Commercial Metals Company (CMC) Q2 2026 earnings summary

Executive summary

• Q2 net earnings were $93M ($0.83/share) and adjusted earnings $130.1M ($1.16/share), with core EBITDA at $297.5M (14% margin), reflecting strong execution, favorable markets, and significant contributions from the new precast platform.

• Net sales rose 22% to $2.13B for the quarter, driven by higher steel prices and the addition of the precast platform from Foley and CP&P acquisitions.

• Integration of CP&P and Foley precast acquisitions is progressing well, contributing $33.6M to segment adjusted EBITDA and early commercial wins.

• The TAG operational excellence program is on track to deliver an annualized EBITDA benefit of $150M by year-end.

• Litigation expense declined significantly year-over-year, supporting improved net earnings.

Financial highlights

• Adjusted EBITDA for the quarter was $321.7M, up 99% year-over-year; adjusted earnings per share were $1.16.

• Core EBITDA margin reached 14%, with North America Steel Group Adjusted EBITDA at $269.7M (16.8% margin) and Construction Solutions Group Adjusted EBITDA up 127% to $53.4M.

• Cash and equivalents at period end were $495M–$504M; total liquidity exceeded $1.7B; adjusted net leverage at 2.3x.

• Share repurchases totaled $18.3M for the quarter, with $147.8M remaining authorized.

• Dividend increased 11% to $0.20/share quarterly, marking the 246th consecutive payment.

Outlook and guidance

• Q3 core EBITDA is expected to increase meaningfully due to seasonal improvement and margin strength, with Construction Solutions Group results expected to nearly double sequentially.

• North America Steel Group EBITDA to rise modestly, offset by $15M–$20M in maintenance costs; Europe Steel Group EBITDA to improve on higher volumes, better margins, and a $20M CO2 credit.

• Precast business is projected to generate $165M–$175M in EBITDA for the full year.

• Full-year effective tax rate guided at 7%–9%; no significant U.S. federal cash taxes expected in 2026 and much of 2027.

• Capital spending outlook for 2026 is $600M, mainly for the new West Virginia micro mill.