Commercial Metals Company (CMC)

For the year ended August 31, 2026, CMC reported net sales of $9.39 billion and net earnings of $655.8 million 12.

In the fourth quarter, net earnings were $212.5 million, up 40.0 percent from a year earlier, on net sales of $2.66 billion 2.

Net earnings were $84.7 million a year earlier, after a charge of about $274 million, net of tax, for a contingent litigation loss 1.

Core EBITDA, an adjusted earnings measure the company uses, rose 35.1 percent to $393.7 million in the quarter 2.

CMC credited its North America steel business, the acquired precast operations and its TAG efficiency program 2.

Precast earnings fell below management's expectations, mainly because of weak residential demand in the Southeast 2.

Two things remain open: the appeal of a jury verdict in an antitrust case, and the start of sales from a new West Virginia steel mill in fiscal 2027 1.

CMC was founded in 1915 as a single scrap yard in Dallas, Texas 1.

It grew into a steelmaker that melts scrap metal in electric arc furnaces and makes its steel products from approximately 98% recycled material 1.

In fiscal 2025, net sales slipped 2 percent to $7.80 billion and net earnings fell 83 percent to $84.7 million 6.

The company blamed a litigation charge of about $274 million after tax and squeezed steel margins 6.

The charge came from a suit that Pacific Steel Group filed on October 30, 2020, saying CMC broke antitrust law with an exclusivity agreement for certain steel mill equipment 1.

A jury returned a verdict of $110.0 million for PSG on November 5, 2024, and the court trebled it as a matter of law 1.

CMC booked $362.3 million of litigation expense in fiscal 2025 for the judgment, fees and interest 1.

Trade policy shifted when the United States re-imposed 25% steel tariffs effective March 12, 2025, and raised them to 50% for most countries effective June 4, 2025 1.

CMC completed the purchase of Concrete Pipe & Precast on December 1, 2025, for about $675 million in cash 1.

It completed the purchase of Foley Products on December 15, 2025, for about $1.84 billion in cash 1.

Geosynthetics Magazine reported the Foley price was 10.3 times Foley's forecast 2025 EBITDA, a measure of operating profit 8.

The two deals created CMC's precast platform: concrete parts cast in a factory and shipped to a site 1.

CMC raised $1.0 billion of 5.750% notes due 2033 and $1.0 billion of 6.000% notes due 2035 in November 2025 to fund Foley 1.

Interest expense rose $97.8 million in fiscal 2026 as a result 1.

Fiscal 2026 net sales rose 20 percent to $9.39 billion, and the precast platform added $511.1 million of them 1.

The tax rate fell to 7.8 percent from 21.3 percent after a federal tax credit tied to the West Virginia mill 1.

North America Steel Group

This is CMC's biggest business, a chain from scrap yards to steel mills to workshops that cut and bend steel for buildings 1.

Its net sales to outside customers were $7.0 billion in fiscal 2026, up 15 percent, and adjusted EBITDA rose 53 percent to $1.13 billion 1.

The average selling price of steel products was $981 a ton against $842 a year earlier, and the metal margin, price minus scrap cost, was $627 a ton against $509 1.

It runs 41 scrap recycling facilities, six electric arc furnace mini mills, four micro mills, one rerolling mill and 52 fabrication facilities 1.

Its downstream backlog, the value of unfilled orders, was $1.7 billion at August 31, 2026 1.

In the fourth quarter, merchant bar volumes rose 27.5 percent from a year earlier, with data center work and the Arizona 2 micro mill cited 2.

SteelOrbis reported that fourth-quarter external steel product shipments totaled 818,000 net tons 7.

Construction Solutions Group

This segment, renamed from Emerging Businesses Group, holds the precast platform and several specialty businesses 1.

Its net sales to outside customers were $1.34 billion in fiscal 2026, up 79 percent, and adjusted EBITDA was $292.1 million 1.

In the fourth quarter, precast sales were $190.8 million and precast adjusted EBITDA was $57.0 million 2.

Precast shipments fell from a year earlier, as weakness in the Southeast outweighed growth in the Mid-Atlantic, while bookings rose 12.6 percent from the third quarter 2.

Tensar sells geogrids, polymer grids that stabilize ground under roads, and Geopier foundation systems, rammed stone columns that carry building loads 1.

CMC said Tensar's profitability rose about 50 percent in fiscal 2026 on demand from data centers, energy and infrastructure 2.

The group also holds Construction Services, Impact Metals (high-strength bar and armor plate), anchor cages, bridge systems and Galvabar, a zinc-coated rebar 1.

An unplanned Galvabar outage cut fourth-quarter shipments, and a second Galvabar line is to be commissioned later in calendar 2026 2.

Europe Steel Group

This segment is a steel mill and scrap yards in Poland, where CMC says it is the second largest producer of rebar and wire rod 1.

Net sales to outside customers were $1.02 billion in fiscal 2026 against $918.3 million, while adjusted EBITDA slipped to $59.8 million from $69.3 million 1.

A new EU steel import regime started on July 1, 2026, and the 10-K says it generally puts a 50% duty on imports above quota 1.

People and plants

Peter Matt is president and chief executive, an executive officer since 2023, and Paul Lawrence is chief financial officer, in that role since 2016 1.

CMC had 13,670 employees at August 31, 2026, of whom 7,965 worked in North America steel 1.

Its fourth micro mill, in Berkeley County, West Virginia, entered service in the fourth quarter of fiscal 2026 1.

Rivals and problems

The 10-K says its rivals are local, regional, national and international steel makers, with overcapacity pushing imports into its regions 1.

In June 2025 a coalition of U.S. steel producers including CMC petitioned for duties on rebar from Algeria, Bulgaria, Egypt and Vietnam 1.

The Pacific Steel Group judgment is still under challenge, and the 10-K says the cash payments would significantly affect liquidity unless the verdict is overturned or the judgment significantly reduced 1.

The umbrella, in words

CMC operates under one brand, CMC, with Tensar, Foley, Galvabar and Geopier as product or business names inside it 1.

Exhibit 21 lists subsidiaries that CMC owns 100 percent, among them Foley Products Company, Concrete Pipe & Precast, CMC Steel US, Tensar Corporation and CMC Poland 5.

The 10-K lists mini mills in Birmingham, Cayce, Jacksonville, Knoxville, Sayreville and Seguin, micro mills in Berkeley County, Durant and Mesa, and the Zawiercie mill in Poland 1.

At its August 5, 2026 investor day, CMC set fiscal 2029 mid-cycle targets: core EBITDA of $1,650 million to $1,800 million and a margin of 15.0% to 16.0% 3.

It also targets return on invested capital of 13.0% to 14.5% and free cash flow of $1,375 million to $1,525 million 3.

The board added a $600 million share repurchase program, and $702.1 million remained available at August 31, 2026 32.

For the first quarter of fiscal 2027, CMC expects North America steel adjusted EBITDA to be nearly flat from the fourth quarter 2.

It expects Construction Solutions Group adjusted EBITDA to fall on seasonal trends and Europe Steel Group's to grow meaningfully, helped by a CO2 credit 2.

CMC expects sales from the West Virginia mill to begin in the first quarter of fiscal 2027 1.

It expects a total investment in that mill of $550.0 million to $600.0 million, net of $75.0 million in expected state assistance 1.

A quarterly dividend of $0.20 per share is payable on November 11, 2026, to holders of record on October 28, 2026 4.

CMC says it intends to appeal the Pacific Steel Group judgment to the Ninth Circuit 1.