CMC Reports Q3 Earnings

On Thursday, Commercial Metals (NYSE: CMC ) discussed third-quarter financial results during its earnings call.

The full transcript is provided below.

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View the webcast at Summary Commercial Metals Co. reported a 78.6% year-over-year increase in core EBITDA to $353.6 million, with a core EBITDA margin increase to 14.2%, driven by metal margin expansion and the integration of recent precast acquisitions.

The company is progressing well with its Transform, Advance, and Grow (TAG) initiatives, already exceeding its $150 million run rate annualized benefits target for fiscal 2026, indicating strong margin expansion and improved earnings quality.

Despite temporary setbacks in North America due to planned maintenance, scrap cost increases, and weather disruptions, the company expects significant sequential improvement in core EBITDA for the fourth quarter.

Operational highlights include the Arizona 2 micro mill reaching over 75% capacity utilization and the upcoming commissioning of the West Virginia micro mill, both of which are expected to enhance production efficiency and market coverage.

Management expressed confidence in the precast business integration, reporting strong alignment and operational improvements, and anticipates fiscal 2026 adjusted EBITDA for the precast business to be between $165 and $175 million.

The outlook is positive, supported by robust infrastructure demand and favorable market dynamics, both in the U.S. and Europe, with strategic actions in place to manage supply-demand balance and combat unfair trade practices.

Full Transcript OPERATOR Hello everyone and welcome to the fiscal 2026 third quarter earnings call for Commercial Metals Co.

Joining me on today's call are Peter Matt, CMC's President and Chief Executive Officer, and Paul Lawrence, Senior Vice President and Chief Financial Officer.

Today's materials, including the press release and supplemental slides that accompany this call, can be found on CMC's investor relations website.

Today's call is being recorded.

After the Company's remarks, we will have a question and answer session and we'll have a few instructions at that time.

We'd like to remind all participants that today's discussion contains forward-looking statements including with respect to economic conditions, effects of legislation and trade actions, US Steel import levels, construction activity, demand for finished steel products and precast concrete products, the expected capabilities, benefits, costs and timeline for construction of new facilities and expected performance of our recently acquired precast platform, the Company's operations, the Company's strategic growth plan and its anticipated benefits, the Company's ability to achieve its stated deleveraging target within the anticipated time frame, legal proceedings and Company's future results of operations, financial measures, tax credits and capital spending.

These statements reflect the Company's beliefs based on current conditions but are subject to risks and uncertainties.

The Company's earnings release, most recent Annual report on Form 10K and other filings with the U.S.

Securities and Exchange Commission contain additional information concerning factors that could cause actual results to differ materially from those projected in forward-looking statements.

Except as required by law, CMC does not assume any obligation to update, amend or clarify these statements.

Some numbers presented will be non-GAAP financial measures and reconciliations for such numbers can be found in the Company's earnings release, supplemental slide presentation or on the Company's website.

Unless stated otherwise, all references made to year or quarter are references to the Company's fiscal year or fiscal quarter.

And now for opening remarks and introductions, I will turn the floor over to Peter.

Peter Matt, President And Chief Executive Officer Good morning and thank you for joining today's conference call.

Before we get started, a quick but important housekeeping note.

After more than six years of outstanding leadership in investor relations, Jason Brosius is transitioning into a strategy and corporate development role within CMC.

Jason has been instrumental to CMC's success and a trusted partner for the investor community.

We are grateful for all of his contributions and look forward to his continued impact here at CMC.

Joining us to lead our IR efforts is Andy Larkin, who comes to us most recently from his roles leading investor relations at Anglo Gold and Summit Materials and who brings a decade of IR experience across construction, materials, metals and mining, and consumer staples.

We are excited to welcome Andy to our team and confident he will further strengthen our engagement with investors.

Now, during our fiscal third quarter, we continue to execute our strategic plan.

Core EBITDA increased 78.6% year over year to 353.6 million and our core EBITDA margin increased to 14.2% due to metal margin expansion, solid progress on our TAG initiatives, and the addition of results from our recent precast acquisitions.

In addition, we continue to make good progress delevering our balance sheet.

Despite the significant increase in results, our financial performance in the quarter could have been even better and is not indicative of our full potential.

I am pleased with the progress we are making against our strategic agenda.

We are advancing CMC towards structurally higher margins, reduced earnings volatility, and more sustainable growth.