CMC stock price drops nearly 4% due to earnings falling short of expectations, despite revenue exceeding forecasts.

Irving, Texas - On Thursday, Commercial Metals Company (NYSE: CMC) announced its second-quarter results for fiscal year 2026. Despite revenue exceeding expectations, profits fell short.

The company’s stock declined 3.67% in pre-market trading.

For the quarter ending February 28, 2026, the adjusted diluted earnings per share were $1.16, below the analyst consensus of $1.30. Revenue reached $2.13 billion, surpassing the expected $2.09 billion, representing a 21.5% year-over-year increase from $1.75 billion.

The company credited its strong performance to solid execution, including momentum from its transformation, growth (TAG) initiatives, favorable market conditions, and contributions from the newly acquired precast concrete business.

Core EBITDA surged approximately 114% year-over-year to $297.5 million, with the core EBITDA margin expanding 610 basis points to 14.0%. The recently acquired precast concrete platform generated $33.6 million in adjusted EBITDA this quarter; excluding $6.7 million in purchase accounting expenses, it would be $40.3 million.

“CMC team once again delivered a strong quarter, with core EBITDA more than doubling compared to a year ago,” said President and CEO Peter Matt. “These impressive results reflect the continued execution of our strategy, driven by the additional efficiencies from our enterprise-wide TAG initiatives and the significant contribution from the recently acquired precast concrete platform.”

The North American Steel Group achieved an adjusted EBITDA margin of 16.8%, up from 9.9% in the same period last year, while the Building Solutions Group posted an adjusted EBITDA margin of 17.0%.

Weather disruptions negatively impacted segment profitability by approximately $5 million to $10 million this quarter.

For the third quarter of fiscal year 2026, the company expects consolidated core EBITDA to significantly increase compared to the second quarter, benefiting from normal seasonal improvements and sustained strong margins.

The Building Solutions Group’s financial performance is expected to nearly double from the second quarter.

CMC reaffirmed its full-year guidance for the precast concrete business, projecting EBITDA of $165 million to $175 million. The midpoint of $170 million has not been compared to specific analyst consensus.

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