Commercial Metals Company (NYSE:CMC) reported fiscal second-quarter 2026 results on Thursday that fell short of profit expectations even though revenue came in above forecasts.
The company’s shares dropped about 3.7% in pre-market trading following the release.
For the quarter ended February 28, 2026, Commercial Metals posted adjusted earnings of $1.16 per diluted share, missing the analyst consensus estimate of $1.30. Revenue totaled $2.13 billion, exceeding expectations of $2.09 billion and increasing 21.5% year over year from $1.75 billion in the same quarter last year.
The company said the revenue growth reflected strong operational execution, progress from its Transform, Advance, Grow (TAG) initiative, supportive market conditions and contributions from its recently acquired precast business.
Core EBITDA more than doubled compared with the prior year, rising about 114% to $297.5 million. Core EBITDA margin expanded by 610 basis points to 14.0%.
The newly acquired precast operations contributed $33.6 million in adjusted EBITDA during the quarter, or $40.3 million excluding a $6.7 million purchase accounting adjustment.
“The CMC team delivered another strong quarter, driving a more than two-fold increase in core EBITDA compared to a year ago,” said Peter Matt, President and Chief Executive Officer. “These impressive results reflect continued execution of our strategy, underpinned by additional efficiency gains from our enterprise-wide TAG program and meaningful contributions from our recently acquired precast platform.”
Within the company’s operating segments, the North America Steel Group reported an adjusted EBITDA margin of 16.8%, up from 9.9% a year earlier. The Construction Solutions Group posted a 17.0% adjusted EBITDA margin.
Weather-related disruptions during the quarter reduced segment profitability by an estimated $5 million to $10 million.
Looking ahead, Commercial Metals said it expects consolidated core EBITDA in the third quarter of fiscal 2026 to increase significantly from second-quarter levels, supported by typical seasonal improvements and continued margin strength.
The company also said its Construction Solutions Group could nearly double its financial results compared with the second quarter.
Commercial Metals reaffirmed its full-year outlook for the precast business, projecting EBITDA between $165 million and $175 million, with a midpoint of $170 million.