Commercial Metals' Q2 Earnings Miss Estimates, Sales Rise Y/Y

Commercial Metals Company CMC reported adjusted earnings per share (EPS) of $1.16 in second-quarter fiscal 2026 (ended Feb. 28, 2026), missing the Zacks Consensus Estimate of $1.28. Adjusted for one-time items, the company posted earnings of 31 cents per share in the prior-year quarter.

CMC’s Revenues & Margins Dip Y/Y in Q2

Net sales in the reported quarter were $2.13 billion compared with $1.75 billion in the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $1.98 billion.

The cost of goods sold in the quarter was up 13.7% year over year to $1.74 billion. The gross profit surged 76.4% year over year to $388 million during this period. The core EBITDA was $297 million in the fiscal second quarter, marking a year-over-year surge of 113.8%.

Commercial Metals Company Price, Consensus and EPS Surprise

Commercial Metals Company price-consensus-eps-surprise-chart | Commercial Metals Company Quote

Commercial Metals’ Q2 Segmental Performance

The North America Steel Group segment generated net sales of $1.61 billion in the fiscal second quarter compared with $1.38 billion in the year-ago quarter. We expected net sales of $1.44 billion in the quarter. The segment registered an adjusted EBITDA of around $269 million compared with $137 million in the year-ago quarter. Our model predicted an adjusted EBITDA of $248 million.

The Europe Steel Group segment’s revenues were $200 million, up 1% from the year-ago quarter. Our model predicted net sales of $247 million. The adjusted EBITDA was negative $1.4 million in the fiscal second quarter compared with $0.8 million in the year-ago quarter. We expected an adjusted EBITDA of $0.2 million for the quarter.

The Construction Solutions Group segment generated net sales of around $314 million in the fiscal second quarter compared with $158 million in the year-ago quarter. Our model predicted net sales of $189 million. The segment registered an adjusted EBITDA of $53 million compared with $23 million in the year-ago quarter. Our model predicted an adjusted EBITDA of $37 million.

CMC’s Q2 Cash Flow & Balance Sheet Updates

Commercial Metals reported cash and cash equivalents of $0.49 billion at the end of second-quarter fiscal 2026 compared with $1 billion at the end of fiscal 2025. The company’s long-term debt was $3.3 billion at the end of the fiscal second quarter. Cash generated from operating activities for the six months ended Feb 28, 2026, was $371 million compared with $245 million in the year-ago period.

On March 25, the company declared a quarterly dividend of 20 cents per share, marking an 11% increase from the dividend paid in February 2026. The dividend will be paid on April 15 to shareholders of record as of April 6, 2026.

Commercial Metals’ Q3 Outlook

CMC expects its fiscal third-quarter core EBITDA to increase sequentially due to normal seasonal improvement and strength across its North American market. North America Steel Group’s adjusted EBITDA is expected to increase modestly from the second quarter, driven by higher seasonal volumes. This will be partially offset by annual maintenance outages.

In the Construction Solutions Group segment, results are expected to nearly double compared with the second quarter of fiscal 2026. The company expects Europe Steel Group's adjusted EBITDA to rise substantially on higher seasonal volumes.

CMC Stock’s Price Performance

The company’s shares have gained 30.4% in the past year compared with the industry’s 42.8% growth.

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Commercial Metals’ Zacks Rank

CMC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

A Steel - Specialty Stock Awaiting Results

Ternium S.A. TX is expected to release first-quarter 2026 results soon.

The Zacks Consensus Estimate for Ternium’s EPS is pegged at $1.01 for the fiscal first quarter, suggesting a rise from 55 cents reported in the year-ago period. For total revenues, the Zacks Consensus Estimate is pinned at $4.23 billion, indicating a year-over-year increase of 7.4%.

Recent Peer Performance

L.B. Foster Company FSTR recorded adjusted earnings of 22 cents per share for fourth-quarter 2025. The bottom line missed the Zacks Consensus Estimate of 66 cents. The company posted a loss of 52 cents in the year ago quarter.

L.B. Foster’s revenues rose 25% year over year to $160 million in the quarter. The figure beat the consensus estimate of $158 million.

Carpenter Technology Corporation CRS reported adjusted earnings of $2.33 per share for second-quarter fiscal 2026, beating the Zacks Consensus Estimate of $2.20. It had posted adjusted earnings of $1.66 in the year-ago quarter. The upside was driven by ongoing improvements in the product mix and expanding operating efficiencies.

Carpenter Technology’s net revenues increased 7.5% year over year to $728 million in the reported quarter. The figure missed the Zacks Consensus Estimate of $729 million.

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Carpenter Technology Corporation (CRS): Free Stock Analysis Report

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