Commercial Metals' Q4 adj profit beats on North America Steel strength

Commercial Metals

15/10/2026 11:56

Overview
US steel and construction solutions provider's Q4 revenue rose 25.7% yr/yr, beating analyst expectations
Adjusted EPS for Q4 beat analyst expectations, driven by North America Steel Group growth and TAG initiatives
Company repurchased $26.7 mln in shares and reduced net leverage below 2x target

Outlook
CMC expects fiscal 2027 to be another strong year, supported by healthy market conditions
North America Steel Group Q1 adj EBITDA expected to be nearly flat sequentially
Construction Solutions Group Q1 adj EBITDA expected to decline sequentially on seasonal trends

Result Drivers
NORTH AMERICA STEEL GROUP - Stronger margins and volume growth in North America Steel Group drove Q4 results
PRECAST ACQUISITIONS - Inclusion of acquired precast operations contributed to improved margins and earnings
TAG INITIATIVES - Ongoing benefits from Transform, Advance, Grow (TAG) program supported margin expansion and earnings growth

Company press release: ID:nPn1VgBWCa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$2.66 bln
$2.57 bln (7 Analysts)
Q4 Adjusted EPS
Beat
$2.09
$1.97 (9 Analysts)
Q4 EPS
 
$1.91
 
Q4 Adjusted Net Income
Beat
$233.60 mln
$211.99 mln (3 Analysts)
Q4 Net Income
 
$212.50 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy"
Wall Street's median 12-month price target for Commercial Metals Co is $80.00, about 22.5% above its October 14 closing price of $65.29
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)