company_name: Commercial Metals Company (CMC) quarter: Q1 year: 2026 Financial Results Summary
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Commercial Metals Company (CMC) Q1 2026 Financial Results Summary
On January 8, 2026, Commercial Metals Company (NYSE: CMC) announced its financial results for the fiscal first quarter ended November 30, 2025.
Financial Highlights
- Net Earnings:
- Reported net earnings were $177.3 million, translating to $1.58 per diluted share.
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Adjusted earnings improved to $206.2 million, or $1.84 per diluted share compared to $86.9 million or $0.76 per diluted share in the prior year period.
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Net Sales:
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Total net sales for Q1 2026 were $2.1 billion, compared to $1.9 billion in Q1 2025.
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Core EBITDA:
- Consolidated core EBITDA reached $316.9 million, growing by approximately 52% year-over-year.
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The core EBITDA margin stood at 14.9%, up from 10.9% in Q1 2025.
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Acquisitions:
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Closed acquisitions of Concrete Pipe and Precast, LLC and Foley Products Company, investing over $2.5 billion.
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Dividends:
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The board of directors declared a quarterly dividend of $0.18 per share, payable on February 2, 2026.
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Share Repurchase:
- During this quarter, CMC repurchased 663,220 shares of common stock valued at $38.9 million.
- There remains $166.1 million under the current share repurchase authorization.
Segment Performance
North America Steel Group
- Net Sales:
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Net sales were $1.66 billion, relatively unchanged from Q4 2025 but up from $1.52 billion year-over-year.
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Adjusted EBITDA:
- Increased 57.9% to $293.9 million from $186.2 million in the prior year period.
- Adjusted EBITDA margin improved to 17.7% versus 12.3% in Q1 2025.
Construction Solutions Group (formerly Emerging Businesses Group)
- Net Sales:
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Increased by 17.0% to $198.3 million compared to $169.4 million in Q1 2025.
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Adjusted EBITDA:
- Rose 74.7% year-over-year to $39.6 million.
- Achieved an adjusted EBITDA margin of 20.0%, marking an improvement of 6.6 percentage points over the prior year.
Europe Steel Group
- Net Sales:
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Down to $247.7 million from $209.4 million in Q1 2025.
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Adjusted EBITDA:
- Declined to $10.9 million from $25.8 million in the same period last year.
- Adjusted EBITDA margin decreased to 4.4%, down from 12.3% year-over-year.
Financial Position
- Cash and Cash Equivalents:
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Totaled $3.0 billion, with available liquidity standing at nearly $1.9 billion.
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Investment:
- The cash balance included $2.0 billion from a senior notes offering, primarily used for acquisitions.
Outlook
- CMC anticipates a modest decline in consolidated core EBITDA for the second quarter of fiscal 2026 due to seasonal trends, though this may be offset by contributions from the newly acquired precast businesses.
- A positive long-term outlook is projected, owing to solid domestic market dynamics and effective operational execution.
In summary, CMC’s first quarter of fiscal 2026 demonstrates substantial year-over-year growth in net earnings, sales, and adjusted EBITDA, alongside strategic acquisitions and capital management initiatives that enhance its operational profile.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED)
(in thousands, except share and per share data)
| Three Months Ended November 30, 2025 | |
|---|---|
| Net sales | $2,120,307 |
| Costs and operating expenses: | |
| Cost of goods sold | $1,713,169 |
| Selling, general and administrative expenses | $195,620 |
| Interest expense | $24,848 |
| Litigation expense | $3,735 |
| Net costs and operating expenses | $1,937,372 |
| Earnings (loss) before income taxes | $182,935 |
| Income tax expense (benefit) | $5,653 |
| Net earnings (loss) | $177,282 |
| Earnings (loss) per share: | |
| Basic | $1.60 |
| Diluted | $1.58 |
| Cash dividends per share | $0.18 |
| Average basic shares outstanding | 111,068,704 |
| Average diluted shares outstanding | 112,252,205 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share data)
| November 30, 2025 | August 31, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $1,023,038 | $1,043,252 |
| Restricted cash | $2,009,059 | $2,652 |
| Accounts receivable (less allowance for doubtful accounts of $4,346 and $3,186) | $1,199,746 | $1,201,680 |
| Inventories, net | $951,081 | $934,310 |
| Prepaid and other current assets | $324,367 | $312,924 |
| Total current assets | $5,507,291 | $3,494,818 |
| Property, plant and equipment, net | $2,810,208 | $2,742,773 |
| Intangible assets, net | $204,252 | $210,815 |
| Goodwill | $386,188 | $386,846 |
| Other noncurrent assets | $334,952 | $336,582 |
| Total assets | $9,242,891 | $7,171,834 |
| Liabilities and stockholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | $361,419 | $358,373 |
| Accrued contingent litigation-related loss | $366,007 | $362,272 |
| Other accrued expenses and payables | $457,479 | $493,879 |
| Current maturities of long-term debt | $46,295 | $44,289 |
| Total current liabilities | $1,231,200 | $1,258,813 |
| Deferred income taxes | $175,764 | $184,645 |
| Other noncurrent liabilities | $218,176 | $225,044 |
| Long-term debt | $3,305,262 | $1,310,006 |
| Total liabilities | $4,930,402 | $2,978,508 |
| Stockholders’ equity: | ||
| Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding | $1,290 | $1,290 |
| Additional paid-in capital | $395,375 | $406,916 |
| Accumulated other comprehensive loss | -$27,217 | -$25,251 |
| Retained earnings | $4,664,396 | $4,507,114 |
| Less treasury stock, 18,052,971 and 17,871,528 shares at cost | -$721,615 | -$697,003 |
| Stockholders’ equity | $4,312,229 | $4,193,066 |
| Stockholders’ equity attributable to non-controlling interests | $260 | $260 |
| Total stockholders’ equity | $4,312,489 | $4,193,326 |
| Total liabilities and stockholders’ equity | $9,242,891 | $7,171,834 |