Segment Information

6 Months Ended

Nov. 30, 2025

Segment Reporting [Abstract]

Segment Information

Note 16 – Segment Information

Segment Information

The Company’s CODM is Worthington Steel’s CEO. The Company has determined that it has only one operating segment and therefore one reportable segment after considering several sources of information, including the Company’s internal organizational structure, the basis on which budgets and forecasts are prepared, the financial information that the Company’s CODM reviews in evaluating company performance and determining how resources should be allocated, and how the Company releases information to the public and analysts. The CODM manages all business activities on a consolidated basis, and as a result, the Company has concluded that there is only one operating segment and therefore one reportable segment.

The Company’s one reportable segment serves its customers primarily by processing flat-rolled steel coils, which are sourced primarily from various North American steel mills, into the precise type, thickness, length, width, shape, and surface quality required by customer specifications. The Company generates a substantial percentage of its revenue from selling steel on a direct basis, whereby it is exposed to the risk and rewards of ownership of the material while in its possession. Additionally, the Company toll processes steel under a fee for service arrangement whereby it processes customer-owned material.

As the one reportable segment is managed on a consolidated basis, the measure of segment profit or loss is consolidated net income. The CODM uses consolidated net income to assess the performance of the Company’s one segment and decide how and where to allocate resources and reinvest profits into the business in areas such as capital expenditures, business and/or asset acquisitions, investments in market share expansion with our existing and potential new customers, talent, technology, the repurchase of the Company’s common shares, and/or the payment of dividends. Net earnings and components of net earnings are used to monitor actual performance and are compared to budgeted and forecasted results to assess the performance of the Company’s one reportable segment, set targets, and establish management’s incentive compensation. The measure of consolidated segment assets is reported on the balance sheets as total assets.

The Company regularly provides the CODM a reporting package that is structured similar to the statement of earnings, and the CODM reviews consolidated net earnings (loss) as a key performance measure of profit (loss) for the Company’s single reportable segment and reviews significant expenses on a consolidated basis consistent with the presentation on the consolidated statements of earnings, with the exception of cost of goods sold, which is further disaggregated. The CODM’s review is focused on the consolidated results for the Company.

The following table presents the significant expenses that are regularly provided to the CODM for the one reportable segment and the required disclosable amounts that are included in consolidated net earnings for the periods presented:

	Three Months Ended						Six Months Ended
	November 30,			November 30,			November 30,			November 30,
(In millions)	2025			2024			2025			2024
Net sales	$	871.9		$	739.0		$	1,744.8		$	1,573.0
Cost of goods sold:
Material cost		600.8			504.7			1,184.2			1,081.0
Direct labor, manufacturing expenses, and other (1)		177.9			154.3			352.2			311.6
Total cost of goods sold		778.7			659.0			1,536.4			1,392.6
Gross margin		93.2			80.0			208.4			180.4
Selling, general and administrative expense		70.9			61.1			138.8			118.1
Impairment of assets		0.6			-			0.6			-
Restructuring and other (income), net		-			-			(1.0	)		-
Operating income		21.7			18.9			70.0			62.3
Other income (expense):
Miscellaneous income (expense), net		(0.1	)		3.8			0.1			(2.1	)
Interest expense, net		(2.7	)		(2.1	)		(5.6	)		(4.7	)
Equity in net income (loss) of unconsolidated affiliate		6.8			(0.9	)		13.2			0.4
Earnings before income taxes		25.7			19.7			77.7			55.9
Income tax expense		4.2			3.6			17.6			7.6
Net earnings		21.5			16.1			60.1			48.3
Net earnings attributable to noncontrolling interests		2.7			3.3			4.5			7.1
Net earnings attributable to controlling interest	$	18.8		$	12.8		$	55.6		$	41.2

(1)Includes expenses related to manufacturing profit sharing and bonus.