Investment in Unconsolidated Affiliate

6 Months Ended

Nov. 30, 2025

Equity Method Investments and Joint Ventures [Abstract]

Note 3 – Investment in Unconsolidated Affiliate

Investments in affiliated companies that the Company does not control, either through majority ownership or otherwise, are accounted for using the equity method. The Company owns a noncontrolling interest (50% interest) in one unconsolidated joint venture, Serviacero Worthington. Serviacero Worthington provides steel processing services, such as pickling, blanking, slitting, multi-blanking and cutting-to-length, to customers in a variety of industries including automotive, appliance and heavy equipment.

The Company received distributions from Serviacero Worthington of $6.0 million and $5.0 million during the six months ended November 30, 2025 and November 30, 2024, respectively, and distributions of $6.0 million and $5.0 million during the three months ended November 30, 2025, and November 30, 2024.

The following tables summarize certain financial information of Serviacero Worthington as of the dates, and for the periods presented:


	November 30,		May 31,
(In millions)	2025		2025
Cash and cash equivalents	$	31.6	$	16.0
Other current assets		213.6		219.4
Noncurrent assets		60.5		62.2
Total assets	$	305.7	$	297.6

Current liabilities		34.5		40.5
Other noncurrent liabilities		4.8		5.0
Equity		266.4		252.1
Total liabilities and equity	$	305.7	$	297.6


	Three Months Ended					Six Months Ended
	November 30,		November 30,			November 30,		November 30,
(In millions)	2025		2024			2025		2024
Net sales	$	136.7	$	138.7		$	270.8	$	287.2
Gross margin		18.2		9.6			36.8		25.2
Operating income		14.5		5.5			28.9		17.2
Depreciation and amortization		1.1		1.2			2.0		2.3
Interest expense		-		-			-		-
Income tax expense		0.7		5.8			2.7		12.6
Net earnings (loss)		13.6		(1.7	)		26.3		0.9

The following table presents the net earnings of Serviacero Worthington attributable to the Company for the periods presented:


	Three Months Ended					Six Months Ended
	November 30,		November 30,			November 30,		November 30,
(In millions)	2025		2024			2025		2024
Equity in net income (loss) of unconsolidated affiliate	$	6.8	$	(0.9	)	$	13.2	$	0.4