Earnings jump at Commercial Metals (NYSE: CMC) on Q2 2026 results
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Commercial Metals Company reported a strong fiscal Q2 2026, with net earnings of $93.0 million, or $0.83 per diluted share, on net sales of $2.1 billion, up from net earnings of $25.5 million on $1.8 billion in the prior-year quarter. Adjusted earnings rose to $130.1 million, or $1.16 per diluted share. Core EBITDA reached $297.5 million, growing about 114% year over year and producing a 14.0% core EBITDA margin.
The North America Steel Group delivered adjusted EBITDA of $269.7 million with a 16.8% margin, supported by higher steel product metal margins and TAG program benefits, despite weather-related disruptions. The Construction Solutions Group nearly doubled net sales to $314.4 million and grew adjusted EBITDA 127.1% to $53.4 million, helped by the newly acquired precast platform, which contributed $33.6 million of adjusted EBITDA, or $40.3 million excluding purchase accounting.
The Europe Steel Group posted an adjusted EBITDA loss of $1.4 million as volumes declined, although metal margins improved. Cash, cash equivalents and restricted cash totaled $503.6 million, and available liquidity exceeded $1.7 billion, with net leverage around 2.8x on a trailing basis and an illustrative 2.3x including full-year precast contributions. CMC repurchased 249,154 shares for $18.3 million and increased its quarterly dividend to $0.20 per share, an 11% raise, marking its 246th consecutive quarterly payment. Management expects consolidated core EBITDA to increase meaningfully in Q3 2026, with Construction Solutions Group adjusted EBITDA projected to nearly double sequentially and Europe Steel Group EBITDA to improve on higher seasonal volumes and an anticipated $20 million CO2 credit.
Positive
- Profitability inflection: Core EBITDA rose to $297.5 million with a 14.0% margin, up roughly 610 basis points year over year, signaling a structurally stronger earnings profile.
- Precast acquisitions performing ahead of scale: The newly acquired precast platform delivered $33.6 million of adjusted EBITDA in Q2 and is expected to generate $165–$175 million of EBITDA in fiscal 2026.
- Healthy liquidity and clear deleveraging path: Cash and equivalents of about $503.6 million, liquidity over $1.7 billion, and a stated target to bring net leverage down to roughly 2.0x within 18 months support financial flexibility.
Negative
- Higher leverage from acquisitions: Net leverage stood near 2.8x on a trailing basis following roughly $2.5 billion of acquisition spending, increasing financial risk versus the prior balance sheet.
- Weak Europe performance: Europe Steel Group posted an adjusted EBITDA loss of $1.4 million and a negative 0.7% margin due to lower shipments and reduced fixed-cost leverage despite better metal margins.
Insights
CMC delivered a sharp profit and margin step-up, led by North America steel and new precast assets.
Commercial Metals Company showed substantial operating momentum in fiscal Q2 2026. Net earnings climbed to $93.0 million from $25.5 million, while adjusted earnings reached $130.1 million. Core EBITDA jumped to $297.5 million, with core EBITDA margin expanding to 14.0%, reflecting stronger spreads and execution of the TAG program.
The North America Steel Group was the primary earnings engine, with adjusted EBITDA of $269.7 million, up 96.9% year over year, as steel product metal margin increased by $147 per ton and downstream pricing improved. Construction Solutions’ adjusted EBITDA rose 127.1% to $53.4 million, driven by the acquired precast platform’s $33.6 million contribution, highlighting early traction from recent M&A.
Europe lagged, posting an adjusted EBITDA loss of $1.4 million due to lower shipments, even as metal margins improved. Management’s outlook calls for consolidated core EBITDA to increase meaningfully in Q3 2026, with Construction Solutions Group results expected to nearly double from Q2 and Europe Steel Group EBITDA to improve on higher volumes, modestly better margins, and an anticipated $20 million CO2 credit. The company also targets full-year precast EBITDA of $165–$175 million, reinforcing the strategic role of that platform.
Large precast acquisitions lifted leverage near 3x, but cash generation and a clear deleveraging plan support the capital structure.
CMC’s balance sheet absorbed roughly $2.5 billion of acquisition-related cash outflows in the first half, with total assets rising to $9.6 billion and long-term debt to $3.31 billion. Trailing 12‑month adjusted EBITDA of $1.04 billion implies reported net leverage of about 2.8x at February 28, 2026, or an illustrative 2.3x when annualizing expected precast EBITDA.
Liquidity remains robust, with $503.6 million in cash, cash equivalents and restricted cash and total available liquidity above $1.7 billion. The debt maturity profile is conservative, with no significant maturities until 2030 and staggered bond tranches extending to 2035. Management reaffirmed its goal to reduce net leverage to around 2.0x within 18 months of closing the Foley acquisition, supported by strong core EBITDA, disciplined capital allocation, and moderating capital expenditures after major projects are completed.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): March 26, 2026
(Exact Name of Registrant as Specified in Charter)
(State or Other Jurisdiction of Incorporation) | ||||||||||||||
(Commission File Number) | (IRS Employer Identification No.) | |||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
(214 ) 689-4300
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On March 26, 2026, CMC issued a press release announcing its financial results for the second quarter of fiscal year 2026. A copy of the press release is attached hereto as Exhibit 99.1. The press release is incorporated by reference into this Item 2.02, and the foregoing description of the press release is qualified in its entirety by reference to Exhibit 99.1.
The information in this Item 2.02 of Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities under that section and is not incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 7.01 Regulation FD Disclosure.
On March 26, 2026, CMC made available on its website a financial presentation regarding its financial results for the second quarter of fiscal year 2026. A copy of the financial presentation is attached hereto as Exhibit 99.2. The financial presentation is incorporated by reference into this Item 7.01, and the foregoing description of the financial presentation is qualified in its entirety by reference to Exhibit 99.2.
The information in this Item 7.01 of Form 8-K, including Exhibit 99.2 shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities under that section and is not incorporated by reference into any filing of CMC under the Securities Act or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
| Item 9.01 Financial Statements and Exhibits. | |||||
| (d) | Exhibits | ||||
| The following exhibits are being furnished as part of this Current Report on Form 8-K: | |||||
| 99.1 | Press Release issued by CMC on March 26, 2026 | ||||
| 99.2 | Financial Presentation | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CMC | ||||||||
| Date: March 26, 2026 | By: /s/ Paul J. Lawrence | |||||||
| Name: Paul J. Lawrence | ||||||||
| Title: Senior Vice President and Chief Financial Officer | ||||||||
Exhibit No. 99.1
News Release 
CMC REPORTS SECOND QUARTER OF FISCAL 2026 RESULTS
•Second quarter net earnings of $93.0 million, or $0.83 per diluted share and adjusted earnings of $130.1 million, or $1.16 per diluted share
•Consolidated core EBITDA of $297.5 million in the second quarter grew by approximately 114% year-over-year due to solid execution including strong momentum in TAG, favorable market conditions, and the benefit of the newly acquired precast business
•Core EBITDA margin of 14.0% increased by 610 basis points compared to the prior year period
•Adjusted EBITDA margins for the North America Steel Group and the Construction Solutions Group reached 16.8% and 17.0%, respectively; current booking and backlog levels support a strong 2026 construction season outlook
•Construction Solutions' recently acquired precast platform generated $33.6 million of adjusted EBITDA during the quarter, or $40.3 million excluding a purchase accounting charge of $6.7 million
•Precast integrations are progressing well, supporting continued confidence in expected business performance and synergies
•Reduced net leverage during the quarter; remain confident in achieving our goal of 2x within the previously committed timeframe
Irving, TX - March 26, 2026 - CMC (NYSE: CMC) (the "Company") today announced financial results for its fiscal second quarter ended February 28, 2026.
Peter Matt, President and Chief Executive Officer, commented, "The CMC team delivered another strong quarter, driving a more than two-fold increase in core EBITDA compared to a year ago. These impressive results reflect continued execution of our strategy, underpinned by additional efficiency gains from our enterprise-wide Transform, Advance, Grow ("TAG") program and meaningful contributions from our recently acquired precast platform. While weather disruptions temporarily impacted much of our North American footprint during the quarter, we were encouraged by the favorable underlying market conditions across our segments. Overall, our strong second quarter results demonstrate continued progress toward our goal of meaningfully and sustainably enhancing CMC's financial profile and earnings power, and we believe there is much more runway ahead."
Mr. Matt added, "The second quarter marked CMC's entry into the precast concrete business following the close of both the Concrete Pipe and Precast, LLC ("CP&P") and Foley Products Company, LLC ("Foley") acquisitions in December. Integration is advancing well and remains on schedule, supported by the cultural fit and the high quality of the teams engaged across the companies. While it has only been a few months, we are encouraged by what we have seen within our new precast platform, including a strong customer value proposition, good operational and commercial capabilities, attractive industry fundamentals, and solid synergy opportunity, all of which support our investment thesis."
(CMC Second Quarter Fiscal 2026 - 2)
Second quarter net earnings were $93.0 million, or $0.83 per diluted share, on net sales of $2.1 billion, compared to prior year period net earnings of $25.5 million, or $0.22 per diluted share, on net sales of $1.8 billion.
During the second quarter of fiscal 2026, the Company recorded net after-tax charges of $37.1 million, related primarily to the acquisitions of Foley and CP&P, as well as interest expense on the judgment amount associated with the previously disclosed litigation. These charges were offset in part by an unrealized gain on undesignated commodity hedges. Net earnings recorded for the prior year period included net after-tax charges of $10.3 million related to an unrealized loss on undesignated commodity hedges and interest expense on the judgment amount of the aforementioned litigation. Excluding these charges in both periods, second quarter adjusted earnings were $130.1 million, or $1.16 per diluted share, compared to adjusted earnings of $35.8 million, or $0.31 per diluted share, in the prior year period. "Adjusted EBITDA," "core EBITDA," "core EBITDA margin," "adjusted earnings" and "adjusted earnings per diluted share" are non-GAAP financial measures. Details, including a reconciliation of each such non-GAAP financial measure to the most directly comparable measure prepared and presented in accordance with GAAP, can be found in the financial tables that follow.
As of February 28, 2026, cash, cash equivalents and restricted cash totaled $503.6 million and available liquidity was over $1.7 billion. During the quarter, CMC repurchased 249,154 shares of common stock valued at $18.3 million in the aggregate. As of February 28, 2026, $147.8 million remained available under the current share repurchase authorization.
On March 25, 2026, the board of directors approved an increase of $0.02 per share to CMC's quarterly dividend payment and declared a quarterly dividend of $0.20 per share of CMC common stock payable to stockholders of record on April 6, 2026. The dividend, to be paid on April 15, 2026, will represent an 11% increase from the prior quarterly dividend level and marks the 246th consecutive quarterly payment by the Company.
(CMC Second Quarter Fiscal 2026 - 3)
Business Segments - Fiscal Second Quarter 2026 Review
North America Steel Group product shipments remained stable during the quarter with average daily volumes of finished steel products virtually unchanged from the prior year period. On a sequential basis, average daily volumes decreased by 8.2%, in-line with historical seasonal patterns. The pipeline of potential future construction projects remains healthy as indicated by CMC’s downstream bidding activity, customer commentary related to upcoming project opportunities, and the elevated level of the Dodge Momentum Index, which measures the value of projects entering the planning phase. Downstream backlog volumes increased slightly relative to the prior year period, reaching the highest level since the third quarter of fiscal 2023. Contract awards were solid across several growing construction segments, including data centers, energy, institutional, and public works. CMC's downstream shipment volumes increased compared to the prior year period despite continued commercial selectivity aimed at ensuring all new projects meet minimum margin thresholds related to the service capabilities provided. This disciplined approach helped drive the first year-over-year increase in average backlog price in nearly three years.
Margins on steel products were relatively stable on a sequential basis. Compared to the first quarter of fiscal 2026, the average selling price for steel products improved by $35 per ton, while scrap costs were up $33 per ton. CMC's average selling price for steel products increased by $160 per ton on a year-over-year basis, while scrap costs were up only $13 per ton.
Adjusted EBITDA for the North America Steel Group increased 96.9% to $269.7 million in the second quarter of fiscal 2026 from $137.0 million in the prior year period, driven by higher margins over scrap costs on steel products as well as solid execution and positive contributions from CMC’s TAG program. Segment profitability during the quarter was negatively impacted by approximately $5 million to $10 million due to weather disruptions that reduced production and temporarily increased energy costs. Adjusted EBITDA margin for the North America Steel Group was 16.8%, up from 9.9% in the second quarter of fiscal 2025.
Construction Solutions Group ("CSG") second quarter net sales of $314.4 million increased by 97.9% compared to the prior year period, while adjusted EBITDA of $53.4 million was up 127.1% year-over-year. Growth in net sales and profitability was driven by the addition of CMC's precast platform, which contributed $33.6 million to segment adjusted EBITDA during the quarter. Excluding a one-time purchase accounting adjustment of $6.7 million, the newly established precast platform generated $40.3 million of EBITDA, reflecting three months of performance for CP&P and two and a half months for Foley. Precast shipments were solid during the quarter despite some delays related to inclement weather. The value in backlog ended the quarter up by a high single-digit percentage compared to the prior year period, indicating a good volume outlook for the spring and summer construction season. Tensar financial performance remained stable in its seasonally weakest quarter. Financial results for CMC's Construction Services division improved on a year-over-year basis, driven by strategic initiatives to increase store traffic, add new accounts, and optimally price in-store merchandise. Adjusted EBITDA at CMC's
(CMC Second Quarter Fiscal 2026 - 4)
Performance Reinforcing Steel division declined compared to the prior year period due to project timing. Indications of future market conditions within CSG remained encouraging with backlogs and quoting activity at healthy levels. Adjusted EBITDA margin of 17.0% improved 2.2 percentage points relative to the prior year period. The inclusion of CMC's precast business was 5.3 percentage points accretive to CSG's adjusted EBITDA margin during the quarter, and would have been accretive by 7.4 percentage points excluding the purchase accounting effect on inventory.
Market conditions for the Europe Steel Group were mixed during the quarter. Demand for merchant bar remained resilient, while the large quantity of rebar imported ahead of the Europe Carbon Border Adjustment Mechanism ("CBAM") implementation on January 1, 2026, temporarily dampened demand for domestic material. Despite this overhang, the average selling price for CMC's steel products increased by $21 per ton compared to the first quarter of fiscal 2026 in anticipation of CBAM's eventual supportive impact. Price levels for merchant bar and wire rod also improved on a sequential basis, leading to the Europe Steel Group achieving its highest total steel products average selling price in six quarters. Metal margin increased by $10 per ton sequentially in the second quarter, as a $21 per ton rise in average selling price was only partially offset by a seasonal uptick in scrap costs of $11 per ton.
The adjusted EBITDA loss for the Europe Steel Group of $1.4 million in the second quarter of fiscal 2026 was down from a profit of $0.8 million in the prior year period, while adjusted EBITDA margin of (0.7%) decreased from 0.4% over the comparable period. The year-over-year decline was driven by lower shipments and related diminished fixed cost leverage.
Outlook
Mr. Matt said, "We expect consolidated core EBITDA in the third quarter of fiscal 2026 to increase meaningfully from second quarter levels due to normal seasonal improvement within our key markets and continued margin strength across our North American footprint. North America Steel Group adjusted EBITDA is anticipated to rise modestly on a sequential basis on higher seasonal volumes, the impact of which will be partially offset by annual maintenance outages across the mill network that are expected to add approximately $15 million to $20 million in costs during the quarter. Financial results for the Construction Solutions Group are expected to nearly double compared to the second quarter of fiscal 2026. Europe Steel Group adjusted EBITDA should improve substantially on higher seasonal volumes, modestly improved metal margins, and the anticipated receipt of an approximately $20 million CO2 credit. In our U.S. market, we have not yet experienced any direct impact from the war in Iran, but continue to closely monitor the situation for potential demand disruptions or cost inflation. Energy costs in Europe have risen, though the magnitude of the financial effect will depend on the duration of the conflict."
Mr. Matt added, "CMC is well-positioned to drive further growth during the second half of fiscal 2026. Solid market dynamics, additional benefits from our TAG program, and effective operational execution are
(CMC Second Quarter Fiscal 2026 - 5)
generating momentum in CMC's legacy businesses, which will be supplemented by significant contributions from our newly established precast platform. For the full fiscal year, we continue to anticipate the precast business will generate between $165 million and $175 million in EBITDA. Longer-term, we remain focused on creating significant value for our shareholders by continuing to execute against our strategic plan, delivering meaningful and sustained enhancements to our margins, earnings, cash flow generation, and return on capital."
Conference Call
CMC invites you to listen to a live broadcast of its second quarter fiscal 2026 conference call today, Thursday, March 26, 2026 at 11:00 a.m. ET. Peter Matt, President and Chief Executive Officer, and Paul Lawrence, Senior Vice President and Chief Financial Officer, will host the call. The call is accessible via our website at www.cmc.com. In the event you are unable to listen to the live broadcast, the call will be archived and available for replay on our website on the next business day. Financial and statistical information presented in the broadcast are located on CMC's website under "Investors."
About CMC
CMC is a Fortune 500 company headquartered in Irving, Texas, and a leading provider of early-stage construction solutions that support the foundational phases of modern infrastructure and building projects. Founded in 1915, CMC has grown from a single-site recycling operation to one of the largest U.S. manufacturers of steel reinforcing bar ("rebar"), a leading producer of subgrade soil stabilization and foundation enhancement solutions and a major supplier of concrete pipe and precast products.
Through an extensive manufacturing network primarily located in the United States and Central Europe, with strategic operations in the United Kingdom, Europe and Asia, CMC serves infrastructure, non-residential, residential, industrial and energy markets. While often unseen, CMC’s products are essential to highways, bridges, airports, commercial buildings and other critical structures that support everyday life.
Through an extensive manufacturing network primarily located in the United States and Central Europe, with strategic operations in the United Kingdom, Europe and Asia, CMC serves infrastructure, non-residential, residential, industrial and energy markets. While often unseen, CMC’s products are essential to highways, bridges, airports, commercial buildings and other critical structures that support everyday life.
(CMC Second Quarter Fiscal 2026 - 6)
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws with respect to the expected performance of our recently acquired precast platform, general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade actions, the effects of continued pressure on the liquidity of our customers, potential synergies and growth provided by acquisitions and strategic investments, demand for our products, shipment volumes, metal margins, the ability to operate our steel mills at full capacity, particularly during periods of domestic mill start-ups, the future availability and cost of supplies of raw materials and energy for our operations, growth rates in certain reportable segments, product margins within our Construction Solutions Group segment, share repurchases, legal proceedings, construction activity, international trade, the impact of geopolitical conditions, capital expenditures, tax credits, our liquidity and our ability to satisfy future liquidity requirements, estimated contractual obligations, the expected capabilities and benefits of new facilities, the anticipated benefits and timeline for execution of our growth plan and initiatives, including our TAG operational and commercial excellence program, and our expectations or beliefs concerning future events. The statements in this release that are not historical statements, are forward-looking statements. These forward-looking statements can generally be identified by phrases such as we or our management "expects," "anticipates," "believes," "estimates," "future," "intends," "may," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "forecasts," "outlook" or other similar words or phrases, as well as by discussions of strategy, plans or intentions.
The Company's forward-looking statements are based on management’s expectations and beliefs as of the time this news release was prepared. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in our filings with the Securities and Exchange Commission, including, but not limited to, in Part I, Item 1A, "Risk Factors" of our annual report on Form 10-K for the fiscal year ended August 31, 2025, as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of downstream contracts within our vertically integrated steel operations due to rising commodity pricing; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; the impact of additional steelmaking capacity expected to come online from a number of ongoing electric arc furnace projects in the U.S.; the impact of geopolitical conditions, including political turmoil and volatility, regional conflicts, terrorism and war on the global economy, inflation, energy supplies and raw materials; increased attention to environmental, social and governance ("ESG") matters, including any targets or other ESG, environmental justice or regulatory initiatives; operating and startup risks, as well as market risks associated with the commissioning of new projects could prevent us from realizing anticipated
(CMC Second Quarter Fiscal 2026 - 7)
benefits and could result in a loss of all or a substantial part of our investments; impacts from global public health crises on the economy, demand for our products, global supply chain and on our operations; compliance with and changes in existing and future laws, regulations and other legal requirements and judicial decisions that govern our business, including increased environmental regulations associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; evolving remediation technology, changing regulations, possible third-party contributions, the inherent uncertainties of the estimation process and other factors that may impact amounts accrued for environmental liabilities; potential limitations in our or our customers' abilities to access credit and non-compliance with their contractual obligations, including payment obligations; activity in repurchasing shares of our common stock under our share repurchase program; financial and non-financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate and integrate acquisitions and realize any or all of the anticipated synergies or other benefits of acquisitions; the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third-party consents and approvals; lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; the impact of goodwill or other indefinite-lived intangible asset impairment charges; the impact of long-lived asset impairment charges; currency fluctuations; global factors, such as trade measures, military conflicts and political uncertainties, including changes to current trade regulations, such as Section 232 trade tariffs and quotas, tax legislation and other regulations which might adversely impact our business; availability and pricing of electricity, electrodes and natural gas for mill operations; our ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; our ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks, including those related to the Pacific Steel Group litigation and other legal proceedings; risk of injury or death to employees, customers or other visitors to our operations; and civil unrest, protests and riots.
(CMC Second Quarter Fiscal 2026 - 8)
| COMMERCIAL METALS COMPANY AND SUBSIDIARIES FINANCIAL & OPERATING STATISTICS (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| (in thousands, except per ton amounts) | 2/28/2026 | 11/30/2025 | 8/31/2025 | 5/31/2025 | 2/28/2025 | 2/28/2026 | 2/28/2025 | |||||||||||||||||||||||||||||||||||||
| North America Steel Group | ||||||||||||||||||||||||||||||||||||||||||||
| Net sales to external customers | $ | 1,608,321 | $ | 1,661,058 | $ | 1,616,078 | $ | 1,562,286 | $ | 1,386,848 | $ | 3,269,379 | $ | 2,905,485 | ||||||||||||||||||||||||||||||
| Adjusted EBITDA | 269,674 | 293,906 | 239,416 | 179,936 | 136,954 | 563,580 | 323,133 | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA margin | 16.8% | 17.7% | 14.8% | 11.5% | 9.9% | 17.2% | 11.1% | |||||||||||||||||||||||||||||||||||||
| External tons shipped | ||||||||||||||||||||||||||||||||||||||||||||
| Raw materials | 358 | 384 | 374 | 385 | 312 | 742 | 651 | |||||||||||||||||||||||||||||||||||||
| Rebar | 481 | 544 | 544 | 534 | 503 | 1,025 | 1,052 | |||||||||||||||||||||||||||||||||||||
| Merchant bar and other | 235 | 251 | 244 | 264 | 243 | 486 | 484 | |||||||||||||||||||||||||||||||||||||
| Steel products | 716 | 795 | 788 | 798 | 746 | 1,511 | 1,536 | |||||||||||||||||||||||||||||||||||||
| Downstream products | 335 | 350 | 366 | 355 | 298 | 685 | 654 | |||||||||||||||||||||||||||||||||||||
| Average selling price per ton | ||||||||||||||||||||||||||||||||||||||||||||
| Raw materials | $ | 985 | $ | 900 | $ | 881 | $ | 809 | $ | 956 | $ | 943 | $ | 913 | ||||||||||||||||||||||||||||||
| Steel products | 974 | 939 | 882 | 859 | 814 | 957 | 813 | |||||||||||||||||||||||||||||||||||||
| Downstream products | 1,242 | 1,236 | 1,214 | 1,212 | 1,221 | 1,239 | 1,242 | |||||||||||||||||||||||||||||||||||||
| Cost of raw materials per ton | $ | 741 | $ | 648 | $ | 649 | $ | 617 | $ | 713 | $ | 694 | $ | 695 | ||||||||||||||||||||||||||||||
| Cost of ferrous scrap utilized per ton | $ | 351 | $ | 318 | $ | 314 | $ | 360 | $ | 338 | $ | 334 | $ | 330 | ||||||||||||||||||||||||||||||
| Steel products metal margin per ton | $ | 623 | $ | 621 | $ | 568 | $ | 499 | $ | 476 | $ | 623 | $ | 483 | ||||||||||||||||||||||||||||||
| Construction Solutions Group | ||||||||||||||||||||||||||||||||||||||||||||
| Net sales to external customers | $ | 314,425 | $ | 198,277 | $ | 221,753 | $ | 197,454 | $ | 158,864 | $ | 512,702 | $ | 328,279 | ||||||||||||||||||||||||||||||
| Adjusted EBITDA | 53,420 | 39,581 | 50,630 | 40,912 | 23,519 | 93,001 | 46,179 | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA margin | 17.0% | 20.0% | 22.8% | 20.7% | 14.8% | 18.1% | 14.1% | |||||||||||||||||||||||||||||||||||||
| Europe Steel Group | ||||||||||||||||||||||||||||||||||||||||||||
| Net sales to external customers | $ | 200,014 | $ | 247,650 | $ | 263,294 | $ | 247,590 | $ | 198,029 | $ | 447,664 | $ | 407,436 | ||||||||||||||||||||||||||||||
| Adjusted EBITDA | (1,428) | 10,929 | 39,098 | 3,593 | 752 | 9,501 | 26,591 | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA margin | (0.7)% | 4.4% | 14.8% | 1.5% | 0.4% | 2.1% | 6.5% | |||||||||||||||||||||||||||||||||||||
| External tons shipped | ||||||||||||||||||||||||||||||||||||||||||||
| Rebar | 69 | 119 | 117 | 88 | 100 | 188 | 207 | |||||||||||||||||||||||||||||||||||||
| Merchant bar and other | 215 | 243 | 257 | 271 | 210 | 458 | 416 | |||||||||||||||||||||||||||||||||||||
| Steel products | 284 | 362 | 374 | 359 | 310 | 646 | 623 | |||||||||||||||||||||||||||||||||||||
| Average selling price per ton | ||||||||||||||||||||||||||||||||||||||||||||
| Steel products | $ | 672 | $ | 651 | $ | 668 | $ | 663 | $ | 612 | $ | 660 | $ | 626 | ||||||||||||||||||||||||||||||
| Cost of ferrous scrap utilized per ton | $ | 356 | $ | 345 | $ | 351 | $ | 370 | $ | 337 | $ | 351 | $ | 353 | ||||||||||||||||||||||||||||||
| Steel products metal margin per ton | $ | 316 | $ | 306 | $ | 317 | $ | 293 | $ | 275 | $ | 309 | $ | 273 | ||||||||||||||||||||||||||||||
(CMC Second Quarter Fiscal 2026 - 9)
| COMMERCIAL METALS COMPANY AND SUBSIDIARIES BUSINESS SEGMENTS (UNAUDITED) | ||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| (in thousands) | 2/28/2026 | 11/30/2025 | 8/31/2025 | 5/31/2025 | 2/28/2025 | 2/28/2026 | 2/28/2025 | |||||||||||||||||||||||||||||||||||||
| Net sales to external customers | ||||||||||||||||||||||||||||||||||||||||||||
| North America Steel Group | $ | 1,608,321 | $ | 1,661,058 | $ | 1,616,078 | $ | 1,562,286 | $ | 1,386,848 | $ | 3,269,379 | $ | 2,905,485 | ||||||||||||||||||||||||||||||
| Construction Solutions Group | 314,425 | 198,277 | 221,753 | 197,454 | 158,864 | 512,702 | 328,279 | |||||||||||||||||||||||||||||||||||||
| Europe Steel Group | 200,014 | 247,650 | 263,294 | 247,590 | 198,029 | 447,664 | 407,436 | |||||||||||||||||||||||||||||||||||||
| Corporate and Other | 9,258 | 13,322 | 13,393 | 12,654 | 10,635 | 22,580 | 22,778 | |||||||||||||||||||||||||||||||||||||
| Total net sales to external customers | $ | 2,132,018 | $ | 2,120,307 | $ | 2,114,518 | $ | 2,019,984 | $ | 1,754,376 | $ | 4,252,325 | $ | 3,663,978 | ||||||||||||||||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||||||||||||||||||||||||||
| North America Steel Group | $ | 269,674 | $ | 293,906 | $ | 239,416 | $ | 179,936 | $ | 136,954 | $ | 563,580 | $ | 323,133 | ||||||||||||||||||||||||||||||
| Construction Solutions Group | 53,420 | 39,581 | 50,630 | 40,912 | 23,519 | 93,001 | 46,179 | |||||||||||||||||||||||||||||||||||||
| Europe Steel Group | (1,428) | 10,929 | 39,098 | 3,593 | 752 | 9,501 | 26,591 | |||||||||||||||||||||||||||||||||||||
| Corporate and Other | (70,410) | (55,848) | (50,716) | (36,952) | (34,852) | (126,258) | (421,097) | |||||||||||||||||||||||||||||||||||||
| Total adjusted EBITDA | $ | 251,256 | $ | 288,568 | $ | 278,428 | $ | 187,489 | $ | 126,373 | $ | 539,824 | $ | (25,194) | ||||||||||||||||||||||||||||||
(CMC Second Quarter Fiscal 2026 - 10)
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED) | ||||||||||||||||||||||||||
| Three Months Ended February 28, | Six Months Ended February 28, | |||||||||||||||||||||||||
| (in thousands, except share and per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Net sales | $ | 2,132,018 | $ | 1,754,376 | $ | 4,252,325 | $ | 3,663,978 | ||||||||||||||||||
| Costs and operating expenses: | ||||||||||||||||||||||||||
| Cost of goods sold | 1,744,113 | 1,534,829 | 3,457,282 | 3,136,551 | ||||||||||||||||||||||
| Selling, general and administrative expenses | 233,170 | 167,560 | 428,790 | 345,418 | ||||||||||||||||||||||
| Interest expense | 40,928 | 11,167 | 65,776 | 22,489 | ||||||||||||||||||||||
| Litigation expense | 4,067 | 4,720 | 7,802 | 354,720 | ||||||||||||||||||||||
| Net costs and operating expenses | 2,022,278 | 1,718,276 | 3,959,650 | 3,859,178 | ||||||||||||||||||||||
| Earnings (loss) before income taxes | 109,740 | 36,100 | 292,675 | (195,200) | ||||||||||||||||||||||
| Income tax expense (benefit) | 16,708 | 10,627 | 22,361 | (44,955) | ||||||||||||||||||||||
| Net earnings (loss) | $ | 93,032 | $ | 25,473 | $ | 270,314 | $ | (150,245) | ||||||||||||||||||
Earnings (loss) per share: | ||||||||||||||||||||||||||
| Basic | $ | 0.84 | $ | 0.22 | $ | 2.43 | $ | (1.32) | ||||||||||||||||||
| Diluted | 0.83 | 0.22 | 2.41 | (1.32) | ||||||||||||||||||||||
| Cash dividends per share | $ | 0.18 | $ | 0.18 | $ | 0.36 | $ | 0.36 | ||||||||||||||||||
| Average basic shares outstanding | 110,960,062 | 113,564,436 | 111,014,543 | 113,811,675 | ||||||||||||||||||||||
| Average diluted shares outstanding | 111,917,954 | 114,510,293 | 112,154,279 | 113,811,675 | ||||||||||||||||||||||
(CMC Second Quarter Fiscal 2026 - 11)
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||||||||
| (in thousands, except share and per share data) | February 28, 2026 | August 31, 2025 | ||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 495,036 | $ | 1,043,252 | ||||||||||
| Restricted cash | 8,594 | 2,652 | ||||||||||||
Accounts receivable (less allowance for doubtful accounts of $4,920 and $3,186) | 1,278,653 | 1,201,680 | ||||||||||||
| Inventories, net | 1,143,640 | 934,310 | ||||||||||||
| Prepaid and other current assets | 335,544 | 312,924 | ||||||||||||
| Total current assets | 3,261,467 | 3,494,818 | ||||||||||||
| Property, plant and equipment, net | 3,253,482 | 2,742,773 | ||||||||||||
| Intangible assets, net | 496,011 | 210,815 | ||||||||||||
| Goodwill | 2,134,724 | 386,846 | ||||||||||||
| Other noncurrent assets | 415,909 | 336,582 | ||||||||||||
| Total assets | $ | 9,561,593 | $ | 7,171,834 | ||||||||||
| Liabilities and stockholders' equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable | $ | 456,025 | $ | 358,373 | ||||||||||
| Accrued contingent litigation-related loss | 369,700 | 362,272 | ||||||||||||
| Other accrued expenses and payables | 489,757 | 493,879 | ||||||||||||
| Current maturities of long-term debt | 52,621 | 44,289 | ||||||||||||
| Total current liabilities | 1,368,103 | 1,258,813 | ||||||||||||
| Deferred income taxes | 198,804 | 184,645 | ||||||||||||
| Other noncurrent liabilities | 278,347 | 225,044 | ||||||||||||
| Long-term debt | 3,309,895 | 1,310,006 | ||||||||||||
| Total liabilities | 5,155,149 | 2,978,508 | ||||||||||||
| Stockholders' equity: | ||||||||||||||
Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 110,969,052 and 111,189,136 shares | 1,290 | 1,290 | ||||||||||||
| Additional paid-in capital | 406,703 | 406,916 | ||||||||||||
| Accumulated other comprehensive loss | (7,753) | (25,251) | ||||||||||||
| Retained earnings | 4,737,460 | 4,507,114 | ||||||||||||
Less treasury stock, 18,091,612 and 17,871,528 shares at cost | (731,516) | (697,003) | ||||||||||||
| Stockholders' equity | 4,406,184 | 4,193,066 | ||||||||||||
| Stockholders' equity attributable to non-controlling interests | 260 | 260 | ||||||||||||
| Total stockholders' equity | 4,406,444 | 4,193,326 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 9,561,593 | $ | 7,171,834 | ||||||||||
(CMC Second Quarter Fiscal 2026 - 12)
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||||||||
| Six Months Ended February 28, | ||||||||||||||
| (in thousands) | 2026 | 2025 | ||||||||||||
| Cash flows from (used by) operating activities: | ||||||||||||||
| Net earnings (loss) | $ | 270,314 | $ | (150,245) | ||||||||||
Adjustments to reconcile net earnings (loss) to net cash flows from operating activities: | ||||||||||||||
| Depreciation and amortization | 175,289 | 141,021 | ||||||||||||
| Write-off of committed financing fees | 11,563 | — | ||||||||||||
| Stock-based compensation | 26,042 | 18,270 | ||||||||||||
| Write-down of inventory | 2,818 | 15,735 | ||||||||||||
| Unrealized loss on undesignated commodity hedges | 6,084 | 6,110 | ||||||||||||
| Unrealized loss (gain) on undesignated foreign exchange hedges | 925 | (3,922) | ||||||||||||
| Deferred income taxes and other long-term taxes | 3,402 | (95,090) | ||||||||||||
| Litigation expense | 7,802 | 354,720 | ||||||||||||
| Other | 2,565 | 2,325 | ||||||||||||
| Changes in operating assets and liabilities | (136,348) | (43,459) | ||||||||||||
Net cash flows from operating activities | 370,456 | 245,465 | ||||||||||||
| Cash flows from (used by) investing activities: | ||||||||||||||
| Acquisitions, net of cash acquired | (2,516,079) | — | ||||||||||||
| Capital expenditures | (248,132) | (204,454) | ||||||||||||
| Proceeds from government assistance related to property, plant and equipment | — | 25,000 | ||||||||||||
| Proceeds from the sale of property, plant and equipment | 2,179 | 5,270 | ||||||||||||
| Proceeds from insurance | 8,466 | — | ||||||||||||
| Other | (890) | (960) | ||||||||||||
Net cash flows used by investing activities | (2,754,456) | (175,144) | ||||||||||||
| Cash flows from (used by) financing activities: | ||||||||||||||
| Proceeds from issuance of long-term debt | 1,985,000 | — | ||||||||||||
| Repayments of long-term debt | (21,207) | (20,241) | ||||||||||||
| Debt issuance costs | (8,476) | (38) | ||||||||||||
| Committed financing fees | (11,563) | — | ||||||||||||
| Proceeds from accounts receivable facilities | 1,919 | 13,303 | ||||||||||||
| Repayments under accounts receivable facilities | (1,919) | (13,303) | ||||||||||||
| Treasury stock acquired | (57,203) | (98,433) | ||||||||||||
| Tax withholdings related to share settlements, net of purchase plans | (5,693) | (10,256) | ||||||||||||
| Dividends | (39,968) | (40,981) | ||||||||||||
Net cash flows from (used by) financing activities | 1,840,890 | (169,949) | ||||||||||||
| Effect of exchange rate changes on cash | 836 | (501) | ||||||||||||
Decrease in cash and cash equivalents | (542,274) | (100,129) | ||||||||||||
| Cash, restricted cash and cash equivalents at beginning of period | 1,045,904 | 859,555 | ||||||||||||
| Cash, restricted cash and cash equivalents at end of period | $ | 503,630 | $ | 759,426 | ||||||||||
(CMC Second Quarter Fiscal 2026 - 13)
COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
This press release contains financial measures not derived in accordance with U.S. generally accepted accounting principles ("GAAP"). Reconciliations to the most comparable GAAP measure are provided below.
Adjusted EBITDA, core EBITDA, core EBITDA margin and adjusted earnings are non-GAAP financial measures. Adjusted earnings per diluted share is defined as adjusted earnings on a diluted per share basis. Core EBITDA margin is defined as core EBITDA divided by net sales. The adjustment "Settlement of New Markets Tax Credit transactions" represents the recognition of deferred revenue from 2016 and 2017 resulting from the Company’s participation in the New Markets Tax Credit program provided for in the Community Renewal Tax Relief Act of 2000 during the development of a micro mill, spooler and T-post shop located in eligible zones as determined by the Internal Revenue Service. The adjustment "Litigation expense" represents a provision recorded in the three months ended November 30, 2024 related to the judgment in the Pacific Steel Group litigation and, with respect to subsequent periods, primarily represents interest expense on the judgment amount. The adjustments “Acquisition and integration related costs” and "Acquisition, integration and financing related costs" represent nonrecurring fees associated with the Foley and CP&P acquisitions. The adjustment "Purchase accounting effect on inventory" represents a one time fair value adjustment on inventory associated with the Foley and CP&P acquisitions. The adjustment "Amortization of acquired contract backlog" represents the amortization of the intangible contract backlog from the Foley and CP&P acquisitions.
Non-GAAP financial measures should be viewed in addition to, and not as alternatives to, the most directly comparable measures derived in accordance with GAAP and may not be comparable to similar measures presented by other companies. However, we believe that the non-GAAP financial measures provide relevant and useful information to management, investors, analysts, creditors and other interested parties in our industry as they allow: (i) comparison of our earnings to those of our competitors; (ii) a supplemental measure of our underlying business operational performance; and (iii) the assessment of period-to-period performance trends. Management uses non-GAAP financial measures to evaluate financial performance. We have not reconciled the forward-looking estimates of TAG-related EBITDA benefits to comparable GAAP measures because applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding, and the potential variability of metal margins, U.S. trade policy, cost levels of key production inputs, construction activity and related product demand, etc. Accordingly, reconciliations of the forward-looking estimates of TAG-related EBITDA benefits to net earnings are not available at this time without unreasonable effort.
(CMC Second Quarter Fiscal 2026 - 14)
A reconciliation of net earnings (loss) to adjusted EBITDA and core EBITDA is provided below:
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| (in thousands) | 2/28/2026 | 11/30/2025 | 8/31/2025 | 5/31/2025 | 2/28/2025 | 2/28/2026 | 2/28/2025 | |||||||||||||||||||||||||||||||||||||
| Net earnings (loss) | $ | 93,032 | $ | 177,282 | $ | 151,781 | $ | 83,126 | $ | 25,473 | $ | 270,314 | $ | (150,245) | ||||||||||||||||||||||||||||||
| Interest expense | 40,928 | 24,848 | 12,145 | 10,864 | 11,167 | 65,776 | 22,489 | |||||||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 16,708 | 5,653 | 41,452 | 26,386 | 10,627 | 22,361 | (44,955) | |||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 102,567 | 72,722 | 72,480 | 72,376 | 70,584 | 175,289 | 141,021 | |||||||||||||||||||||||||||||||||||||
| Asset impairments | — | — | 3,436 | 785 | 386 | — | 386 | |||||||||||||||||||||||||||||||||||||
| Unrealized (gain) loss on undesignated commodity hedges | (1,979) | 8,063 | (2,866) | (6,048) | 8,136 | 6,084 | 6,110 | |||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA | 251,256 | 288,568 | 278,428 | 187,489 | 126,373 | 539,824 | (25,194) | |||||||||||||||||||||||||||||||||||||
| Non-cash equity compensation | 14,806 | 11,236 | 9,237 | 9,546 | 8,038 | 26,042 | 18,270 | |||||||||||||||||||||||||||||||||||||
| Settlement of New Markets Tax Credit transactions | — | — | — | (2,786) | — | — | — | |||||||||||||||||||||||||||||||||||||
| Litigation expense | 4,067 | 3,735 | 3,776 | 3,776 | 4,720 | 7,802 | 354,720 | |||||||||||||||||||||||||||||||||||||
| Acquisition and integration related costs | 20,605 | 13,379 | — | — | — | 33,984 | — | |||||||||||||||||||||||||||||||||||||
| Purchase accounting effect on inventory | 6,739 | — | — | — | — | 6,739 | — | |||||||||||||||||||||||||||||||||||||
| Core EBITDA | $ | 297,473 | $ | 316,918 | $ | 291,441 | $ | 198,025 | $ | 139,131 | $ | 614,391 | $ | 347,796 | ||||||||||||||||||||||||||||||
| Net sales | $ | 2,132,018 | $ | 2,120,307 | $ | 2,114,518 | $ | 2,019,984 | $ | 1,754,376 | $ | 4,252,325 | $ | 3,663,978 | ||||||||||||||||||||||||||||||
| Core EBITDA margin | 14.0% | 14.9% | 13.8% | 9.8% | 7.9% | 14.4% | 9.5% | |||||||||||||||||||||||||||||||||||||
A reconciliation of net earnings (loss) to adjusted earnings is provided below:
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||||||||
| (in thousands, except per share data) | 2/28/2026 | 11/30/2025 | 8/31/2025 | 5/31/2025 | 2/28/2025 | 2/28/2026 | 2/28/2025 | |||||||||||||||||||||||||||||||||||||
| Net earnings (loss) | $ | 93,032 | $ | 177,282 | $ | 151,781 | $ | 83,126 | $ | 25,473 | $ | 270,314 | $ | (150,245) | ||||||||||||||||||||||||||||||
| Asset impairments | — | — | 3,436 | 785 | 386 | — | 386 | |||||||||||||||||||||||||||||||||||||
| Settlement of New Markets Tax Credit transactions | — | — | — | (2,786) | — | — | — | |||||||||||||||||||||||||||||||||||||
| Litigation expense | 4,067 | 3,735 | 3,776 | 3,776 | 4,720 | 7,802 | 354,720 | |||||||||||||||||||||||||||||||||||||
| Unrealized (gain) loss on undesignated commodity hedges | (1,979) | 8,063 | (2,866) | (6,048) | 8,136 | 6,084 | 6,110 | |||||||||||||||||||||||||||||||||||||
| Acquisition, integration and financing related costs | 20,605 | 24,942 | — | — | — | 45,547 | — | |||||||||||||||||||||||||||||||||||||
| Amortization of acquired contract backlog | 17,729 | — | — | — | — | 17,729 | — | |||||||||||||||||||||||||||||||||||||
| Purchase accounting effect on inventory | 6,739 | — | — | — | — | 6,739 | — | |||||||||||||||||||||||||||||||||||||
| Total adjustments (pre-tax) | $ | 47,161 | $ | 36,740 | $ | 4,346 | $ | (4,273) | $ | 13,242 | $ | 83,901 | $ | 361,216 | ||||||||||||||||||||||||||||||
| Related tax effects on adjustments | (10,046) | (7,846) | (1,162) | 765 | (2,946) | (17,892) | (88,271) | |||||||||||||||||||||||||||||||||||||
| Adjusted earnings | $ | 130,147 | $ | 206,176 | $ | 154,965 | $ | 79,618 | $ | 35,769 | $ | 336,323 | $ | 122,700 | ||||||||||||||||||||||||||||||
| Net earnings (loss) per diluted share | $ | 0.83 | $ | 1.58 | $ | 1.35 | $ | 0.73 | $ | 0.22 | $ | 2.41 | $ | (1.32) | ||||||||||||||||||||||||||||||
| Adjusted earnings per diluted share | $ | 1.16 | $ | 1.84 | $ | 1.37 | $ | 0.70 | $ | 0.31 | $ | 3.00 | $ | 1.08 | ||||||||||||||||||||||||||||||
Media Contact:
Susan Gerber
(214) 689-4300
Q2 FY 2026 Supplemental Slides
1Q2 FY26 Supplemental Slides March 26, 2026 This presentation contains forward-looking statements within the meaning of the federal securities laws with respect to the expected benefits of the recent acquisitions of Concrete Pipe & Precast (“CP&P”) and Foley Products Company (“Foley”), general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade actions, the effects of continued pressure on the liquidity of our customers, potential synergies and growth provided by acquisitions and strategic investments, the performance of the precast business, demand for our products, shipment volumes, metal margins, the ability to operate our steel mills at full capacity particularly during periods of domestic mill start-ups, future availability and cost of supplies of raw materials and energy for our operations, growth rates in certain reportable segments, product margins within our Construction Solutions Group segment, share repurchases, legal proceedings, construction activity, international trade, the impact of geopolitical conditions, capital expenditures, tax credits, our liquidity and our ability to satisfy future liquidity requirements, estimated contractual obligations, the expected capabilities and benefits of new facilities, anticipated benefits and the timeline for execution of our growth plan and initiatives, including our Transform, Advance and Grow (“TAG”) operational and commercial excellence program, and our expectations or beliefs concerning future events. The statements in this presentation that are not historical statements, are forward-looking statements. These forward-looking statements can generally be identified by phrases such as we or our management “expects,” “anticipates,” “believes,” “estimates,” “future,” “intends,” “may,” “plans to,” “ought,” “could,” “will,” “should,” “likely,” “appears,” “projects,” “forecasts,” “outlook” or other similar words or phrases, as well as by discussions of strategy, plans or intentions. Our forward-looking statements are based on management’s expectations and beliefs as of the date of this presentation. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in our filings with the Securities and Exchange Commission, including, but not limited to, in Part I, Item 1A, “Risk Factors” of our annual report on Form 10-K for the fiscal year ended August 31, 2025, as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of downstream contracts within our vertically integrated steel operations due to rising commodity pricing; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; the impact of additional steelmaking capacity expected to come online from a number of electric arc furnace projects in the U.S.; the impact of geopolitical conditions, including political turmoil and volatility, regional conflicts, terrorism and war on the global economy, inflation, energy supplies and raw materials; increased attention to environmental, social and governance (“ESG”) matters, including any targets or other ESG, environmental justice or regulatory initiatives; operating and startup risks, as well as market risks associated with the commissioning of new projects could prevent us from realizing anticipated benefits and could result in a loss of all or a substantial part of our investments; impacts from global public health crises on the economy, demand for our products, global supply chain and on our operations; compliance with and changes in existing and future laws, regulations and other legal requirements and judicial decisions that govern our business, including increased environmental regulations associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; evolving remediation technology, changing regulations, possible third-party contributions, the inherent uncertainties of the estimation process and other factors that may impact amounts accrued for environmental liabilities; potential limitations in our or our customers' abilities to access credit and non-compliance with their contractual obligations, including payment obligations; activity in repurchasing shares of our common stock under our share repurchase program; financial and non-financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate and integrate acquisitions and realize any or all of the anticipated synergies or other benefits of acquisitions; the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third-party consents and approvals; lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; the impact of goodwill or other indefinite-lived intangible asset impairment charges; the impact of long-lived asset impairment charges; currency fluctuations; global factors, such as trade measures, military conflicts and political uncertainties, including changes to current trade regulations, such as Section 232 trade tariffs and quotas, tax legislation and other regulations which might adversely impact our business; availability and pricing of electricity, electrodes and natural gas for mill operations; our ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; our ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks, including risks related to the unfavorable judgment against us in the Pacific Steel Group (“PSG”) litigation; risk of injury or death to employees, customers or other visitors to our operations; and civil unrest, protests and riots. This presentation includes illustrative financial information that gives effect to the consummation of the CP&P and Foley acquisitions. This information is presented for illustrative purposes only and is based on available information and certain assumptions and estimates that we believe are reasonable. The illustrative combined company financial information presented herein has not been prepared and presented in accordance with the requirements of Regulation S-X. The assumptions and estimates underlying the combined company financial information are inherently uncertain and are subject to a variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the illustrative financial information, including the risks and uncertainties described above. The illustrative combined company financial information may not necessarily reflect what our results of operations and financial position would have been had the transactions occurred during the periods discussed or what our results of operations and financial position will be in the future. The Company’s auditors have not audited, reviewed, compiled or performed any procedures with respect to the illustrative combined company financial information. Forward-Looking Statements
2 A Market Leader with a Winning Formula CMC is charting the course for improved profitability. Starting from a position of competitive strength, we see durable structural tailwinds in our core North American construction markets and meaningful opportunities for margin growth. Strong Competitive Position Solid Momentum Supported by Exposure to Attractive End Markets Game Changing Strategy to Create Value One of the leading domestic market positions in each of CMC’s major product offerings1 Density in high-growth Sunbelt region Track record of strong financial stewardship; with clear path to deleveraging • Rebar • Fabricated Rebar • Merchant bar • Fence posts • Specialty reinforcing steel • Precast concrete • Geogrid • Anchor cages • Aggregate Piers • Recycled metals Powerful, long-term structural demand trends Strong public infrastructure spending; 60%2 of the Infrastructure Investment and Jobs Act (“IIJA”) remaining to be spent Robust pipeline of construction projects with pent-up demand building Historically strong margins $150 billion3 early-stage construction market to accommodate future growth aspirations • Infrastructure investment • Re-shoring of manufacturing • Energy generation and transmission • Addressing U.S. housing shortage • AI infrastructure • Positive demographics in Sunbelt Focus on value generation for shareholders regardless of market environment Targeting permanent enhancements to financial profile, including: Higher, more stable margins and earnings Cash flows with reduced capital intensity Higher ROICs Q2 FY26 Supplemental Slides March 26, 2026 Demonstrated capability with our Transform, Advance, Grow ("TAG") program, with more to come High return organic growth projects in pipeline Entry into precast market via acquisitions provides growth that complements CMC’s product offering and increases value add Balanced capital allocation framework [1] Based on company estimates [2] IIJA funding status as of December 31, 2025 per U.S. Department of Transportation [3] Company estimate based on revenue data from 2022 Economic Census for in-scope products and services [4] Based on Dodge construction start data for 2021 to 2025 Growth in total annual construction starts within Sunbelt states has outpaced the rest of the U.S. by 2.2 percentage points over the last 5 years4 Non-building and non-residential starts have grown 6.1 percentage points faster4
3 Path to Creating Shareholder Value: Running and Growing a Great Business Q2 FY26 Supplemental Slides March 26, 2026 We are aiming for a new level of performance by getting more out of our existing business while investing in value enhancing capabilities Investing in Our People & Pursuing Excellence Value Accretive Organic Growth Capability Enhancing Inorganic Growth 1 2 3 Focus on the safety of our people and building a world-class team Execute operational and commercial excellence (TAG program) initiatives that drive margin improvement across the enterprise Achieve sustainably higher, less volatile, through-the-cycle margins Commission our newest micro mill project to complete our flexible operating network Invest in automation and process efficiency solutions, including supporting operational and commercial excellence efforts Invest to support growth in high margin proprietary solutions (e.g., geogrids, proprietary reinforcing steel, precast) Open large and scalable new growth lanes in $150 billion1 early-stage construction market Broaden CMC’s portfolio, improve value proposition, and strengthen existing business through expansion of early-stage construction solutions [1] Company estimate based on revenue data from 2022 Economic Census for in-scope products and services
4 [1] We have not reconciled the forward-looking estimates of TAG-related EBITDA benefits to comparable GAAP measures because applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding, and the potential variability of metal margins, U.S. trade policy, cost levels of key production inputs, construction activity and related product demand, etc. Accordingly, reconciliations of the forward-looking estimates of TAG-related EBITDA benefits to net earnings are not available at this time without unreasonable effort. Benefit estimates are based on the value of changes to key margin, cost, or efficiency drivers achieved through the TAG program as compared to a baseline fiscal 2024 starting point. [2] Net leverage, consolidated adjusted EBITDA, adjusted earnings, core EBITDA, and core EBITDA margin are non-GAAP financial measures. For definitions and reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures, see the appendix to this document. Executing successfully on strategy to meaningfully enhance CMC’s financial profile Strong strategic execution and favorable market conditions for North America Steel Group continued in Q2; current margin and backlog levels support a strong 2026 construction season outlook CMC’s new precast platform contributed $33.6 million to segment adjusted EBITDA; generated $40.3 million of EBITDA excluding purchase accounting adjustments Integration of the precast business is on track; continued confidence in achieving expected business performance and synergies Transform, Advance, and Grow ("TAG") program on course to exit fiscal 2026 at an annualized run-rate EBITDA benefit of $150 million1 Good progress toward reaching net leverage2 target of 2.0x within 18 months of closing CP&P and Foley acquisitions $93.0M Q2 Net Earnings $130.1M Q2 Adjusted Earnings2 $297.5M Q2 Core EBITDA2 14.0% Q2 Core EBITDA Margin2 $18.3M Q2 Share Repurchases Key Takeaways From Today’s Call Q2 FY26 Supplemental Slides March 26, 2026
5 $50M FY25 EBITDA benefit2 Goal: Exit FY 2026 at $150M of annualized EBITDA benefit1,2 Widening execution across the organization Initiatives now underway in each segment and corporate Commercial efforts will be a meaningful value driver Key contributors Execution began in September 2024 Reorganization of NASG to maximize capture of opportunities Initial focus in mill operations and logistics Key contributors Pursuing Excellence: Update on Transform, Advance, Grow (TAG) Program [1] We have not reconciled the forward-looking estimates of TAG-related EBITDA benefits to comparable GAAP measures because applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding, and the potential variability of metal margins, U.S. trade policy, cost levels of key production inputs, construction activity and related product demand, etc. Accordingly, reconciliations of the forward-looking estimates of TAG-related EBITDA benefits to net earnings are not available at this time without unreasonable effort. [2] Benefit estimates are based on the value of changes to key margin, cost, or efficiency drivers achieved through the TAG program as compared to a baseline fiscal 2024 starting point. FY 2024 FY 2025 FY 2026 FY 2027 and Beyond Vision and Investigation Program Execution Launch Maturation Continuous Improvement Culture Ingrained High level vision and road map Workshops with broad involvement from across the organization to validate long-term potential Formation of team to drive program execution and accountability Benefit targets set and communicated for first year of execution FY 2025 programs will continue to mature; benefits will grow Commercial excellence • Better margin capture • Enhanced discipline • Lead sharing across lines of business Operational excellence • Programs extending to every business • Productivity gains • Improved flexibility Support function initiatives • SG&A transformation FY 2026 programs will continue to mature; benefits will grow FY 2025 programs mature, and benefits solidified in standard operations Sustained step-change improvement in CMC margin profile and returns on capital achieved through success of TAG 150+ initiatives completed or in execution across operations, commercial, and support functions Continuous improvement culture firmly entrenched and becomes a value engine for the long-term Enterprise-wide and transformational TAG program aims to drive higher through-the- cycle margins, earnings, cash flows, and ROIC. Limited capital requirements 150+ individual initiatives across operational, commercial, and support functions Creates a fully ingrained continuous improvement culture to drive value long after TAG matures Operational excellence • Melt and mill yields • Alloy usage • Scrap optimization • Logistics
6 Illustrative with Precast Description Manufactured concrete pipe and structures for job-site infrastructure Soil stabilization for road, foundation, and other construction applications Proprietary reinforcing steel products used in critical applications Distribution operations servicing concrete contractors Heat-treated performance steel products Customer Solutions / Brands Tilt-wall, formwork, safety gear, equipment rental; light rebar fabrication Key Customer Groups • Civil engineers • State DOTs • General contractors • Civil engineers • State DOTs • General contractors • State DOTs • General contractors • Distributors • Concrete contractors and installers • Defense OEM • Truck trailer OEM • Equipment OEM Business Drivers • Drive for labor and time savings • Improved quality and scheduling consistency vs. pour-in-place • General construction activity • Increased market penetration • Infrastructure investment • Trend toward lower labor intensity and faster construction • Coastal bridge and highway construction • Port construction and repairs • LNG investments • Construction activity in the South- Central U.S., particularly Texas • Population growth in Texas • Truck and trailer fleet expansion • Defense spending • Construction spending CMC Competitive Advantage Construction Solutions is a Major EBITDA Contributor Q2 FY26 Supplemental Slides March 26, 2026 $155M adjusted EBITDA 19.9% EBITDA margin 15% of segment EBITDA1 CMC Construction Services Tensar CMC Impact Metals Performance Reinforcing Steel Innovation leader Strong value proposition on virtually every project Growing market penetration Scalable platform Leader in most major Texas metro markets Strong customer loyalty Scalable business platform Proprietary solutions for critical applications Strong complement to standard rebar offerings Organically scalable platform High reliability in the most critical applications Strong customer loyalty Proprietary processes TTM Results Before Precast Acquisitions [1] Refers to CSG segment adjusted EBITDA divided by total segment adjusted EBITDA excluding impact of Corporate and Other. This is a non-GAAP measure. See appendix for reconciliation; [2] Illustrative with precast uses the midpoint of precast annualized EBITDA as presented on slide 8 $400M adjusted EBITDA2 26.6% EBITDA margin2 31% of segment EBITDA2 Precast Leading product portfolio Longstanding reputation for quality Strong positions in attractive regional markets Scalable platform CMC is building a unique portfolio of solutions to meet customer needs and address challenges across the early-stage construction landscape
Integration of Precast Businesses on Track Good cultural fit across companies; CP&P and Foley employees excited for opportunity to combine forces Strong management group retained and fully engaged Support function integration on schedule Meaningful early wins − Growth strategies being executed: opportunistic product line expansion and high return investments − Go-to-market approach unified in overlapping geographies − Initial commercial opportunities identified between CMC legacy and precast businesses Learnings to-date support CMC’s precast investment thesis
8 Incremental Annualized EBITDA $240 to $250 million2 Expected Annualized Synergies by End of Year 3 Q2 FY26 Supplemental Slides March 26, 2026 [1] Based on facility count; [2] Approximates expected annual performance at time of acquisitions CMC’s New Precast Growth Platform Produced Strong Results in Q2 $30 to $40 million Facilities 35 States 14 Volumes ~1,750k tons2 Revenue ~$730 million2 EBITDA margin ~34%2 One of the largest precast businesses in the United States1 Industry-leading product portfolio Concentration in high-growth areas of the country Overview of CMC Precast Business Second Quarter Performance and Outlook • Contributed $33.6 million to Construction Solutions Group adjusted EBITDA during the quarter − Generated $40.3 million in EBITDA excluding a one-time purchase accounting adjustment − Reflects financial performance for CP&P since December 1st and performance of Foley Products since December 15th • Average selling price and shipment volumes increased compared to the prior year period − Particular volume strength within the Mid-Atlantic and North Carolina • Value in backlog at the end of Q2 increased by a high single- digit percentage compared to a year ago − Well positioned for upcoming construction season − Several additional large projects expected to be awarded in coming months Precast business expected to contribute approximately $165 million to $175 million to Construction Solutions Group EBITDA in fiscal 2026
9 Low-single digit growth Supportive Outlook for Domestic Construction Q2 FY26 Supplemental Slides March 26, 2026 [1] Source: Dodge Construction Network 2026 Sneak Peak forecast dated January 2026 [2] Based on data from Whitehouse.gov [3] Combined for North America Steel Group and Construction Solutions Group segments [4] Based on analysis from the Brookings Institute and Realtor.com Current activity levels are stable. Several structural catalysts have the potential to meaningfully strengthen domestic construction activity in the quarters and years ahead. Infrastructure Non-residential Low-single digit growth Residential Low-single digit growthCY 2026 Outlook1 • Solid highway construction activity within core CMC states • Growth in non-highway infrastructure, including bridges and airports • New infrastructure projects continue to come to market • LNG activity is strong • Increased customer discussions regarding electrical power generation • Robust data center growth, particularly in Mid-Atlantic and Texas • Institutional construction growing at steady rate • Re-shoring wave yet to fully emerge – some large projects have been awarded • Warehouse construction appears to have troughed; modest rebound expected in 2026 • Slow across most geographies • Multi-family expected to outperform single-family in 2026 What We’re Seeing • Continued revitalization of U.S. infrastructure • Construction of power generation to support data center growth • Continued rapid growth in AI infrastructure • Re-shoring of key industries • Addressing the U.S. housing shortage of 2.5 to 5 million units4Structural Trends Unpinning Growth $2.9 trillion $1.4 trillion Corporate investment programs announced in CY 20252 Of these announcements were aimed at manufacturing investments2 35% to 40% 30% to 35% 20% to 25% % of construction related revenue3
10 CMC is Well Positioned to Serve the Growth in Data Center Construction Q2 FY26 Supplemental Slides March 26, 2026 FABRICATED REBAR Used in foundation mats, columns, walls, as well as structures surrounding the data center MERCHANT BAR Used in ceiling joists, racking, and handrails POST TENSION CABLE Used in foundation mats and parking structures FOUNDATION SUPPORT (GEOPIER) Tensar’s Geopier aggregate piling solution can be used to stabilize the foundation for construction on challenging soils GROUND STABILIZATION (GEOGRID) Tensar’s geogrid product line allows for construction in virtually any soil type ANCHORING SYSTEMS Anchor bolts, cages, and fastener products for use in energy transmission and distribution CMC CONSTRUCTION SERVICES (SITE CONSTRUCTION SUPPLIES and OTHER OFFERINGS) CMC’s Construction Services division provides supplies, forms, tool rentals, and other jobsite solutions used by contractors across construction sites in Texas, Louisiana, and Oklahoma WIRE ROD Input to manufacture structural mesh which is applied in certain concrete reinforcing applications PRECAST CONCRETE Used for dry utility and water access, as well as wastewater removal. Stormwater management is also important Precast concrete 1.1% to 1.4% Fabricated rebar 0.4% to 0.7% Geogrids 0.1% to 0.2% CMC Construction Services ~0.1% Geopier ~0.1% Estimated Consumption Intensity of Certain CMC Solutions1 % of data center construction spend 2x Increase in data center construction spending forecasted from 2025 to 20301 4x Increase in data center construction spending from 2021 to 20251 CMC’s early-stage construction solutions serve the data center segment across a number of applications. In addition to direct exposure to data center construction, CMC’s products are also used in the construction of the power plants and transmission lines that will provide electricity [1] Based on internal analysis; construction spending includes only the site infrastructure, foundation, and structures.
11 Preliminary rulings against Algeria, Bulgaria, Egypt, and Vietnam will apply total duties of 50% to 200% (countervailing PLUS antidumping) Rebar Trade Case Supportive Trade Policy Environment Q2 FY26 Supplemental Slides March 26, 2026 [1] Algeria, Bulgaria, Egypt, and Vietnam [2] Data from International Trade Commission Dataweb service [3] CY refers to calendar year U.S. Market Supply U.S. Imports Imports 11% Domestic Suppliers 89% All Other ~25% USMCA ~25% Trade Case Nations1 ~50% Rebar Market Supply (CY3 2024) U.S. Domestic Market Supply % of Total Imports Into the U.S.2 % of Total Current Tariff Treatment • 50% tariffs on all imports; no exceptions • Anti-dumping and countervailing duties, where applicable, are additive • 50% tariffs on all imports; no exceptions • Largest Mexican exporter to the U.S. is subject to additional 32% anti-dumping duty • 50% tariffs on all imports; no exceptions • Trade case filed with Department of Commerce in June 2025 against Algeria, Bulgaria, Egypt, and Vietnam • Provides durable protection against unfairly traded rebar from four key exporters: Algeria, Bulgaria, Egypt, Vietnam − Initial term of five years, followed by sunset review that could add another five-year term • Duties levied are in addition to Section 232 tariffs • Preliminary rulings have found exporters guilty of violating trade rules; final determinations will be issued during summer 2026 Anti-dumping Countervailing CY 2024 5-Year Peak Algeria 127% 73% 100,908 485,805 Bulgaria 53% n/m 105,241 105,241 Egypt 34% to 53% 30% 226,839 267,983 Vietnam 122% to 131% 1% 62,173 205,100 Preliminary Margins Import Volumes
12 Q2 FY26 Supplemental Slides March 26, 2026 Demand Factors Recent Market Developments • Polish economic growth accelerated in CY 2025 and should maintain momentum in CY 2026 • Residential construction demand to rise on lower mortgage rates (March down 1.5 percentage points vs year ago1) and a growing need for housing • Increased inflows of EU funds and Polish Infrastructure Investment − Expected to support highway, rail, and energy investment programs • Major projects entering market, including nuclear power generation • German proposal to enact €500 billion stimulus package to fund infrastructure − Will also increase defense spending Supply Factors • Carbon Border Adjustment Mechanism took effect on January 1, 2026. Estimated potential to impact cost of some imported long products by over €50 per ton • Trade policy adjustments proposed by the European Commission would reduce tariff-free import quotas by nearly 50%. Import volumes above the quota would be subject to 50% tariffs. Once approved, the new policy would take effect in July 2026 • Some regional capacity temporarily idled Green Shoots Continue to Emerge for Europe Steel Group [1] National Bank of Poland [2] Source: Eurostat 24% 26% 24% 21% 32% 0% 10% 20% 30% 40% 2021 2022 2023 2024 2025 Expected price impact of CBAM yet to be fully realized due to high volumes of imports into EU ahead of January 1 implementation EU Rebar & Billet Imports for Last 3 Months of Year as % of Annual Total2
13 $166 $81 $999 $495 Q2 FY26 Supplemental Slides March 26, 2026 Focused on Deleveraging Following Recent Precast Transactions 2/28 Balance Less: Q2 Actual Plus: Annualized Adjusted Cash and equivalents $495 -- -- $495 Restricted cash 9 -- -- 9 Total Cash 504 -- -- 504 Total Debt 3,3924 -- -- 3,3924 Net Debt1 2,888 -- -- 2,888 L12M adj. EBITDA $1,006 ($34) +$2453 $1,217 Plus: acquisition costs 34 -- -- 34 L12M EBITDA for net leverage $1,040 ($34) +$2453 $1,251 Net Leverage2 2.8x 2.3x Net Leverage Adjusted for Acquisitions (illustrative) The table above adjusts the reported trailing 12-month adjusted EBITDA to fully reflect expected annualized contributions from the recently acquired precast business. CMC is targeting a return to net leverage under 2x within 18 months of closing the Foley acquisition $ millions Available Liquidity Total liquidity over $1.7 billion CMC increased its revolving credit facility by $400 million in December. No balances are currently outstanding and available liquidity is ample CMC has a strong liquidity position to support execution of its strategic goals Cash and cash equivalents Revolving credit facility Polish A/R facility Polish credit facilities Debt Maturity Schedule $ millions Outstanding at 2/28 4.125% Senior Notes due 2030 $300 3.875% Senior Notes due 2031 300 4.375% Senior Notes due 2032 300 5.750% Senior Notes due 2033 1,000 6.000% Senior Notes due 2035 1,000 Series 2022 Bonds due 2047 145 Series 2025 Bonds due 2032 150 Conservatively structured debt duration with no maturities until 2030 Adjusted net leverage decreased to approximately 2.3x at the end of Q2, compared to a level of ~2.7x immediately following the Foley acquisition. CMC remains confident in achieving our goal of 2x, or below, within the previously committed timeframe. $ millions [1] Net debt is a non-GAAP measure and is calculated as total debt minus cash, cash equivalents, and restricted cash [2] Net leverage is a non-GAAP measure and is calculated as net debt divided by trailing 12-month adjusted EBITDA [3] Uses the midpoint of estimated precast annualized EBITDA as presented on slide 8, which is based on expected annual performance at time of acquisitions [4] This figure excludes debt issuance costs Precast EBITDA Adjustment
14 • Consolidated core EBITDA is expected to increase meaningfully from second quarter level • Segment adjusted EBITDA for our North America Steel Group is anticipated to rise modestly on a sequential basis on higher seasonal volumes, the impact of which will be partially offset by annual maintenance outages across the mill network that are expected to add approximately $15 million to $20 million in costs during the quarter • Adjusted EBITDA for the Construction Solutions Group is expected to nearly double compared to the second quarter of fiscal 2026 • Europe Steel Group adjusted EBITDA should improve substantially on a sequential basis, driven by higher seasonal volumes, modestly improved metal margins, and the anticipated receipt of an approximately $20 million CO2 credit • Underlying demand for long steel products in North America remained resilient − Finished steel shipments were little changed from the prior year period • North America Steel Group steel products margin increased to the highest level in three years − Steel products metal margin increased by $147 per ton from the prior year period, marking the third consecutive quarter of y/y improvement • Downstream product margin over scrap1 increased on a year-over-year basis for the first time since Q1 of fiscal 2024 − Average selling price has trended upward in recent quarters assisted by enhanced commercial discipline in evaluating project opportunities • Continued maturation of several TAG initiatives contributed positively during the quarter • Construction Solutions Group net sales were up 97.9% y/y while adjusted EBITDA increased by 127.1% − The addition of CMC’s new precast concrete platform contributed $33.6 million to segment adjusted EBITDA. Precast generated $40.3 million excluding one-time purchase accounting adjustments − Tensar financial results were stable compared to a year ago, with benefits of strategic initiatives offset by weather related delays − Sales and EBITDA increased at CMC Construction Services as a result of initiatives to drive store traffic, add new accounts, and optimally price in-store merchandise • Market conditions for the Europe Steel Group were mixed − Pricing momentum was positive during the quarter; however, rebar volumes were constrained by availability of material imported prior to January 1 CBAM implementation − Steel product metal margin increased by $41 per ton y/y and was up $10 per ton sequentially driven by a $21 per ton q/q increase in average selling price − Shipments down by 8.4% on a year-over-year basis Pe rf or m an ce D riv er s O ut lo ok (Q 3 20 26 ) Q2 Operational Update [1] Downstream Product Margin Over Scrap equals Average Selling Price minus cost of ferrous scrap utilized during the prior quarter Q2 FY26 Supplemental Slides March 26, 2026
15 139 297 133 30 (2) (36) 27 6 0 50 100 150 200 250 300 350 Q2 2025 NA Steel Group EBITDA Construction Solutions Group EBITDA Europe Steel Group EBITDA Corp & Eliminations Acquisition Related Adjustments Other Non-Op Items Q2 2026 Q2 Consolidated Operating Results Q2 ’25 Q3 ’25 Q4 ’25 Q1 ‘26 Q2 ‘26 External Finished Steel Tons Shipped1 1,354 1,512 1,528 1,507 1,335 Core EBITDA2 $139,131 $198,025 $291,441 $316,918 $297,473 Core EBITDA per Ton of Finished Steel Shipped2 $103 $131 $191 $210 $223 Core EBITDA Margin2 7.9% 9.8% 13.8% 14.9% 14.0% Net Earnings $25,473 $83,126 $151,781 $177,282 $93,032 Adjusted Earnings2 $35,769 $79,618 $154,965 $206,176 $130,147 Performance Summary Units in 000’s except per ton amounts and margin • Acquisition, financing, and integration related expenses of approximately $20.6 million • Amortization of acquired favorable backlog of $17.7 million; inventory step-up of $6.7 million • $2.0 million unrealized gain related to commodity hedges • Incurred $4.1 million of interest expense based on estimate related to judgment in PSG litigation Non-operational items (pre-tax figures) [1] External Finished Steel Tons Shipped equal to shipments of Steel Products plus Downstream Products [2] Core EBITDA, core EBITDA margin, core EBITDA per ton of finished steel shipped, and adjusted earnings are non-GAAP measures. For reconciliations of non- GAAP financial measures to the most directly comparable GAAP financial measures, see the appendix to this document. Core EBITDA Bridge2 – Q2 2025 to Q2 2026 $ Millions Q2 FY26 Supplemental Slides March 26, 2026
16 131 156 207 257 257 898 874 854 922 924 476 499 568 621 623 0 50 100 150 200 250 300 0 100 200 300 400 500 600 700 800 900 1,000 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 Adjusted EBITDA per Ton of Finished Steel Shipped Downstream Product Margin Over Scrap Steel Product Margin Over Scrap Q2 North America Steel Group Q2 ’25 Q3 ’25 Q4 ’25 Q1 ’26 Q2 ’26 External Finished Steel Tons Shipped1 1,044 1,153 1,154 1,145 1,051 Adjusted EBITDA $136,954 $179,936 $239,416 $293,906 $269,674 Adjusted EBITDA per Ton of Finished Steel Shipped $131 $156 $207 $257 $257 Adjusted EBITDA Margin 9.9% 11.5% 14.8% 17.7% 16.8% Performance Summary Units in 000’s except per ton amounts and margin • Increase in steel products margin over scrap cost3 ($147 per ton on a y/y basis) • Production volumes and energy costs impacted by disruptive weather conditions; negative financial impact of $5 million to $10 million • TAG related benefits contributed positively to the quarter • Downstream product margin2 over scrap cost increased by $26 per ton from a year ago. Downstream average selling price is showing signs of a recovery following an extended period of contraction [1] External Finished Steel Tons Shipped equal to shipments of Steel Products plus Downstream Products [2] Downstream Product Margin Over Scrap equals Average Selling Price minus cost of ferrous scrap utilized during the prior quarter [3] Steel Products Margin Over Scrap equals Average Selling Price minus cost of ferrous scrap utilized Q2 FY26 Supplemental Slides March 26, 2026 North America Steel Group – Key Margins $ / ton SP a nd D P M ar gi n O ve r S cr ap Adjusted EBITDA per ton 2 3 Key Performance Drivers Q2 2026 vs Q2 2025
17 • Addition of precast concrete business contributed $33.6 million to segment adjusted EBITDA; precast generated $40.3 million of EBITDA excluding one-time purchase accounting adjustment • Strong financial results within CMC Construction Services; benefiting from initiatives to drive store traffic, add new accounts, and optimize pricing • Tensar EBITDA unchanged from the prior year period; gains on customer initiatives and InterAx product adoption offset by weather related project delays in seasonally weak Q2 • Performance Reinforcing Steel volumes impacted by project timing delays 159 314 91.0% 0.9% 8.1% (2.1%) (0.1%) 0 50 100 150 200 250 300 350 Q2 2025 Precast Concrete Tensar CMC Construction Services Performance Reinforcing Steel CMC Impact Metals Q2 2026 Key Performance Drivers Q2 2026 vs Q2 2025 Q2 Construction Solutions Group Q2 ’25 Q3 ’25 Q4 ’25 Q1 ’26 Q2 ’26 Net sales to external customers $158,864 $197,454 $221,753 $198,277 $314,425 Adjusted EBITDA $23,519 $40,912 $50,630 $39,581 $53,420 Adjusted EBITDA Margin 14.8% 20.7% 22.8% 20.0% 17.0% Performance Summary Units in 000’s except margin Contribution to Net Sales Change – Q2 2025 to Q2 2026 Quarterly net sales figures in $ million, contribution to net sales changes provided in percentages Q2 FY26 Supplemental Slides March 26, 2026 Net sales up 97.9% Directional Change in Underlying Margin Performance
18 275 293 317 306 316 2 10 105 30 (5) (50) 0 50 100 150 200 250 300 350 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Q2 '26 Steel Products Margin Over Scrap Adjusted EBITDA per Ton Q2 Europe Steel Group Q2 ’25 Q3 ’25 Q4 ’25 Q1 ’26 Q2 ’26 External Finished Steel Tons Shipped1 310 359 374 362 284 Adjusted EBITDA $752 $3,593 $39,098 $10,929 ($1,428) Adjusted EBITDA per Ton of Finished Steel Shipped $2 $10 $105 $30 ($5) Adjusted EBITDA Margin 0.4% 1.5% 14.8% 4.4% (0.7%) • Metal margin was up $41 per ton from the prior year period • Shipment volumes decreased 8.4% from the prior year period − Rebar volumes temporarily impacted by import flows that occurred in the months leading up to the January 1st CBAM implementation • Lower volumes negatively impacted fixed cost leverage [1] External Finished Steel Tons Shipped equal to shipments of Steel Products; [2] Steel Products Margin Over Scrap equals Average Selling Price minus cost of ferrous scrap utilized; [3] Includes a $31 million annual CO2 credit associated with a government program that extends to 2030; [4] Includes a $15.6 million annual CO2 credit associated with a government program that extends to 2030 2 M ar gi n O ve r S cr ap a nd A dj us te d EB IT DA p er to n Q2 FY26 Supplemental Slides March 26, 2026 Performance Summary Units in 000’s except per ton amounts and margin Key Performance Drivers Q2 2026 vs Q2 2025 Europe Steel Group – Key Margins $ / ton 3 4
19 Long-Term Framework Debt Management Value-Generating Growth Disciplined Capital Allocation Strategy CMC will prudently allocate capital while maintaining a strong and flexible balance sheet Q2 FY26 Supplemental Slides March 26, 2026 [1] Refers to net leverage which is a non-GAAP measure and calculated as net debt divided by trailing 12-month adjusted EBITDA Deleverage 1 2 • Complete key organic growth projects underway • FY 2026 capex of approximately $600 million Capital Expenditures Acquisitions • Completed acquisitions of Foley and CP&P • Combined purchase price of ~$2.5 billion • Utilize enhanced free cash flow to reduce net debt • Goal to deleverage below 2x1 within 18 months Shareholder Distributions 3 • Share repurchases reduced • $147.8 million remaining on current authorization Share Repurchases Dividends • Increased quarterly dividend by $0.02 in March • CMC has paid 246 consecutive quarterly dividends Value-Generating Growth 1 • Capital expenditures to decline meaningfully upon completion of Steel West Virginia • High return, lower capital projects Capital Expenditures Acquisitions • Disciplined acquisition growth • Enhance commercial portfolio, strengthen existing business Debt Management Deleverage3 • Maintain net leverage below 2x1 • Strong balance that support strategic execution Shareholder Distributions 2 • Enhanced cash flows to support competitive level of repurchases • Core component of CMC’s capital allocation Share Repurchases Dividends • Regular dividend increases • Core component of CMC’s capital allocation Near-Term Focus CMC plans to deleverage from recent acquisitions within 18 months
© CMC Appendix
21 2023 2024 20252023 2024 20252023 2024 2025 CMC Incident Rate Domestic Steel Industry 1 Safety is Core to Our Mission [1] Domestic steel industry data is for Iron and Steel Mills and Ferroalloy Manufacturing (NAICS – 3311) from the Bureau of Labor Statistics CMC and Domestic Steel Industry1 Total Recordable Incident Rate by Year Total CMC North America Steel Group Europe Steel Group Total Recordable Incident Rate by Segment Q2 FY26 Supplemental Slides March 26, 2026 Our concentrated focus on safety and culture has driven continuous improvement We achieved world-class performance across our operational footprint during FY 2025 and are pushing for even better results in FY 2026 2023 2024 2025 Construction Solutions Group
22 2.3 1.9 1.0 0.42 Integrated Average Global Average U.S. Average CMC 1.16 8.50 CMCGlobal Industry 3.82 20.95 CMCGlobal Industry 0.77 1.92 CMCGlobal Industry Q2 FY26 Supplemental Slides │ March 26, 2026 Note: GHG emissions statistics for CMC include only steel mill operations, which represents over 95% of CMC’s emissions footprint Sources: CMC 2025 Sustainability Report; virgin material content for industry based on data from Bureau of International Recycling; all other industry data sourced from the World Steel Association Clear Sustainability Leader CMC plays a key role in the circular steel economy, turning end of life metals into the steel that forms the backbone of modern society Scopes 1&2 Greenhouse Gas Emissions (GHG) Intensity ACCOUNTABILITY FOR OUR ACTIONS RESPECT FOR OUR ENVIRONMENT ACTING WITH INTEGRITY tC O 2e p er M T of s te el Energy Intensity G J pe r M T of s te el Water Withdrawal Intensity Cu bi c m et er p er M T of s te el 2% 69% CMCGlobal Industry % o f s te el c on te nt Scopes 1-3 GHG Emissions Intensity tC O 2e p er M T of s te el Virgin Materials Used in Steelmaking
© CMC Appendix: Non-GAAP Financial Reconciliations
24 [1] See page 27 for definitions of non-GAAP measures Q2 FY26 Supplemental Slides March 26, 2026 Adjusted EBITDA, Core EBITDA, Core EBITDA margins, and Net leverage
25 [1] See page 27 for definitions of non-GAAP measures Q2 FY26 Supplemental Slides March 26, 2026 Adjusted Earnings
26Q2 FY26 Supplemental Slides March 26, 2026 Emerging Businesses Group Adjusted Segment EBITDA % of Total Segment EBITDA
27 ADJUSTED EARNINGS Adjusted earnings is a non-GAAP financial measure that is equal to earnings (loss) before asset impairments and settlement for New Markets Tax Credit transactions, including the estimated income tax effects thereof. The adjustment “settlement for New Markets Tax Credit transaction” represents the recognition of deferred revenue from 2016 and 2017 resulting from the Company’s participation in the New Markets Tax Credit program provided for in the Community Renewal Tax Relief Act of 2000 during the development of a micro mill, spooler and T-post shop located in eligible zones as determined by the Internal Revenue Service. Adjusted earnings also excludes litigation expense, unrealized (gain) loss on undesignated commodity hedges and acquisition, integration and financing related costs. Adjusted earnings should not be considered as an alternative to net earnings (loss) or any other performance measure derived in accordance with GAAP. However, we believe that adjusted earnings provides relevant and useful information to investors as it allows: (i) a supplemental measure of our ongoing core performance and (ii) the assessment of period-to-period performance trends. Management uses adjusted earnings to evaluate our financial performance. Adjusted earnings may be inconsistent with similar measures presented by other companies. Adjusted earnings per diluted share (or adjusted EPS) is defined as adjusted earnings on a diluted per share basis. CORE EBITDA Core EBITDA is the sum of net earnings (loss) before interest expense and income taxes. It also excludes recurring non-cash charges for depreciation and amortization, asset impairments, amortization of acquired unfavorable contract backlog, and unrealized (gain) loss on undesignated commodity hedges. Core EBITDA also excludes litigation expense, settlement for New Market Tax Credit transactions, non-cash stock-based compensation, loss on debt extinguishments, gains on sale of assets, acquisition settlements, and acquisition and integration related costs. The adjustment “litigation expense” represents a provision recorded in the three months ended November 30, 2024 related to the judgment in the Pacific Steel Group litigation and, with respect to subsequent periods, interest expense on the judgment amount. The adjustment “settlement for New Markets Tax Credit transaction” represents the recognition of deferred revenue from 2016 and 2017 resulting from the Company’s participation in the New Markets Tax Credit program provided for in the Community Renewal Tax Relief Act of 2000 during the development of a micro mill, spooler and T-post shop located in eligible zones as determined by the Internal Revenue Service. Core EBITDA should not be considered an alternative to earnings (loss) from continuing operations or net earnings (loss), or as a better measure of liquidity than net cash flows from operating activities, as determined by GAAP. However, we believe that Core EBITDA provides relevant and useful information, which is often used by analysts, creditors and other interested parties in our industry as it allows: (i) comparison of our earnings to those of our competitors; (ii) a supplemental measure of our ongoing core performance; and (iii) the assessment of period-to-period performance trends. Additionally, Core EBITDA is the target benchmark for our annual and long-term cash incentive performance plans for management. Core EBITDA may be inconsistent with similar measures presented by other companies. CONSOLIDATED ADJUSTED EBITDA Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is the sum of the Company’s net earnings (loss) before interest expense, income taxes, depreciation and amortization expense, asset impairments, amortization of acquired unfavorable contract backlog, and unrealized (gain) loss on undesignated commodity hedges. Adjusted EBITDA should not be considered as an alternative to net earnings (loss), or any other performance measure derived in accordance with GAAP. However, we believe that adjusted EBITDA provides relevant and useful information to investors as it allows: (i) a supplemental measure of our ongoing performance and (ii) the assessment of period-to-period performance trends. Management uses adjusted EBITDA to evaluate our financial performance. Adjusted EBITDA may be inconsistent with similar measures presented by other companies. NET DEBT Net debt is defined as total debt less cash and cash equivalents. NET LEVERAGE Net leverage is defined as net debt divided by trailing 12 month adjusted EBITDA RETURN ON INVESTED CAPITAL Return on Invested Capital is defined as: 1) after-tax operating profit divided by 2) total assets less cash & cash equivalents less non-interest-bearing liabilities. For annual measures, trailing 5-quarter averages are used for balance sheet figures. During the fourth quarter of 2025, the Company modified its method of calculating adjusted EBITDA to exclude the impact of unrealized gains and losses from undesignated commodity derivatives. This change was primarily driven by heightened volatility in copper forward markets during 2025, which introduced significant non-cash fluctuations unrelated to core operations. By removing this volatility, the revised metric provides a more representative view of operating performance and cash-generating capability. Accordingly, the Company recast adjusted EBITDA, core EBITDA, core EBITDA margin, adjusted earnings and adjusted earnings per diluted share for all prior periods to conform to this presentation. Q2 FY26 Supplemental Slides March 26, 2026 Definitions for non-GAAP financial measures
CMC.COM
FAQ
How did Commercial Metals Company (CMC) perform in fiscal Q2 2026?
CMC posted strong fiscal Q2 2026 results, with net earnings of $93.0 million on net sales of $2.1 billion. Adjusted earnings reached $130.1 million, and core EBITDA climbed to $297.5 million, reflecting improved metal margins and TAG program execution.
What were the key profitability metrics for CMC in Q2 2026?
CMC generated core EBITDA of $297.5 million and a core EBITDA margin of 14.0% in Q2 2026. North America Steel Group posted adjusted EBITDA of $269.7 million with a 16.8% margin, while Construction Solutions Group achieved $53.4 million and a 17.0% margin.
How did the new precast business impact CMC’s Q2 2026 results?
CMC’s newly acquired precast platform contributed $33.6 million to Construction Solutions Group adjusted EBITDA in Q2 2026, or $40.3 million excluding a purchase accounting charge. Management expects the precast business to deliver $165–$175 million of EBITDA for fiscal 2026.
What is CMC’s leverage and liquidity position after the precast acquisitions?
At February 28, 2026, CMC reported net leverage of about 2.8x based on trailing adjusted EBITDA, and an illustrative 2.3x including full-year precast EBITDA. Cash, cash equivalents and restricted cash totaled $503.6 million, with total available liquidity above $1.7 billion.
How did CMC’s Europe Steel Group perform in Q2 2026?
The Europe Steel Group reported an adjusted EBITDA loss of $1.4 million and a (0.7)% margin in Q2 2026. Metal margins improved, but shipments fell about 8.4% year over year, reducing fixed-cost leverage and offsetting pricing gains.
What guidance did CMC provide for Q3 fiscal 2026 performance?
CMC expects consolidated core EBITDA to increase meaningfully in Q3 2026. Management anticipates North America Steel Group adjusted EBITDA to rise modestly, Construction Solutions Group results to nearly double from Q2, and Europe Steel Group EBITDA to improve with higher volumes and an expected $20 million CO2 credit.
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Commercial Metals Co
NYSE:CMC
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Mar 26, 2026
CMC Reports Second Quarter of Fiscal 2026 Results
Mar 25, 2026
CMC Announces an 11% Increase in Quarterly Dividend
Jan 8, 2026
CMC Reports First Quarter of Fiscal 2026 Results
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Mar 25, 2026
[8-K] COMMERCIAL METALS Co Reports Material Event
CMC Stock Data
6.60B
109.83M
Metal Fabrication
Steel Works, Blast Furnaces & Rolling Mills (coke Ovens)
United States
IRVING