Commercial Metals Company (CMC) Q3 2026 earnings summary

Executive summary

• Core EBITDA rose 78.6% year-over-year to $353.6 million, with margin expansion to 14.2% driven by metal margin gains, TAG initiatives, and precast acquisitions.

• Net earnings for Q3 were $173 million ($1.55 per diluted share); adjusted earnings reached $193 million ($1.73 per share), up 142.4% year-over-year.

• All business segments experienced year-over-year growth, with significant contributions from recent precast acquisitions and strong team alignment.

• Deleveraging efforts are ahead of plan, with net leverage reduced to 2.1x and clear visibility to below 2x ahead of the mid-2027 target.

• Organic growth investments, including Arizona 2 and West Virginia micro-mills, are advancing, with Arizona 2 reaching over 75% capacity utilization.

Financial highlights

• Adjusted EBITDA margin expanded 440 basis points year-over-year to 14.2%.

• North America Steel Group adjusted EBITDA up 41% year-over-year to $253.5 million ($234/ton), driven by $111/ton metal margin improvement.

• Construction Solutions Group net sales nearly doubled to $394.6 million; adjusted EBITDA up 138% to $97.4 million, with precast contributing $52.9 million.

• Europe Steel Group adjusted EBITDA was $34.7 million, benefiting from a $20.4 million CO2 credit and improved market conditions.

• Net sales for Q3 were $2.48 billion, with total liquidity near $1.8 billion.

Outlook and guidance

• Q4 core EBITDA expected to increase sequentially by $40–$50 million, driven by absence of mill outages, higher volumes, and margin expansion.

• Construction Solutions Group expected to see mid-teens sequential adjusted EBITDA growth in Q4, with precast business on track for $165–$175 million adjusted EBITDA for FY26.

• Europe segment anticipates modestly higher adjusted EBITDA in Q4, excluding CO2 credits.

• Management expects continued above-target contributions from the TAG program and positive momentum across all segments.

• No significant U.S. federal cash taxes expected for FY26 or much for FY27 due to tax credits and accelerated depreciation.