EX-99.1 2 wor-ex99_1.htm EX-99.1 EX-99.1

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Worthington Enterprises Reports First Quarter Fiscal 2026 Results

 

COLUMBUS, Ohio (September 23, 2025) – Worthington Enterprises Inc. (NYSE: WOR), a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences, today reported results for its fiscal 2026 first quarter ended August 31, 2025.

 

Recent Developments and First Quarter Highlights (all comparisons to the first quarter of fiscal 2025):

Net sales were $303.7 million, an increase of 18%.
Net earnings increased 45% to $34.8 million, while adjusted EBITDA grew 34% to $65.1 million.
Earnings per share (“EPS”) – diluted improved from $0.48 to $0.70 per share, while adjusted EPS – diluted increased from $0.50 to $0.74 per share.
Operating cash flow of $41.1 million was flat compared to the prior year quarter, while free cash flow decreased 12% to $27.9 million, driven by increased capital expenditures related to ongoing facility modernization projects.
Repurchased 100,000 common shares for $6.3 million leaving 5,265,000 common shares remaining on the Company’s repurchase authorization.
Declared a quarterly dividend of $0.19 per common share payable on December 29, 2025, to shareholders of record at the close of business on December 15, 2025.
Acquired Elgen Manufacturing, a market-leading designer and manufacturer of HVAC parts and components, ductwork and structural framing primarily used in commercial buildings throughout North America, on June 18, 2025, for $91.2 million, net of cash acquired.

 

 

“We started the fiscal year with solid momentum led by strong performance in our Building Products segment,” said Worthington Enterprises President and CEO Joe Hayek. “Volume growth in Building Products and increased contributions from WAVE helped drive meaningful earnings improvement, while our Consumer Products team delivered solid results despite a challenging macro environment. Throughout the business, our teams continue to execute well, supported by strong customer relationships, a transformational mindset and a portfolio of market-leading brands that support our long-term growth strategy.”

 

 

 

 

 

 

 

 

 

 

 

 


Worthington Enterprises

September 23, 2025

Page 2

Financial highlights for the current year and prior year quarters are as follows:

 

(U.S. dollars in millions, except per share amounts)

 

1Q 2026

 

 

1Q 2025

 

GAAP Financial Measures

 

 

 

 

 

 

Net sales

 

$

303.7

 

 

$

257.3

 

Operating income (loss)

 

 

9.2

 

 

 

(4.7

)

Earnings before income taxes

 

 

 

 

 

 

45.7

 

 

 

30.8

 

Net earnings

 

 

34.8

 

 

 

24.0

 

EPS – diluted

 

 

0.70

 

 

 

0.48

 

Net cash provided by operating activities

 

 

 

 

 

 

41.1

 

 

 

41.1

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Measures (1)

 

 

 

 

 

 

Adjusted operating income (loss)

 

$

11.7

 

 

$

(3.5

)

Adjusted EBITDA

 

 

65.1

 

 

 

48.4

 

Adjusted EPS – diluted

 

 

0.74

 

 

 

0.50

 

Free cash flow

 

 

27.9

 

 

 

31.5

 

 

 

(1)
Refer to the “Use of Non-GAAP Financial Measures and Definitions” section of this release for additional information regarding the use of non-GAAP financial measures, including reconciliations to the most comparable GAAP measures.

 

 

Consolidated Quarterly Results

 

Net sales for the first quarter of fiscal 2026 increased $46.4 million, or 18.0%, over the prior year quarter to $303.7 million, driven by higher volumes in Building Products, including contributions from Elgen.

 

Operating income of $9.2 million was favorable $13.9 million compared to the operating loss in the prior year quarter. On an adjusted basis, excluding restructuring and other expense, operating income increased $15.3 million in the quarter to $11.7 million, driven by higher volumes within Building Products.

 

Equity income increased $1.2 million over the prior year quarter to $36.7 million, due to higher contributions from WAVE, which was up $4.5 million, partially offset by a $2.8 million decrease in equity earnings at ClarkDietrich.

 

Income tax expense was $10.9 million in the first quarter of fiscal 2026 compared to $6.8 million in the prior year quarter. The increase was driven by higher pre-tax earnings. Income tax expense in the first quarter of fiscal 2026 reflects an estimated annual effective rate of 23.8% compared to 24.5% in the prior year quarter.

 

Balance Sheet and Cash Flow

 

The Company ended the first quarter with cash of $167.1 million, a decrease of $83.0 million from May 31, 2025, driven by the purchase of Elgen. During the first quarter of fiscal 2026, the Company generated operating cash flow of $41.1 million, of which $13.2 million was invested in capital expenditures, resulting in free cash flow of $27.9 million, down from $31.5 million in the prior year quarter. Capital expenditures in the current year quarter included approximately $8.6 million related to ongoing facility modernization projects.

 

Total debt at quarter end was $306.0 million, consisting entirely of long-term debt, an increase of $3.1 million from May 31, 2025, due to the remeasurement of the Company’s euro denominated notes. The Company had no borrowings under its revolving credit facility as of August 31, 2025, leaving $500.0 million available for future use.

 

 


Worthington Enterprises

September 23, 2025

Page 3

Quarterly Segment Results

 

Consumer Products generated net sales of $118.9 million in the current year quarter, up $1.3 million from the prior year quarter, as favorable product mix was largely offset by lower volumes. Adjusted EBITDA was $16.1 million, down $1.6 million from the prior year quarter, primarily due to lower volumes and increased SG&A expense.

 

Building Products generated net sales of $184.8 million, up $45.1 million, or 32.2%, from the prior year quarter. The increase was driven by higher volumes and the inclusion of Elgen, which contributed $20.9 million in net sales. Adjusted EBITDA increased $18.1 million to $57.8 million, primarily due to volume growth in the wholly owned businesses. The quarter included $2.2 million in incremental expenses related to the Elgen acquisition from the purchase accounting step up in inventory to fair value, resulting in a nominal contribution to adjusted EBITDA from Elgen.

 

Outlook

 

“We have had a strong start to our fiscal year and believe we are well positioned for the future,” Hayek said. “The addition of Elgen strengthens our presence in commercial HVAC and broadens our reach within the building envelope. Backed by a strong balance sheet, consistent free cash flow and the Worthington Business System of innovation, transformation and acquisitions, our teams remain focused on executing our strategy and delivering long-term value for customers and shareholders.”

 

Conference Call

 

The Company will review fiscal 2026 first quarter results during its quarterly conference call on September 24, 2025, at 8:30 a.m. Eastern Time. Details regarding the conference call can be found on the Company website at www.WorthingtonEnterprises.com.

 

About Worthington Enterprises

Worthington Enterprises (NYSE: WOR) is a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences. The Company operates with two primary business segments: Building Products and Consumer Products. The Building Products segment includes heating and cooling, cooking, construction and water solutions, and building systems including HVAC components, architectural and acoustical grid ceilings and metal framing and accessories. The Consumer Products segment provides solutions for the tools, outdoor living and celebrations categories. Product brands within the Worthington Enterprises portfolio include Balloon Time®, Bernzomatic®, Coleman® (propane cylinders), CoMet®, Elgen, Garden Weasel®, General®, HALO™, Hawkeye™, Level5 Tools®, Mag Torch®, NEXI™, Pactool International®, PowerCore™, Ragasco®, Well-X-Trol® and XLite™, among others.

 

Headquartered in Columbus, Ohio, Worthington Enterprises and its joint ventures employ approximately 6,000 people throughout North America and Europe.

 

Founded in 1955 as Worthington Industries, Worthington Enterprises follows a people-first Philosophy with earning money for its shareholders as its first corporate goal. Worthington Enterprises achieves this outcome by empowering its employees to innovate, thrive and grow with leading brands in attractive markets that improve everyday life. The Company engages deeply with local communities where it has operations through volunteer efforts and The Worthington Companies Foundation, participates actively in workforce development programs and reports annually on its corporate citizenship and sustainability efforts. For more information, visit worthingtonenterprises.com.

 

Safe Harbor Statement

 

Selected statements contained in this release constitute “forward-looking statements,” as that term is used in the Private Securities Litigation Reform Act of 1995 (the “Act”). The Company wishes to take advantage of the safe harbor provisions included in the Act. Forward-looking statements reflect the Company’s current expectations, estimates or projections concerning future results or events. These statements are often identified by the use of forward-looking words or phrases such as “believe,” “expect,” “anticipate,” “may,”

 


Worthington Enterprises

September 23, 2025

Page 4

“could,” “should,” “would,” “intend,” “plan,” “will,” “likely,” “estimate,” “project,” “position,” “strategy,” “target,” “aim,” “seek,” “foresee” and similar words or phrases. These forward-looking statements include, without limitation, statements relating to: future or expected cash positions, liquidity and ability to access financial markets and capital; outlook, strategy or business plans; the anticipated benefits of the separation of the Company’s Steel Processing business (the “Separation); the expected financial and operational performance of, and future opportunities for, the Company following the Separation; the Company’s performance on a pro forma basis to illustrate the estimated effects of the Separation on historical periods; the tax treatment of the Separation transaction; future or expected growth, growth potential, forward momentum, performance, competitive position, sales, volumes, cash flows, earnings, margins, balance sheet strengths, debt, financial condition or other financial measures; pricing trends for raw materials and finished goods and the impact of pricing changes; the ability to improve or maintain margins; expected demand or demand trends for the Company or its markets; additions to product lines and opportunities to participate in new markets; expected benefits from transformation and innovation efforts; the ability to improve performance and competitive position at the Company’s operations; anticipated working capital needs, capital expenditures and asset sales; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof; projected profitability potential; the ability to make acquisitions and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations; projected capacity and the alignment of operations with demand; the ability to operate profitably and generate cash in down markets; the ability to capture and maintain market share and to develop or take advantage of future opportunities, customer initiatives, new businesses, new products and new markets; expectations for Company and customer inventories, jobs and orders; expectations for the economy and markets or improvements therein; expectations for generating improving and sustainable earnings, earnings potential, margins or shareholder value; effects of judicial rulings; the ever-changing effects of the novel coronavirus (“COVID-19”) pandemic and the various responses of governmental and nongovernmental authorities thereto on economies and markets, and on our customers, counterparties, employees and third-party service providers; and other non-historical matters.

Because they are based on beliefs, estimates and assumptions, forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Any number of factors could affect actual results, including, without limitation, those that follow: the uncertainty of obtaining regulatory approvals in connection with the Separation, including rulings from the Internal Revenue Service; the Company’s ability to successfully realize the anticipated benefits of the Separation; the risks, uncertainties and impacts related to the COVID-19 pandemic – the duration, extent and severity of which are impossible to predict, including the possibility of future resurgence in the spread of COVID-19 or variants thereof – and the availability, effectiveness and acceptance of vaccines, and other actual or potential public health emergencies and actions taken by governmental authorities or others in connection therewith; the effect of national, regional and global economic conditions generally and within major product markets, including significant economic disruptions from COVID-19, the actions taken in connection therewith and the implementation of related fiscal stimulus packages; the effect of conditions in national and worldwide financial markets, including inflation, increases in interest rates and economic recession, and with respect to the ability of financial institutions to provide capital; the impact of tariffs, the adoption of trade restrictions affecting the Company’s products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; changing oil prices and/or supply; product demand and pricing; changes in product mix, product substitution and market acceptance of the Company’s products; volatility or fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities, labor and other items required by operations (especially in light of the COVID-19 pandemic and Russia’s invasion of Ukraine); effects of sourcing and supply chain constraints; the outcome of adverse claims experience with respect to workers’ compensation, product recalls or product liability, casualty events or other matters; effects of facility closures and the consolidation of operations; the effect of financial difficulties, consolidation and other changes within the steel, automotive, construction and other industries in which the Company participates; failure to maintain appropriate levels of inventories; financial difficulties (including bankruptcy filings) of original equipment manufacturers, end-users and customers, suppliers, joint venture partners and others with whom the Company does business; the ability to realize targeted expense reductions from headcount reductions, facility closures and other cost reduction efforts; the ability to realize cost savings and operational, sales and sourcing improvements and efficiencies, and other expected benefits from transformation initiatives, on a timely basis; the overall success of, and the ability to integrate, newly-acquired businesses and joint ventures, maintain and develop their customers, and achieve synergies and other expected benefits and cost savings therefrom; capacity levels and efficiencies, within facilities, within major product markets and within the industries in which the Company participates as a whole; the effect of disruption in the business of suppliers, customers, facilities and shipping operations due to adverse weather, casualty events, equipment breakdowns, labor shortages, interruption in utility services, civil unrest, international conflicts (especially in light of Russia’s invasion of Ukraine), terrorist activities or other causes; changes in customer demand, inventories, spending patterns, product choices, and supplier choices; risks associated with doing business internationally, including economic, political and social instability (especially in light of Russia’s invasion of Ukraine), foreign currency exchange rate exposure and the acceptance of the Company’s products in global markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; the effect of inflation, interest rate increases and economic recession, which may negatively impact the Company’s operations and financial results; deviation of actual results from estimates and/or assumptions used by the Company in the application of its significant accounting policies; the level of imports and import prices in the Company’s markets; the impact of environmental laws and regulations or the actions of the United States Environmental Protection Agency or similar regulators which increase costs or limit the Company’s ability to use or sell certain

 


Worthington Enterprises

September 23, 2025

Page 5

products; the impact of increasing environmental, greenhouse gas emission and sustainability regulations and considerations; the impact of judicial rulings and governmental regulations, both in the United States and abroad, including those adopted by the United States Securities and Exchange Commission and other governmental agencies as contemplated by the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of healthcare laws in the United States and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase the Company’s healthcare and other costs and negatively impact the Company’s operations and financial results; the effects of tax laws in the United States and potential changes for such laws, which may increase the Company’s costs and negatively impact the Company’s operations and financial results; cyber security risks; the effects of privacy and information security laws and standards; and other risks described from time to time in the Company’s filings with the United States Securities and Exchange Commission, including those described in “Part I – Item 1A. – Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2025.

Forward-looking statements should be construed in the light of such risks. The Company notes these factors for investors as contemplated by the Act. It is impossible to predict or identify all potential risk factors. Consequently, readers should not consider the foregoing list to be a complete set of all potential risks and uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. The Company does not undertake, and hereby disclaims, any obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

 


 

WORTHINGTON ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per common share amounts)

 

 

 

Three Months Ended

 

 

 

August 31,

 

 

 

2025

 

 

2024

 

Net sales

 

$

303,707

 

 

$

257,308

 

Cost of goods sold

 

 

221,423

 

 

 

194,813

 

Gross profit

 

 

82,284

 

 

 

62,495

 

Selling, general and administrative expense

 

 

70,565

 

 

 

66,036

 

Restructuring and other expense, net

 

 

2,476

 

 

 

1,158

 

Operating income (loss)

 

 

9,243

 

 

 

(4,699

)

Other income (expense):

 

 

 

 

 

 

Miscellaneous income (expense), net

 

 

(156

)

 

 

486

 

Interest expense, net

 

 

(63

)

 

 

(489

)

Equity in net income of unconsolidated affiliates

 

 

36,657

 

 

 

35,492

 

Earnings before income taxes

 

 

45,681

 

 

 

30,790

 

Income tax expense

 

 

10,860

 

 

 

6,782

 

Net earnings

 

 

34,821

 

 

 

24,008

 

Net loss attributable to noncontrolling interest

 

 

(327

)

 

 

(245

)

Net earnings attributable to controlling interest

 

$

35,148

 

 

$

24,253

 

 

 

 

 

 

 

 

Basic

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

49,264

 

 

 

49,487

 

Earnings per share attributable to controlling interest

 

$

0.71

 

 

$

0.49

 

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

50,026

 

 

 

50,365

 

Earnings per share attributable to controlling interest

 

$

0.70

 

 

$

0.48

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.19

 

 

$

0.17

 

 

 


 

CONSOLIDATED BALANCE SHEETS

WORTHINGTON ENTERPRISES, INC.

(In thousands)

 

 

 

August 31,

 

 

May 31,

 

 

 

2025

 

 

2025

 

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

167,122

 

 

$

250,075

 

Receivables, less allowances of $906 and $907, respectively

 

 

214,078

 

 

 

215,824

 

Inventories

 

 

 

 

 

 

Raw materials

 

 

103,069

 

 

 

80,522

 

Work in process

 

 

9,660

 

 

 

9,408

 

Finished products

 

 

88,831

 

 

 

79,463

 

Total inventories

 

 

201,560

 

 

 

169,393

 

Income taxes receivable

 

 

4,579

 

 

 

12,720

 

Prepaid expenses and other current assets

 

 

38,701

 

 

 

37,358

 

Total current assets

 

 

626,040

 

 

 

685,370

 

Investment in unconsolidated affiliates

 

 

129,678

 

 

 

129,262

 

Operating lease assets

 

 

39,603

 

 

 

22,699

 

Goodwill

 

 

412,304

 

 

 

376,480

 

Other intangibles, net of accumulated amortization of $92,988 and $88,887, respectively

 

 

222,889

 

 

 

190,398

 

Other assets

 

 

20,880

 

 

 

20,717

 

Property, plant and equipment:

 

 

 

 

 

 

Land

 

 

8,735

 

 

 

8,703

 

Buildings and improvements

 

 

134,797

 

 

 

132,742

 

Machinery and equipment

 

 

384,904

 

 

 

372,798

 

Construction in progress

 

 

45,688

 

 

 

33,326

 

Total property, plant and equipment

 

 

574,124

 

 

 

547,569

 

Less: accumulated depreciation

 

 

287,381

 

 

 

277,343

 

Total property, plant and equipment, net

 

 

286,743

 

 

 

270,226

 

Total assets

 

$

1,738,137

 

 

$

1,695,152

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

102,841

 

 

$

103,205

 

Accrued compensation, contributions to employee benefit plans and related taxes

 

 

33,479

 

 

 

43,864

 

Dividends payable

 

 

9,999

 

 

 

9,172

 

Other accrued items

 

 

35,842

 

 

 

34,478

 

Current operating lease liabilities

 

 

7,556

 

 

 

6,014

 

Income taxes payable

 

 

71

 

 

 

109

 

Total current liabilities

 

 

189,788

 

 

 

196,842

 

Other liabilities

 

 

57,465

 

 

 

53,364

 

Distributions in excess of investment in unconsolidated affiliate

 

 

103,166

 

 

 

103,767

 

Long-term debt

 

 

306,010

 

 

 

302,868

 

Noncurrent operating lease liabilities

 

 

32,694

 

 

 

17,173

 

Deferred income taxes

 

 

89,183

 

 

 

82,901

 

Total liabilities

 

 

778,306

 

 

 

756,915

 

Shareholders' equity - controlling interest

 

 

959,108

 

 

 

937,187

 

Noncontrolling interest

 

 

723

 

 

 

1,050

 

Total equity

 

 

959,831

 

 

 

938,237

 

Total liabilities and equity

 

$

1,738,137

 

 

$

1,695,152

 

 

 

 

 


 

WORTHINGTON ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

 

 

 

Three Months Ended

 

 

 

 

August 31,

 

 

 

 

2025

 

 

2024

 

 

Operating activities:

 

 

 

 

 

 

 

Net earnings

 

$

34,821

 

 

$

24,008

 

 

Adjustments to reconcile net earnings to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

13,086

 

 

 

11,830

 

 

Provision for (benefit from) deferred income taxes

 

 

2,957

 

 

 

(5,537

)

 

Bad debt income

 

 

(21

)

 

 

(8

)

 

Equity in net income of unconsolidated affiliates, net of distributions

 

 

(181

)

 

 

3,453

 

 

Net gain on sale of assets

 

 

-

 

 

 

(18

)

 

Stock-based compensation

 

 

3,427

 

 

 

3,925

 

 

Changes in assets and liabilities, net of impact of acquisitions:

 

 

 

 

 

 

 

Receivables

 

 

14,107

 

 

 

28,166

 

 

Inventories

 

 

(15,816

)

 

 

(6,406

)

 

Accounts payable

 

 

(11,946

)

 

 

(13,093

)

 

Accrued compensation and employee benefits

 

 

(10,399

)

 

 

(11,445

)

 

Other operating items, net

 

 

11,026

 

 

 

6,271

 

 

Net cash provided by operating activities

 

 

41,061

 

 

 

41,146

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

Investment in property, plant and equipment

 

 

(13,195

)

 

 

(9,629

)

 

Acquisitions, net of cash acquired

 

 

(92,235

)

 

 

(88,887

)

 

Proceeds from sale of assets, net of selling costs

 

 

-

 

 

 

11,769

 

 

Investment in non-marketable equity securities

 

 

-

 

 

 

(2,000

)

 

Net cash used by investing activities

 

 

(105,430

)

 

 

(88,747

)

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

Dividends paid

 

 

(8,576

)

 

 

(8,116

)

 

Repurchase of common shares

 

 

(6,259

)

 

 

(6,803

)

 

Proceeds from issuance of common shares, net of tax withholdings

 

 

(3,552

)

 

 

(3,158

)

 

Principal payments on long-term obligations

 

 

(197

)

 

 

-

 

 

Net cash used by financing activities

 

 

(18,584

)

 

 

(18,077

)

 

Decrease in cash and cash equivalents

 

 

(82,953

)

 

 

(65,678

)

 

Cash and cash equivalents at beginning of period

 

 

250,075

 

 

 

244,225

 

 

Cash and cash equivalents at end of period

 

$

167,122

 

 

$

178,547

 

 

 

 

 


 

WORTHINGTON ENTERPRISES, INC.

SEGMENT INFORMATION

(Dollars in thousands)

 

 

 

Three Months Ended

 

 

 

August 31,

 

 

 

2025

 

 

2024

 

Net sales

 

 

 

 

 

 

Consumer Products

 

$

118,938

 

 

$

117,596

 

Building Products

 

 

184,769

 

 

 

139,712

 

Consolidated

 

$

303,707

 

 

$

257,308

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

Consumer Products

 

$

16,148

 

 

$

17,775

 

Building Products

 

 

57,793

 

 

 

39,729

 

Total reportable segments

 

 

73,941

 

 

 

57,504

 

Other (1)

 

 

(1,663

)

 

 

(1,153

)

Unallocated Corporate

 

 

(7,218

)

 

 

(7,914

)

Consolidated

 

$

65,060

 

 

$

48,437

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

 

 

 

 

 

 

Consumer Products

 

 

13.6

%

 

 

15.1

%

Building Products

 

 

31.3

%

 

 

28.4

%

Consolidated

 

 

21.4

%

 

 

18.8

%

 

 

 

 

 

 

 

Equity income by unconsolidated affiliate

 

 

 

 

 

 

WAVE (2)

 

$

32,386

 

 

$

27,901

 

ClarkDietrich (2)

 

 

5,934

 

 

 

8,744

 

Other (1)

 

 

(1,663

)

 

 

(1,153

)

Consolidated

 

$

36,657

 

 

$

35,492

 

 

 

 

(1)
Other includes the equity earnings of Taxi Workhorse, LLC and the SES joint venture.
(2)
Equity income contributed by WAVE and ClarkDietrich is included in Building Products segment results.

WORTHINGTON ENTERPRISES, INC.

GAAP / NON-GAAP RECONCILIATIONS

(Dollars in thousands, except per share amounts)

For more information on the non-GAAP measures, refer to the “Use of Non-GAAP Financial Measures and Definitions” section of this release.

 

Consolidated Results – Adjusted Earnings per Share – Diluted

 

 

Three Months Ended August 31, 2025

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before

 

 

Income

 

 

 

 

 

 

 

 

Operating

 

 

Income

 

 

Tax

 

 

Net

 

 

Diluted

 

 

Income

 

 

Taxes

 

 

Expense

 

 

Earnings (1)

 

 

EPS (1)

 

GAAP

$

9,243

 

 

$

45,681

 

 

$

10,860

 

 

$

35,148

 

 

$

0.70

 

Restructuring and other expense, net

 

2,476

 

 

 

2,476

 

 

 

(377

)

 

 

2,099

 

 

 

0.04

 

Non-GAAP

$

11,719

 

 

$

48,157

 

 

$

11,237

 

 

$

37,247

 

 

$

0.74

 

 

 

Three Months Ended August 31, 2024

 

 

 

 

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before

 

 

Income

 

 

 

 

 

 

 

 

Operating

 

 

Income

 

 

Tax

 

 

Net

 

 

Diluted

 

 

Loss

 

 

Taxes

 

 

Expense

 

 

Earnings (1)

 

 

EPS (1)

 

GAAP

$

(4,699

)

 

$

30,790

 

 

$

6,782

 

 

$

24,253

 

 

$

0.48

 

Restructuring and other expense, net

 

1,158

 

 

 

1,158

 

 

 

(290

)

 

 

868

 

 

 

0.02

 

Non-GAAP

$

(3,541

)

 

$

31,948

 

 

$

7,072

 

 

$

25,121

 

 

$

0.50

 

 

 

 

(1)
Excludes the impact of noncontrolling interest.

 

 


 

Consolidated Results – Adjusted EBITDA

 

 

 

Three Months Ended

 

 

 

August 31,

 

 

 

2025

 

 

2024

 

Net earnings (GAAP)

 

$

34,821

 

 

$

24,008

 

Plus: Net loss attributable to noncontrolling interest

 

 

327

 

 

 

245

 

Net earnings attributable to controlling interest

 

 

35,148

 

 

 

24,253

 

Interest expense, net

 

 

63

 

 

 

489

 

Income tax expense

 

 

10,860

 

 

 

6,782

 

EBIT (1)

 

 

46,071

 

 

 

31,524

 

Restructuring and other expense, net

 

 

2,476

 

 

 

1,158

 

Adjusted EBIT (1)

 

 

48,547

 

 

 

32,682

 

Depreciation and amortization

 

 

13,086

 

 

 

11,830

 

Stock-based compensation

 

 

3,427

 

 

 

3,925

 

Adjusted EBITDA (non-GAAP)

 

$

65,060

 

 

$

48,437

 

 

 

 

 

 

 

 

Net earnings margin (GAAP)

 

 

11.5

%

 

 

9.3

%

Adjusted EBITDA margin (non-GAAP)

 

 

21.4

%

 

 

18.8

%

 

 

(1)
EBIT and adjusted EBIT are non-GAAP financial measures. However, these measures are not used by management to evaluate the Company's performance, engage in financial and operational planning, or to determine incentive compensation. Instead, they are included as subtotals in the reconciliation of net earnings to adjusted EBITDA, which is a non-GAAP financial measure used by management.

 

 

 

 

Consolidated Results - Free Cash Flow

The following tables provide a reconciliation of net cash provided by operating activities to free cash flow and the calculation of operating cash flow conversion to free cash flow conversion for the three months ended August 31, 2025 and 2024.

 

 

 

Three Months Ended

 

 

 

August 31,

 

 

 

2025

 

 

2024

 

Net cash provided by operating activities (GAAP)

 

$

41,061

 

 

$

41,146

 

Investment in property, plant, and equipment

 

 

(13,195

)

 

 

(9,629

)

Free cash flow (non-GAAP)

 

$

27,866

 

 

$

31,517

 

 

 

 

 

 

 

 

Net earnings attributable to controlling interest (GAAP)

 

$

35,148

 

 

$

24,253

 

Adjusted net earnings attributable to controlling interest (non-GAAP)

 

$

37,247

 

 

$

25,121

 

 

 

 

 

 

 

 

Operating cash flow conversion (GAAP) (1)

 

 

117

%

 

 

170

%

Free cash flow conversion (non-GAAP)

 

 

75

%

 

 

125

%

 

 

 

(1)
Operating cash flow conversion is defined as net cash provided by operating activities divided by net earnings attributable to controlling interest.

 

 

 

 

 


 

WORTHINGTON ENTERPRISES, INC.

USE OF NON-GAAP FINANCIAL MEASURES AND DEFINITIONS

 

NON-GAAP FINANCIAL MEASURES. These materials include certain financial measures that are not calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Non-GAAP financial measures typically exclude items that management believes are not reflective of, and thus should not be included when evaluating the performance of the Company’s ongoing operations. Management uses these non-GAAP financial measures to evaluate ongoing performance, engage in financial and operational planning, and determine incentive compensation. Management believes these non-GAAP financial measures provide useful supplemental information regarding the performance of the Company’s ongoing operations and should not be considered as an alternative to the comparable GAAP financial measure. Additionally, management believes these non-GAAP financial measures allow for meaningful comparisons and analysis of trends in the Company’s businesses and enables investors to evaluate operations and future prospects in the same manner as management.

The following provides an explanation of each non-GAAP financial measure presented in these materials:

 

Adjusted operating income (loss) is defined as operating income (loss) excluding the items listed below, to the extent naturally included in operating income (loss).

 

Adjusted net earnings is defined as net earnings attributable to controlling interest excluding the after-tax effect of the excluded items outlined below.

Adjusted EPS - diluted is defined as adjusted net earnings divided by diluted weighted-average common shares outstanding for the applicable period.

 

Adjusted EBITDA is the measure by which management evaluates segment performance and overall profitability. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA excludes additional items including, but not limited to, those listed below, as well as other items that management believes are not reflective of, and thus should not be included when evaluating the performance of ongoing operations. Adjusted EBITDA also excludes stock-based compensation due to its non-cash nature, which is consistent with how management assesses operating performance and determines incentive compensation. At the segment level, adjusted EBITDA includes expense allocations for centralized corporate back-office functions that exist to support the day-to-day business operations. Public company and other governance costs are held at the corporate level within the unallocated corporate and other category.

 

Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net sales.

 

Free cash flow is a non-GAAP financial liquidity measure that is used by the Company to assess its ability to generate cash beyond what is required for its business operations and capital expenditures. The Company defines free cash flow as net cash flows from operating activities less investment in property, plant, and equipment.

 

Free cash flow conversion is a non-GAAP financial measure that is used by the Company to measure how much of its adjusted net earnings attributable to controlling interest is converted into cash. The Company defines free cash flow conversion as free cash flow divided by net earnings.

EXCLUSIONS FROM NON-GAAP FINANCIAL MEASURES

 

Management believes it is useful to exclude the following items from its non-GAAP financial measures for its own and investors’ assessment of the business for the reasons identified below. Additionally, management may exclude other items from non-GAAP financial measures that do not occur in the ordinary course of the Company’s ongoing business operations and note them in the reconciliation from net earnings to the non-GAAP financial measure adjusted EBITDA.

 

Impairment charges are excluded because they do not occur in the ordinary course of the Company’s ongoing business operations, are inherently unpredictable in timing and amount, and are non-cash, which management believes facilitates the comparison of historical, current and forecasted financial results.
Restructuring activities consists of established programs that are intended to fundamentally change the Company’s operations, and as such are excluded from its non-GAAP financial measures. The Company’s restructuring programs may include closing or consolidating production facilities or moving manufacturing of a product to another location, realignment of the management structure of a business unit in response to changing market conditions or general rationalization of headcount. The Company’s restructuring activities generally give rise to employee-related costs, such as severance pay, and facility-related costs, such as exit costs and gains or losses on asset disposals but may include other incremental costs associated with the Company’s restructuring activities. Restructuring and other expense, net, may also include other nonrecurring items included in operating income but incremental to the Company’s normal business activities. These items are excluded because they are not part of the ongoing operations of the Company’s underlying business.