Commercial Metals Q3 revenue beats estimates

Commercial Metals Company

Commercial Metals Company

CMC

0.00


Overview

  • U.S. steel and construction supplier's fiscal Q3 revenue beats analyst expectations

  • Adjusted EPS and adjusted EBITDA for fiscal Q3 missed analyst expectations

  • Company cites strong market conditions and benefits from recent precast acquisitions for growth


Outlook

  • Commercial Metals expects core EBITDA to increase sequentially in fiscal Q4 2026

  • Company sees stronger North America Steel Group EBITDA in Q4, aided by absence of outage headwind

  • Commercial Metals expects mid-teens EBITDA growth in Construction Solutions Group in Q4


Result Drivers

  • TAG INITIATIVES AND PRECISION FOCUS - Co said core EBITDA growth was driven by strong market conditions, increasing benefits from its Transform, Advance, Grow (TAG) initiatives, and contributions from recent precast acquisitions

  • HIGHER METAL MARGINS - North America Steel Group's adjusted EBITDA rose 41% year-over-year, driven by higher margins over scrap costs and benefits from the TAG program, despite lower shipment volumes due to planned downtime, weather disruptions, and focus on value over volume

  • PRECAST ACQUISITIONS AND STRONG SEGMENT PERFORMANCE - Construction Solutions Group's sales and adjusted EBITDA growth were fueled by the inclusion of precast acquisitions and strong performance from Tensar, while Europe Steel Group benefited from improved market conditions and a $20.4 mln CO₂ credit


Company press release: ID:nPnc6Hh4Ta


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$2.48 bln

$2.41 bln (8 Analysts)

Q3 Adjusted EPS

Miss

$1.73

$1.77 (7 Analysts)

Q3 EPS

$1.55

Q3 Adjusted Net Income

Miss

$193 mln

$208.78 mln (4 Analysts)

Q3 Net Income

$173 mln

Q3 Adjusted EBITDA

Miss

$335.9 mln

$361.59 mln (9 Analysts)

Q3 Adjusted EBITDA Margin

14.20%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the iron & steel peer group is "buy"

  • Wall Street's median 12-month price target for Commercial Metals Co is $83.55, about 17.2% above its June 24 closing price of $71.28

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


ترجمة هذه الصفحة آلية. تحاول منصة سهم تحسين الترجمة ولكن لا تضمن دقتها وموثوقيتها، ولن تتحمل المسؤولية عن أي خسارة أو ضرر بسبب عدم دقة أو إغفال في الترجمة. *المخاطر وإخلاء المسؤولية: يمثل المحتوى أعلاه المسؤولية الشخصية للمؤلف وآرائه فقط، ولا يمثل أي مسؤولية لمنصة سهم، ولا يمكن لمنصة سهم تأكيد صحة ودقة ومصداقية المحتوى أعلاه. يجب على المستثمرين مراعاة مخاطر المنتجات الاستثمارية على ضوء ظروفهم الخاصة قبل اتخاذ أي قرارات استثمارية. عند الضرورة، يرجى استشارة مستشار استثمار محترف. لا تقدم منصة سهم أي مشورة استثمارية، ولا تقدم أي التزامات أو ضمانات.