Commercial Metals (NYSE:CMC) Releases Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Commercial Metals (NYSE:CMC) issued its quarterly earnings results on Thursday. The basic materials company reported $2.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.95 by $0.14, FiscalAI reports. Commercial Metals had a net margin of 6.98% and a return on equity of 17.00%. The company had revenue of $2.66 billion during the quarter, compared to analyst estimates of $2.56 billion. During the same period last year, the business earned $1.37 EPS. Commercial Metals’s quarterly revenue was up 25.7% compared to the same quarter last year.

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

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

Commercial Metals Stock Down 0.6%

Shares of CMC traded down $0.41 on Friday, hitting $64.95. 1,641,615 shares of the stock traded hands, compared to its average volume of 1,269,033. The company has a market capitalization of $7.19 billion, a PE ratio of 11.07, a P/E/G ratio of 0.25 and a beta of 1.53. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.54 and a current ratio of 2.34. The business has a 50 day simple moving average of $66.80 and a 200 day simple moving average of $68.29. Commercial Metals has a one year low of $55.70 and a one year high of $84.87.

Commercial Metals Dividend Announcement

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

Commercial Metals announced that its board has approved a share buyback plan on Wednesday, August 5th that permits the company to buy back $600.00 million in outstanding shares. This buyback authorization permits the basic materials company to buy up to 7.5% of its shares through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.

Insiders Place Their Bets

In other Commercial Metals news, Director John McPherson acquired 1,390 shares of the stock in a transaction that occurred on Thursday, August 13th. The shares were acquired at an average cost of $71.92 per share, with a total value of $99,968.80. Following the transaction, the director owned 21,927 shares of the company’s stock, valued at $1,576,989.84. The trade was a 6.77% increase in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 0.62% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. Zacks Research raised shares of Commercial Metals from a “strong sell” rating to a “hold” rating in a research note on Monday, July 13th. Wall Street Zen downgraded shares of Commercial Metals from a “buy” rating to a “hold” rating in a research note on Saturday. Bank of America decreased their target price on shares of Commercial Metals from $84.00 to $78.00 and set a “buy” rating for the company in a research note on Thursday, July 9th. Weiss Ratings lowered shares of Commercial Metals from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, October 2nd. Finally, BNP Paribas Exane upgraded shares of Commercial Metals from a “neutral” rating to an “outperform” rating and set a $75.00 target price for the company in a report on Wednesday, July 8th. Nine equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $80.45.

Commercial Metals News Roundup

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

• Positive Sentiment: Fourth-quarter results exceeded expectations. CMC reported adjusted EPS of $2.09, above the roughly $1.95–$1.97 consensus, while revenue rose 25.7% year over year to $2.66 billion, exceeding estimates by approximately $90 million. CMC Reports Fourth Quarter and Full Year Fiscal 2026 Results
• Positive Sentiment: Full-year profitability improved substantially. Fiscal 2026 net earnings reached $655.8 million, while consolidated core EBITDA increased to $1.4 billion from $837.3 million in fiscal 2025, reinforcing the company’s operating and cash-generation momentum. CMC closes out fiscal year with summer profits
• Positive Sentiment: Management sees durable end-market demand. CMC highlighted strong demand from data centers and semiconductor factories, while its recycling, steel and construction-products businesses supported summer profitability. These trends could benefit volumes and infrastructure-related demand. Commercial Metals Sees Strong Demand From Data Centers, Chip Factories
• Neutral Sentiment: Analysts and market commentary remain mixed. Zacks characterizes CMC as a strong growth stock, and management’s earnings-call commentary signaled further growth. However, other analysis considers the shares insufficiently attractive even as fundamentals improve, reflecting valuation and steel-cycle concerns. Here’s Why Commercial Metals is a Strong Growth Stock
• Negative Sentiment: The muted reaction may reflect cyclical and valuation risk. Despite the earnings beat and stronger outlook, investors may be concerned about metal-price volatility, construction demand and whether the improvement can persist. CMC’s shares remain below their 50-day and 200-day moving averages, indicating lingering technical pressure. Commercial Metals Company: Still Not Attractive but Getting Better

About Commercial Metals

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

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