Commercial Metals' Steel Margins and Precast Acquisitions Lift Fiscal Q4

Commercial Metals ended fiscal 2026 with stronger steel economics and a much larger construction-solutions business. Fourth-quarter net sales rose 25.7% to $2.66 billion, while core EBITDA increased 35.1% to $393.7 million. Core EBITDA margin expanded one percentage point to 14.8%.

North America Steel remained the main earnings engine. Segment adjusted EBITDA increased 32.6% to $317.5 million, and its margin improved to 16.4% from 14.8%. Metal margin rose $84 per ton from a year earlier to $652, while finished-goods shipments increased 5.3%. Merchant bar shipments were up 27.5%.

The quarter also shows how acquisitions changed the company. Construction Solutions net sales nearly doubled to $431.4 million, and adjusted EBITDA rose 100.9% to $101.7 million. Part of that growth came from acquired precast operations, so the increase should not be read as purely organic. Management also said residential softness caused precast results to fall below expectations.

CMC reported net earnings of $212.5 million, or $1.91 per diluted share, and adjusted earnings of $2.09 per share. The latter exceeded the cited analyst estimate of $1.96. Net leverage adjusted for acquisitions fell to 1.9 times, below the company's 2.0-times target. During the quarter, CMC repurchased 383,333 shares for $26.7 million and declared a $0.20 quarterly dividend.

The first-quarter outlook is more restrained. Management expects North America Steel adjusted EBITDA to remain roughly flat sequentially as better pricing offsets higher scrap costs and seasonally lower shipments. Construction Solutions adjusted EBITDA is expected to decline from the fourth quarter because of normal seasonality.

The result is stronger than the headline earnings beat alone suggests because margins, volumes and leverage improved together. The caveat is that acquisition contribution and a lower tax rate helped reported growth, while residential demand remains uneven. Investors should watch metal margin per ton, precast integration, backlog conversion and whether the West Virginia micro mill raises volume without pressuring returns.