Commercial Metals Swings to $270M Profit in H1 2026 After Prior-Year Loss

Commercial Metals Company (NYSE: CMC), a steel and metal products manufacturer, reported net income of $270.3 million for the six months ending February 28, 2026, a sharp reversal from a net loss of $150.2 million in the same period a year earlier. The company posted diluted earnings per share of $2.41, compared to a loss of $1.32 per share in the prior-year period. Read more earnings reports.

For the three months ending February 28, 2026, net income reached $93.0 million, or $0.83 per diluted share, up from $25.5 million, or $0.22 per diluted share, in the year-ago quarter.

Cost Structure and Margins

Cost of goods sold for the six-month period totaled $3.46 billion, up from $3.14 billion in the prior-year period. Selling, general and administrative expenses climbed to $428.8 million from $345.4 million, reflecting increased costs across the business.

Income tax expense for the six months was $22.4 million, a reversal from a tax benefit of $45.0 million in the prior-year period when the company was operating at a loss.

Balance Sheet Expansion

Total assets surged to $9.56 billion as of February 28, 2026, from $7.17 billion at the end of fiscal 2025 on August 31, 2025. The increase was driven by substantial growth in property, plant and equipment, which rose to $3.25 billion from $2.74 billion.

Goodwill jumped to $2.13 billion from $386.8 million, while intangible assets more than doubled to $496.0 million from $210.8 million, signaling significant acquisition activity during the period.

Cash and restricted cash stood at $503.6 million as of February 28, 2026, down from $1.05 billion at the prior fiscal year-end. Inventory increased to $1.14 billion from $934.3 million.

Debt and Financing

Long-term debt swelled to $3.20 billion from $1.20 billion at the end of fiscal 2025. The company's financing activities generated $1.84 billion in cash during the six-month period, compared to a use of $169.9 million in the prior-year period. Total liabilities rose to $5.16 billion from $2.98 billion.

Stockholders' equity increased to $4.41 billion from $4.19 billion. Retained earnings grew to $4.74 billion from $4.51 billion. The company had 111.0 million common shares outstanding as of February 28, 2026, down slightly from 111.2 million at the prior fiscal year-end.

Cash Flow Performance

Cash from operations totaled $370.5 million for the six months ending February 28, 2026, up from $245.5 million in the prior-year period. Cash used in investing activities reached $2.75 billion, compared to $175.1 million in the prior year, reflecting major capital deployment.

Financial Summary