Commercial Metals beats Q1 revenue, adjusted EPS expectations on favorable market conditions

Commercial Metals

08/01/2026 11:55

Overview

Steel solutions provider's fiscal Q1 revenue beat analyst expectations

Adjusted EPS for fiscal Q1 beat analyst expectations

Company completed acquisitions of CP&P and Foley, expanding precast concrete footprint

Outlook

Commercial Metals expects Q2 core EBITDA to decline modestly due to seasonal slowdown

Company anticipates North America Steel Group EBITDA lower due to seasonal trends

Construction Solutions Group financial results should improve with precast business contributions

Result Drivers

FAVORABLE MARKET CONDITIONS - CMC capitalized on stable demand and expanding margins in North America Steel Group, with increased steel product margins and higher average selling prices

STRATEGIC INITIATIVES - CMC's TAG program and acquisitions of CP&P and Foley contributed to improved financial performance, establishing a new growth platform in precast concrete

CONSTRUCTION SOLUTIONS GROWTH - CSG saw significant growth driven by strong demand, cost efficiency, and targeted commercial initiatives, especially in the Tensar division

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$2.12 bln
$2.06 bln (7 Analysts)
Q1 Adjusted EPS
Beat
$1.84
$1.56 (9 Analysts)
Q1 EPS
$1.58
Q1 Adjusted Net Income
Beat
$206.2 mln
$176.93 mln (4 Analysts)
Q1 Net Income
$177.3 mln
Q1 Adjusted EBITDA
Beat
$316.9 mln
$295.77 mln (9 Analysts)
Q1 Adjusted EBITDA Margin
14.90%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "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 $69.00, about 5.8% below its January 7 closing price of $73.22

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPn8CMlTla

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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.)