Core Insights - Commercial Metals Company (CMC) completed two significant acquisitions in December 2025, acquiring Concrete Pipe and Precast, LLC ("CP&P") and Foley Products Company for a total of $2.5 billion [1][8] Group 1: Acquisitions and Financial Impact - The acquisition of CP&P is expected to create a scalable platform for CMC in a fragmented industry with strong profit margins, providing a long-term growth opportunity [1] - CP&P is projected to be immediately accretive to CMC's earnings per share and free cash flow, with annual run-rate synergies expected between $5 million and $10 million by the third year [2] - The addition of Foley and CP&P will generate operational annual run-rate synergies of $25 million to $30 million by year three, with further synergies anticipated in subsequent years [4] Group 2: Market Position and Performance - The acquisitions will enhance CMC's presence in the Mid-Atlantic and Southeastern regions, establishing one of the largest precast concrete platforms in the U.S. [4] - CMC's shares have increased by 53.2% over the past year, compared to the industry's growth of 59.6% [7] - The Zacks Consensus Estimate for CMC's fiscal 2026 sales is projected at $8.89 billion, reflecting a 13.9% year-over-year increase, while earnings are expected to rise by 134.5% to $7.34 per share [10] Group 3: Future Outlook - CMC anticipates that the acquisitions will support results in the second quarter of fiscal 2026, despite incurring acquisition-related expenses [3][8] - The Zacks Consensus Estimate for fiscal 2027 sales implies a 5.7% year-over-year growth, while earnings estimates suggest a slight dip of 1.5% [12]

Group 1: Company Overview - Commercial Metals Company (CMC) is a significant player in the steel and metal industry, focusing on the production and recycling of steel and metal products, primarily in North America and Europe [1] - CMC serves various sectors including construction, manufacturing, and infrastructure, competing with industry giants like Nucor Corporation and Steel Dynamics [1] Group 2: Financial Performance - In the first quarter of fiscal 2026, CMC reported net earnings of $177.3 million, or $1.58 per diluted share, with adjusted earnings of $206.2 million, or $1.84 per diluted share [3] - The consolidated core EBITDA reached $316.9 million, marking a significant 52% increase year-over-year, with a core EBITDA margin of 14.9% [3] Group 3: Strategic Initiatives - CMC's success is attributed to strong operational execution and commercial discipline, particularly in North America [4] - The company launched several initiatives under its Transform, Advance, and Grow ("TAG") program, aiming for an annualized run-rate EBITDA benefit of $150 million by the end of fiscal 2026 [4] - In December, CMC expanded its growth platform by acquiring CP&P and Foley, investing over $2.5 billion in the precast concrete industry [5] - The company renamed its Emerging Businesses Group to Construction Solutions Group, aligning with its strategic priorities [5] Group 4: Market Outlook - Jefferies set a new price target of $85 for CMC, indicating a potential increase of approximately 19.18% from its trading price of $71.32 at the time [2][6] - The stock's current price is $70.85, reflecting a slight decrease of 3.24% or $2.37, but it has shown resilience with a 52-week high of $75.03 [2]

Core Insights - Commercial Metals Company (CMC) is a prominent player in the metals and construction sector, particularly known for its steel production and recycling operations, primarily in North America [1] Financial Performance - CMC reported an EPS of $1.84 for Q1 fiscal 2026, exceeding the forecast of $1.55, with net earnings of $177.3 million or $1.58 per diluted share [2][6] - The company's revenue reached approximately $2.12 billion, surpassing the estimated $2.05 billion, indicating strong market performance [2][6] - Consolidated core EBITDA grew by approximately 52% year-over-year to $316.9 million, resulting in a core EBITDA margin of 14.9% [3][6] Strategic Initiatives - CMC's growth is supported by its TAG program, which aims for an annualized run-rate EBITDA benefit of $150 million by the end of fiscal 2026 [3] - In December, CMC made significant acquisitions in the precast concrete industry, investing over $2.5 billion, which establishes a substantial growth platform [4] Market Position and Valuation - CMC's P/E ratio is approximately 96.58, indicating a high valuation relative to earnings, while the price-to-sales ratio is about 1.04 and the enterprise value to sales ratio is around 1.08 [5] - The company maintains a debt-to-equity ratio of approximately 0.32 and a current ratio of about 2.78, reflecting strong financial management capabilities [5]

Group 1 - Holcim has completed the acquisition of French precast concrete maker Alkern, marking another strategic purchase by the Swiss building materials company [1]

Core Viewpoint - Commercial Metals Company (CMC) has successfully acquired Foley Products Company for a cash purchase price of $1.84 billion, enhancing its position in the precast concrete market [1]. Group 1: Acquisition Details - The acquisition of Foley Products Company, a leading supplier of precast concrete and pipe products, is aimed at expanding CMC's operations in the Southeast and other regions of the U.S. [2] - Foley operates 18 facilities across nine states and is recognized for its comprehensive portfolio of solutions critical for various infrastructure applications [2]. Group 2: Strategic Implications - The acquisition is expected to create a significant growth platform for CMC, providing opportunities to generate value for customers and shareholders [3]. - With the completion of this acquisition, CMC now operates one of the largest precast concrete businesses in the United States, positioning itself for future growth [3]. Group 3: Company Overview - CMC is an innovative solutions provider focused on building a stronger and more sustainable world, offering products and technologies for the global construction sector [4]. - The company supports early-stage construction across various applications, including infrastructure, non-residential, residential, industrial, and energy generation [4].

Core Insights - Commercial Metals Company (CMC) has successfully completed the acquisition of Concrete Pipe & Precast, LLC (CP&P) for $675 million, enhancing its early-stage construction solutions portfolio [2][3][10] - The acquisition is expected to be immediately accretive to CMC's earnings per share and free cash flow, with projected annual run-rate synergies of $5 million to $10 million by the third year [5][10] - CMC is also pursuing the acquisition of Foley Products Company for $1.84 billion, which will further strengthen its position in the precast concrete market [7][8] Acquisition Details - CP&P specializes in precast concrete solutions in the Mid-Atlantic and South Atlantic regions of the U.S., boasting strong margins and cash flows [3][4] - The acquisition of CP&P allows CMC to create a scalable platform in a fragmented industry with robust profit margins [4] - The precast business requires less capital compared to CMC's traditional steel operations, leading to improved cash flow generation [6] Strategic Growth - CMC anticipates that the combined acquisitions of CP&P and Foley will yield operational synergies of $25 million to $30 million by the third year [8] - The company aims to establish one of the largest precast concrete platforms in the U.S., positioning itself as a leading player in the Mid-Atlantic and Southeastern regions [8] Market Performance - CMC's stock has increased by 2.7% over the past year, while the industry has seen an 18.5% growth [9]

Core Viewpoint - Commercial Metals Company (CMC) has successfully acquired Concrete Pipe & Precast, LLC (CP&P) for a cash purchase price of $675 million, enhancing its position in the precast concrete market [1][2]. Company Overview - CMC is an innovative solutions provider focused on the construction sector, offering products and technologies to meet reinforcement needs across various applications, including infrastructure and energy generation [4]. Acquisition Details - The acquisition of CP&P positions CMC to operate one of the largest precast concrete platforms in the United States, particularly strengthening its presence in the Mid-Atlantic and Southeastern regions [3]. - CP&P is a leading supplier of precast concrete and pipe products, serving seven core states from 17 facilities, and is well-positioned to benefit from structural demand in data center construction, stormwater management, and infrastructure investment [2]. Strategic Importance - The acquisition is part of CMC's growth strategy, aimed at delivering more value to customers and shareholders [3]. - CMC plans to close its acquisition of Foley Products Company by the end of 2025, further expanding its market reach [3].

Core Viewpoint - Smith-Midland Corporation is set to release its third quarter 2025 financial results on November 13, 2025, after market close, indicating a proactive approach to investor communication [1] Group 1: Financial Results - The company will announce its third quarter 2025 financial results on November 13, 2025 [1] Group 2: Investor Engagement - CEO Ashley Smith and CFO Dominic Hunter will present and conduct one-on-one investor meetings at the Southwest IDEAS Conference on November 20, 2025 [1]

Financial Data and Key Metrics Changes - The company reported net earnings of $151.8 million or $1.35 per diluted share for Q4 2025, compared to $103.9 million or $0.90 per diluted share in the prior year period, representing a significant increase [35] - Adjusted earnings for the quarter totaled $155 million or $1.37 per diluted share, up from $97.4 million or $0.84 per diluted share in the prior year [35] - Consolidated core EBITDA was $291.4 million for 2025, a 33% increase from $219 million in the prior year [37] - The consolidated core EBITDA margin improved to 13.8% compared to 11% in the prior year [38] Business Line Data and Key Metrics Changes - The North American Steel Group generated adjusted EBITDA of $239.4 million for the quarter, with an adjusted EBITDA margin of 14.8%, up from 13% in the previous year [39] - The Emerging Business Group reported Q4 net sales of $221.8 million, a 13.4% year-over-year increase, with adjusted EBITDA of $50.6 million, up 19.1% [40] - The Europe Steel Group reported adjusted EBITDA of $39.1 million for 2025, compared to a loss of $3.6 million in the prior year, with a segment adjusted EBITDA margin of 14.8% [41] Market Data and Key Metrics Changes - Finished steel shipments increased by 3% year-over-year, with rebar shipments growing at a similar rate [39] - The Dodge Momentum Index reached a record high in September, indicating strong future construction activity [26] - The company noted substantial pent-up demand in non-residential markets, supported by over $2 trillion in announced corporate investments [27] Company Strategy and Development Direction - The company is focused on integrating the recently announced acquisitions of Foley Products Company and CPMP to create a large-scale precast platform [5][6] - The strategic entry into precast is expected to enhance the company's financial profile and growth potential, with anticipated annual run rate synergies of $25 million to $30 million of EBITDA by year three [10] - The company aims to drive meaningful and sustainable improvements to margins, earnings, cash flow, and returns on capital while reducing volatility [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, citing strong construction activity and a favorable supply landscape [25] - The company anticipates continued demand growth in infrastructure, energy generation, and advanced manufacturing, supported by a significant backlog of potential projects [27] - Management expects the first quarter to be strong for the North American Steel Group, but noted seasonal factors may impact other segments [54] Other Important Information - The company modified its method of calculating adjusted EBITDA to exclude unrealized gains and losses from commodity derivatives, providing a more representative view of operating performance [36] - The total consideration for the acquisitions of Foley and CPMP is approximately $2.5 billion, funded through cash on hand and committed bank financing [17] Q&A Session Summary Question: How much of the demand growth is coming from different sectors? - Management indicated strong infrastructure demand driven by the IIJA, with a bullish outlook for non-residential spending due to a large backlog of potential projects [49][50] Question: Why is the first quarter outlook not more positive despite strong current performance? - Management explained that while the North American Steel Group is expected to perform well, the Europe Steel Group will face challenges due to reduced CO2 credits and seasonal maintenance [54][56] Question: Will the focus be on integration and debt reduction after the acquisitions? - Management confirmed that the immediate focus will be on integrating the new assets and reducing debt, with potential for future acquisitions once leverage is back to acceptable levels [61][62] Question: What is the historical growth rate of Foley and its potential for future growth? - Management noted that Foley has a base level of growth related to GDP and additional growth from market share expansion, expecting to grow above GDP levels in the coming years [66] Question: How quickly can CPMP's margins improve to Foley's levels? - Management indicated that margin improvements for CPMP would be achievable over a three to five year horizon, with some quick wins expected [80][81]

Financial Data and Key Metrics Changes - The company reported fiscal fourth quarter 2025 net earnings of $151.8 million, or $1.35 per diluted share, compared to net earnings of $103.9 million and net earnings per diluted share of $0.90 in the prior year period [32] - Adjusted earnings for the quarter totaled $155 million, or $1.37 per diluted share, compared to $97.4 million and $0.84 per diluted share in the prior year period [32] - Consolidated core EBITDA was $291.4 million for the fourth quarter of 2025, representing a 33% increase from the $219 million generated during the prior year period [33] - The consolidated core EBITDA margin was 13.8% compared to 11% in the prior year period [35] Business Line Data and Key Metrics Changes - North America Steel Group generated adjusted EBITDA of $239.4 million for the quarter, equal to $207 per ton of finished steel shipped, an 18% increase compared to the prior year period [35] - The Emerging Businesses Group reported fourth quarter net sales of $221.8 million, a 13.4% increase year-over-year, while adjusted EBITDA increased by 19.1% to $50.6 million [36] - The Europe Steel Group reported adjusted EBITDA of $39.1 million for the fourth quarter of 2025, compared to a loss of $3.6 million in the prior year period [37] Market Data and Key Metrics Changes - Finished steel shipments increased by 3% compared to a year ago, while rebar shipments from CMC's mills and downstream operations grew at a similar rate [35] - The Dodge Momentum Index reached a record high in September, indicating substantial pent-up demand, particularly within non-residential markets [25] - The company noted a significant backlog of potential projects, with approximately $2 trillion of corporate investments announced in calendar 2025 [26] Company Strategy and Development Direction - The company is focused on integrating the acquisitions of Foley Products Company and Concrete, Pipe and Precast (CPMP) to create a large-scale precast platform [5][12] - The strategic entry into precast is expected to broaden the commercial portfolio and enhance exposure to structural trends in construction [7][8] - The company aims to drive meaningful and sustainable improvements to margins, earnings, cash flow, and returns on capital while reducing volatility [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook, citing strong demand across various sectors, including infrastructure and energy [45][47] - The company anticipates a multi-year trend of strong spending in construction, supported by significant project backlogs and structural drivers [26] - Management expects to generate significant value for shareholders through strategic initiatives and operational excellence programs [42] Other Important Information - The company modified its method of calculating adjusted EBITDA to exclude the impact of unrealized gains and losses from undesignated commodity derivatives [32] - The total consideration for the acquisitions of Foley and CPMP is approximately $2.5 billion, funded through cash on hand and committed bank financing [16] - The company expects to prioritize deleveraging in the quarters ahead with a goal of returning below two times net leverage within 18 months [17] Q&A Session Summary Question: Demand from different sectors in construction - Management noted strong infrastructure demand driven by the IIJA and a bullish outlook for non-residential spending, particularly in energy and data centers, while residential markets remain lackluster due to interest rates [45][46] Question: First quarter outlook - The first quarter outlook is expected to be consistent with the fourth quarter, with strong performance in the North America Steel Group but challenges in the Europe Steel Group due to seasonal factors and maintenance outages [48][49] Question: Focus on integration or further acquisitions - Management indicated a focus on integrating the newly acquired assets before considering additional acquisitions, emphasizing the importance of successful integration for future growth [54][55] Question: Historical growth rate for Foley - Foley is expected to grow at a level in excess of GDP over the next couple of years, with ongoing expansions in its territories [58] Question: Margin differences between Foley and CPMP - The margin differentials are attributed to different operating models and the recent acquisitions by CPMP, which may take time to improve [62] Question: Outlook for dividends and buybacks - Management confirmed no plans to change the dividend and indicated a focus on integration and organic growth projects while slowing down share repurchases until leverage is reduced [71][72]