Record-High North America Margins and Precast Expansion Power CMC’s Strong Quarter

52% Core EBITDA Growth Reflects Exceptional Operational and Market Execution

Commercial Metals Company (CMC) launched fiscal 2026 with results that spotlight robust market fundamentals and sharp execution. The first quarter saw core EBITDA rise about 52% year-over-year to $316.92 million, translating to a core EBITDA margin of 14.9%. Adjusted earnings soared to $206.18 million, or $1.84 per diluted share, a dramatic turnaround from last year’s loss. This momentum comes as CMC capitalizes on favorable conditions across its North American footprint, especially in its core steel business, and begins to unlock value from its expanded precast concrete platform.

North America Steel Group Delivers Highest Margin in Nearly Three Years

The North America Steel Group underpinned the quarter’s strength, with adjusted EBITDA up nearly 58% to $293.91 million and a margin climbing to 17.7%—a three-year high. Steel product metal margin rose $53 per ton sequentially, reflecting healthy pricing and efficient scrap cost management. For context, the average steel product selling price reached $939 per ton, up $145 per ton from early fiscal 2025 lows. Backlog pricing also improved for a second consecutive quarter, signaling the firm’s strategic bid discipline is feeding a steady price recovery.

Construction Solutions Group Sets Segment Records on the Back of Precast Acquisitions

CMC’s recently rebranded Construction Solutions Group (formerly Emerging Businesses Group) reported its strongest-ever first-quarter EBITDA margin of 20%, with adjusted EBITDA jumping 75% year-over-year to $39.58 million. The segment benefited from the completion of the $2.5 billion CP&P and Foley precast concrete acquisitions, setting up a scalable growth engine for future quarters. The company expects these businesses to contribute $165–$175 million of EBITDA in fiscal 2026.

Europe Steel Group Faces Margin Pressure Despite Resilient Volumes

In contrast, market headwinds dampened results for CMC’s Europe Steel Group, which saw adjusted EBITDA margin fall to 4.4% from 12.3% a year prior, largely due to a lower carbon credit allocation and weaker selling prices, partially offset by cost controls and stable demand in Poland. Segment profitability is anticipated to recover later in 2026 as regulatory changes boost margins.

Capital Management and Liquidity Strengthen Growth Platform

CMC concluded the quarter with a strong liquidity position: $3 billion in cash and equivalents, $1.9 billion in available liquidity, and ample capacity for continued shareholder returns and investment. The board declared a $0.18 per-share dividend, marking the company’s 245th consecutive quarterly payout.

Outlook: Growth Platform Ready Despite Expected Seasonal Dip

Looking to the next quarter, management expects core EBITDA to dip modestly due to normal seasonal headwinds but be partially offset by precast contributions. North America steel margins are projected to remain stable despite anticipated lower volumes, while the Construction Solutions Group is set for further improvement as new platforms come fully online. Long-term, CMC’s strategic execution—via disciplined project selection, margin focus, and robust capital allocation—should continue driving margin enhancements, stronger cash generation, and value creation.

Key Takeaway: CMC Enters 2026 With Strong Margins and New Growth Engines

With operational momentum, record-setting North America margins, and new precast assets set to accelerate earnings power, CMC is positioned to outperform through economic and industry cycles. Investors may want to monitor delivery on integration and the contribution from the recently launched growth platforms in the quarters ahead.

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