Commercial Metals Co. Reports Strong Q1 Earnings Beat Driven by Steel Margins
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
0mins
Source: Benzinga
- Strong Earnings Performance: Commercial Metals Co. reported net earnings of $177.3 million for Q1, translating to $1.58 per diluted share, while adjusted earnings reached $206.2 million, exceeding analyst expectations of $1.56, indicating robust performance in the steel market.
- Significant Sales Growth: The company’s net sales increased to $2.120 billion from $1.910 billion a year earlier, reflecting a rebound in construction demand and improved steel margins, further solidifying its market position.
- Substantial EBITDA Increase: Consolidated core EBITDA rose to $316.9 million, up approximately 52% year-over-year, with an EBITDA margin of 14.9%, demonstrating the company's success in cost control and operational efficiency.
- Cautious Future Outlook: Despite a strong Q1, management anticipates a modest decline in consolidated core EBITDA for Q2, primarily due to seasonal factors and acquisition-related expenses, highlighting future earnings uncertainty.
Analyst Views on CMC
Wall Street analysts forecast CMC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CMC is 78.26 USD with a low forecast of 62.00 USD and a high forecast of 85.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 76.120
Low
62.00
Averages
78.26
High
85.00
Current: 76.120
Low
62.00
Averages
78.26
High
85.00
About CMC
Commercial Metals Company is engaged in offering products and technologies to meet the critical reinforcement needs of the global construction sector. The Company’s solutions support construction across a wide variety of applications, including infrastructure, non-residential, residential, industrial, and energy generation, and transmission. Its segments include North America Steel Group, Europe Steel Group and the Emerging Businesses Group. The North America Steel Group segment provides a diverse offering of products and solutions to support the construction sector. The Europe Steel Group segment is composed of a vertically integrated network of recycling facilities, an EAF mini mill and fabrication operations located in Poland. The Emerging Businesses Group segment's portfolio consists of its construction services products, Tensar products and solutions and its impact metals, and performance reinforcing steel products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
