Commercial Metals beats estimates with Q4 EPS of $2.09
Revenue came in at $2.66B against expectations of $2.60B, as steel strength offset weaker precast demand
Published
Commercial Metals reported fourth-quarter earnings of $2.09 a share, $0.10 above estimates. Revenue reached $2.66B, ahead of the $2.60B expected.
President and CEO Peter Matt said residential softness weighed on precast results in the quarter, while strong North American steel execution and momentum in the company's TAG program drove overall growth.
The board declared a quarterly dividend of $0.20 a share, payable November 11, 2026 to shareholders of record on October 28, 2026. Commercial Metals bought back $26.7 million of stock during the quarter and has $702.1 million left under its repurchase authorization.
For the first quarter of fiscal 2027, the company expects adjusted EBITDA in its North America Steel Group to be nearly flat compared with the fourth quarter, with Construction Solutions Group earnings set to decline on seasonal trends. Europe Steel Group earnings are expected to grow meaningfully, helped by improving conditions and a CO2 credit.
The quarter's results reflect a domestic steel market where tariff protection and falling finished-steel imports have supported utilization and pricing even as broader demand stays soft, a pattern consistent with the North American steel strength the company points to alongside softer precast sales tied to residential construction. The flat North America Steel Group outlook and the seasonal dip expected in Construction Solutions point to the same uneven split between steel and building-products demand that has defined the industry this year. The projected pickup in Europe Steel Group earnings marks a departure from the flat-to-declining European steel demand seen elsewhere in the sector.