Worthington Enterprises Earnings Call Transcripts
Fiscal Year 2026
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Delivered 20% sales growth and 12% adjusted EBITDA growth for fiscal 2026, with strong free cash flow and successful integration of acquisitions. Q4 saw 17% sales growth, margin headwinds in cooling/construction, and robust innovation-driven momentum in both Building and Consumer Products.
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Q3 fiscal 2026 saw revenue up 24% and adjusted EBITDA up 15% year-over-year, driven by strong organic growth, acquisitions, and innovation. Building and consumer products both posted double-digit sales gains, with data center-related products fueling future optimism.
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The company, now focused on building and consumer products after a recent separation, is driving growth through innovation, disciplined M&A, and operational excellence. Recent acquisitions and strong JV performance have boosted margins and free cash flow, with a conservative leverage approach and ongoing facility investments.
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Q2 delivered over 19% revenue growth and 8% adjusted EBITDA growth year-over-year, driven by strong building products performance and strategic acquisitions. Gross margin declined due to Elgen integration, but free cash flow and financial flexibility remain robust.
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Q1 saw robust sales and margin growth, driven by building products and recent acquisitions, despite macro headwinds and tariffs. Free cash flow and liquidity remain strong, with ongoing investments in modernization and innovation. Building products outperformed, while consumer products faced tariff-related challenges.
Fiscal Year 2025
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The company, following its recent spinoff, is focused on niche building and consumer products, achieving strong sales and EBITDA growth. Strategic priorities include innovation, M&A, and facility modernization, with a long-term goal of 6-8% sales growth and 24% EBITDA margins.
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The company, post-separation, is focused on niche market leadership, continuous improvement, and targeted M&A, with strong financials and a people-first culture. Growth is driven by innovation, strategic acquisitions, and stable consumer demand, while tariffs are seen as a net positive due to domestic production advantages.
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Q4 saw strong year-over-year and sequential growth in revenue, margins, and adjusted EPS, driven by volume gains, product innovation, and strategic M&A. The company remains cautiously optimistic amid macro and tariff uncertainties, with ongoing investments in modernization and a balanced capital allocation approach.
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Q3 saw record production and shipments, with adjusted EBITDA margin rising to 24% and adjusted EPS up to $0.91. Excluding divestitures, sales grew over 8%, driven by acquisitions and improved demand. Strong cash flow, margin expansion, and a robust M&A pipeline support a positive outlook.
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Adjusted EBITDA and EPS grew year-over-year and sequentially, with gross margin expanding to 27% despite an 8.1% sales decline. Integration of Hexagon Ragasco, facility modernization, and sustainability initiatives strengthened the business, while a strong balance sheet supports future M&A.
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Q1 FY25 saw lower sales and earnings due to declines in building products and ClarkDietrich, but gross margin improved and cash flow remained strong. M&A is the top capital priority, with Hexagon Ragasco integration progressing well. Positive long-term outlook as destocking ends and interest rates ease.
Fiscal Year 2024
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Adjusted EBITDA for Q4 was $63M with adjusted EPS of $0.74, as net sales declined 13.6% year-over-year. Major portfolio moves included the Hexagon Ragasco acquisition and a new JV for sustainable energy, while strong liquidity and low leverage position the company for growth.