Commercial Metals (NYSE:CMC) Issues Earnings Results

27 Mar 2026, 13:42 by Michael Walen · The Markets Daily

Commercial Metals (NYSE:CMC – Get Free Report) posted its quarterly earnings data on Thursday. The basic materials company reported $1.16 EPS for the quarter, missing the consensus estimate of $1.28 by ($0.12), FiscalAI reports. The firm had revenue of $2.13 billion during the quarter, compared to analysts’ expectations of $2.10 billion. Commercial Metals had a net margin of 5.46% and a return on equity of 11.43%. The company’s quarterly revenue was up 21.5% on a year-over-year basis. During the same quarter last year, the business posted $0.26 EPS.

Here are the key takeaways from Commercial Metals’ conference call:

Strong Q2 financials: Net earnings of $93M ($0.83/share) and adjusted earnings of $130.1M ($1.16/share) with consolidated core EBITDA of $297.5M (+114%) and a 14% core EBITDA margin (+610 bps).
Precast acquisitions integrating well: CP&P and Foley contributed $33.6M to Q2 Construction Solutions EBITDA and management expects the precast business to generate $165–$175M of EBITDA for the fiscal year.
TAG program momentum: Enterprise-wide operational and commercial initiatives are driving margin gains and management expects to reach or exceed a $150M annualized run-rate EBITDA benefit by year end.
Near-term earnings pressure from acquisition accounting and financing: Purchase accounting amortization and higher interest expense will widen the gap between core EBITDA and pre-tax income by roughly $60–$65M per quarter for the next three quarters.
Liquidity and deleveraging progress: Cash of $504M, total liquidity ~ $1.7B, adjusted net leverage ~2.3x (target 2x) and an 11% dividend increase to $0.20/share, though buybacks are paused until leverage improves.

Commercial Metals Price Performance

Shares of Commercial Metals stock opened at $59.45 on Friday. The company has a debt-to-equity ratio of 0.77, a quick ratio of 3.70 and a current ratio of 4.47. Commercial Metals has a 52-week low of $37.92 and a 52-week high of $84.87. The company has a fifty day moving average of $72.92 and a 200-day moving average of $66.51. The stock has a market capitalization of $6.59 billion, a price-to-earnings ratio of 15.32, a price-to-earnings-growth ratio of 0.34 and a beta of 1.47.

Commercial Metals Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Monday, April 6th will be given a dividend of $0.20 per share. The ex-dividend date is Monday, April 6th. This is an increase from Commercial Metals’s previous quarterly dividend of $0.18. This represents a $0.80 dividend on an annualized basis and a yield of 1.3%. Commercial Metals’s dividend payout ratio (DPR) is 18.56%.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on CMC shares. Citigroup increased their price objective on Commercial Metals from $65.00 to $85.00 and gave the stock a “buy” rating in a research report on Monday, January 12th. KeyCorp began coverage on Commercial Metals in a research note on Wednesday. They issued a “sector weight” rating on the stock. Wells Fargo & Company lowered their price target on Commercial Metals from $80.00 to $77.00 and set an “overweight” rating on the stock in a report on Friday. Wall Street Zen upgraded Commercial Metals from a “buy” rating to a “strong-buy” rating in a research report on Friday, November 28th. Finally, Zacks Research lowered Commercial Metals from a “strong-buy” rating to a “hold” rating in a report on Tuesday, February 3rd. Eight research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $72.50.

Get Our Latest Stock Report on Commercial Metals

Insider Activity

In related news, Director Dennis V. Arriola purchased 2,000 shares of the firm’s stock in a transaction on Tuesday, January 20th. The shares were acquired at an average cost of $74.69 per share, with a total value of $149,380.00. Following the purchase, the director directly owned 9,238 shares of the company’s stock, valued at approximately $689,986.22. This trade represents a 27.63% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Jennifer J. Durbin sold 25,050 shares of the firm’s stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $79.97, for a total transaction of $2,003,248.50. Following the completion of the transaction, the insider owned 52,880 shares in the company, valued at $4,228,813.60. This represents a 32.14% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.62% of the company’s stock.

Hedge Funds Weigh In On Commercial Metals

A number of institutional investors have recently added to or reduced their stakes in the company. State Street Corp increased its stake in Commercial Metals by 1.5% during the 4th quarter. State Street Corp now owns 6,361,477 shares of the basic materials company’s stock valued at $440,341,000 after purchasing an additional 91,104 shares in the last quarter. Boston Partners grew its holdings in shares of Commercial Metals by 1.9% during the third quarter. Boston Partners now owns 3,641,930 shares of the basic materials company’s stock valued at $208,629,000 after buying an additional 67,139 shares during the last quarter. Invesco Ltd. grew its holdings in shares of Commercial Metals by 4.8% during the third quarter. Invesco Ltd. now owns 1,661,027 shares of the basic materials company’s stock valued at $95,144,000 after buying an additional 76,365 shares during the last quarter. Charles Schwab Investment Management Inc. increased its position in shares of Commercial Metals by 2.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,592,131 shares of the basic materials company’s stock valued at $110,207,000 after acquiring an additional 32,941 shares in the last quarter. Finally, UBS Group AG raised its holdings in Commercial Metals by 41.8% in the 3rd quarter. UBS Group AG now owns 1,521,130 shares of the basic materials company’s stock worth $87,130,000 after acquiring an additional 448,083 shares during the last quarter. Institutional investors own 86.90% of the company’s stock.

Commercial Metals News Roundup

Here are the key news stories impacting Commercial Metals this week:

Positive Sentiment: Strong Q2 operational results — Consolidated core EBITDA roughly doubled year‑over‑year, adjusted EBITDA margins improved across segments, backlog and bookings look healthy, and management reiterated progress on precast integration and targeted leverage reduction. CMC Reports Second Quarter of Fiscal 2026 Results
Positive Sentiment: Dividend increase — Board raised the quarterly dividend 11% to $0.20/share, signaling management confidence in cash flow and the balance sheet. CMC Announces an 11% Increase in Quarterly Dividend
Positive Sentiment: Analyst backing — Bank of America reiterated a Buy stance citing the strong quarter, improving outlook and capital returns; that endorsement supports upside thesis for investors focused on margins and share repurchases/dividends. Commercial Metals Company: Strong Q2 Beat, Improving Outlook, and Capital Returns Support Buy Rating
Neutral Sentiment: New coverage — KeyCorp initiated coverage with a “sector weight” call; adds incremental liquidity/coverage but is not a strong directional catalyst. KeyCorp Begins Coverage on Commercial Metals (NYSE:CMC)
Neutral Sentiment: Earnings call details — Management highlighted precast momentum and integration progress (precast contributed meaningful adjusted EBITDA), supporting medium‑term synergies and construction‑cycle exposure; useful for assessing durability of margin gains. Commercial Metals Company Q2 2026 Earnings Call Summary
Negative Sentiment: EPS miss and market reaction — Adjusted EPS of $1.16 missed consensus (around $1.28–$1.33), and some outlets noted the stock slipped despite strong revenue and backlog; the EPS miss and profit‑taking explain downward pressure on the share price. Commercial Metals (CMC) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates CMC Stock Slips Despite Q2 Revenue Climb

About Commercial Metals

(Get Free Report)

Commercial Metals Company (NYSE: CMC) is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.