Commercial Metals Q2 revenue slightly beats, raises dividend

Commercial Metals

26/03/2026 10:58

Overview

U.S. steel and construction solutions provider's fiscal Q2 revenue slightly beat analyst expectations

Adjusted EPS for fiscal Q2 missed analyst expectations

Company repurchased shares and raised quarterly dividend by 11%

Outlook

Company expects consolidated core EBITDA in Q3 to increase meaningfully from Q2 levels

Construction Solutions Group financial results expected to nearly double in Q3 vs Q2

Company anticipates precast business will generate $165 mln to $175 mln EBITDA for full yr

Result Drivers

TAG PROGRAM & EXECUTION - Co said strong execution and additional efficiency gains from its enterprise-wide Transform, Advance, Grow (TAG) program drove core EBITDA growth

PRECAST ACQUISITIONS - Newly acquired precast platform contributed $33.6 mln to segment adjusted EBITDA, driving growth in Construction Solutions Group

HIGHER STEEL MARGINS - North America Steel Group benefited from higher margins over scrap costs and improved average selling prices, offset partly by weather disruptions

Company press release: ID:nPn5RryJNa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$2.13 bln
$2.09 bln (8 Analysts)
Q2 Adjusted EPS
Miss
$1.16
$1.30 (8 Analysts)
Q2 EPS
$0.83
Q2 Adjusted Net Income
Miss
$130.10 mln
$147.17 mln (5 Analysts)
Q2 Net Income
$93 mln
Q2 Core EBITDA
Beat
$297.50 mln
$286.29 mln (9 Analysts)
Q2 Adjusted EBITDA Margin
14.00%


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $84.25, about 35% above its March 25 closing price of $62.41

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)