Commercial Metals (CMC) Delivers Earnings Beat on Strong North America Steel Performance
Key Takeaways
- Adjusted earnings per share (EPS) of $2.09 topped the consensus estimate of roughly $1.96–$1.97.
- Revenue rose 25.7% year over year to $2.66 billion, above the approximately $2.57 billion Wall Street expected.
- GAAP (Generally Accepted Accounting Principles) net earnings reached $212.5 million, or $1.91 per diluted share, up from $1.35 a year earlier.
- Core EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 35.1% to $393.7 million, with the margin expanding to 14.8%.
- The North America Steel Group drove the beat, while residential softness weighed on the newer Precast operations.
- Management guided to a roughly flat sequential result for North America Steel in the fiscal first quarter.
Putting the Results in Context
Commercial Metals Company’s fiscal fourth quarter wrapped up what has been a pivotal year for the Irving, Texas-based steelmaker and construction solutions provider. The numbers give a useful sense of whether the company’s push into precast acquisitions, its TAG efficiency program, and new capacity like the West Virginia micro mill are delivering lasting margin gains. With infrastructure and nonresidential demand holding up while residential construction remains soft, these results also show how CMC’s business mix is handling the usual swings in its end markets.
A Closer Look at the Numbers
CMC reported fourth-quarter adjusted EPS of $2.09, ahead of the consensus range of about $1.96–$1.97. Revenue reached $2.66 billion, up 25.7% from a year earlier and above the roughly $2.57 billion analysts had projected. On a GAAP basis, net earnings came in at $212.5 million, or $1.91 per diluted share, compared with $1.35 per share in the same quarter last year.
Core EBITDA increased 35.1% year over year to $393.7 million, lifting the core EBITDA margin by 100 basis points to 14.8%. For the full fiscal year, core EBITDA totaled about $1.4 billion, compared with $837 million in fiscal 2025, while the margin improved 380 basis points to 14.5%. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Segment results were mixed. The North America Steel Group posted adjusted EBITDA of $317.5 million, up 32.6% year over year, with its margin expanding to 16.4%. Metal margin rose $42 per ton sequentially to $652 per ton, supported by better pricing and lower scrap costs. The Construction Solutions Group saw sales jump 94.5% to $431.4 million and adjusted EBITDA more than double to $101.7 million, though Precast results came in below expectations due to softer Southeastern residential demand. Europe Steel Group adjusted EBITDA fell to $15.6 million from $39.1 million, partly because of CO2 credits received in the prior-year period.
How the Market Responded
CMC shares rose roughly 4% in pre-market trading following the earnings beat, which investors appeared to view favorably given the stronger-than-expected profit and revenue. The reaction was driven mainly by the North America Steel Group’s margin expansion and a downstream backlog that grew 15.5% year over year, pointing to solid demand in energy, data centers, semiconductor manufacturing, and public infrastructure. At the same time, softer residential trends in the Precast portfolio and the drop in Europe Steel Group results, linked to the lack of prior-year CO2 credits, kept some caution in place.
Looking Ahead
For the first quarter of fiscal 2027, management expects the North America Steel Group’s adjusted EBITDA to be nearly flat sequentially, as improved pricing largely offsets higher scrap costs, startup expenses at new capacity, and normal seasonal shipment declines. The Construction Solutions Group is expected to see a sequential EBITDA decline due to typical seasonal patterns, while the Europe Steel Group is projected to grow meaningfully with improving conditions and a CO2 credit.
Several items stand out as worth watching. The ramp-up of the West Virginia micro mill and the second GalvaBar line in Tennessee should more than double capacity and support higher merchant-bar volumes that carry a premium to rebar. Progress on the TAG program, which targets roughly $100 million in additional gross run-rate EBITDA during fiscal 2027, will also be important. Capital expenditures are expected to fall to about $400 million in fiscal 2027 from roughly $580 million in fiscal 2026, which should help free cash flow. Net leverage has already declined to 1.9 times, below the company’s 2.0 target, and management indicated plans to step up share repurchases with about $700 million still available under the authorization. Residential construction activity remains the main risk, as it continues to pressure the Precast business.
Using AI Tools in My Research
When analyzing earnings like these, I often turn to Tickeron’s AI Screener to quickly compare CMC against peers on fundamentals and technical signals. It helps surface relevant patterns without spending hours on manual filtering, which keeps the focus on the key drivers in the report.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CMC sees its Stochastic Oscillator ascends from oversold territory
On October 02, 2026, the Stochastic Oscillator for CMC moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 52 instances where the indicator left the oversold zone. In 42 of the 52 cases the stock moved higher in the following days. This puts the odds of a move higher at over 81%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 13, 2026. You may want to consider a long position or call options on CMC as a result. In 59 of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 73%.
The Moving Average Convergence Divergence (MACD) for CMC just turned positive on October 05, 2026. Looking at past instances where CMC's MACD turned positive, the stock continued to rise in 40 of 51 cases over the following month. The odds of a continued upward trend are 78%.
Following a +1.89% 3-day Advance, the price is estimated to grow further. Considering data from situations where CMC advanced for three days, in 215 of 303 cases, the price rose further within the following month. The odds of a continued upward trend are 71%.
CMC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
CMC moved below its 50-day moving average on September 10, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for CMC crossed bearishly below the 50-day moving average on September 14, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 8 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 62%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CMC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 63%.
The Aroon Indicator for CMC entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 19 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.574) is normal, around the industry mean (3.121). P/E Ratio (12.191) is within average values for comparable stocks, (33.749). Projected Growth (PEG Ratio) (1.320) is also within normal values, averaging (0.744). Dividend Yield (0.012) settles around the average of (0.010) among similar stocks. P/S Ratio (0.840) is also within normal values, averaging (5901.087).
The Tickeron Profit vs. Risk Rating rating for this company is 30 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 55 (best 1 - 100 worst), indicating steady price growth. CMC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 59 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of steel reinforcing products
Industry MetalFabrication
Advertisement