#United States #Irving #CMC #Commercial Metals Company #Fiscal 2026

CMC Reports Third Quarter Financial Results for Fiscal Year 2026

On June 25, 2026, the Commercial Metals Company (CMC) revealed its financial performance for the third quarter ending May 31, 2026. The report highlights impressive growth metrics, including net earnings that reached $173 million, translating to $1.55 per diluted share, and adjusted earnings soaring to $193 million, or $1.73 per diluted share.

Key Highlights from Q3 Results

The third quarter demonstrated a remarkable increase in consolidated core EBITDA, which climbed by 78.6% year-over-year to $353.6 million. This growth is attributed to a combination of favorable market conditions, the benefits arising from the Transform, Advance, Grow (TAG) initiatives, and contributions from recently acquired precast businesses. CMC's consolidated core EBITDA margin also expanded to 14.2%, reflecting a 440 basis points improvement from the previous year.

In his commentary, Peter Matt, CEO of CMC, emphasized the company's strategic progress. He noted, "During the third quarter of fiscal 2026, we made significant strides in our strategic initiatives, witnessing a substantial growth in Core EBITDA along with notable progress in deleveraging our balance sheet. Our early-stage construction portfolio is benefitting from solid demand, and we are confident in our ability to deliver favorable outcomes in the coming quarter."

Operational and Financial Insights

The third quarter saw CMC achieve net sales of approximately $2.48 billion, marking an increase of 16.5% quarter-over-quarter and 22.9% year-over-year. The breakdown of financial results includes:

• - Net earnings: $173.0 million, an 86% increase QoQ.
• - Core EBITDA: Increased significantly to $353.6 million from $198.0 million YoY.
• - Adjustments: Adjusted earnings rose to $193.0 million, marking a substantial 142.4% increase compared to the same period last year.
• - Adjusted EBITDA margin: Expanded to 14.2% from 9.8% in the previous year.

Business Segment Performance

The North America Steel Group reported adjusted EBITDA of $253.5 million, driven by a 41% year-over-year increase thanks to improved margins over scrap costs. The segment also experienced a modest decline in finished goods shipment volumes due to temporary inventory constraints.

Similarly, the Construction Solutions Group doubled its net sales year-over-year to $394.6 million. This segment's strong performance was bolstered by the addition of CMC's precast acquisitions, contributing significantly to revenue and profitability.

In Europe, the Steel Group's adjusted EBITDA soared to $34.7 million, a major leap from the previous year's $3.6 million, aided by improved market conditions and policy changes supporting domestic demand.

Strategic Direction and Future Outlook

Looking forward, CMC remains optimistic about its future, citing strong backlogs and favorable market conditions as crucial drivers for continued success. The company is also focused on its upcoming Investor Day on August 5, 2026, where it will share further insights into its long-term strategy and operational progress.

As part of its shareholder value strategy, the board declared a quarterly dividend of $0.20 per share, reflecting a commitment to returning value to its investors. CMC is also poised to finish fiscal 2026 on a strong note, buoyed by robust current demand and strategic growth initiatives.

Conclusion

This quarter underscores CMC's resilience and capability to adapt to shifting market dynamics and capitalize on opportunities. Through proactive management and strategic acquisitions, CMC is well-positioned for sustained growth and profitability in the coming quarters.