CMC Reports Strong First Quarter Earnings for Fiscal 2026
Commercial Metals Company (NYSE: CMC) has announced impressive financial results for the first quarter of its fiscal year 2026, ending November 30, 2025. The company reported net earnings of $177.3 million, equating to $1.58 per diluted share, marking a significant recovery from a net loss of ($175.7 million), or ($1.54) per diluted share in the same period last year. Adjusted earnings surged to $206.2 million, or $1.84 per diluted share, reflecting a robust operational performance amid favorable market conditions.
Key Financial Highlights
- First quarter net sales reached $2.1 billion, up from $1.9 billion a year earlier.
- Consolidated core EBITDA grew to $316.9 million, a year-over-year increase of approximately 52%, resulting in a core EBITDA margin of 14.9%.
- Heightened operational execution and commercial discipline contributed to these positive outcomes.
Strategic Initiatives Under TAG Program
During the quarter, CMC launched several initiatives as part of its Transform, Advance, and Grow ("TAG") program. The company aims to exit fiscal 2026 with an annualized run-rate EBITDA benefit of $150 million. This strategic focus is expected to enhance the financial profile and earnings power of CMC significantly.
Peter Matt, President and CEO, stated, “The first quarter marked an exceptional start to 2026 for CMC as we built on the strategic groundwork laid during fiscal 2025. Our results reflect strong operational and commercial execution, enabling CMC to capitalize on constructive market conditions.”
Recent Acquisitions Strengthening CMC's Market Position
In December, CMC completed significant acquisitions of Concrete Pipe and Precast, LLC ("CP&P") and Foley Products Company, LLC ("Foley"), committing over $2.5 billion to establish a new growth platform in the precast concrete industry. These acquisitions play a vital role in bolstering CMC's competitive positioning and creating additional value for its customer base.
Market Dynamics and Future Outlook
The North America Steel Group experienced stable product demand, with average daily shipments of finished steel products remaining consistent compared to both the prior year and the prior quarter. Strong bidding activity and a healthy pipeline of construction projects were observed, supported by stable demand and expanding margins.
As indicated by rising steel product metal margins, which increased for the third consecutive quarter, the company's average selling price for steel products has improved substantially, totaling a gain of over $145 per ton compared to early fiscal 2025 lows. Adjusted EBITDA for the North America Steel Group also rose by 57.9%, reaching $293.9 million for the quarter, driven by better margins and positive impacts from the TAG program.
Financial Position and Shareholder Returns
As of November 30, 2025, CMC had $3.0 billion in cash and cash equivalents, with nearly $1.9 billion in available liquidity. The company repurchased 663,220 shares of common stock valued at $38.9 million during the quarter, with $166.1 million remaining under the current share repurchase authorization.
The board of directors declared a quarterly dividend of $0.18 per share of CMC common stock, marking the 245th consecutive quarterly payment, payable on February 2, 2026.