Fourth quarter and fiscal year 2026
Filed Oct 15, 2026CMC reports fourth-quarter net earnings of $212.5 million and fiscal 2026 net earnings of $655.8 million; fourth-quarter core EBITDA rose 35.1% year-over-year to $393.7 million.
Fourth-quarter net sales, net earnings, adjusted earnings, core EBITDA and core EBITDA margin all increased year-over-year, led by North America Steel Group performance and acquired precast operations. Fiscal 2026 core EBITDA rose to $1.4 billion from $837.3 million, while the company ended at 1.9x net leverage adjusted for acquisitions.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4 fiscal 2026 net salesGAAP | $2.66B | 7.1 % | 25.7 % |
| Fiscal 2026 net salesGAAP | $9.39B | – | – |
| Q4 fiscal 2026 net earningsGAAP | $212.5M | 22.8 % | 40.0 % |
| Fiscal 2026 net earningsGAAP | $655.8M | – | – |
| Q4 fiscal 2026 diluted earnings per shareGAAP | $ 1.91 | 23.2 % | 41.5 % |
| Fiscal 2026 diluted earnings per shareGAAP | $ 5.86 | – | – |
| Q4 fiscal 2026 adjusted earningsnon-GAAP | $233.6M | 21.0 % | 50.7 % |
| Fiscal 2026 adjusted earningsnon-GAAP | $762.9M | – | – |
| Q4 fiscal 2026 adjusted earnings per diluted sharenon-GAAP | $ 2.09 | 20.8 % | 52.6 % |
| Fiscal 2026 adjusted earnings per diluted sharenon-GAAP | $ 6.82 | – | – |
| Q4 fiscal 2026 adjusted EBITDAnon-GAAP | $382.4M | – | – |
| Fiscal 2026 adjusted EBITDAnon-GAAP | $1.26B | – | – |
| Q4 fiscal 2026 core EBITDAnon-GAAP | $393.7M | 11.3 % | 35.1 % |
| Fiscal 2026 core EBITDAnon-GAAP | $1.36B | – | – |
| Q4 fiscal 2026 core EBITDA marginnon-GAAP | 14.8% | 60bps | 100bps |
| Fiscal 2026 core EBITDA marginnon-GAAP | 14.5% | – | 380 basis points |
| Fiscal 2026 net cash flows from operating activitiesGAAP | $1.06B | – | – |
| Fiscal 2026 capital expendituresGAAP | $579.8M | – | – |
| Cash and cash equivalents at August 31, 2026GAAP | $775.7M | – | – |
| Long-term debt at August 31, 2026GAAP | $3.31B | – | – |
| Net debt at August 31, 2026non-GAAP | $2.60B | – | – |
| Net leverage adjusted for acquisitions at August 31, 2026non-GAAP | 1.9 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North America Steel Group, Q4 fiscal 2026Adjusted EBITDA was $ 317,473 versus $ 239,416 in the prior year period and $ 253,487 in the prior quarter. Higher average selling price for steel products, merchant bar-led volume growth and TAG benefits supported results. | $1.94B | – | – |
| Construction Solutions Group, Q4 fiscal 2026Adjusted EBITDA was $ 101,725 versus $ 50,630 in the prior year period and $ 97,411 in the prior quarter. The acquired precast business contributed sales of $190.8 million and adjusted EBITDA of $57.0 million. | $431.4M | – | 94.5% |
| Europe Steel Group, Q4 fiscal 2026Adjusted EBITDA was $ 15,586 versus $ 39,098 in the prior year period and $ 34,665 in the prior quarter. The prior-year comparison included a $30.7 million CO₂ credit, while no credit was recognized in the current period. | $281.2M | – | – |
| North America Steel Group, fiscal 2026Adjusted EBITDA was $ 1,134,540 versus $ 742,485 in fiscal 2025; adjusted EBITDA margin was 16.2% versus 12.2%. | $7.00B | – | – |
| Construction Solutions Group, fiscal 2026Adjusted EBITDA was $ 292,137 versus $ 137,721 in fiscal 2025; adjusted EBITDA margin was 21.8% versus 18.4%. | $1.34B | – | – |
| Europe Steel Group, fiscal 2026Adjusted EBITDA was $ 59,752 versus $ 69,282 in fiscal 2025; adjusted EBITDA margin was 5.9% versus 7.5%. | $1.02B | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
First quarter of fiscal 2027 outlook
- NoteNorth America Steel Group adjusted EBITDA is expected to be nearly flat in comparison to the fourth quarter.
- NoteConstruction Solutions Group adjusted EBITDA is expected to be down sequentially reflecting typical seasonal trends impacting end market activity.
- NoteMeaningful sequential growth in adjusted EBITDA is anticipated for the Europe Steel Group, with the first quarter benefiting from improving operating conditions and a CO₂ credit.
- NoteImproved pricing in North America Steel Group is expected to largely offset higher scrap costs, startup expenses, and a slight seasonal decline in shipments.
Capital returns
- CMC repurchased 383,333 shares of common stock valued at $26.7 million in the aggregate during the quarter.
- $702.1 million remained available under the current share repurchase authorization as of August 31, 2026.
- The board declared a quarterly dividend of $0.20 per share on October 13, 2026, payable November 11, 2026 to stockholders of record on October 28, 2026.
- Fiscal 2026 dividends were $ 84,249, and treasury stock acquired was $ 102,811.
- Fiscal 2026 cash dividends per share were $ 0.76, versus $ 0.72 in fiscal 2025.
What drove it
- North America Steel Group metal margins increased $84 per ton year-over-year to $652.
- North America Steel Group finished goods shipment volumes increased 5.3% versus the prior year period; merchant bar shipment volumes increased 27.5% year-over-year and 16.0% sequentially.
- North America Steel Group downstream backlog volumes increased 5.0% sequentially and 15.5% year-over-year.
- Construction Solutions Group growth included acquired precast operations, which generated $190.8 million of sales and $57.0 million of adjusted EBITDA in the quarter.
- Construction Solutions Group bookings were up year-over-year and up 12.6% sequentially; backlog increased roughly 3% from the prior year and nearly 4% from the fiscal third quarter.
- Europe Steel Group metal margin expanded by $32 per ton year-over-year as average selling price increased $44 per ton and outpaced a $12 per ton increase in scrap costs.
- TAG initiatives, growth investments and the inclusion of higher-margin precast business supported core EBITDA margin expansion.
Concerns
- Residential softness weighed on fourth-quarter precast results, reducing volumes and creating regional margin mix headwinds.
- Precast adjusted EBITDA fell below management's prior expectations, primarily due to regional residential softness.
- Performance Reinforcing Steel results were lower because of a significant unplanned outage at Galvabar that affected shipments.
- Europe Steel Group adjusted EBITDA declined year-over-year because the prior-year period included a $30.7 million CO₂ credit and the current period did not.
- North America Steel Group first-quarter results face higher scrap costs, startup expenses and a slight seasonal decline in shipments.
What to watch
- Whether North America Steel Group can keep pricing sufficient to offset higher scrap costs and startup expenses in the first quarter of fiscal 2027.
- Construction Solutions Group seasonal decline in adjusted EBITDA and the trajectory of residential precast demand, particularly in the Southeast.
- Europe Steel Group's expected meaningful sequential adjusted EBITDA growth, including the timing and impact of a CO₂ credit.
- Backlog volumes and pricing across downstream steel and precast operations.
- Commissioning of the second Galvabar line later in calendar 2026.
- Progress in integration of the precast acquisitions and realization of TAG benefits.
Balance sheet and cash flow
- Cash, cash equivalents and restricted cash totaled $778.9 million as of August 31, 2026.
- Available liquidity was over $2.0 billion as of August 31, 2026.
- Cash and cash equivalents were $ 775,676 and restricted cash was $ 3,174 as of August 31, 2026.
- Long-term debt was $ 3,313,728 and current maturities of long-term debt were $ 67,147 as of August 31, 2026.
- Total debt was $ 3,372,233 and net debt was $ 2,596,557 as of August 31, 2026.
- Fiscal 2026 net cash flows from operating activities were $ 1,058,963 versus $ 715,070 in fiscal 2025.
- Fiscal 2026 acquisitions, net of cash acquired were $ 2,516,424 and capital expenditures were $ 579,844.
- Fiscal 2026 net cash flows used by investing activities were $ 3,062,114; net cash flows from financing activities were $ 1,736,031.
Analysis
CMC closed fiscal 2026 with a strong fourth quarter. Net sales were $ 2,658,334, up 25.7 %, while GAAP net earnings reached $ 212,520, up 40.0 %. Diluted earnings per share were $ 1.91 versus $ 1.35, and adjusted earnings per diluted share increased 52.6 % to $ 2.09. Core EBITDA rose 35.1 % to $ 393,658 and core EBITDA margin expanded 100bps to 14.8%, reflecting metal margin expansion and inclusion of the higher-margin precast business.
North America Steel Group was the principal earnings contributor. Quarterly adjusted EBITDA was $ 317,473, compared with $ 239,416 a year earlier, while its adjusted EBITDA margin rose to 16.4% from 14.8%. Steel products metal margin increased $84 per ton to $652, and finished-goods shipment volume increased 5.3%. Merchant bar shipments increased 27.5% year-over-year, supported by industrial applications, data center-related activity and expanded Arizona 2 micro mill capabilities. Downstream backlog volumes increased 5.0% sequentially and 15.5% year-over-year.
Construction Solutions Group sales increased 94.5% to $431.4 million and adjusted EBITDA increased 100.9% year-over-year to $101.7 million. The acquired precast operations generated $190.8 million of sales and $57.0 million of adjusted EBITDA. However, regional residential softness reduced precast volumes and created margin-mix pressure, causing precast adjusted EBITDA to fall below prior expectations. Management cited year-over-year and sequential booking growth, rising backlog and higher selling prices as support for the 2027 precast outlook.
Europe Steel Group adjusted EBITDA was $15.6 million, below $39.1 million a year earlier because the prior-year period included a $30.7 million CO₂ credit and the current period did not. Underlying metal margin improved by $32 per ton year-over-year, and shipment volume rose 0.8%. Management expects meaningful sequential adjusted EBITDA growth in the first quarter of fiscal 2027, aided by improving operating conditions and a CO₂ credit.
For the full year, CMC generated $ 1,058,963 of operating cash flow, while acquisitions of $ 2,516,424 and capital expenditures of $ 579,844 drove investing cash outflows. The company reported $778.9 million of cash, cash equivalents and restricted cash, over $2.0 billion of available liquidity, and net leverage adjusted for acquisitions of 1.9x. CMC repurchased 383,333 shares for $26.7 million during the quarter and declared a $0.20 per-share quarterly dividend. First-quarter guidance calls for nearly flat North America Steel Group adjusted EBITDA sequentially, lower Construction Solutions Group adjusted EBITDA on seasonal patterns, and meaningful sequential Europe Steel Group adjusted EBITDA growth.
Management, verbatim
Fiscal 2026 marked a transformational step forward for CMC. We continued to build organizational strength and enhance margin durability in our early-stage construction portfolio through our precast acquisitions, our successful TAG program, and our key growth investments, including our West Virginia micro mill. We also established a clear roadmap to fiscal 2029, setting ambitious and achievable targets with a focus on delivering long-term shareholder value.
Peter Matt, President and Chief Executive Officer
Our fourth quarter core EBITDA performance delivered solid year-over-year growth, driven by strong execution of our North American steel franchise and continued momentum of enterprise-wide TAG benefits. While broader demand conditions remain supportive, residential softness weighed on precast results in the period. With backlogs near record levels, a differentiated portfolio of solutions, and multiple value creation levers, we are well-positioned to deliver strong financial results and achieve our strategic goals in fiscal 2027.
Peter Matt, President and Chief Executive Officer
We expect fiscal 2027 will be another strong year for CMC, supported by a healthy and balanced market backdrop and the growing contribution from our value creation levers, including TAG, our growth investments, and an evolving early-stage construction portfolio. Our focus remains on delivering profitable growth, improving free cash flow generation, enhancing shareholder returns, and, above all, continuing to advance our strategic agenda for a stronger CMC.
Peter Matt, President and Chief Executive Officer
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- GAAP operating income and operating margin were not reported.
- Free cash flow was not reported.
- Quarterly operating cash flow, investing cash flow and financing cash flow were not reported.
- Explicit numerical revenue, gross margin, operating expense and tax-rate guidance was not provided.
- Prior outlook was not provided, so comparisons against prior guidance are unavailable.
- Segment revenue percentage changes were not printed for North America Steel Group and Europe Steel Group.
- Fiscal 2026 total-sales year-over-year percentage change was not printed.
- Fiscal 2026 GAAP net-earnings and EPS year-over-year percentage changes were not printed.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.