Q1 2026 Commercial Metals Co Earnings Call Transcript
Key Points
- Commercial Metals Co (CMC) reported one of the best quarters in its history, with net earnings of $177.3 million and adjusted earnings of $206.2 million.
- The company's core EBITDA grew by over 50% year-over-year, reaching its highest level in two years, with a core EBITDA margin of 14.9%.
- CMC's strategic initiatives, including the TAG program and scrap optimization, have significantly contributed to margin expansion and operational efficiency.
- The acquisition of CP&P and Foley Products has broadened CMC's commercial portfolio, enhancing its financial profile and growth potential.
- CMC's construction solutions business achieved record first-quarter adjusted EBITDA, driven by strong market demand and effective execution of strategic initiatives.
- The Europe Steel Group experienced a decline in adjusted EBITDA due to lower CO2 credits and price pressure from import flows.
- Seasonal volume declines are expected in the second quarter, with typical reductions of 5% to 10% due to winter conditions.
- The ramp-up of the West Virginia mill is ongoing, with full operational capacity not expected until after fiscal 2026.
- The company faces challenges in integrating new acquisitions and realizing synergies, with a cautious approach to synergy timing.
- There is ongoing concern about potential impacts from new steel supply entering the market, although CMC remains optimistic about demand absorption.
Hello. Welcome everyone to the fiscal 2026 1st quarter earnings call for CMC. 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.
I would like to remind all participants that on today's discussion that will contain 4 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, the expected benefits of recent acquisitions, the company's operations, the company's strategic growth plan and its anticipated benefits, legal proceedings, the
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