CMC earnings rose sharply in the fiscal year ended August 31, 2026, with net income reaching $655.8 million and net sales increasing to $9.39 billion from $7.8 billion. Commercial Metals Company announced its results on October 15 and filed its annual report on October 16. Stronger North American steel performance and acquired precast operations supported the improvement, although residential weakness weighed on the precast business late in the year.
Key Takeaways
- Full-year net earnings increased to $655.8 million from $84.7 million in fiscal 2025.
- Fourth-quarter steel margins strengthened, while precast earnings fell below management’s expectations.
- Fiscal 2027 first-quarter guidance points to mixed segment performance rather than uniform sequential growth.
Table of Contents
- CMC earnings improve as operating margins widen
- North American steel leads, but precast faces residential weakness
- Cash and leverage provide a balance-sheet checkpoint
- Fiscal 2027 outlook varies by business
- Conclusion
CMC earnings improve as operating margins widen
CMC’s fourth-quarter and full-year fiscal 2026 results announcement showed consolidated core EBITDA rising to $1.4 billion from $837.3 million a year earlier. The core EBITDA margin increased by 380 basis points to 14.5%. Core EBITDA is a company-defined performance measure, distinct from net earnings.
Fourth-quarter net earnings were $212.5 million, or $1.91 per diluted share, compared with $151.8 million, or $1.35 per share, a year earlier. CMC said a lower effective tax rate contributed to the increase. Adjusted earnings were $233.6 million, or $2.09 per diluted share.
Selling, general and administrative expenses increased to $882 million for the full year from $700 million. Those costs rose alongside sales, making expense control a separate consideration from the improvement in production margins.
| Item | Details |
|---|---|
| Cash at August 31, 2026 | $778.9 million, including cash equivalents and restricted cash. |
| Fourth-quarter share repurchases | 383,333 shares purchased for $26.7 million. |
| Remaining repurchase authorization | $702.1 million at August 31, 2026. |
| Declared quarterly dividend | $0.20 per share; record date October 28, 2026, and payment date November 11, 2026. |
North American steel leads, but precast faces residential weakness
The North America Steel Group generated fourth-quarter adjusted EBITDA of $317.5 million, up 32.6% year over year. Metal margins—the spread between steel selling prices and scrap costs—increased by $84 per ton to $652. Finished-goods shipments rose 5.3%, led by merchant bar.
The Construction Solutions Group nearly doubled quarterly sales to $431.4 million, including acquired precast operations. Precast contributed $190.8 million in sales and $57.0 million in adjusted EBITDA, but its earnings fell below management’s prior expectations as regional residential softness reduced volumes and hurt the sales mix.
Europe Steel Group adjusted EBITDA declined to $15.6 million from $39.1 million. That comparison included a $30.7 million emissions-related credit in the prior-year quarter and no corresponding credit in the current period, so the decline did not simply reflect weaker underlying steel margins.
Cash and leverage provide a balance-sheet checkpoint
CMC ended fiscal 2026 with more than $2.0 billion in available liquidity. Net leverage adjusted for acquisitions stood at 1.9 times, below the company’s two-times target. This measure provides a separate view of financial capacity from the year’s earnings growth.
The company also continued returning capital through repurchases and dividends. The remaining buyback authorization represents capacity for future purchases, not a commitment to spend the full amount.
Fiscal 2027 outlook varies by business
For the first quarter of fiscal 2027, management expects North America Steel Group adjusted EBITDA to be nearly flat sequentially. Improved pricing is expected to largely offset higher scrap costs, startup expenses and a slight seasonal shipment decline.
Construction Solutions Group adjusted EBITDA is expected to decline sequentially with normal seasonal activity. In contrast, CMC anticipates meaningful sequential growth in Europe Steel Group adjusted EBITDA, helped by improving operating conditions and an expected emissions-related credit. These are management expectations, not completed results.
Conclusion
CMC enters fiscal 2027 after stronger annual earnings, with steel pricing and precast demand presenting different operating tests. The next confirmed shareholder dates are October 28, 2026, for the dividend record and November 11 for payment.
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