see that someone is violating our trade laws, we are not going to be shy about going after them. But right now, I think, we are going to monitor the situation and we are comfortable with where things stand. I think it is also a further note that if you look at the countries against whom we or against which we filed these anti dumping and countervailing duty cases, They have effectively, gone away from the import market, right. So we are not seeing any material imports from any of those countries, which I think kind of goes to support the point that I made at the Investor Day and I have made on calls before this that this is durable, supply management that we are working on. And again, I will remind the audience and you, I know you know this, but those anti dumping and countervailing duty cases and the duties that come from them, they have a duration of at least 5 years and generally 10. Samuel McKinney: Yep. I appreciate it. Thanks, guys. Paul J. Lawrence: Thank you. Operator: The next question is from Satish Kasinathan with Bank of America. Please go ahead. Satish Kasinathan: Good morning, Peter and Paul. Congrats on the strong finish to the year. Peter R. Matt: Thanks. Paul J. Lawrence: Yes. Satish Kasinathan: My first question is on the guidance for the first quarter. Can you maybe walk us through some of the moving parts, especially like how much CO2 credits do you expect in EU and what is the magnitude of startup cost you are assuming for the West Virginia mill in Q1? Paul J. Lawrence: Yeah. Satish, as we look at Europe, I think mentioned really 2 factors, the CO2 credit. We are expecting at this stage, you know, somewhere between $10 million and $15 million of CO2 credits. Offsetting that in Europe will be the higher energy costs that I cited. We have seen those so far throughout the quarter around $10 to $15 a ton. And so that will erode a little bit into the earnings of the business. So those are the 2 drivers of the Europe space overall expect, as we said, a meaningful increase in overall results. But guided by those 2 factors. And then on the start up costs, for West Virginia mill? Sorry. Yes. And start up costs, we are as Peter said, we are making good progress on commissioning space. We anticipate that in the first quarter we will probably incur an extra $3 million to $5 million of incremental cost So what we have incurred in the fourth quarter was in the $9 million range. So it is just a slight uptick from that as we start the operation up. Satish Kasinathan: Thank you. Maybe 1 follow-up on the Virginia mill. So can you maybe give some additional color on how you see the cadence of ramp-up? So when do you expect the first commercial shipments? And then are you still on track for maybe 150 thousand to 300 thousand tons of volumes from the mill that you previously guided to? Peter R. Matt: Yes, I think so. Again, remember on this, we did have some construction weather delays. So but we are kind of making great progress on the hot commissioning at this point. We have rolled our first billet, and we are progressing with the start up. I think it is fair to say that we expect the start up to occur over kind of a 12-month period, and we should be breakeven after about 6 months. I think when we look at the overall project, we are super pleased with the fact that we have been able to bring it in kind of effectively on time and effectively on budget. And I think that is a testament to the as I said in the prepared remarks, the great job that the team's done and the capital discipline that we have as a company. Paul J. Lawrence: So overall, to your question of the volume, Satish, I think it will be a little less than what you indicated just given the commissioning ongoing and really we will expect to start the true commissioning and the startup activities near the end of the first quarter. So we will probably be a little under 200 thousand tons of production in the current year. Satish Kasinathan: Okay. Thank you for the color. Peter R. Matt: Thank you. Operator: The next question is from Bill Peterson with JPMorgan. Please go ahead. Bill Peterson: Yes. Hi, good morning. Thanks for taking the questions. And again, a really strong finish to the fiscal year. Wanted to come back to precast, if I could. So I guess from a if you took the quarterly numbers and annualize it, you were ahead of let's say, where you were or what you had talked about at the time of acquisition in terms of sales. But actually behind in terms of EBITDA So I am just trying to get a better sense of what is going on Maybe you can characterize it relative to the market, the markets you are operating in. It sounds like it is primarily residential, but also it sounds like your pricing is fine, but is there some cost pressures to call out? Is there some mix related areas to call out, on the profitability side? Yeah. Peter R. Matt: Great question, Bill. And we will try to fill in some of the detail here. So as we said in the prepared remarks, this is really about weakness in residential, and in the Southeast, and it is really about volume weakness. In that region in residential. And what I think is interesting to note is that the volumes are actually if we look at the CP and P portfolio, volumes are up and actually almost offsetting all of the volume decline in the Southeast. So what that leads to is that you will remember when we announced these transactions that there was a pretty sharp discrepancy between the margins on the Foley portfolio and the margins on the CP and P portfolio. Again, this is 1 of the opportunities in CP and P that we saw as to bring those margins up. But as we are working through the integration, we have not completed that yet. And so losing volumes in the Southeast was kind of painful from it just magnified the EBITDA impact of the lost volume. As I said, the price is not the issue. The price has been going up We have quarter over quarter price increases and year over year price increases. So, it is very disappointing. it is kind of not how we would have written the script. What I want to be categorically clear about is that we are not overly concerned. As retail as the as the residential has slowed the non residential and the infrastructure have filled in the backlog. Our margins in spite of that volume loss remained at 30%, which is again, this is remember we are on the front end of an acquisition. So we have got some of the integration costs before we get the benefits of integration. And a lot of the business indicators, I think, point us to confidence here. So bookings, as we noted, up 12.5% in fourth quarter and have continued to rise in the month of September. Pricing again as I noted up backlog up 4% year over year, 3% in the fourth quarter. With growth in September. And the other thing I would say is that the integration is as proceeded in a really nice way. I would say we are, if anything, ahead of plan. Our synergy, as we look at the business more, we see more opportunities to do things with it. That are going to lead to kind of higher growth synergies. So, So on balance, this is a yes, there is some soft in the market. But 1 other final point that maybe I will leave you with is that the residential portion of our portfolio is running at about 50% to 60% of kind of what a normal environment would be. So, feel like we have taken much if not all of the pain on the residential side. So I am sorry that is a long explanation, but there is a lot to get in there. Bill Peterson: No, that is good as I appreciate that. Very helpful. So my next question is on North American steel. You commented about NBQ, the mix is rich. It looks like shipments are at least at a 5 year high. So I am trying to get a sense of is there further opportunities to shift more of the mixed to MBQ? And I guess how to take that into account as we look at this fiscal year in terms of the cadence of rebar versus MBQ especially with the West Virginia ramping, which is rebar. So does that mean more AZ2 goes to MBQ, things like that? Peter R. Matt: Yeah. No. Great question. And we see a nice opportunity in MBQ And remember, 1 of the things that we have talked about over time is the fact that the portfolio that we have gives us latitude not only to control supply demand by producing fewer rebar tons, but also by producing other products This is the perfect example of what we are able to do here. With demand on merchant, which is really kind of a broad based response to overall strength in the economy. And so we have been shipping materially more merchant bar. And as we start West Virginia, what that will do is it will free up South Carolina for example, to produce more merchant products. So as we said in the Investor Day, we believe that as a starting objective, we think there could be more over time. But as a starting objective, we can get up to a million tons of merchant shipments And that would imply about 150 thousand to 200 thousand tons of incremental merchant shipments. So again, it is a nice margin opportunity in the current environment. And it is a nice way to keep the rebar market tighter. Paul J. Lawrence: Just 1 thing to add to Peter's comment. When we disclose merchant bar and other that is got our merchant bar and the wire rod principally that we produce at our Florida facility. So there is about 150 thousand tons of wire rod that we are shipping on an annualized basis. So that supplements to the million tons target for merchant bar that we have. Bill Peterson: Perfect. Thanks again for all the details and color. Peter R. Matt: Thank you, Bill. Operator: The next question is from Timna Tanners with Wells Fargo. Please go ahead. Timna Tanners: Hey, good morning guys. Peter R. Matt: Hey, Timna. Timna Tanners: Wanted to touch base on the recent move up in October for No. 1 heavy melt scrap, it looks like $27.50. Does that get fully passed through with the recent increase in rebar prices that you announced? And any thoughts on the timing impact there into the November quarter? Peter R. Matt: Yes. So thank you, Timna, for the question. It will and we feel confident that as we go into the November quarter you are going to see a kind of a gradually improving top line from a ASP perspective and a gradually improving metal margins. So we believe we will outpace the move in scrap as it filters through our portfolio. Timna Tanners: Okay. that is helpful. And then secondly, I wanted to shift over to Europe and I know you talked about some recovery there from low levels. A couple of moving parts, of course, you talked about better demand, but also several favorable trade policies. Like, what are you seeing there in terms of how much of that is volume driven and how much of that might be because of better demand and how much of that might be a result of the tariff actions? So I. Peter R. Matt: What I would say is that the demand is good. And it is been good. In Poland, right. and we have said that on several prior calls, The challenge has been really on the supply side. And that is where we have been optimistic about the impact of some of these trade policies. What we have seen, however, is that so and just kind of rewinding the clock to the beginning of the year, you had CBAM but then kind of when in front of CBAM, everyone imported a lot of steel into Poland. So we had this 2 to 3 month period where we had to kind of deal with that And then the market started to tighten up and we saw pricing and margins improved. So, felt pretty good about that. And then the safeguards which took effect in July, same impact. Happened where people are kind of bringing material into Poland or into Europe in advance of that. And so, we are kind of working our way through that, but we are optimistic that we are on the way to seeing an improving environment. The it would be it would be great if we could see some general improvement in the European economy The fact that the German economy has not improved the way we expected it to is maybe a little cautionary note. But we are optimistic that we can get this business back to $100 million or our through-the-cycle number. Paul J. Lawrence: And Timna, to add a little color, it really is a margin growth that we are looking for to get us to that $100 million level. Within TAG, a good portion of that both in North America and in Europe is commercial excellence. there is a strong commercial excellence process going on in Europe. To really be selective around the volumes that we want to sell that drive the greatest margins for the business. So this is about us realizing a margin enhancement as opposed to a volume growth. Peter R. Matt: Thank you, Timna. Operator: The next question is from Nick Cash with Goldman Sachs. Please go ahead. Nick Cash: Yes. Thank you guys for taking my question. Just stepping back to the Analyst Day for a second, can you help us bridge, I guess, the 26 core EBITDA of, call it, $1.4 billion versus the 2029 target of $1.65 billion to $1.8 billion And can you also remind us, I guess, how much was West Virginia precast TAG and other? And does the Precast weakness that you are currently seeing in the mix shift change that mix at all? Paul J. Lawrence: Yes. Thanks, Nick. Great question. We believe that we are I think demonstrating the capabilities of the business in the fourth quarter aligned to the targets that we have for 2029. The math of the organic growth projects, whether that be West Virginia, whether that be through the merchant bar expansion that Peter said, whether it be the Galva bar line or the GeoGrid line that we are constructing. All of that is close to $200 million of incremental EBITDA that we have we have talked about there. We have got the ability or the strength in Arizona to continue to enhance the contribution contributions. We have got the growth in the precast business obviously, where it was in 2026, the full year impact, but also the growth that we anticipate in that business. As well as the mid teens growth in the rest of the Construction Solutions Group. So I think the $1.4 billion that we earned in the fourth quarter, recognizing that the scenario we laid out was a 25% tariff environment. but we are well on our way with all of that growth opportunities to achieve that or in today's environment far exceed the low end of the range based on the way we are performing now in the market that we are seeing. Peter R. Matt: And Nick, can I just jump in on that to say you asked the question about does the precast softness change at all and I want to categorically say it does not? If anything as I said earlier, we have more conviction in precast and by 2029 we are confident that we are going to get to where we thought we could get to. Nick Cash: No. that is extremely helpful. Thanks for the color and I will pass it on. Peter R. Matt: Thank you. Operator: The next question is from Richard Garchitorena with Barclays. Please go ahead. Richard Garchitorena: Great. Thanks for taking my question. I believe on the prepared remarks that you mentioned that CapEx for fiscal 27 would be $400 million with 25% of that being growth CapEx. I was wondering if you could provide some color in terms of what are the key growth projects that you are going to be working on this year. Particularly in the CSG and precast? And then how should we think about that impacting potential growth in 2028 fiscal 2028 and beyond? Paul J. Lawrence: Yes. Thanks, Richard. The vast majority of the $100 million growth is West Virginia. there is a few payments related to performance targets that need to be made and we expect to make those in 2027. So that is well over half of the spend. And then the spend on the GeoGrid line and the GalvaBar line. Both those will. Well, all 3 of those will be in startup mode in 2027. So their EBITDA contribution will be limited as far as the long term capabilities of those plants. We expect the GalvaBar facility begin commissioning late in calendar 26 and the GeoGrid line is continuing to be in the startup and commissioning time now. So that 1's most likely to contribute in 2027. As Peter said, we expect West Virginia to ramp up nicely and within 6 months of the startup to be breakeven from an EBITDA perspective. So into Q3, for us on that 1. Peter R. Matt: And we expect just to put a bow on that, again, we think about maintenance, we have talked about maintenance in the past is $275 million. So going forward, if you think about kind of $50 ish million of growth investments, that is the type of range we would be in. For kind of ongoing CapEx. And again, I think that 1 of the things that is really important that we are trying to do across the company is, look for opportunities to invest in projects that make our operations more efficient. And generate kind of high returns from that. So you will see that is where we will devote most of the growth to. As we have said before, we are not building a new steel mill, anything like that. It will all be investments in efficiency. Richard Garchitorena: Great. And maybe just sticking to capital allocation, congrats on getting leverage down. Below your target level. As you move forward, obviously CapEx coming down as well. How should we think about share repurchases Is that going to be the bulk of the target or are you looking to keep some dry powder for M&A? How should we think about that? Peter R. Matt: Yeah. I mean, I think, we are definitely going to keep some dry powder for M&A. If we think about we have built a kind of pretty active M&A dialogue across the priority areas. We do not have anything that is significant to do right now. So but that works fine because we have got a lot of work to still do on integration and optimizing the Precast platform. But again, returns to shareholders are an important piece. And as you heard what Paul said in his prepared remarks about our share repurchase. And I think looking at our free cash flow and seeing the strength of it, and also looking at the share price and it looks like it is a very compelling investment at this price. It seemed like it made sense to accelerate the share repurchase. We had we announced an authorization of or we increased our authorization to about 700 million with this. We increased it by $600 million, but to get to about a $700 million total authorization We said we intended to do that over 3 years. What we are saying today is we are going to pull that forward. We will see how that progresses, but I think you should expect a meaningful increase in the amount of shares that we are buying. Richard Garchitorena: Great. Thank you. Peter R. Matt: Thank you. Operator: The next question is from Gresser with BNP Paribas. Please go ahead. Tristan Gresser: Yes. Thank you for taking my questions. The first 1 is on North America. If we put everything together, West Virginia, the product mix you just mentioned as well. And I do not know if there is some leftover from Arizona II for fiscal 2027. Are you able to share the percentage volume increase you have in mind for the fiscal year for the division? And if you have any is there any difference between steel products and downstream products? Peter R. Matt: Well, I guess what I would start at with is demand. Right? And so far this year, we have seen demand growing year to date. I think it is over 4% And so the good news is that we have the capability to flex our production to meet increased demand. And yes, there is additional capability in Arizona and there is obviously additional capability in West Virginia. But again, I want to come back remind everyone that our objective is to kind of keep supply and demand in balance and the flexibility of our network, given it is a high variable cost network, allows us to do that. So I think we will have to see how the market grows, but assuming that it continues at this pace, something of that order could be could be what we would expect. Do not know, Paul, if you would add anything. Paul J. Lawrence: You know, I think what we are particularly proud about because I think if you look as Peter said, the market is up 4% to 5% in terms of rebar consumption. Our downstream business in which we have executed and demonstrated strong, strong commercial discipline in terms of really only looking to take on margin accretive work for the business and yet we are up 7% on a year-over-year basis over year basis. That speaks to the capabilities and the ability for us to do these large mega jobs that are really sustaining the construction activity right now. And those are projects that are not just being done in 2026 but will be multi year in length and it gives us confidence as we look forward that those capabilities will be rewarded in terms of lower risk to the contractors, lower risk to the project owners of contracting with CMC and continue to fuel a real sense of opportunity for us to grow margins and continue a strong downstream pull. Tristan Gresser: All right. No, that is that is very clear. And the second question is on Europe. A bit of the same question to start with on the volume outlook, if you are you expect to continue to gain market share and what we can expect for the year? And also just trying to understand a bit the margin development. You sound pretty constructive, but when I look at rebar prices and maybe I should look at Polish rebar prices and just general European prices, but they are being pretty flat over the past couple of months and energy costs are through the roof. So another long steel producer in the regions have been forced to shut down. So what are you doing differently Can you remind us how you procure your electricity, natural gas and maybe some your hedging strategy you have in place or maybe there is something different. It just about makes or something else that make you a bit more resilient. Peter R. Matt: Well, thanks, Tristan. So I am going to start and then Paul can walk you through what we are doing in terms of energy procurement. But in terms of volumes, we that demand is good. And we have been running at, I would say, pretty high rate of utilization in our Polish operation recently. So we. And I would say we expect demand to be, you know, kind of stable, modestly, modestly better in that marketplace. Pricing, you are right, has been well, we saw as I said earlier, we saw in the wake of CBAM, we saw a nice rise in pricing. To the tune of $100 a ton, but then we saw obviously scrap kind of went up along with it with the safeguards coming in and the pre buy there, you have seen us give some of that a little bit of that back. So we are still optimistic though that as the buy related to the safeguards filters through, that you are going to see margins expand in that market. We are. And again, expand gradually that market. We are not expecting any sea change, so to speak. But maybe Paul, you can talk about the side. Paul J. Lawrence: Yes. On the cost side, earlier I spoke of the focus that the team is doing on commercial aspects of tag. Operationally, the team has done a phenomenal job of rightsizing and driving costs to where it needs to be from a competitive perspective in the tight market that exists in Europe. And 1 of those areas that the team has always been focused on is electricity consumption. But also having the foresight to enter into longer term energy contracts. And so we have around 50% of our electricity hedged through long term purchase agreements. These were entered into prior to the Ukraine or prior to energy costs taking off in Europe. And so really competitively situates the mill in positive environment. So combination of a strong hedging process through those agreements as well as a focus on consumption that drives a significant competitive advantage. And hence why we are able to withstand the costs where they are. As I said, we do anticipate energy costs continuing to rise, but we expect to continue to be a strong position economically from a margin perspective with those increases taken into consideration. Peter R. Matt: And Tristan, the last thing I would just say is just remember as you kind of think forward the next couple of quarters, we are coming into difficult part of the year in terms of the ultimate demand, So there is going to be some likely some seasonality to the to the numbers over the next couple of quarters. Tristan Gresser: Alright. No. that is that is very clear. 1 quick follow-up. The inventory overhang you mentioned, would you see that clearing up already before year end? Or it is going to take a much longer than that? Peter R. Matt: Well, again, if we think about I would say what we saw in CBAM took longer than what we expected, to clear up. So and I would say to the tune of probably 4-ish. Yeah. Yeah. 4 to 6. So I think we might see the same here. So by the end of the calendar year, we would expect the benefits really of CBAM and the tariff rate quota to start being realized in a more meaningful way. Tristan Gresser: Alright. Very clear. Thanks a lot. Operator: This concludes our question and answer session. I would like to turn the conference back over to Peter R. Matt for any closing remarks. Peter R. Matt: Well, thank you for the thoughtful questions and for joining us today. Every CMC employee should be proud of what we have accomplished in fiscal 26 and even more excited about the opportunities ahead. Enabled by their efforts and our collective performance and a clear vision we believe fiscal 2027 will be another great year for CMC. To our shareholders, we thank you for your support and we look forward to continuing the conversation over the weeks and months ahead. Have a great day. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in Commercial Metals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Commercial Metals wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. CMC (CMC) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Fiscal 2026 was defined as a transformative year, with core EBITDA increasing to approximately $1.4 billion and margins expanding 380 basis points to 14.5%. - Performance was underpinned by the 'Transform Advance and Grow' (TAG) program, which achieved over $250 million in gross run-rate benefits through operational and commercial excellence. - North American Steel Group results were driven by a richer product mix, specifically higher merchant bar volumes which carry a meaningful premium over rebar. - The Construction Solutions Group faced headwinds from residential softness in Southeastern markets, though management notes this was partially offset by strong non-residential and infrastructure demand. - Management attributes the company's ability to win large, complex 'mega projects' to its vertically integrated network and expanded early-stage construction portfolio. - The domestic rebar market is described as rational and sustainable, supported by effective trade enforcement and diminishing arbitrage opportunities for imports. - Fiscal 2027 marks a transition from capital consumption to return generation as $1.5 billion in recent investments begin to contribute to earnings. - Management targets an additional $100 million in run-rate benefits from the TAG program by the end of fiscal 2027. - The West Virginia micro-mill is expected to reach EBITDA breakeven within six months of startup, with total production for the year projected slightly under 200,000 tons. - Capital expenditures are projected to decline by nearly $200 million to approximately $400 million in fiscal 2027 as major projects conclude. - The company intends to accelerate share repurchases, pulling forward its $700 million authorization due to strong free cash flow and perceived share price value. - Residential activity in the Southeast is currently running at approximately 50% to 60% of normal levels, impacting Precast volumes. - European energy costs are expected to remain elevated, potentially increasing by $10 to $15 per ton in the first quarter of fiscal 2027. - An unplanned outage at the GalvaBar facility impacted Performance Reinforcing Steel shipments in Q4, though the issue is now resolved. - The company expects to pay no significant U.S. federal cash taxes through much of fiscal 2027 due to various tax credit and depreciation programs. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management reaffirmed the $240 million to $250 million annual EBITDA target for the Precast business despite current regional residential weakness. - Confidence is supported by strong pricing trends and a backlog that is shifting toward non-residential and infrastructure projects. - Imports from South Korea decreased significantly in September as they became uncompetitive with domestic pricing due to logistics and production costs. - Management emphasized that trade cases have effectively removed hundreds of thousands of tons of unfairly traded imports from the market. - CMC aims for a starting objective of 1 million tons of merchant shipments, representing 150,000 to 200,000 tons of incremental volume. - The startup of the West Virginia mill will allow other facilities, like South Carolina, to shift capacity from rebar to higher-margin merchant products. - Profitability in Europe is expected to recover toward a $100 million through-the-cycle EBITDA target, driven by margin expansion rather than volume growth. - The company maintains a competitive advantage in Poland by having approximately 50% of electricity needs hedged through long-term agreements signed before the energy crisis.