Investments

9 Months Ended

Feb. 28, 2026

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Affiliate

Note 4 – Investments

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 accounts for its investment in Serviacero Worthington under the equity method using financial information on a one-month lag. Accordingly, the summarized financial information included below does not reflect events occurring in the subsequent one-month period.

The Company received distributions from Serviacero Worthington of $23.5 million and $12.8 million during the nine months ended February 28, 2026 and February 28, 2025, respectively, and distributions of $17.5 million and $7.8 million during the three months ended February 28, 2026, and February 28, 2025. The gross distribution to the members of Serviacero Worthington during the three months ended February 2026 was $35.0 million, of which the Company received $17.5 million. This distribution was reported as a reduction of the Company’s investment in unconsolidated affiliate balance but is not reflected in the summarized financial information presented below because it occurred during the lag period.

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

	February 28,		May 31,
(In millions)	2026		2025
Cash and cash equivalents (1)	$	54.9	$	16.0
Other current assets		195.0		219.4
Noncurrent assets		61.7		62.2
Total assets	$	311.6	$	297.6
Current liabilities		33.4		40.5
Other noncurrent liabilities		4.8		5.0
Equity (1)		273.4		252.1
Total liabilities and equity	$	311.6	$	297.6

(1)Excludes the impact of a $35.0 million distribution paid in cash to members in February 2026 due to reporting Serviacero Worthington on a one-month lag.

	Three Months Ended					Nine Months Ended
	February 28,			February 28,		February 28,		February 28,
(In millions)	2026			2025		2026		2025
Net sales	$	99.7		$	99.7	$	370.5	$	386.9
Gross margin		11.6			8.2		48.4		33.4
Operating income		7.3			4.3		36.2		21.5
Depreciation and amortization		1.1			1.2		3.1		3.5
Interest expense		-			-		-		-
Income tax expense (benefit)		(0.8	)		0.2		1.9		12.8
Net earnings		7.0			-		33.3		0.9

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

	Three Months Ended				Nine Months Ended
	February 28,		February 28,		February 28,		February 28,
(In millions)	2026		2025		2026		2025
Equity in net income of unconsolidated affiliate	$	3.5	$	-	$	16.7	$	0.4

Equity securities

The following table summarizes the equity securities, all of which are Kloeckner Shares, at the dates indicated:

	February 28,		May 31,
(In millions)	2026		2025
Equity securities	$	101.3	$	-

Amounts presented as net gains (losses) on equity securities reflect changes in fair value and exclude transaction costs, which are expensed as incurred. The following table summarizes the net gains and losses recognized in miscellaneous income (expense), net, for the periods presented:

	Three Months Ended				Nine Months Ended
	February 28,		February 28,		February 28,		February 28,
(In millions)	2026		2025		2026		2025
Net unrealized gains (losses) on equity securities	$	0.3	$	-	$	0.3	$	-
Realized gains (losses) on sales of equity securities		-		-		-		-
Total recognized in net earnings	$	0.3	$	-	$	0.3	$	-

For additional information, see “Note 2 – Acquisitions” and “Note 15 – Fair Value.”