Financial Data and Key Metrics Changes - CMC reported net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million in the prior year period [26] - Adjusted earnings for the quarter totaled $206.2 million, or $1.84 per diluted share, compared to $86.9 million in the prior year period [27] - Consolidated Core EBITDA of $316.9 million grew by over 50% from a year ago, reaching its highest level in two years [7][27] - Core EBITDA margin expanded to 14.9%, reflecting improvements year-over-year and sequentially [7] Business Line Data and Key Metrics Changes - North American Steel Group generated Adjusted EBITDA of $293.9 million for the quarter, with an EBITDA margin of 17.7%, up from 12.3% in the prior year [27][28] - Construction Solutions Group net sales grew by 17% year-over-year to $198.3 million, with Adjusted EBITDA increasing by 75% to $39.6 million [28][29] - Europe Steel Group reported adjusted EBITDA of $10.9 million, down from $25.8 million in the prior year, primarily due to a lower CO2 credit [30][31] Market Data and Key Metrics Changes - Shipments of finished steel were virtually unchanged year-over-year, with a less than 1% decline from the previous quarter [12] - The Dodge Momentum Index increased by approximately 50% year-over-year, indicating substantial pent-up demand in non-residential markets [13] - The commercial segment of the DMI grew by 57%, while institutional projects increased by 37% [13] Company Strategy and Development Direction - CMC's strategic focus is on transforming into a stronger organization with higher, more stable margins and returns on capital [5] - The TAG initiative aims to drive operational and commercial excellence, targeting a $150 million annualized run rate EBITDA benefit by the end of Fiscal 2026 [19][22] - Recent acquisitions of CPMP and Foley Products are expected to enhance CMC's commercial portfolio and financial profile [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to absorb new supply in the market due to stable demand and lower imports [43] - The company anticipates a modest decline in consolidated Core EBITDA in Q2 due to seasonal trends, but expects contributions from the precast business to offset some of this decline [36] - Management remains optimistic about long-term demand drivers, including infrastructure investment and energy generation [15] Other Important Information - CMC's cash and cash equivalents totaled $3 billion, including proceeds from a senior notes offering [32] - The effective tax rate for the first quarter was 3.1%, with expectations of a full-year rate between 5% and 10% for Fiscal 2026 [34][35] - Capital spending for Fiscal 2026 is anticipated to be approximately $625 million, with significant investments in the Steel West Virginia micromill [35] Q&A Session Summary Question: Insights on CPMP and Foley acquisitions - Management noted positive surprises and cultural affinity observed post-acquisition, with confidence in achieving synergies [40][41] Question: Outlook on North American metal margins - Management indicated that while new supply is expected, current demand levels should absorb it, and margins are anticipated to remain stable [43][44] Question: Seasonal impacts on volumes - Management expects typical seasonal declines of 5%-10% in Q2, despite stronger than expected volumes in Q1 [50][51] Question: Update on West Virginia mill ramp-up - The hot commissioning for the West Virginia mill is set to begin in June, with expectations of ramping up operations over the following 12 months [52][54] Question: Outlook for the precast business - Management expects the precast business to contribute about $30 million of EBITDA in Q2, reflecting seasonal impacts [60] Question: Counterparty risk in fabrication business - Management clarified that while counterparty risk has not increased, they are taking steps to reduce risks associated with long-term fixed-price contracts [72][74] Question: Impact of CBAM on European pricing - Management anticipates that the CBAM will positively impact pricing over the course of 2026, with gradual effects expected [76][79]

Core Viewpoint - Commercial Metals Company (CMC) is experiencing a significant increase in analyst confidence, reflected in the rising consensus price target and strong financial performance [2][4][6] Financial Performance - CMC reported net earnings of $177.3 million and adjusted earnings of $206.2 million in its first-quarter fiscal 2026, showcasing operational success [2][6] - The average price target for CMC has risen from $66.65 a year ago to $81 last month, indicating a strong upward trend in analyst sentiment [2][4] Strategic Initiatives - The company is implementing the Transform, Advance, and Grow ("TAG") program, which aims for an annualized run-rate EBITDA benefit of $150 million by the end of fiscal 2026 [3][6] - Recent acquisitions, including CP&P and Foley, with over $2.5 billion in capital deployed, have established a new growth platform in the precast concrete industry [4] Market Position - CMC operates in a competitive landscape with significant players like Nucor Corporation and Steel Dynamics, Inc. [1] - Analyst Mark Hughes from Truist Financial has set a price target of $67 for CMC, indicating potential interest for investors [5]

Financial Data and Key Metrics Changes - CMC reported net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million in the prior year period [21] - Adjusted earnings were $206.2 million, or $1.84 per diluted share, compared to $86.9 million and $0.76 per diluted share in the prior year [22] - Consolidated core EBITDA reached $316.9 million, a 52% increase from $208.7 million in the prior year [22] - Core EBITDA margin expanded to 14.9%, reflecting growth both year-over-year and sequentially [5] Business Line Data and Key Metrics Changes - North American Steel Group generated adjusted EBITDA of $293.9 million, with an EBITDA margin of 17.7%, up from 12.3% in the prior year [22] - Construction Solutions Group net sales grew by 17% year-over-year to $198.3 million, with adjusted EBITDA increasing by 75% to $39.6 million [23] - Europe Steel Group reported adjusted EBITDA of $10.9 million, down from $25.8 million in the prior year, primarily due to a lower CO2 credit [24] Market Data and Key Metrics Changes - Shipments of finished steel were virtually unchanged year-over-year, with a less than 1% decline from the previous quarter [10] - The Dodge Momentum Index increased by approximately 50% year-over-year, indicating substantial pent-up demand in non-residential markets [11] - The commercial segment of the DMI grew by 57%, while institutional projects increased by 37% [11] Company Strategy and Development Direction - CMC's strategic focus is on transforming into a stronger organization with higher, more stable margins and returns on capital [5] - The TAG initiative aims to drive operational and commercial excellence, targeting a permanent improvement in margins and cash flows [16] - Recent acquisitions of CPMP and Foley Products are expected to enhance CMC's commercial portfolio and financial profile [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the supportive market conditions, with stable demand and limited imports contributing to strong performance [5] - The company anticipates modest declines in consolidated core EBITDA for the second quarter due to seasonal trends, but expects contributions from the precast businesses to offset this [31] - Management remains optimistic about long-term demand drivers, including infrastructure investment and energy generation [12] Other Important Information - CMC's effective tax rate was 3.1% in the first quarter, with expectations of a full-year rate between 5% and 10% for fiscal 2026 [29] - The company plans to spend approximately $625 million in capital expenditures for fiscal 2026, focusing on growth investments and completing the Steel West Virginia micromill [30] Q&A Session Summary Question: Insights on CPMP and Foley acquisitions - Management noted positive cultural fit and integration potential, with confidence in achieving synergies [36] Question: North American metal margins outlook - Management expects margins to remain stable, with demand absorbing new supply entering the market [38] Question: Seasonal impacts on volumes - Typical seasonal decline of 5%-10% is expected in the second quarter, despite stronger than anticipated first-quarter volumes [42] Question: Precast business seasonality - The precast business is expected to follow overall seasonal trends, contributing about $30 million of EBITDA in the second quarter [46] Question: Scrap optimization benefits - Scrap optimization initiatives have significantly improved margins, with ongoing efforts to enhance quality and reduce costs [50]

Financial Performance & Outlook - Q1 Net Earnings reached $1773 million[15], while Adjusted Earnings were $2062 million[15] - Q1 Core EBITDA stood at $3169 million[15], with a Core EBITDA Margin of 149%[15] - The company aims to exit FY 2026 with an annualized run-rate EBITDA benefit of $150 million from TAG initiatives[14, 21] - Precast business is expected to contribute approximately $165 million to $175 million to Construction Solutions Group Adjusted EBITDA in fiscal 2026[34] Strategic Initiatives - The company launched new Transform, Advance, Grow ("TAG") initiatives with commercial opportunities in focus[14, 19] - The company rebranded Emerging Businesses Group to Construction Solutions Group to better reflect business composition and strategic role of segment[14, 28] - The company completed acquisitions of Concrete Pipe & Precast ("CP&P") and Foley Products Company ("Foley")[2, 34] Market Dynamics - Construction Solutions Group net sales were up 170% year-over-year, while adjusted EBITDA increased by 747%[52, 65] - Europe Steel Group shipments increased by 157% on a year-over-year basis[52, 72] - The company anticipates reducing net debt to adjusted EBITDA to below 2x within 18 months[14, 46]

Financial Performance - First quarter net earnings were $177.3 million, or $1.58 per diluted share, compared to a net loss of ($175.7) million in the prior year period[5]. - Consolidated core EBITDA for the first quarter was $316.9 million, representing a 52% year-over-year increase, with a core EBITDA margin of 14.9%[4]. - The North America Steel Group's adjusted EBITDA increased by 57.9% to $293.9 million, with an adjusted EBITDA margin of 17.7%, up from 12.3% in the prior year[11]. - The Construction Solutions Group achieved first quarter net sales of $198.3 million, a 17.0% increase year-over-year, with adjusted EBITDA of $39.6 million, up 74.7%[13]. - Total net sales to external customers for the three months ended November 30, 2025, reached $2,120,307, an increase from $1,909,602 in the same period last year, representing a growth of approximately 11%[27]. - Adjusted EBITDA for the North America Steel Group was $293,906 for the three months ended November 30, 2025, compared to $186,179 in the same period last year, reflecting a significant increase of 57.7%[26]. - Net earnings for the three months ended November 30, 2025, were $177,282, a turnaround from a net loss of $175,718 in the same period last year[27]. - Adjusted EBITDA for the same period was $288,568 thousand, compared to an adjusted EBITDA loss of $151,567 thousand in November 2024[35]. - Core EBITDA margin increased to 14.9% for the three months ended November 30, 2025, up from 10.9% in the same period of 2024[35]. - Net sales reached $2,120,307 thousand for the three months ended November 30, 2025, compared to $1,909,602 thousand in the same period of 2024, reflecting a year-over-year increase of approximately 11%[35]. Acquisitions and Growth - CMC completed acquisitions of two precast businesses for over $2.5 billion, establishing a new growth platform in the precast concrete industry[4]. - CMC plans to deliver an estimated $165 million to $175 million of EBITDA contributions from the precast businesses in fiscal 2026[18]. Cash and Liquidity - Cash, cash equivalents, and restricted cash totaled $3.0 billion as of November 30, 2025, with available liquidity of nearly $1.9 billion[7]. - The company reported a cash and cash equivalents balance of $1,023,038 as of November 30, 2025, slightly down from $1,043,252 as of August 31, 2025[29]. - Cash and cash equivalents at the end of the period were $3,032,097 thousand, a substantial increase from $856,888 thousand at the end of November 2024[30]. - The company issued $2,000,000 thousand in long-term debt during the three months ended November 30, 2025, with net cash flows from financing activities totaling $1,900,079 thousand[30]. Debt and Financial Leverage - The company’s long-term debt increased to $3,305,262 as of November 30, 2025, up from $1,310,006 as of August 31, 2025, indicating a significant rise in financial leverage[29]. Market and Pricing - Steel products metal margins increased by $53 per ton sequentially, with average selling prices improving by over $145 per ton compared to early fiscal 2025[10]. - The average selling price per ton for steel products in North America increased to $939 in Q4 2025, compared to $812 in Q4 2024, marking a rise of 15.7%[25]. Regional Performance - The Europe Steel Group's adjusted EBITDA was $10.9 million, down from $25.8 million in the prior year, with an adjusted EBITDA margin of 4.4%[16]. - The Europe Steel Group reported net sales of $247,650 for the three months ended November 30, 2025, down from $263,294 in the previous quarter, indicating a decline of approximately 5%[26]. Cost and Expenses - The cost of goods sold for the three months ended November 30, 2025, was $1,713,169, compared to $1,601,722 in the same period last year, representing an increase of 6.9%[27]. - The company reported capital expenditures of $125,437 thousand for the three months ended November 30, 2025, compared to $118,187 thousand in the same period of 2024[30]. - Litigation expenses recorded for the three months ended November 30, 2024, were $350,000 thousand, which significantly impacted prior year earnings[35]. Methodology Changes - The company modified its method of calculating adjusted EBITDA to exclude unrealized gains and losses on undesignated commodity derivatives, providing a clearer view of operating performance[33]. Earnings Per Share - Adjusted earnings per diluted share for the three months ended November 30, 2025, were $1.84, compared to $0.76 in the same period of 2024[35].

Core Viewpoint - Commercial Metals Company (CMC) is expected to report a year-over-year improvement in revenues and earnings for the first quarter of fiscal 2026, with earnings anticipated to jump 99% year-over-year [1][2][6]. Financial Performance Expectations - The Zacks Consensus Estimate for CMC's fiscal first-quarter revenues is $2 billion, reflecting a 4.6% decrease from the previous year [1]. - The consensus estimate for earnings is $1.55 per share, which has increased by 2.6% over the past 60 days and indicates a year-over-year rise of 98.7% [2][6]. Earnings Surprise History - CMC has had mixed earnings surprises in the past four quarters, beating estimates once, matching once, and missing twice, with an average surprise of -6.3% [5]. Market Conditions and Performance Drivers - The company is facing challenges from a prolonged economic slowdown in the Western world and weaker-than-expected steel demand, particularly in Europe [10]. - Despite these challenges, CMC expects improved steel margins in North America due to price hikes offsetting rising scrap costs [6][12]. Strategic Acquisitions and Synergies - CMC has recently completed two significant acquisitions, positioning itself as a leading player in the Mid-Atlantic and Southeastern regions, with expected annual run-rate synergies of $25-$30 million from these acquisitions by year three [18][19]. Valuation and Stock Performance - CMC shares have increased by 56.1% over the past year, outperforming the industry average of 54.5% and the S&P 500's 21% [13]. - The company is currently trading at a forward price/sales ratio of 0.96, which is lower than the industry average of 1.59 [15]. Investment Considerations - Given the expected strong fiscal first-quarter results driven by improving conditions in Europe and demand in North America, along with favorable valuation and upward earnings estimate revisions, it may be a good time to consider investing in CMC [20].

Core Insights - Commercial Metals Company (CMC) reported strong financial results for the first quarter of fiscal 2026, achieving net earnings of $177.3 million, or $1.58 per diluted share, compared to a net loss of $175.7 million in the prior year period [2][5][23] - The company experienced significant year-over-year improvements in adjusted earnings, which reached $206.2 million, or $1.84 per diluted share, up from $86.9 million, or $0.76 per diluted share, in the previous year [3][5][23] - CMC's strategic initiatives, including the TAG program and recent acquisitions, are expected to enhance margins and earnings power, with a goal of achieving an annualized run-rate EBITDA benefit of $150 million by the end of fiscal 2026 [2][5][14] Financial Performance - First quarter net sales totaled $2.1 billion, a 11% increase from $1.9 billion in the prior year [5][23] - Consolidated core EBITDA for the first quarter was $316.9 million, reflecting a 52% increase year-over-year, with a core EBITDA margin of 14.9% [5][9][22] - The North America Steel Group's adjusted EBITDA increased by 57.9% to $293.9 million, driven by higher margins and operational improvements [9][22] Market Conditions - The domestic market environment for CMC's North America Steel Group and Construction Solutions Group remained stable, characterized by solid demand and expanding margins [2][7] - Steel product metal margins increased for the third consecutive quarter, reaching their highest level in nearly three years, with potential for further increases based on favorable market dynamics [2][8] - The Europe Steel Group faced modestly softened market conditions, with adjusted EBITDA declining to $10.9 million from $25.8 million in the prior year, impacted by lower average selling prices and margins [12][13] Strategic Initiatives - CMC successfully completed acquisitions of Concrete Pipe and Precast, LLC and Foley Products Company, establishing a new growth platform in the precast concrete industry with over $2.5 billion deployed [2][5][4] - The company launched several new operational and commercial initiatives under the TAG program, aimed at expanding margins and enhancing service value [2][5] - The Emerging Businesses Group has been renamed to Construction Solutions Group to better align with the strategic priorities of the segment [10][11] Outlook - CMC anticipates a modest decline in consolidated core EBITDA for the second quarter of fiscal 2026 due to seasonal slowdowns, but expects contributions from the newly acquired precast businesses to offset some of this impact [14] - The long-term outlook remains positive, with expectations of significant value creation for shareholders through strategic execution and operational excellence [14]

Earnings Report - Commercial Metals Company (NYSE: CMC) is set to release its earnings results for the first quarter on January 8, 2025, before the market opens [1] - Analysts project quarterly earnings of $1.54 per share, a significant increase from $0.78 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $2.05 billion, up from $1.91 billion a year earlier [1] Analyst Upgrade - Jefferies analyst Christopher LeFemina upgraded Commercial Metals from Hold to Buy and raised the price target from $70 to $78 [2] - The company currently offers an annual dividend yield of 0.97%, translating to a quarterly dividend of $0.18 per share, or $0.72 annually [2] Dividend Income Calculation - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 8,333 shares, equating to a total investment of about $621,725 [3] - For a more conservative monthly income goal of $100, an investor would need 1,667 shares, requiring an investment of approximately $124,375 [4] Dividend Yield Dynamics - The dividend yield can fluctuate based on changes in the stock price and dividend payments [4][5] - For instance, if a stock with a $2 annual dividend at a $50 price has a yield of 4%, an increase in price to $60 would reduce the yield to 3.33% [5] - Conversely, a decrease in stock price to $40 would increase the yield to 5% [5] Recent Stock Performance - Shares of Commercial Metals gained 2.6%, closing at $74.61 on Tuesday [6]

Core Viewpoint - Commercial Metals Company (CMC) is positioned strongly in the steel and metal industry, with upcoming quarterly earnings expected to show continued growth in both earnings per share and revenue [1][2][6] Financial Performance - Earnings per share (EPS) for the upcoming quarter is projected at $1.55, an increase from $1.54 in the same quarter last year, which was a significant rise from 78 cents per share the year before [2][6] - Revenue is expected to reach $2.05 billion, up from $1.91 billion a year earlier, indicating steady growth in sales [2][6] Dividend and Stock Performance - CMC declared a quarterly dividend of 18 cents per share, reflecting its commitment to returning value to shareholders [3][6] - The stock price increased by 1.3%, closing at $72.69, following the dividend announcement [3][6] Analyst Ratings and Valuation - Wells Fargo analyst Timna Tanners maintained an Overweight rating on CMC and raised the price target from $68 to $79, indicating confidence in the company's future performance [3] - The company has a P/E ratio of 98.42, suggesting high expectations for future growth, while the price-to-sales ratio is 1.06 and the enterprise value to sales ratio is 1.10, indicating a fair valuation relative to sales [4] Financial Health - CMC's debt-to-equity ratio stands at 0.32, indicating a low level of debt compared to equity, which reflects a solid financial position [5] - The current ratio of 2.78 demonstrates a strong ability to cover short-term liabilities with short-term assets, highlighting the company's solid liquidity position [5]

Group 1 - Commercial Metals Company (CMC) is set to release its earnings results for Q1 on January 8, 2025, with expected earnings of $1.54 per share, a significant increase from $0.78 per share in the same period last year [1] - The consensus estimate for CMC's quarterly revenue is $2.05 billion, up from $1.91 billion a year earlier [1] - CMC announced a quarterly dividend of $0.18 per share on January 5, 2025, and its shares rose by 1.3% to close at $72.69 [2] Group 2 - Wells Fargo analyst Timna Tanners maintained an Overweight rating and raised the price target from $68 to $79 [3] - Jefferies analyst Christopher LeFemina upgraded the stock from Hold to Buy and increased the price target from $70 to $78 [3] - JP Morgan analyst Bill Peterson upgraded the stock from Neutral to Overweight and raised the price target from $64 to $78 [3] - Morgan Stanley analyst Piyush Sood upgraded the stock from Equal-Weight to Overweight and raised the price target from $57.5 to $68 [3] - Goldman Sachs analyst Mike Harris maintained a Buy rating and raised the price target from $69 to $76 [3]