CMC Hits Stride in Q3 with 78.6% Core EBITDA Growth
Commercial Metals Company (CMC) has reported a strong third quarter, with core EBITDA increasing by a significant 78.6% year-over-year to $353.6 million. This impressive growth is attributed to metal margin expansion, solid progress on the company's Transform, Advance and Grow (TAG) initiatives, and the addition of results from its recent precast acquisitions.
CMC's President and Chief Executive Officer, Peter Matt, highlighted the company's financial performance in a conference call, stating that despite the significant increase in results, the quarter could have been even better. He expressed pleasure with the progress being made against the company's strategic agenda, which includes advancing CMC towards structurally higher margins, reduced earnings volatility, and more sustainable growth.
The TAG program remains a core driver of performance enhancement for CMC, with initiatives spanning operations, commercial organization, and support functions. The company is tracking well ahead of its targeted $150 million run-rate annualized benefits for FY 2026, amplifying existing initiatives to unlock further upside and replenishing the pipeline with new initiatives.
Integration of CMC's precast acquisitions is also on track, with early operational and commercial benefits reported. The company is seeing dramatic improvement in safety, rapidly rolling out best-in-class tools and practices across its precast operations to embed a strong safety culture. Commercially, CMC is leveraging the broader network of facilities between the two acquisitions to better serve precast customers while utilizing the vast CMC network to share leads and strengthen existing relationships.
CMC's President and Chief Executive Officer, Peter Matt, emphasized that the company's results reinforce its confidence in the TAG program as a durable lever for margin expansion and improved quality of earnings. The integration of precast acquisitions is being executed on plan, with strong alignment between teams reported.
In related news, CMC has appointed Andy Larkin to lead investor relations efforts, following Jason Brosius' transition into a strategy and corporate development role within the company. Mr. Larkin brings over a decade of IR experience across construction materials, metals and mining, and consumer staples, and is expected to further strengthen engagement with investors.
