Commercial Metals Q4 EPS Strength Challenges Bearish Margin Narrative For CMC

Simply Wall St.01-10

Commercial Metals (CMC) has just posted its Q1 2026 results, with Q4 2025 revenue at US$2.1 billion and basic EPS of US$1.36, setting the tone for how the new fiscal year is starting to shape up. Over...

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Over...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-cmc/commercial-metals/news/commercial-metals-q4-eps-strength-challenges-bearish-margin\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Commercial Metals Q4 EPS Strength Challenges Bearish Margin Narrative For CMC</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCommercial Metals Q4 EPS Strength Challenges Bearish Margin Narrative For CMC\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-10 06:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/materials/nyse-cmc/commercial-metals/news/commercial-metals-q4-eps-strength-challenges-bearish-margin><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Commercial Metals (CMC) has just posted its Q1 2026 results, with Q4 2025 revenue at US$2.1 billion and basic EPS of US$1.36, setting the tone for how the new fiscal year is starting to shape up. Over...</p>\n\n<a href=\"https://simplywall.st/stocks/us/materials/nyse-cmc/commercial-metals/news/commercial-metals-q4-eps-strength-challenges-bearish-margin\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CMC","symbol_name":"美国工商五金公司","start_time":0,"source_url":"https://simplywall.st/stocks/us/materials/nyse-cmc/commercial-metals/news/commercial-metals-q4-eps-strength-challenges-bearish-margin","article_id":"2602307901","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/2055000-choice1-main-header/1585186785008"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/materials/nyse-cmc/commercial-metals/news/commercial-metals-q4-eps-strength-challenges-bearish-margin","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2602307901","pubTimestamp":1767997665,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Commercial Metals (CMC) has just posted its Q1 2026 results, with Q4 2025 revenue at US$2.1 billion and basic EPS of US$1.36, setting the tone for how the new fiscal year is starting to shape up. Over recent quarters the company has seen revenue move from US$2.0 billion in Q3 2025 to US$2.1 billion in Q4 2025, while basic EPS shifted from US$0.74 to US$1.36, giving investors fresh numbers to weigh against a mixed earnings backdrop. With trailing 12 month profit margins under pressure and a...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"CMC":"美国工商五金公司"},"translate_title":"商业金属第四季度每股收益强劲挑战CMC的看跌利润率叙述","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CMC":1.5},"content_text":"Commercial Metals (CMC) has just posted its Q1 2026 results, with Q4 2025 revenue at US$2.1 billion and basic EPS of US$1.36, setting the tone for how the new fiscal year is starting to shape up. Over recent quarters the company has seen revenue move from US$2.0 billion in Q3 2025 to US$2.1 billion in Q4 2025, while basic EPS shifted from US$0.74 to US$1.36, giving investors fresh numbers to weigh against a mixed earnings backdrop. With trailing 12 month profit margins under pressure and a large one off loss still in the rear view mirror, the focus now is firmly on how sustainably Commercial Metals can defend its margins from here. See our full analysis for Commercial Metals. With the latest results on the table, the next step is to compare these numbers with the most common market stories around Commercial Metals to see which narratives hold up and which ones start to look thin. See what the community is saying about Commercial Metals NYSE:CMC Earnings & Revenue History as at Jan 2026 AdvertisementMargins compressed to 1.1% on trailing basis  Over the last 12 months, CMC’s reported net profit margin sits at 1.1%, compared with 6.1% a year earlier, while trailing net income is US$84.7 million on about US$7.8b of revenue. Critics highlight that a large one off loss of US$366.9 million is weighing heavily on these numbers, and that aligns with the sharp margin drop. Yet it also means:\n     Reported trailing EPS of US$0.75 over the last 12 months looks weak relative to the Q4 2025 quarterly EPS of US$1.36, so the one time hit is pulling the full year picture down. The bearish view that the business has structurally weaker profitability is only partly backed by the data, because the one off loss and the move from a 6.1% to 1.1% margin are happening at the same time.    P/E of 94.9x versus earnings decline  CMC is trading on a P/E of 94.9x, which is above the US Metals & Mining industry average of 27.2x and a peer average of 53x, even though earnings have declined about 12.5% per year over five years and are forecast to fall a further 7.9% per year over the next three years. Bears argue this combination of a high multiple and weak earnings trend leaves little room for disappointment, and the recent figures give them some backing:\n     Trailing net income of US$84.7 million on roughly US$7.8b of revenue implies thin profitability, so a 94.9x P/E is being applied to a relatively small earnings base. Against that, the current share price of US$72.46 sits below an analyst price target of US$77.10, which suggests the bearish view on valuation is not universally shared in the estimates provided.    You have a rich tug of war here between a premium 94.9x P/E and declining earnings, and skeptics are watching closely to see which side of that story wins out. 🐻 Commercial Metals Bear Case DCF fair value far above current price  The provided DCF fair value of US$132.61 sits well above the current share price of US$72.46, a gap of about 45.4%, even though revenue is only expected to grow 2.8% per year, below the US market’s 10.5% forecast. Supporters of the bullish case point to capacity projects and efficiency programs as reasons this gap might make sense, and the current data gives that view some context:\n     Consensus narrative points to projects like the Arizona 2 micro mill and the Steel West Virginia site, which are expected to lift production volumes, while recent quarterly revenue has held around US$2.0b to US$2.1b rather than showing a sharp fall away. At the same time, trailing EPS of US$0.75 and a 1.1% margin show that any bullish view is leaning on future margin repair from today’s low base, not on currently strong profitability.    Bulls see a wide gap between the US$72.46 share price and the DCF fair value of US$132.61 as a potential opportunity, but the current thin 1.1% margin means the earnings recovery story has a lot of work to do. 🐂 Commercial Metals Bull Case  Next Steps To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Commercial Metals on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. See the numbers differently? If the data points lead you to a different conclusion, shape that view into your own narrative in a few minutes: Do it your way. A great starting point for your Commercial Metals research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision. See What Else Is Out There CMC’s thin 1.1% trailing margin, modest revenue growth and 94.9x P/E on a small earnings base leave plenty of questions about earnings quality and durability. If you want ideas where earnings and revenue look steadier, check out stable growth stocks screener (2145 results) to quickly zero in on companies with more consistent performance through different conditions.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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