Home Stocks Worthington Enterprises (WOR) Q1 2026 Financial Results Summary

Worthington Enterprises (WOR) Q1 2026 Financial Results Summary

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# Worthington Enterprises (WOR) Q1 2026 Financial Results Summary

COLUMBUS, Ohio (September 23, 2025) – Worthington Enterprises Inc. (NYSE: WOR) reported its financial results for the first quarter of fiscal 2026, which ended on August 31, 2025.

## Summary of Key Financial Metrics

– **Net Sales**:
– $303.7 million, an **increase of 18%** from $257.3 million in Q1 2025.

– **Net Earnings**:
– $34.8 million, up **45%** from $24.0 million in Q1 2025.

– **Adjusted EBITDA**:
– $65.1 million, a **34% increase** from $48.4 million in Q1 2025.

– **Earnings Per Share (EPS)**:
– Diluted EPS of $0.70, improved from $0.48 in Q1 2025.
– Adjusted EPS (diluted) rose to $0.74, compared to $0.50 in the same quarter last year.

– **Operating Cash Flow**:
– Flat at **$41.1 million**, similar to the prior year.

– **Free Cash Flow**:
– Decreased **12%** to $27.9 million from $31.5 million in Q1 2025, attributed to increased capital expenditures related to facility modernization.

## Shareholder Actions

– **Quarterly Dividend**:
– Declared at **$0.19** per common share, payable on December 29, 2025, to shareholders of record as of December 15, 2025.

– **Share Repurchase**:
– 100,000 common shares repurchased for $6.3 million, leaving an additional 5,265,000 shares available under the repurchase authorization.

## Segment Performance

– **Consumer Products**:
– Net sales of **$118.9 million**, a slight increase of **1.1%** from $117.6 million in Q1 2025.
– Adjusted EBITDA decreased **9%** to $16.1 million compared to $17.8 million in Q1 2025, impacted by lower volumes and increased SG&A expenses.

– **Building Products**:
– Net sales of **$184.8 million**, a significant increase of **32.2%** from $139.7 million in Q1 2025, driven by higher volumes and contributions from the acquisition of Elgen.
– Adjusted EBITDA surged **45.6%** to $57.8 million, primarily motivated by volume growth in owned businesses.

## Cash Flow and Balance Sheet

– **Cash Position**:
– Ended the quarter with cash of **$167.1 million**, a decrease of **$83.0 million** from May 31, 2025, primarily due to the acquisition of Elgen.

– **Capital Expenditures**:
– Totaled **$13.2 million**, which included approximately **$8.6 million** related to ongoing facility modernization.

– **Total Debt**:
– Concluded the quarter with total long-term debt of **$306.0 million**, a slight increase from the previous quarter.

## Income Tax and Equity Earnings

– **Income Tax Expense**:
– **$10.9 million**, up from **$6.8 million** in Q1 2025, reflecting higher pre-tax earnings. The estimated annual effective tax rate decreased to **23.8%** from **24.5%** year-over-year.

– **Equity Earnings**:
– Equity income increased by **3.3%** to $36.7 million, largely from higher contributions from WAVE, which improved by **14.5%** from the previous year.

## Outlook and Strategic Initiatives

– The company expressed confidence in its strategy and operational execution, buoyed by the acquisition of Elgen, which strengthens its HVAC presence in commercial sectors.
– Worthington Enterprises anticipates leveraging a robust balance sheet and strategic growth initiatives to drive long-term shareholder value.

For more details, the company will conduct a quarterly conference call on September 24, 2025, at 8:30 a.m. Eastern Time. More information can be found on the company’s website.

Here’s the extracted tables in HTML format:

### WORTHINGTON ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per common share amounts)

Three Months Ended 2025 2024
August 31, 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

### WORTHINGTON ENTERPRISES, INC. CONSOLIDATED BALANCE SHEETS (In thousands)

August 31, 2025 May 31, 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

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