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- **Record Q1 Performance**: Adjusted EBITDA $316.9 million (+52% YoY), driven by TAG and precast acquisitions.
- **TAG Momentum**: $50M FY2025 benefits; targeting $150M FY2026 through scrap optimization and commercial rigor.
- **Strategic Acquisitions**: PreCast businesses add $165-175M annual EBITDA, with Q2 contribution ~$30M.
- **AI Expansion**: AZ 2 mill profitable in Q4; Steel West Virginia on track for June 2026 start-up.
- **Trade Policy Benefits**: CBAM and ITC rulings support European and U.S. margins, reducing imports.

**【CEO Summary Section】**
- **Q1 2026 Highlights**: Reported net earnings of $177.3 million ($1.58 per diluted share) and adjusted EBITDA of $316.9 million, up 52% year-over-year. Core EBITDA margin expanded to 14.9%.
- **TAG Program Success**: Delivered $50 million in EBITDA benefits in FY2025, with FY2026 targeting $150 million annualized. Scrap optimization and yield improvements drove metal margin expansion.
- **Precast Acquisitions**: Acquired CP&P and Foley for $2.5 billion, adding $165-175 million annual EBITDA contribution. Integration progress shows cultural alignment and synergies.
- **Trade Case Update**: Preliminary ruling against Algeria in ITC rebar case; expects CBAM to increase European long steel prices by $50/tonne, supporting Poland operations.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP net income $177.3 million, adjusted EBITDA $316.9 million. North America Steel Group EBITDA up 58% to $293.9 million. Construction Solutions Group EBITDA rose 75% to $39.6 million.
- **Balance Sheet**: $3 billion cash post-acquisition; net leverage 2.5x, targeting below 2.0x within 18 months. Fiscal 2026 capex $625 million, including Steel West Virginia completion.
- **Tax Efficiency**: Effective tax rate 3.1%; FY2026 rate 5-10% due to 48C credits and depreciation benefits.

**【Q&A Key Highlights】**
- **Precast Integration**: Early positive surprises include cultural fit and cross-selling opportunities. Q2 EBITDA contribution ~$30 million, with strong backlogs for spring recovery.
- **AI Initiative (AZ 2)**: Reached profitability in Q4 FY2025; utilization ~60% with full run rate expected by FY2026. Training and technology challenges remain.
- **Commercial Discipline**: Downstream backlog priced 5-10% higher than prior year; selective project acceptance driving margin improvement.
- **CBAM Impact**: Poland steel margins to benefit from $50/tonne import cost increase; safeguard tariffs further restrict European imports.
- **West Virginia Mill**: Hot commissioning in June 2026; on-budget completion with $600 million investment.

Commercial Metals Company(CMC)-20260108-2026 Q1 Earnings call transcript

- **$2.5B Precast Platform**: Acquisitions of Foley and CP&P create $250M EBITDA business with 34%+ margins, targeting $25-30M annual synergies.
- **TAG Program Success**: $50M EBITDA benefits in Q4, with $150M+ annualized run rate by FY26.
- **Free Cash Flow Growth**: 48C tax credit and depreciation reduce 2026 tax rate to 4-8%, enabling $250M+ annual free cash flow from precast.
- **Demand Drivers**: Infrastructure (IIJA), nonresidential (energy, data centers), and housing deficit support long-term construction growth.
- **Leverage Target**: Reduce net debt to <2x within 18 months, enabling resumed share buybacks.

**【CEO Summary Section】**
- Announced acquisition of Foley Products Company and Concrete Pipe & Precast (CP&P), creating a $250 million EBITDA precast platform with 34%+ margins.
- Foley's best-in-class operations enable $25-30 million annual EBITDA synergies by year 3, driven by production planning, manufacturing efficiencies, and support function optimization.
- Fourth quarter North American Steel Group EBITDA of $239.4 million (+18% YoY), driven by TAG program ($50 million EBITDA benefits) and margin expansion.
- Europe Steel Group EBITDA of $39.1 million (+$34.7 million YoY), boosted by $31 million CO2 credit and operational improvements.
- Emerging Businesses Group (EBG) EBITDA of $50.6 million (+19% YoY), driven by geogrid demand and cost management.

**【CFO Financial Commentary】**
- Total acquisition consideration of $2.5 billion (Foley: $1.8 billion, CP&P: $0.7 billion), funded by cash and debt, targeting net leverage below 2x within 18 months.
- Foley's 10.3x EBITDA multiple reflects high-margin, low-capital intensity business; transaction is immediately accretive to EPS and free cash flow.
- Fiscal 2026 capital spending of $600 million includes $350 million for West Virginia mill and high-return EBG projects; precast maintenance CapEx ~$8-15 million annually.
- Effective tax rate expected at 4-8% in 2026 due to 48C tax credit, bonus depreciation, and accelerated depreciation on acquired assets.

**【Q&A Highlights】**
- **Demand Mix**: Infrastructure (strong from IIJA), nonresidential (energy, data centers, hospitals), residential (lagging due to interest rates, but 2-4 million housing deficit supports long-term growth).
- **First Quarter Outlook**: North America Steel Group EBITDA margin expansion, Europe Steel Group seasonal decline (~$15 million CO2 credit), EBG seasonal decline but +19% YoY growth.
- **Precast Growth**: Foley and CP&P have complementary footprints; bolt-on acquisitions likely as platform scales. Foley's 5-7% annual growth rate (vs. 3% market) driven by share gains and new plant openings.
- **Dividend Policy**: No change to dividend; share buybacks will resume once net leverage <2x, supported by $250 million+ annual free cash flow from precast platform.
- **Europe Strategy**: Poland's construction recovery and CO2 credits position Europe Steel Group for sustained profitability; no plans to divest despite strategic shift to U.S. growth.


Commercial Metals Company (CMC) Q4 2025 Earnings Call Transcript

- **Q3 Recovery**: Sequential EBITDA improvement to $204.1M, driven by North America Steel Group margin expansion to $518/ton exit rate.
- **Strategic Growth**: TAG program targeting $100M+ annual EBITDA, Arizona 2 mill turning profitable in Q4, and West Virginia project delayed to Q2 2026 with $80M tax credit benefit.
- **Liquidity & Returns**: $1.7B liquidity supports $71M Q3 buybacks, with $254.9M remaining under authorization.
- **Key Risks**: Q3 North America volumes underperformed seasonal trends due to outages, and West Virginia delays could impact FY26 execution.
- **Inorganic Pipeline**: $500-750M adjacencies with >20% margins, with Poland CO2 credit of $28M in Q4 and $15-20M in Q1 2026.


**【CEO Summary Section】**
- **Q3 Financials**: Reported net earnings of $83.1 million ($0.73 per diluted share) and adjusted earnings of $84.4 million ($0.74 per diluted share). Core EBITDA was $204.1 million, up sequentially from Q2 lows.
- **North America Steel Group**: Finished steel shipments grew 3.2% YoY, with sequential margin recovery driven by higher steel product pricing and scrap cost declines. Q3 exit margin of $518/ton vs. Q2 average of $499/ton.
- **Strategic Initiatives**: 
  - **TAG Program**: $50M+ EBITDA benefit in FY25, targeting $100M+ annual run rate.
  - **Arizona 2 Mill**: 70-75% utilization, expected to turn profitable in Q4 with 75% SKU coverage.
  - **Steel West Virginia**: Delayed to Q2 2026 due to tax credit compliance and weather, now targeting $150M+ EBITDA contribution.
- **Emerging Businesses Group (EBG)**: 7% EBITDA growth YoY, driven by proprietary products like Geogrid and ChromX. Tensar division delayed projects expected to recover in Q4.
- **Europe Steel Group**: Sequential improvement to $3.6M EBITDA vs. Q3 2024 loss, benefiting from reduced imports and cost management.

**【CFO Financial Commentary】**
- **Liquidity**: $893M cash and $1.7B total liquidity, supporting $71M Q3 share buybacks.
- **Capital Allocation**: FY25 CapEx guidance revised to $425-475M (down from $550-600M), with $80M tax credit benefit for West Virginia project.
- **West Virginia Project**: $150M tax-exempt bonds issued at 4.625%, with $80M net benefit from IRA credits.
- **Dividend Policy**: Committed to balanced capital returns, with $254.9M remaining under buyback authorization.

**【Q&A Highlights】**
- **Volumes & Pricing**: Q3 North America Steel Group volumes up 7% sequentially (vs. typical 10-15% seasonal growth) due to late-quarter outages. Q4 volumes expected flat to slightly up. Rebar pricing hikes reflect commercial excellence focus on value over volume.
- **Arizona 2 Performance**: 70-75% utilization, targeting 75%+ in Q1 2026. Merchant bar (MBQ) mix flexibility to 350K/yr rebar, 150K/yr MBQ.
- **Inorganic Growth**: Pipeline of $500-750M adjacencies with >20% EBITDA margins, targeting 3-4 year multiple convergence. Poland CO2 credit of $28M in Q4, with additional $15-20M in Q1 2026.
- **West Virginia Risks**: Delays due to tax credits and weather, but no near-term demand concerns. FY26 CapEx ~$550M, with $300M for West Virginia.
- **Europe Outlook**: Poland infrastructure spending and Germany stimulus driving Q4 volume growth. EBG Tensar pipeline solid, with Q4 YoY recovery expected.


Commercial Metals (CMC)-23 Jun 25-2025 Q3 Earnings call transcript

- **Q2 Results**: Adjusted EBITDA $131M vs. $212M prior year, driven by lower scrap margins in North America.
- **Price Momentum**: Sequential improvement in rebar pricing, with Q3 margin expansion expected.
- **Arizona 2 Mill**: Target Q4 2025 profitability after Q2 startup challenges.
- **Europe Recovery**: Poland market improving; German stimulus and EU trade policies to benefit 2026+.
- **Growth Engine**: $150B early-stage construction adjacencies, 33% EBITDA margin expansion in specialty products.
- **Financial Strength**: $1.6B liquidity, 1.0x net debt/EBITDA, $68M Q2 buybacks.


**【CEO Opening Remarks】**
- Q2 2025 net earnings: $25.5M ($0.22/diluted share) vs. $85.8M ($0.73) in Q2 2024. Adjusted EBITDA: $131M vs. $212.1M prior year.
- North American Steel Group: EBITDA $128.8M ($123/ton), down 42% YoY due to lower scrap margins. Europe Steel Group: Breakeven (vs. -$8.6M prior year). Emerging Businesses: EBITDA $23.5M (+31% YoY).
- Key trends: Resilient construction demand, delayed project awards, and improving scrap market conditions.

**【CFO Financial Highlights】**
- Consolidated core EBITDA: 7.5% margin vs. 11.5% prior year. North America: 9.3% margin vs. 15% prior year.
- Cash flow: $32.4M from operations, $86.3M capex (Steel WV project). Total liquidity: $1.6B.
- Share buybacks: $68M returned to shareholders in Q2.

**【Q&A Key Takeaways】**
- **North American Rebar Pricing**: Sequential improvement in metal margins, with price hikes offsetting scrap costs. Q3 expects further margin expansion.
- **Arizona 2 Micro Mill**: Q2 not breakeven due to startup challenges. Q4 target for profitability.
- **Europe Recovery**: Poland market improving with reduced imports. German stimulus and EU trade policies could drive 2026+ demand.
- **Long-term Growth**: $150B early-stage construction market adjacencies, high-margin specialty products, and disciplined M&A strategy.

**【Strategic Initiatives】**
- **TAG Program**: $25M+ annual savings from 150+ initiatives (e.g., alloy reduction, logistics optimization).
- **Capacity Expansion**: Steel WV (late 2025), Arizona 2, and specialty product expansions (post-tension cable, Geogrid).
- **Balance Sheet Strength**: 1.0x net debt/EBITDA, 18% debt/capitalization ratio.


Commercial Metals (CMC)-20 Mar 25-2025 Q2 Earnings call transcript

- **Adjusted Earnings Beat Expectations**: Q1 adjusted EPS of $0.78 vs. $1.49 YoY, driven by litigation charge. 
- **North America Steel Resilience**: 4.4% YoY shipment growth despite margin pressure, with Q3/Q4 recovery optimism. 
- **TAG Program Early Wins**: $5-15 million annual savings from alloy cost reduction and melt shop efficiency. 
- **Liquidity Strength**: $1.7 billion total liquidity supports capex and share buybacks ($71M in Q1). 
- **Europe Profitability**: $25.8M EBITDA despite 50% rebar imports from Germany, underpinned by CO2 credit. 
- **Tensar Recovery**: Q3/Q4 earnings recapture expected, with annual growth intact. 
- **Scrap Price Bottoming**: Near-term flat to +20% expected, supporting rebar pricing recovery.

**【CEO Summary Section】**
- **Q1 Financials**: Reported a net loss of $175.7 million ($1.54 per share) due to a $264 million after-tax litigation charge. Adjusted earnings were $88.5 million ($0.78 per share), reflecting strong operational performance despite market headwinds.
- **North America Steel Group**: Generated $188.2 million EBITDA, down 29% YoY due to lower margins over scrap. Shipments increased 4.4% YoY, driven by late-season construction activity.
- **Europe Steel Group**: Returned to profitability with $25.8 million EBITDA, benefiting from a $44.1 million CO2 credit. Margins remain pressured by 50% year-to-date rebar imports from Germany.
- **Emerging Businesses Group**: EBITDA fell 26.6% to $22.7 million, impacted by lower-margin sales mix in Tensar and truck/trailer market softness. Expect recovery in Q3/Q4 2025.
- **Strategic Initiatives**: 
  - **TAG Program**: Early initiatives yield $5-15 million annual savings (e.g., alloy cost reduction, melt shop efficiency). 
  - **Arizona 2 Micro Mill**: Achieved 2 consecutive monthly production records, targeting 500,000 tons annual capacity by Q4 2025. 
  - **Steel West Virginia**: On track for late-2025 commissioning.
- **Litigation Update**: $110 million jury verdict against Pacific Steel Group being appealed. CMC maintains confidence in business practices.

**【CFO Financial Commentary】**
- **Consolidated Core EBITDA**: $210.7 million (11% margin), down from $313.7 million YoY. 
- **North America Steel Group**: $164/ton EBITDA, 12.4% margin, supported by cost improvements (freight, Arizona 2 efficiency). 
- **Liquidity**: $1.7 billion (cash + credit facilities). Q1 cash flow from operations: $213 million. 
- **Capital Allocation**: 
  - FY25 CapEx: $630-680 million (including $200 million deferred for Steel WV). 
  - Share Repurchases: $71 million in Q1, $353.4 million remaining under authorization.

**【Q&A Highlights】**
- **North America Shipments**: Expect 5-10% sequential decline in Q2, but optimistic about Q3/Q4 recovery driven by infrastructure, reshoring, and housing shortages. 
- **Tensar Delays**: Broad-based project delays (e.g., soil stabilization at project outset). Expect Q3/Q4 recovery, with annual growth intact. 
- **TAG Program**: 150 initiatives in pipeline; early Phase 1 savings materialize in 2025, with more to come. 
- **Europe Outlook**: Margins under pressure from German imports, but cost management maintains profitability. Recovery hinges on German economic rebound or Ukraine rebuild. 
- **New Capacity**: Arizona 2 replaces idled California capacity; West Virginia adds 150,000 tons merchant bar capacity to underserved Northeast. 
- **Scrap Prices**: Near bottom; flat to +20% expected in January, which would support rebar pricing recovery.


Actual											0.53	0.59	0.79	0.58	0.66	1.04	1.26	1.62	1.53	2.61	2.45	2.24	1.44	2.02	1.69	1.63	0.88	1.02	0.9	0.78	0.26	0.74	1.37	1.84
Forecast											0.4962	0.37	0.569	0.5381	0.5867	0.8323	1.3171	1.2253	1.3931	1.9876	2.2194	1.8993	1.4067	1.8118	1.767	1.4707	0.7639	1.018	0.9121	0.7915	0.2889	0.8508	1.3488	1.5652	1.2789
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+6.81%	+59.46%	+38.84%	+7.79%	+12.49%	+24.95%	-4.34%	+32.21%	+9.83%	+31.31%	+10.39%	+17.94%	+2.37%	+11.49%	-4.36%	+10.83%	+15.20%	+0.20%	-1.33%	-1.45%	-10.00%	-13.02%	+1.57%	+17.56%	0.00%

CMC

CMC fundamentals

CMC Q2 2026 Earnings Preview

Earnings Call

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CMC

CMC fundamentals

CMC Q2 2026 Earnings Preview

Earnings Call

CMC Earnings Call Summary for Q2/2026Today11:00 AM on Mar 26, 2026

CMC Earnings Call Summary for Q1/202611:00 AM on Jan 8, 2026

CMC Earnings Call Summary for Q4/202511:00 AM on Oct 16, 2025

CMC Earnings Call Summary for Q3/202511:00 AM on Jun 23, 2025

CMC Earnings Call Summary for Q2/202511:00 AM on Mar 20, 2025

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