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

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