Commercial Metals Company (CMC) Q4 2026 earnings summary

Executive summary

• FY2026 core EBITDA reached $1.36B versus $837.3M in FY2025; margin expanded 380 bps to 14.5%.

• Q4 core EBITDA rose 35.1% YoY to $393.7M, with margin at 14.8%; net earnings were $212.5M, or $1.91 per diluted share.

• Acquisition-adjusted net leverage declined to 1.9x, below the 2.0x target; growth reflected North America Steel, acquired precast operations and TAG benefits.

Financial highlights

• Q4 net sales were $2.66B, up 25.7% YoY and 7.1% QoQ; FY net sales were $9.39B versus $7.80B in FY2025.

• Q4 adjusted earnings were $233.6M, or $2.09 per diluted share; reported diluted EPS was $1.91.

• Q4 adjusted earnings excluded $26.84M of pretax adjustments, including $19.75M of acquired contract-backlog amortization.

• FY2026 net earnings were $655.8M versus $84.7M in FY2025; the prior year included $362.3M of Pacific Steel Group litigation expense.

Outlook and guidance

• FY2027 outlook is constructive, supported by robust backlogs, infrastructure and industrial demand, TAG, growth investments and acquired businesses.

• Q1 FY2027 North America Steel adjusted EBITDA is expected to be nearly flat QoQ; Construction Solutions is expected to decline seasonally, while Europe Steel is expected to increase meaningfully, including a CO2 credit benefit.

• FY2027 CapEx is expected near $400M, down nearly $200M YoY, with roughly one-quarter for growth; free cash flow and conversion are expected to improve.

• FY2027 effective tax rate is expected near 24%; significant U.S. federal cash taxes are not expected through much of the year.

• Precast adjusted EBITDA run-rate target remains $240M–$250M; Q1 is expected to decline mid-to-high single digits from Q4 due to seasonality.