Commercial Metals stock rises over 2% as Q4 earnings top expectations

IRVING, Texas - On Thursday, Commercial Metals Company (NYSE:CMC) reported fourth-quarter earnings that exceeded analyst expectations, driven by expanding steel product margins and record performance from its Emerging Businesses Group.

The steel products manufacturer’s shares gained 2.21% in pre-market trading after the announcement.

The company posted adjusted earnings of $1.37 per share for its fiscal fourth quarter ended August 31, beating the analyst consensus of $1.35. Revenue reached $2.1 billion, slightly above estimates of $2.09 billion. The results showed improvement both sequentially and YoY, with fourth-quarter net earnings of $151.8 million compared to $103.9 million in the same period last year.

North American steel product metal margins continued to expand during the quarter, increasing by $69 per ton sequentially. This improvement helped boost the North America Steel Group’s adjusted EBITDA by 18% YoY to $239.4 million, with margins expanding to 14.8% from 13.0% a year earlier.

"Fiscal 2025 was a pivotal year for CMC as we laid the groundwork of our transformative strategy, which we believe will position our Company for years of value-accretive growth going forward," said Peter Matt, President and Chief Executive Officer.

The Emerging Businesses Group delivered its best-ever quarterly results, with record performance from Tensar. The segment’s adjusted EBITDA increased 19.1% YoY to $50.6 million, achieving a record margin of 22.8%.

Looking ahead, CMC expects first-quarter fiscal 2026 consolidated financial results to be generally consistent with the fourth quarter, with North America Steel Group’s adjusted EBITDA margin anticipated to increase sequentially on higher steel product margins.

The company maintained its quarterly dividend of $0.18 per share, marking the 244th consecutive quarterly payment.

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