Commercial Metals Company (NYSE: CMC) reported fiscal second-quarter results on March 26, posting net earnings of $93.0 million, or $0.83 per diluted share, for the period ended February 28, 2026. Net sales rose to $2.13 billion from $1.75 billion a year earlier, while core EBITDA increased to $297.5 million from $139.1 million in the prior-year quarter, according to the company.
The Irving, Texas-based steel and construction materials producer said the year-over-year improvement reflected higher margins in its North America steel business, contributions from its Transform, Advance, Grow program, and the addition of recently acquired precast concrete operations. Adjusted earnings were $130.1 million, or $1.16 per diluted share, compared with $35.8 million, or $0.31 per diluted share, a year earlier.
The quarter was the first to include contributions from Concrete Pipe and Precast, LLC and Foley Products Company, acquisitions that closed in December 2025. CMC said those businesses helped lift results in its Construction Solutions Group, where sales nearly doubled from the prior-year period.
CMC’s results follow a period of acquisition-driven expansion as the company broadens its exposure beyond reinforcing steel and downstream fabrication into precast concrete products tied to infrastructure and non-residential construction.
#North America and Precast Drove Results
CMC said consolidated core EBITDA margin rose to 14.0% from 7.9% a year earlier. In its North America Steel Group, adjusted EBITDA increased 96.9% to $269.7 million, while adjusted EBITDA margin rose to 16.8% from 9.9%.
The company said average selling prices for steel products increased by $160 per ton from the prior-year quarter, while ferrous scrap costs rose by $13 per ton. That widened the steel products metal margin to $623 per ton from $476 per ton a year earlier.
Shipment levels in North America were broadly stable year over year, though average daily volumes declined sequentially from the prior quarter in what CMC described as a seasonal pattern. The company also said weather disruptions affected parts of its North American footprint during the quarter, reducing production and temporarily increasing energy costs by an estimated $5 million to $10 million.
In the Construction Solutions Group, net sales rose 97.9% to $314.4 million and adjusted EBITDA climbed 127.1% to $53.4 million. CMC said its new precast platform contributed $33.6 million of adjusted EBITDA during the quarter. Excluding a one-time purchase accounting adjustment, the precast business generated $40.3 million of EBITDA.
The company said backlog value in the segment ended the quarter up by a high single-digit percentage from a year earlier, which it said points to a solid spring and summer construction season. CMC also reported stable performance at Tensar, its soil stabilization business, while results in Performance Reinforcing Steel declined from the prior year because of project timing.
Europe remained weaker. CMC reported an adjusted EBITDA loss of $1.4 million in the Europe Steel Group, compared with profit of $0.8 million a year earlier. The company said demand for merchant bar remained resilient, but domestic rebar demand was affected by imports ahead of the European Union’s Carbon Border Adjustment Mechanism, which took effect on January 1, 2026.
#Balance Sheet, Dividend and Capital Allocation
As of February 28, CMC had $503.6 million in cash, cash equivalents and restricted cash, with available liquidity of more than $1.7 billion.
The company repurchased 249,154 shares during the quarter for $18.3 million. It said $147.8 million remained under its current share repurchase authorization at quarter-end.
CMC’s board also approved a quarterly dividend of $0.20 per share, up from $0.18. The dividend is payable on April 15, 2026, to stockholders of record on April 6, 2026. The company said this will be its 246th consecutive quarterly dividend payment.
Long-term debt increased to $3.31 billion as of February 28 from $1.31 billion at the end of fiscal 2025, reflecting financing tied in part to the recent acquisitions. Total assets rose to $9.56 billion from $7.17 billion over the same period, while goodwill increased to $2.13 billion from $386.8 million.
CMC said it reduced net leverage during the quarter and remains confident it can reach a leverage ratio of 2x within its previously stated timeframe.
#Outlook Hinges on Seasonal Demand and Integration
Chief Executive Officer Peter Matt said the company expects consolidated core EBITDA in the third quarter of fiscal 2026 to increase from second-quarter levels, supported by seasonal improvement in construction activity and continued margin strength in North America.
CMC said North America Steel Group adjusted EBITDA should rise modestly sequentially, though annual maintenance outages across its mill network are expected to add about $15 million to $20 million in costs during the third quarter. The company said Construction Solutions Group results are expected to nearly double from second-quarter levels, while Europe Steel Group earnings should improve on seasonal volumes, somewhat better metal margins, and an anticipated carbon-related credit of about $20 million.
For the full fiscal year, CMC said it still expects the precast business to generate between $165 million and $175 million in EBITDA.
Those projections remain subject to several factors the company identified in its forward-looking statements, including construction demand, raw material and energy costs, trade policy, legal proceedings, integration execution, and geopolitical conditions. CMC also said it is monitoring the war in Iran for possible effects on demand and costs, although it has not yet seen a direct impact in its U.S. operations.
The second-quarter report suggests CMC is relying on both steel margin expansion and acquisition integration to drive earnings growth in fiscal 2026. Whether that momentum holds may depend on seasonal construction demand, the performance of the newly added precast assets, and the extent to which higher costs or weaker end-market conditions offset recent gains.