Commercial Metals Company Reports Strong Fiscal First Quarter 2026 Earnings Resulting in Significant Growth

CMC Reports Its Solid First Quarter of Fiscal 2026

On January 8, 2026, Commercial Metals Company (CMC), traded under NYSE: CMC, announced impressive financial results for the first quarter of fiscal 2026, ending on November 30, 2025. The company's momentum builds on a solid foundation established throughout the previous fiscal year.

Significant Financial Highlights

During this reporting period, CMC reported net earnings of $177.3 million, translating to $1.58 per diluted share. This marks a significant improvement compared to a net loss of $175.7 million, or $1.54 per diluted share, in the corresponding quarter the previous year. Moreover, adjusted earnings surged to $206.2 million, reflecting a per diluted share increase to $1.84 compared to $86.9 million or $0.76 in the same quarter a year prior.

The company's consolidated core EBITDA stood at an impressive $316.9 million, which is an approximately 52% year-over-year growth, leading to a core EBITDA margin of 14.9%. This impressive margin is indicative of CMC's effective operational strategies over the past year.

Strategic Initiatives Under the TAG Program

Peter Matt, President and CEO of CMC, emphasized that the first quarter was a great kick-off for fiscal 2026. CMC successfully launched several operational and commercial initiatives through the Transform, Advance, and Grow (TAG) program. The goal is to achieve an annualized run-rate EBITDA benefit of $150 million by the end of the fiscal year.

In December 2025, CMC closed acquisitions of Concrete Pipe and Precast, LLC and Foley Products Company, LLC, deploying approximately $2.5 billion of capital into these ventures. This strategic acquisition not only enhances CMC’s portfolio but is also expected to establish a robust growth platform in the precast concrete industry.

With the recent rebranding of the Emerging Businesses Group to the Construction Solutions Group, CMC aims to align its business structure with its strategic priorities more effectively.

Examining Market Dynamics

The North America Steel Group saw stable product demand during the quarter, with average daily shipments of steel products remaining consistent compared to both the prior year period and the preceding quarter of fiscal 2025. Demand drivers included a healthy pipeline of upcoming construction projects and increased contract awards.

More importantly, steel product metal margins experienced a sequential increase, reaching their highest level in nearly three years. This positive shift reflects favorable market conditions that may continue to support growth as construction activity is projected to expand in the future.

In fiscal terms, adjusted EBITDA for the North America Steel Group increased by 57.9% year-over-year, reaching $293.9 million, driven by improved margins and contributions from the TAG program. The adjusted EBITDA margin in this segment also grew to 17.7%, significantly up from 12.3% a year earlier.

While the Europe Steel Group faced minor challenges, the overall performance remained resilient due to solid demand stemming from Poland's economic growth. However, financial results were affected by annual maintenance outages and a drop in CO2 credits.

Looking Ahead

Looking forward, CMC anticipates a slight decline in consolidated core EBITDA for the second quarter of fiscal 2026 due to standard seasonal market slowdowns. However, they remain confident about leveraging the recent acquisitions to offset any challenges. Guidance suggests CMC is optimistic about their ability to deliver substantial gains in the coming quarters, which is bolstered by sound operational execution and strategic growth plans.

The company continues to prioritize shareholders, recently announcing a quarterly dividend of $0.18 per share payable to stockholders on February 2, 2026.

In summary, CMC's strong start to fiscal 2026 positions the company well for continued success, emphasizing operational excellence and strategic market positioning. The ongoing focus on enhancing margins and expanding through acquisitions signifies a robust commitment to delivering value to stakeholders.