Commercial Metals Company (CMC) Q1 2026 earnings summary

Executive summary

• Achieved one of the best first quarters in company history, with net earnings of $177.3 million ($1.58 per diluted share) and adjusted earnings of $206.2 million ($1.84 per diluted share), reversing a prior year net loss and reflecting strong operational execution and favorable market conditions.

• Closed major acquisitions of CP&P and Foley, deploying over $2.5 billion to create one of the largest precast concrete businesses in the U.S. and expanding the Construction Solutions Group.

• Launched the TAG (Transform, Advance, Grow) program, targeting $150 million annualized run-rate EBITDA benefit by end of FY 2026, and rebranded the Emerging Businesses Group to Construction Solutions Group.

• Benefited from strong North American market conditions, strategic initiatives, and key talent onboarding, driving significant bottom-line improvements.

Financial highlights

• Net sales rose 11% year-over-year to $2.12 billion, with consolidated core EBITDA reaching $316.9 million (up 52% year-over-year) and a core EBITDA margin of 14.9%.

• Adjusted earnings per diluted share were $1.84, up from $0.76 year-over-year.

• North America Steel Group adjusted EBITDA was $293.9 million, up 58% year-over-year, with a margin of 17.7%.

• Construction Solutions Group net sales grew 17% to $198.3 million, with adjusted EBITDA up 75% to $39.6 million and a margin of 20%.

• Europe Steel Group adjusted EBITDA declined to $10.9 million, impacted by lower CO2 credits and higher maintenance costs, despite higher shipping volumes.

Outlook and guidance

• Q2 core EBITDA expected to decline modestly due to seasonal slowdown and maintenance, partially offset by precast contributions.

• North America Steel Group EBITDA anticipated to be lower sequentially due to seasonality and maintenance, with stable metal margins.

• Construction Solutions Group results projected to improve in Q2, driven by precast contributions.

• Europe Steel Group EBITDA expected to be breakeven in Q2, with margin growth potential later in the year as CBAM takes effect.

• FY2026 capital spending projected at $625 million, mainly for the Steel West Virginia micromill and precast businesses.