Commercial Metals (NYSE:CMC) Releases Earnings Results, Misses Estimates By $0.12 EPS

Commercial Metals (NYSE:CMC) posted its earnings results on Thursday. The basic materials company reported $1.16 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.28 by ($0.12), FiscalAI reports. The firm had revenue of $2.13 billion during the quarter, compared to analyst estimates of $2.10 billion. Commercial Metals had a net margin of 5.46% and a return on equity of 11.43%. The business’s quarterly revenue was up 21.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.26 earnings per share.

Here are the key takeaways from Commercial Metals’ conference call:

• Strong Q2 financials: Net earnings of $93M ($0.83/share) and adjusted earnings of $130.1M ($1.16/share) with consolidated core EBITDA of $297.5M (+114%) and a 14% core EBITDA margin (+610 bps).
• Precast acquisitions integrating well: CP&P and Foley contributed $33.6M to Q2 Construction Solutions EBITDA and management expects the precast business to generate $165–$175M of EBITDA for the fiscal year.
• TAG program momentum: Enterprise-wide operational and commercial initiatives are driving margin gains and management expects to reach or exceed a $150M annualized run-rate EBITDA benefit by year end.
• Near-term earnings pressure from acquisition accounting and financing: Purchase accounting amortization and higher interest expense will widen the gap between core EBITDA and pre-tax income by roughly $60–$65M per quarter for the next three quarters.
• Liquidity and deleveraging progress: Cash of $504M, total liquidity ~ $1.7B, adjusted net leverage ~2.3x (target 2x) and an 11% dividend increase to $0.20/share, though buybacks are paused until leverage improves.

Commercial Metals Stock Down 4.7%

Shares of CMC opened at $59.45 on Friday. The company has a market capitalization of $6.59 billion, a P/E ratio of 15.32, a PEG ratio of 0.34 and a beta of 1.47. Commercial Metals has a one year low of $37.92 and a one year high of $84.87. The business’s 50 day simple moving average is $72.92 and its 200-day simple moving average is $66.51. The company has a debt-to-equity ratio of 0.77, a current ratio of 4.47 and a quick ratio of 3.70.

Commercial Metals Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Monday, April 6th will be paid a dividend of $0.20 per share. This is a positive change from Commercial Metals’s previous quarterly dividend of $0.18. This represents a $0.80 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Monday, April 6th. Commercial Metals’s payout ratio is currently 18.56%.

Analysts Set New Price Targets

A number of brokerages recently commented on CMC. JPMorgan Chase & Co. upgraded Commercial Metals from a “neutral” rating to an “overweight” rating and upped their target price for the company from $64.00 to $78.00 in a research note on Friday, December 5th. KeyCorp started coverage on shares of Commercial Metals in a research note on Wednesday. They set a “sector weight” rating on the stock. Zacks Research lowered shares of Commercial Metals from a “strong-buy” rating to a “hold” rating in a report on Tuesday, February 3rd. Morgan Stanley raised their price objective on shares of Commercial Metals from $68.00 to $85.00 and gave the stock an “overweight” rating in a report on Friday, January 9th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Commercial Metals in a research report on Wednesday, January 21st. Eight analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, Commercial Metals currently has a consensus rating of “Moderate Buy” and a consensus target price of $72.50.

Insider Buying and Selling at Commercial Metals

In related news, Director Dennis V. Arriola purchased 2,000 shares of Commercial Metals stock in a transaction that occurred on Tuesday, January 20th. The shares were acquired at an average price of $74.69 per share, for a total transaction of $149,380.00. Following the transaction, the director directly owned 9,238 shares in the company, valued at approximately $689,986.22. This represents a 27.63% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Jennifer J. Durbin sold 25,050 shares of the business’s stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $79.97, for a total transaction of $2,003,248.50. Following the completion of the transaction, the insider directly owned 52,880 shares of the company’s stock, valued at approximately $4,228,813.60. This represents a 32.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.62% of the company’s stock.

Institutional Investors Weigh In On Commercial Metals

Institutional investors and hedge funds have recently modified their holdings of the business. Merewether Investment Management LP acquired a new stake in Commercial Metals in the third quarter worth $26,847,000. UBS Group AG grew its holdings in shares of Commercial Metals by 41.8% in the 3rd quarter. UBS Group AG now owns 1,521,130 shares of the basic materials company’s stock valued at $87,130,000 after buying an additional 448,083 shares during the period. Millennium Management LLC grew its holdings in shares of Commercial Metals by 35.5% in the 4th quarter. Millennium Management LLC now owns 1,373,417 shares of the basic materials company’s stock valued at $95,068,000 after buying an additional 359,900 shares during the period. Jacobs Levy Equity Management Inc. increased its position in shares of Commercial Metals by 25.3% in the 4th quarter. Jacobs Levy Equity Management Inc. now owns 1,502,015 shares of the basic materials company’s stock valued at $103,969,000 after buying an additional 303,065 shares in the last quarter. Finally, Nuveen LLC raised its stake in Commercial Metals by 36.2% during the 4th quarter. Nuveen LLC now owns 1,128,344 shares of the basic materials company’s stock worth $78,104,000 after buying an additional 300,060 shares during the period. 86.90% of the stock is owned by institutional investors.

Commercial Metals News Summary

Here are the key news stories impacting Commercial Metals this week:

• Positive Sentiment: Strong Q2 operational results — Consolidated core EBITDA roughly doubled year‑over‑year, adjusted EBITDA margins improved across segments, backlog and bookings look healthy, and management reiterated progress on precast integration and targeted leverage reduction. CMC Reports Second Quarter of Fiscal 2026 Results
• Positive Sentiment: Dividend increase — Board raised the quarterly dividend 11% to $0.20/share, signaling management confidence in cash flow and the balance sheet. CMC Announces an 11% Increase in Quarterly Dividend
• Positive Sentiment: Analyst backing — Bank of America reiterated a Buy stance citing the strong quarter, improving outlook and capital returns; that endorsement supports upside thesis for investors focused on margins and share repurchases/dividends. Commercial Metals Company: Strong Q2 Beat, Improving Outlook, and Capital Returns Support Buy Rating
• Neutral Sentiment: New coverage — KeyCorp initiated coverage with a “sector weight” call; adds incremental liquidity/coverage but is not a strong directional catalyst. KeyCorp Begins Coverage on Commercial Metals (NYSE:CMC)
• Neutral Sentiment: Earnings call details — Management highlighted precast momentum and integration progress (precast contributed meaningful adjusted EBITDA), supporting medium‑term synergies and construction‑cycle exposure; useful for assessing durability of margin gains. Commercial Metals Company Q2 2026 Earnings Call Summary
• Negative Sentiment: EPS miss and market reaction — Adjusted EPS of $1.16 missed consensus (around $1.28–$1.33), and some outlets noted the stock slipped despite strong revenue and backlog; the EPS miss and profit‑taking explain downward pressure on the share price. Commercial Metals (CMC) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates CMC Stock Slips Despite Q2 Revenue Climb

About Commercial Metals

Commercial Metals Company (NYSE: CMC) is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.