Can Commercial Metals' Recent Acquisitions Fuel Long-Term Growth?

Commercial Metals Company CMC closed two major acquisitions in December 2025 — Concrete Pipe and Precast, LLC ("CP&P") and Foley Products Company. The company has made payments of $2.5 billion for the deals. 

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 CP&P 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. The Foley deal will also provide CMC with an immediate platform scale in a strategically attractive industry.

The addition of these businesses will aid the company’s results in the second quarter of fiscal 2026, offsetting the impacts of seasonal slowdown within key markets. However, the company will also bear several acquisition-related expenses in the fiscal second quarter, such as transaction fees and debt issuance costs. 

Nonetheless, 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-$30 million from Foley and CP&P by year three, with additional synergies expected to be recognized in upcoming years.

Acquisitions by Commercial Metals’ Peers

Cleveland-Cliffs Inc. CLF acquired Stelco Holdings Inc. in November 2024, which positioned it as the largest flat-rolled steel producer in North America. The deal boosted Cleveland-Cliffs’ customer base and helped the company lower its cost structure, along with expanding its footprint in Canada.

In June 2024, Nucor Corporation NUE acquired Rytec Corporation, a manufacturer and seller of high-speed, high-performance commercial doors. Nucor expects Rytec and C.H.I. Overhead Doors together to establish an overhead door platform, offering enhanced product variety and solutions for its customers.

CMC’s Price Performance, Valuations & Estimates

Commercial Metals shares have gained 53.2% in the past year compared with the industry’s 59.6% growth. In comparison, the Zacks Basic Materials sector and the S&P 500 have returned 49% and 18.1%, respectively.

Commercial Metals is currently trading at a forward price/sales ratio of 0.93 compared with the industry's 1.73.

Peer Cleveland-Cliffs is a cheaper option, trading at a forward price/sales ratio of 0.33, while Nucor is trading at a higher 1.17, respectively.

The Zacks Consensus Estimate for Commercial Metals’ fiscal 2026 sales is $8.89 billion, indicating a 13.9% year-over-year jump. The consensus mark for the year’s earnings is pegged at $7.34 per share, indicating a year-over-year upsurge of 134.5%.

The Zacks Consensus Estimate for fiscal 2027 sales implies 5.7% year-over-year growth. The same for earnings suggests a dip of 1.5%.
EPS estimates for fiscal 2026 and 2027 have moved north over the past 60 days.

CMC currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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