Commercial Metals (NYSE:CMC) Releases Earnings Results, Beats Expectations By $0.29 EPS

Commercial Metals (NYSE:CMC) posted its earnings results on Thursday. The basic materials company reported $1.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.55 by $0.29, Zacks reports. The business had revenue of $2.12 billion for the quarter, compared to analysts’ expectations of $2.06 billion. Commercial Metals had a net margin of 5.46% and a return on equity of 11.43%. The business’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.78 EPS.

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

• Strong Q1 results: Reported net earnings of $177.3M ($1.58/share), adjusted earnings of $206.2M ($1.84/share), and consolidated Core EBITDA of $316.9M (up ~52% YoY) with margin expansion to 14.9%.
• TAG program driving margin gains: Enterprise-wide operational and commercial initiatives (TAG) delivered about $50M of EBITDA in FY25 and management expects to reach or exceed a $150M annualized EBITDA run-rate benefit by exit FY26.
• Transformational precast acquisitions but higher leverage: Closed CPMP and Foley to create a large U.S. precast platform expected to contribute ~$165–$175M of EBITDA (for ~8.5 months in FY26) and $30–$40M of synergies, funded by ~$2.5B of cash consideration and leaving pro forma net leverage around 2.5x.
• Solid liquidity and deleveraging plan: Pro forma cash was ~$3.0B, revolver upsized to $1.0B and estimated available liquidity ~ $1.7B, with management targeting net leverage below 2.0x within 18 months and low expected cash tax payments due to tax credits.
• Near-term softness expected: Management expects Q2 Core EBITDA to decline modestly from Q1 due to normal seasonality and planned outages (North America steel volumes down seasonally; Europe ~break-even), partially offset by precast contributions.

Commercial Metals Price Performance

CMC stock opened at $72.52 on Friday. The firm has a market cap of $8.05 billion, a P/E ratio of 18.69, a P/E/G ratio of 0.39 and a beta of 1.49. The firm’s fifty day moving average is $65.63 and its 200 day moving average is $59.31. Commercial Metals has a 52 week low of $37.92 and a 52 week high of $75.03. The company has a debt-to-equity ratio of 0.77, a quick ratio of 2.03 and a current ratio of 4.47.

Commercial Metals Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, February 2nd. Stockholders of record on Monday, January 19th will be paid a $0.18 dividend. The ex-dividend date of this dividend is Friday, January 16th. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.0%. Commercial Metals’s dividend payout ratio is 94.74%.

Trending Headlines about Commercial Metals

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

• Positive Sentiment: Q1 results beat and strong underlying profitability — CMC reported GAAP net earnings of $177.3M (GAAP EPS $1.58) and adjusted EPS $1.84, with revenue of $2.12B and consolidated core EBITDA of $316.9M (up ~52% y/y) and a 14.9% core EBITDA margin. These headline beats and margin expansion are the main drivers of the stock strength. PR Newswire: CMC Reports First Quarter of Fiscal 2026 Results
• Positive Sentiment: Strategic initiatives and M&A support growth thesis — Management cited progress on the “TAG” (Transform, Advance, Grow) program with a goal of $150M annualized EBITDA benefit, and closed acquisitions (CP&P and Foley) to build a precast/construction platform, deploying >$2.5B of capital. These moves point to higher organic and inorganic growth potential. PR Newswire: CMC Reports First Quarter of Fiscal 2026 Results
• Positive Sentiment: Analyst/upside momentum — CMC appears on Zacks’ list of top growth picks and a favorable Zacks piece highlights reasons to consider CMC as a growth stock, supporting short-term buying interest. Zacks: 3 Reasons Why CMC Is a Solid Choice
• Neutral Sentiment: Earnings call/transcripts available — Transcripts from the Q1 call provide more color on volumes, pricing and margin outlook; they confirm management’s execution but don’t add a material surprise beyond the results. InsiderMonkey: Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Industry press notes margin improvement — RecyclingToday and other trade outlets reported wider margins and improved profits in late‑2025 for CMC, reinforcing the narrative but largely echoing the company release. RecyclingToday: CMC reports profits, wider margins in late 2025
• Negative Sentiment: Valuation and uncertainty — The stock now trades at a high P/E (~95x) and trading volume is below average, which could cap near‑term upside if growth expectations slip. Also, analyst FY estimate dispersion (some very aggressive forecasts) raises execution risk if the company fails to sustain the improved margins.

Analysts Set New Price Targets

A number of analysts have recently issued reports on CMC shares. Morgan Stanley lifted their price target on Commercial Metals from $68.00 to $85.00 and gave the company an “overweight” rating in a research report on Friday. Jefferies Financial Group set a $85.00 target price on shares of Commercial Metals and gave the company a “buy” rating in a research report on Thursday. Weiss Ratings reissued a “hold (c)” rating on shares of Commercial Metals in a report on Wednesday, October 8th. UBS Group restated a “neutral” rating on shares of Commercial Metals in a research report on Monday, October 27th. Finally, Zacks Research upgraded shares of Commercial Metals from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 14th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $70.70.

Insiders Place Their Bets

In other Commercial Metals news, Director John R. Mcpherson purchased 1,722 shares of the business’s stock in a transaction on Monday, October 20th. The stock was acquired at an average cost of $58.09 per share, for a total transaction of $100,030.98. Following the completion of the transaction, the director directly owned 6,722 shares in the company, valued at approximately $390,480.98. This represents a 34.44% increase in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.62% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Commercial Metals

Several institutional investors have recently bought and sold shares of CMC. EverSource Wealth Advisors LLC grew its position in Commercial Metals by 84.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,550 shares of the basic materials company’s stock worth $76,000 after acquiring an additional 708 shares during the last quarter. Danske Bank A S purchased a new stake in shares of Commercial Metals during the third quarter valued at approximately $115,000. Advisory Services Network LLC bought a new position in shares of Commercial Metals in the third quarter worth approximately $139,000. Amundi increased its stake in shares of Commercial Metals by 13.3% in the first quarter. Amundi now owns 2,480 shares of the basic materials company’s stock worth $114,000 after buying an additional 291 shares during the period. Finally, CIBC Private Wealth Group LLC raised its holdings in Commercial Metals by 39.9% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 3,497 shares of the basic materials company’s stock valued at $200,000 after buying an additional 998 shares during the last quarter. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

About Commercial Metals

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

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