CMC Builds Record Quarter on Strategic Acquisitions and Market Strength

IRVING, Texas – June 25, 2026 – Commercial Metals Company (NYSE: CMC) today unveiled a powerful third-quarter performance that significantly outpaced the prior year, signaling that its aggressive strategy of acquisition and operational transformation is paying substantial dividends. The steel and construction solutions provider reported a staggering 108.1% year-over-year jump in net earnings to $173.0 million, with adjusted earnings per share soaring 147.1% to $1.73.

The headline numbers, while impressive, only tell part of the story. A deeper look reveals a company skillfully navigating market dynamics, leveraging strategic acquisitions to build a new powerhouse division, and benefiting from evolving international trade policies. The results paint a picture of a legacy industrial firm successfully reinventing itself to meet the demands of modern infrastructure.

"During our fiscal third quarter, we continued to make great progress on our strategic agenda across a number of fronts," said Peter Matt, President and Chief Executive Officer, in a statement accompanying the results. Matt highlighted the substantial growth in Core EBITDA and meaningful progress in deleveraging the company’s balance sheet, attributing the success to solid demand and strong backlogs.

Acquisitions Forge a New Foundation for Growth

The most dramatic storyline within CMC's earnings report is the explosive growth of its Construction Solutions Group (CSG). Net sales for the segment doubled year-over-year to $394.6 million, while its adjusted EBITDA skyrocketed by 138.1% to $97.4 million. This wasn't just organic growth; it was the direct result of a calculated strategic pivot.

The driving force behind this expansion was the successful integration of recent precast concrete acquisitions. These new businesses contributed a massive $175.7 million in revenue and $52.9 million in adjusted EBITDA in the quarter alone. This strategic foray into precast products, which includes foundational items like concrete pipe, is designed to position CMC as an indispensable partner in the very earliest stages of major construction projects.

The timing appears impeccable. CMC is capitalizing on a wave of so-called “mega-projects” sweeping North America, including massive investments in data centers, semiconductor fabrication plants, and energy infrastructure. These large-scale, complex builds require the exact kind of foundational solutions that the expanded CSG now provides. The company noted that its project pipeline continues to grow, with booking prices for its downstream products climbing 15.5% over the prior year, indicating robust and high-value demand. Even with some temporary weather-related shipment delays in the Southeast, the company reports that robust bidding activity and strong backlogs point to continued strength in the fourth quarter.

Navigating Global Currents: Europe's Green Policies Boost Steel Fortunes

Across the Atlantic, another compelling narrative of strategic adaptation is unfolding. CMC’s Europe Steel Group executed a stunning turnaround, swinging from a modest $3.6 million in adjusted EBITDA a year ago to a robust $34.7 million this quarter. The segment’s adjusted EBITDA margin expanded nearly tenfold, from 1.5% to 11.9%.

While a one-time $20.4 million CO₂ credit played a part, the underlying story is about the tangible impact of public policy on market dynamics. The company explicitly credits the EU’s new Carbon Border Adjustment Mechanism (CBAM) for strengthening domestic demand. Implemented earlier this year, CBAM is designed to prevent “carbon leakage” by imposing a levy on carbon-intensive goods imported into the EU. This effectively levels the playing field for domestic producers like CMC, who operate under stricter environmental regulations and associated costs, against imports from regions with laxer standards.

The data suggests the policy is working as intended. CMC’s total steel shipments in Europe surged 41.2% sequentially from the second quarter, a clear indicator that European buyers are turning to local suppliers. This shift, combined with improved trade measures set to take effect in July, is creating a more constructive operating environment. It’s a textbook example of how innovation in policy can reshape markets, rewarding companies that are already aligned with a lower-carbon future.

A Disciplined Blueprint: Balancing Growth with Financial Strength

Even as CMC pursues aggressive growth through acquisition, its latest report underscores a deep commitment to financial discipline. The company announced it has reduced its net leverage to 2.1x, putting it on a clear path to fall below its target of 2.0x well ahead of its mid-2027 goal. This rapid deleveraging, achieved through strong cash generation, provides a sturdy foundation for future strategic moves.

This financial prudence is also reflected in its capital allocation. The company continues to reward its shareholders, declaring its 247th consecutive quarterly dividend and repurchasing $18.9 million worth of its shares in the quarter. With nearly $1.8 billion in available liquidity, the company has ample flexibility to navigate market cycles and continue investing in growth.

Meanwhile, the core North America Steel Group, the company’s largest segment, posted a solid 41% year-over-year increase in adjusted EBITDA. While profitability moderated from the previous quarter due to a combination of planned mill maintenance, heavy rainfall in key markets like Texas, and a temporary lag in pricing against rising scrap costs, the company views these as transient headwinds. CMC asserts that underlying demand remains solid, with a healthy backlog driven by public infrastructure and private mega-projects.

Building the Future: A Strong Outlook on Solid Ground

Looking ahead, CMC is positioning for a strong finish to its fiscal year. The company expects Core EBITDA to increase sequentially in the fourth quarter, driven by the absence of the temporary mill outage costs, continued momentum from its precast acquisitions, and healthy demand across its markets.

"Looking to the fourth quarter, supported by favorable market conditions, robust backlogs, and our strategic initiatives currently underway, we are well positioned to finish fiscal 2026 on very strong footing," Matt concluded. Investors and analysts will be watching closely for further details on the company's long-term strategy at its upcoming Investor Day in August, where it is expected to elaborate on how it plans to continue building upon this quarter’s foundational success.