EarningsQ4 2026 Earnings Report
CH:CMS Q4 2026 EPS Results
Actual EPSCHF1.73
Consensus EPSCHF1.61
Beat/MissBeat by +CHF0.12
One Year Ago EPSCHF1.13
CH:CMS Q4 2026 Revenue Results
Actual RevenueCHF2.20B
Expected RevenueCHF2.12B
Beat/MissBeat by +CHF77.37M
YoY Revenue Growth+25.72%
Earnings Announcement Details
QuarterQ4 2026
Date10/15/2026
TimeBefore Open
Conference CallThursday, October 15, 2026
CH:CMS Upcoming Earnings
Commercial Metals Company's next earnings date is estimated for January 11, 2027, based on past reporting schedules.
Q4 2026 Earnings Call Audio
CH:CMS Q4 2026 Earnings Call
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Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Management highlighted substantial year-over-year earnings growth, expanding margins, TAG benefits, successful integration of Precast acquisitions, improved leverage, lower planned capital expenditures, accelerating share repurchases and constructive infrastructure and nonresidential demand. The main challenges were residential softness affecting Precast, European energy costs and seasonality, the GalvaBar outage, and startup costs and ramp-up timing for the West Virginia mill.Company Guidance
Strong Fiscal 2026 Earnings Growth
Full-year core EBITDA increased to approximately $1.4 billion from $837 million in fiscal 2025, while core EBITDA margin expanded 380 basis points to 14.5%.
Robust Fourth-Quarter Performance
Fourth-quarter core EBITDA increased 35.1% year over year to approximately $394 million, and core EBITDA margin expanded to 14.8%. Results were driven by strong North American Steel Group performance and TAG contributions.
Safety Performance Near Historic Low
Fiscal 2026 total recordable incident rate remained near a historic low point and better than industry averages. The company also continued embedding its safety-first culture across the acquired Precast operations.
North American Steel Group Improvement
North American Steel Group adjusted EBITDA increased 25.2% sequentially to $317 million. Metal margin increased $42 per ton sequentially to $652, finished steel shipments increased 7.1% sequentially, and adjusted EBITDA margin expanded to 16.4%, up 22 basis points sequentially and 160 basis points year over year.
Downstream Growth and Backlog Strength
Downstream product volumes grew 8.5% year over year in the fourth quarter. Downstream backlog increased 15.5% year over year and 5% sequentially, supported by demand for larger and more complex energy, industrial reshoring, data center and institutional projects.
Construction Solutions Group Expansion
Construction Solutions Group net sales increased 94.5% year over year, adjusted EBITDA more than doubled, and adjusted EBITDA margin expanded 80 basis points.
TAG Benefits Continue to Build
The company exited fiscal 2026 with more than $250 million of gross run-rate TAG benefits achieved and a clear line of sight to an additional $100 million of run-rate benefits by the end of fiscal 2027. Benefits came from yield improvements, scrap optimization, logistics efficiencies, manufacturing excellence and commercial excellence.
Precast Integration and Demand Indicators
Precast integration remained on track, with synergy capture meeting or exceeding expectations. Precast generated $57.1 million of adjusted EBITDA in the quarter and approximately $150 million since acquisition excluding purchase-accounting impacts. Bookings increased 12.6% sequentially, backlog rose roughly 3% year over year and 4% versus the third quarter, and average backlog pricing trended higher.
Precast Growth Target Maintained
Management continued to view approximately $240 million to $250 million of annualized Precast EBITDA as an achievable target. Nonresidential and infrastructure demand has filled in for weaker residential activity, while pricing has continued to rise across the portfolio.
Progress on Growth Investments
Nearly $1.5 billion has been deployed to modernize and complete the coast-to-coast mill network. Steel West Virginia commissioning and startup activities were progressing, Tensar's GeoGrid line in Oklahoma was well into startup, and the GalvaBar Tennessee facility was expected to begin first production in November and more than double GalvaBar production capacity.
Improved Balance Sheet and Cash Flow Outlook
Adjusted net leverage declined to 1.9x, below the company's 2x target, in less than a year. Fiscal 2027 capital expenditures are expected to decline by nearly $200 million from approximately $580 million in fiscal 2026 to roughly $400 million, with free cash flow and free cash flow conversion expected to improve in fiscal 2027 and fiscal 2028.
Accelerated Share Repurchases
Approximately $700 million remained under the expanded share repurchase authorization, and management said it intends to accelerate the pace of repurchases based on its cash-generating capability and view that the current share price represents a compelling value creation opportunity.
Favorable Tax and Depreciation Benefits
The company expects meaningful cash tax savings through much of fiscal 2027 from the 48C program, bonus depreciation related to the West Virginia mill and accelerated depreciation on assets acquired through the Precast acquisitions. The fiscal 2027 effective tax rate is expected to be approximately 24%.
Positive Infrastructure and Nonresidential Demand
Infrastructure demand remained elevated, supported by federal and state funding and a multiyear project pipeline. Nonresidential activity related to data centers, power generation, utility infrastructure, semiconductor manufacturing and institutional markets remained solid, while the Dodge Momentum Index remained near record levels.
Improving Steel Trade Environment
Existing Section 232 measures and recently finalized trade cases have reduced imports from certain sources. South Korean rebar imports decreased in September, imports from other affected sources remained at a fraction of prior-year levels, and management said the trade actions were supporting a more rational and sustainable competitive environment.
Merchant Bar Expansion Opportunity
Management identified an opportunity to reach up to 1 million tons of merchant shipments, implying approximately 150,000 to 200,000 tons of incremental merchant shipments. The startup of West Virginia is expected to free up South Carolina capacity for additional merchant products, while approximately 150,000 tons of wire rod are shipped annually.
European Operating Improvement and Energy Hedging
Underlying business fundamentals in Poland continued to improve, with metal margin expanding $32 per ton year over year and average selling prices increasing $44 per ton year over year and $15 per ton sequentially. Approximately 50% of European electricity is hedged through long-term purchase agreements, which management said supports the mill's competitive position.
Constructive Fiscal 2027 Outlook
Management expects fiscal 2027 to be another solid year. For the first quarter, North American Steel Group adjusted EBITDA is expected to be nearly flat sequentially, Construction Solutions Group adjusted EBITDA is expected to decline due to normal seasonality, and European adjusted EBITDA is expected to increase meaningfully.
CH:CMS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed