Overview

• Steel solutions provider's fiscal Q1 revenue beat analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company completed acquisitions of CP&P and Foley, expanding precast concrete footprint

Outlook

• Commercial Metals expects Q2 core EBITDA to decline modestly due to seasonal slowdown

• Company anticipates North America Steel Group EBITDA lower due to seasonal trends

• Construction Solutions Group financial results should improve with precast business contributions

Result Drivers

• FAVORABLE MARKET CONDITIONS - CMC capitalized on stable demand and expanding margins in North America Steel Group, with increased steel product margins and higher average selling prices

• STRATEGIC INITIATIVES - CMC's TAG program and acquisitions of CP&P and Foley contributed to improved financial performance, establishing a new growth platform in precast concrete

• CONSTRUCTION SOLUTIONS GROWTH - CSG saw significant growth driven by strong demand, cost efficiency, and targeted commercial initiatives, especially in the Tensar division

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the iron & steel peer group is "buy"

• Wall Street's median 12-month price target for Commercial Metals Co is $69.00, about 5.8% below its January 7 closing price of $73.22

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPn8CMlTla

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)