10-Q · June 29, 2026
Commercial Metals Company (CMC) reported a strong Q3 for fiscal 2026 with revenues reaching $2.48 billion, a 23% increase year-over-year, and earnings improved to $1.73 per share, surpassing analyst estimates. Notably,…
Earnings analysis · 10-K
CMC earnings analysis
Filed October 16, 2026 · Our reading of the company's report
The latest report
CMC delivered a strong fiscal 2026 recovery, with revenue up 20% to $9.394 billion, diluted EPS rising to $5.86, and adjusted EBITDA growth led by North America Steel and the newly acquired precast platform. The…
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CMC delivered a strong fiscal 2026 recovery, with revenue up 20% to $9.394 billion, diluted EPS rising to $5.86, and adjusted EBITDA growth led by North America Steel and the newly acquired precast platform. The strategy is shifting toward a broader early-stage construction-solutions platform while retaining the cost and margin benefits of vertically integrated steelmaking; the Berkeley County micro mill adds further capacity beginning in fiscal 2027. However, the $2.0 billion acquisition financing, the $377.3 million PSG litigation accrual and weaker Europe segment EBITDA create meaningful balance-sheet and earnings risks. The 10-K provides no consolidated revenue or EPS guidance, but estimates approximately $400 million of fiscal 2027 capital spending.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $5.86
What stood out
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Revenue and earnings rebounded sharply
Fiscal 2026 revenue increased 20% to $9.394 billion from $7.798 billion, while net earnings rose 675% to $655.8 million from $84.7 million. Diluted EPS increased to $5.86 from $0.74, although the prior year included a $362.3 million litigation expense.
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North America Steel drove operating improvement
North America Steel Group remained the primary earnings engine: external sales rose 15% to $6.998 billion and adjusted EBITDA increased 53% to $1.135 billion. Steel-products metal margin increased 23% to $627 per ton as selling prices rose faster than ferrous scrap costs.
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Precast acquisitions expanded growth platform
Construction Solutions Group external sales increased 79% to $1.339 billion and adjusted EBITDA increased 112% to $292.1 million. The acquired precast platform contributed $511.1 million of sales and $143.5 million of adjusted EBITDA during 2026.
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Integrated and adjacent-market strategy
CMC’s strategy combines vertical integration in steel and recycling with adjacent, value-added construction solutions. The Construction Solutions Group develops proprietary products intended to reduce customer costs and construction time; its precast platform generated $501.6 million of 2026 external sales.
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New micro mill expands product capacity
The Berkeley County, West Virginia fourth micro mill was placed into service in the fourth quarter of 2026. CMC expects total investment of $550 million to $600 million net of $75 million of expected assistance, and received $70.0 million of assistance through August 31, 2026.
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Dividends increased; buyback capacity expanded
Capital returns continued alongside growth investment: CMC paid $84.2 million of dividends and repurchased $102.8 million of shares in 2026. The quarterly dividend increased from $0.18 to $0.20, and remaining repurchase authorization was $702.1 million at August 31, 2026.
What to watch
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PSG judgment could pressure liquidity
The Pacific Steel Group judgment remains a material liquidity risk. The original $110.0 million jury verdict was trebled by the court; CMC recorded $377.3 million of accrued contingent litigation liability at August 31, 2026, and disclosed that cash payments could significantly affect liquidity unless the judgment is overturned or reduced.
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Acquisition financing increased leverage
The company materially increased leverage to fund the precast acquisitions: it issued $2.0 billion of 2033 and 2035 notes at 5.750% and 6.000%, respectively. Total debt rose to $3.381 billion from $1.364 billion, while interest expense increased $97.8 million to $143.3 million.
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Precast integration and impairment risk
The new precast platform creates integration and goodwill-concentration risk. Construction Solutions Group goodwill increased by $1.751 billion to $2.017 billion after the acquisitions; one reporting unit with $195.0 million of goodwill had only a greater-than-40% fair-value cushion in the quantitative impairment test.
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New steel capacity may pressure prices
Domestic steel pricing remains exposed to excess global and new U.S. capacity. The filing identifies ongoing U.S. EAF projects expected to add capacity over the next one to three years and warns that new production combined with weaker demand could reduce steel prices, volumes, margins, cash flow and liquidity.
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Electricity and natural-gas exposure
Energy availability and cost risk has become more pronounced as data-center demand is expected to increase electricity consumption. CMC states that its EAF mills are large electricity and natural-gas consumers and that prolonged disruptions or substantial cost increases could reduce production and profitability.
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European earnings depend on energy support
Europe Steel Group revenue increased 11% to $1.020 billion, but adjusted EBITDA declined 14% to $59.8 million because government assistance fell to $36.0 million from $78.7 million. The segment also represented approximately 11% of consolidated sales and remains exposed to European energy costs, CO2 credits and currency movements.
Management's outlook
No consolidated revenue or EPS guidance is provided in the 10-K. The company estimates approximately $400 million of fiscal 2027 capital spending, including completion and ramp-up of the Berkeley County micro mill. The filing states that production at the new mill will ramp immediately and sales are expected to begin in the first quarter of fiscal 2027.
Earlier filings 4
10-Q · March 31, 2026
Commercial Metals reported quarter net sales of $2,132,018,000 (three months ended Feb 28, 2026), up 21.5% year-over-year from $1,754,376,000, and delivered diluted EPS of $0.83 versus $0.22 a year ago. Results reflect…
10-Q · January 8, 2026
Commercial Metals reported strong operational improvement for the three months ended November 30, 2025: net sales of $2,120,307,000 and net earnings of $177,282,000 (diluted EPS $1.58), reversing a year-ago loss of…
10-K · October 16, 2025
CMC reported fiscal 2025 net sales of $7,798,480,000 (down $127.5 million vs. 2024) and net earnings of $84,662,000 (diluted EPS $0.74), with a material $362.3 million litigation-related expense recorded in 2025. The…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.