Commercial Metals Company — Fiscal 2026 Earnings Summary

Financial Performance

• Fiscal 2026 net earnings were $655.8 million, compared to $84.7 million in fiscal 2025.
• Consolidated core EBITDA for fiscal 2026 increased to $1.4 billion from $837.3 million in fiscal 2025; core EBITDA margin expanded by 380 basis points to 14.5%.
• Fourth quarter fiscal 2026 net earnings were $212.5 million ($1.91 per diluted share), up 40.0% year-over-year from $151.8 million ($1.35 per diluted share).
• Fourth quarter adjusted earnings were $233.6 million ($2.09 per diluted share), up 52.6% year-over-year.
• Fourth quarter consolidated core EBITDA increased 35.1% year-over-year to $393.7 million; core EBITDA margin expanded 100 basis points to 14.8%.
• Fourth quarter net sales were $2.658 billion, up 25.7% year-over-year from $2.115 billion.
• Fiscal 2026 net sales totaled $9.394 billion, up from $7.798 billion in fiscal 2025.
• Net leverage adjusted for acquisitions ended the quarter at 1.9x, below the 2x target.
• Cash, cash equivalents, and restricted cash totaled $778.9 million as of August 31, 2026.
• Available liquidity was over $2.0 billion.
• Fiscal 2026 operating cash flow was $1.059 billion, compared to $715.1 million in fiscal 2025.

Guidance and Future Outlook

• Management expects fiscal 2027 to be another strong year supported by a healthy market backdrop and value creation levers including TAG, growth investments, and the evolving early-stage construction portfolio.
• First quarter fiscal 2027 North America Steel Group adjusted EBITDA is expected to be nearly flat sequentially, as improved pricing offsets higher scrap costs, startup expenses, and seasonal shipment declines.
• First quarter fiscal 2027 Construction Solutions Group adjusted EBITDA is expected to decline sequentially due to typical seasonal trends.
• First quarter fiscal 2027 Europe Steel Group adjusted EBITDA is anticipated to grow sequentially, benefiting from improving operating conditions and a CO2 credit.
• Management has established a clear roadmap to fiscal 2029 with ambitious targets focused on long-term shareholder value.

Business Segments and Product Lines

• North America Steel Group: Fourth quarter adjusted EBITDA increased 32.6% year-over-year to $317.5 million; margin expanded to 16.4% from 14.8%. Finished goods shipment volumes increased 5.3% year-over-year, with merchant bar volumes surging 27.5%. Metal margins increased $84 per ton year-over-year to $652 per ton. Backlog volumes increased 15.5% year-over-year.
• Construction Solutions Group: Fourth quarter net sales increased 94.5% to $431.4 million; adjusted EBITDA rose 100.9% year-over-year to $101.7 million with a margin of 23.6%. Precast sales were $190.8 million with adjusted EBITDA of $57.0 million; precast results were below expectations due to regional residential softness in the Southeast, though underlying demand remains healthy in non-residential and infrastructure markets.
• Europe Steel Group: Fourth quarter adjusted EBITDA was $15.6 million, down from $39.1 million in the prior year, impacted by a $30.7 million CO2 credit recognized in the prior year. Metal margins expanded $32 per ton year-over-year to $349 per ton. Finished goods shipment volumes increased 0.8%.
• Other Segments: Tensar profitability increased approximately 50% for fiscal 2026. Construction Services and Impact Metals delivered strong revenue and adjusted EBITDA growth. Performance Reinforcing Steel results were lower due to an unplanned outage at Galvabar; a second Galvabar line is scheduled for commissioning later in calendar 2026.
• Acquisitions: The integration of acquired precast operations is on track and contributed to growth.

Market and Competitive Landscape

• Demand strength is observed across energy build-out, semiconductor manufacturing, industrial manufacturing, and key public infrastructure markets.
• Backlog pricing continues to trend higher, reflecting disciplined execution and a differentiated market position.
• Improved trade policies, including the EU Carbon Border Adjustment Mechanism (CBAM) and the tariff-rate quota (TRQ) system implemented July 1, 2026, are supporting a more constructive operating environment in Europe.
• The North America Steel Group benefits from a balanced supply-demand environment and continued momentum in rebar and merchant bar quality (MBQ) pricing.

Risks and Challenges

• Residential softness weighed on precast results in the fourth quarter.
• An unplanned outage at Galvabar impacted shipments for Performance Reinforcing Steel.
• The Europe Steel Group's year-over-year comparison was impacted by the absence of a CO2 credit in the current period compared to the prior year.
• Management notes risks related to economic conditions, commodity price volatility, excess industry capacity, geopolitical conditions, trade regulations, and execution of growth strategies in the forward-looking statements section.

Management Commentary and Tone

• CEO Peter Matt described fiscal 2026 as a "transformational step forward," citing organizational strength, margin durability, and the success of the TAG program and key growth investments like the West Virginia micro mill.
• Management expressed confidence in the outlook for the precast business and its ability to deliver higher growth and earnings stability in 2027.
• The tone is confident regarding the company's position to deliver strong financial results and achieve strategic goals in fiscal 2027, citing record backlog levels and multiple value creation levers.

Other Key Points

• During the quarter, CMC repurchased 383,333 shares of common stock valued at $26.7 million; $702.1 million remained available under the current share repurchase authorization.
• On October 13, 2026, the board declared a quarterly dividend of $0.20 per share, payable November 11, 2026, marking the 248th consecutive quarterly payment.
• Fiscal 2026 capital expenditures were $579.8 million, compared to $402.8 million in fiscal 2025.
• Fiscal 2026 acquisitions, net of cash acquired, totaled $2.516 billion.
• Litigation expense for fiscal 2026 was $15.4 million, compared to $362.3 million in fiscal 2025, primarily related to the Pacific Steel Group litigation judgment.
• The company reported a significant increase in goodwill, rising from $386.8 million in fiscal 2025 to $2.139 billion in fiscal 2026.