Commercial Metals Misses Q2 EPS but Revenue Surges 21.5%, Lifts Dividend 11%
Commercial Metals Company reported fiscal Q2 adjusted earnings of $1.16 per share, missing the $1.30 consensus, while revenue grew 21.5% to $2.13 billion, topping estimates of $2.09 billion. Core EBITDA jumped 114% to $297.5 million with 14.0% margin; precast contributed $33.6 million and dividend rose 11% to $0.20.
1. Fiscal Q2 Results
Commercial Metals posted adjusted Q2 earnings of $1.16 per share versus $1.30 expected, with revenue of $2.13 billion beating the $2.09 billion estimate and marking a 21.5% year-over-year increase from $1.75 billion.
2. Margin Expansion and Segment Contributions
Core EBITDA rose 114% year over year to $297.5 million, expanding margin by 610 basis points to 14.0%. The recently acquired precast business delivered $33.6 million in adjusted EBITDA (or $40.3 million excluding a $6.7 million purchase accounting adjustment), driven by strong TAG strategy execution and favorable market conditions.
3. Outlook and Dividend Increase
For Q3, the company expects consolidated core EBITDA to rise meaningfully, with the Construction Solutions Group nearly doubling quarterly results. Management reaffirmed full-year precast EBITDA guidance at $165 million to $175 million and approved an 11% dividend increase to $0.20 per share, payable April 15, 2026.