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CMC shares surged after a 52-week high on strong Q4 results and a newly closed acquisition.
Q4 EPS rose y/y to $1.35 on higher sales, profit and core EBITDA, all exceeding estimates.
CMC's recent and planned deals aim to build a major precast platform with significant synergy potential.
Commercial Metals Company (CMC - Free Report) stock hit a 52-week high of $68.35 on Friday before closing the session a tad lower at $66.86. The upside was fueled by the news of the Concrete Pipe & Precast, LLC ("CP&P") deal closing. Shares have been gaining since the upbeat fourth-quarter results reported on Oct. 17.
Solid Q4 Results: CMC reported earnings per share (EPS) of $1.35 for the fourth quarter of fiscal 2025 (ended Aug. 31, 2025) compared with 90 cents in the year-ago quarter. Adjusted for one-time items, earnings came in at $1.37. The bottom line beat the Zacks Consensus Estimate of $1.32.
Net sales in the reported quarter were $2.11 billion, up 5.9% year over year. The reported figure beat the Zacks Consensus Estimate of $2.04 billion. The gross profit rose 21.6% from the year-ago quarter to $393 million during this period. The core EBITDA was $291 million in the fiscal fourth quarter, up 32.9% from the year-ago quarter.
Recent Acquisitions: In early December, the company closed its previously announced deal to acquire Concrete Pipe & Precast, LLC ("CP&P") from Eagle Corporation and ECPP, LLC. The acquisition of CP&P creates a scalable platform for CMC in a fragmented industry with strong profit margins. The market conditions for the precast suppliers provide Commercial Metals a long-term runway for self-directed organic and inorganic growth.
The deal is projected to be immediately accretive to CMC’s earnings per share and free cash flow. By the third year of completion, annual run-rate synergies from the transaction are expected between $5 million and $10 million, primarily related to optimization initiatives. Commercial Metals has also inked a deal to acquire Foley Products Company in October 2025 for a cash purchase price of $1.84 billion. This deal will provide CMC with an immediate platform scale in a strategically attractive industry. The company expects to close this deal by the end of 2025. The acquisition of Foley and CP&P will position Commercial Metals as a leading player in the Mid-Atlantic and Southeastern regions, which will operate one of the largest precast concrete platforms in the United States.
CMC has identified operational annual run-rate synergies of $25 million to $30 million from Foley and CP&P by year three, with additional synergies expected to be recognized in upcoming years.
Solid Demand & Pricing Actions: The impacts of the robust demand in North America for each of Commercial Metals’ major product lines are expected to be reflected in the company’s results. Commercial Metals is also implementing price rises across its mill products in response to rapidly rising scrap costs, which will sustain margins.
Commercial Metals’ Stocks Price Performance
Shares of the company have gained 8.9% in the past year compared with the industry’s growth of 22.2%.
Image Source: Zacks Investment Research
Other Stocks to Consider
Some other top-ranked stocks from the basic materials space are OR Royalties Inc. (OR - Free Report) , Newmont Corporation (NEM - Free Report) and Agnico Eagle Mines (AEM - Free Report) . OR, NEM and AEM sport a Zacks Rank #1 at present.
The consensus estimate for OR Royalties’ 2025 earnings is pegged at 82 cents per share. The estimate indicates year-over-year growth of 57.7%. OR Royalties’ shares have surged 80% in a year.
The consensus estimate for Newmont’s 2025 earnings is pegged at $6.05 per share. The estimate suggests a year-over-year rally of 73.8%. It has an average trailing four-quarter earnings surprise of 41.6%. Newmont’s shares have soared 124.4% in a year.
The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $7.77 per share. The estimate implies a year-over-year upsurge of 83.6%. It has an average trailing four-quarter earnings surprise of 11.6%. Agnico Eagle Mines’ shares have skyrocketed 107.6% in a year.
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Commercial Metals Stock Hits 52-Week High: What's Driving It?
Key Takeaways
Commercial Metals Company (CMC - Free Report) stock hit a 52-week high of $68.35 on Friday before closing the session a tad lower at $66.86. The upside was fueled by the news of the Concrete Pipe & Precast, LLC ("CP&P") deal closing. Shares have been gaining since the upbeat fourth-quarter results reported on Oct. 17.
CMC currently has a market capitalization of $7.4 billion and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
What’s Aiding CMC Stock?
Solid Q4 Results: CMC reported earnings per share (EPS) of $1.35 for the fourth quarter of fiscal 2025 (ended Aug. 31, 2025) compared with 90 cents in the year-ago quarter. Adjusted for one-time items, earnings came in at $1.37. The bottom line beat the Zacks Consensus Estimate of $1.32.
Net sales in the reported quarter were $2.11 billion, up 5.9% year over year. The reported figure beat the Zacks Consensus Estimate of $2.04 billion. The gross profit rose 21.6% from the year-ago quarter to $393 million during this period. The core EBITDA was $291 million in the fiscal fourth quarter, up 32.9% from the year-ago quarter.
Recent Acquisitions: In early December, the company closed its previously announced deal to acquire Concrete Pipe & Precast, LLC ("CP&P") from Eagle Corporation and ECPP, LLC. The acquisition of CP&P creates a scalable platform for CMC in a fragmented industry with strong profit margins. The market conditions for the precast suppliers provide Commercial Metals a long-term runway for self-directed organic and inorganic growth.
The deal is projected to be immediately accretive to CMC’s earnings per share and free cash flow. By the third year of completion, annual run-rate synergies from the transaction are expected between $5 million and $10 million, primarily related to optimization initiatives.
Commercial Metals has also inked a deal to acquire Foley Products Company in October 2025 for a cash purchase price of $1.84 billion. This deal will provide CMC with an immediate platform scale in a strategically attractive industry.
The company expects to close this deal by the end of 2025. The acquisition of Foley and CP&P will position Commercial Metals as a leading player in the Mid-Atlantic and Southeastern regions, which will operate one of the largest precast concrete platforms in the United States.
CMC has identified operational annual run-rate synergies of $25 million to $30 million from Foley and CP&P by year three, with additional synergies expected to be recognized in upcoming years.
Solid Demand & Pricing Actions: The impacts of the robust demand in North America for each of Commercial Metals’ major product lines are expected to be reflected in the company’s results. Commercial Metals is also implementing price rises across its mill products in response to rapidly rising scrap costs, which will sustain margins.
Commercial Metals’ Stocks Price Performance
Shares of the company have gained 8.9% in the past year compared with the industry’s growth of 22.2%.
Other Stocks to Consider
Some other top-ranked stocks from the basic materials space are OR Royalties Inc. (OR - Free Report) , Newmont Corporation (NEM - Free Report) and Agnico Eagle Mines (AEM - Free Report) . OR, NEM and AEM sport a Zacks Rank #1 at present.
The consensus estimate for OR Royalties’ 2025 earnings is pegged at 82 cents per share. The estimate indicates year-over-year growth of 57.7%. OR Royalties’ shares have surged 80% in a year.
The consensus estimate for Newmont’s 2025 earnings is pegged at $6.05 per share. The estimate suggests a year-over-year rally of 73.8%. It has an average trailing four-quarter earnings surprise of 41.6%. Newmont’s shares have soared 124.4% in a year.
The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $7.77 per share. The estimate implies a year-over-year upsurge of 83.6%. It has an average trailing four-quarter earnings surprise of 11.6%. Agnico Eagle Mines’ shares have skyrocketed 107.6% in a year.