Worthington Steel (WS) Q4 2025 Financial Results Summary

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# Worthington Steel (WS) Q4 2025 Financial Results Summary

COLUMBUS, Ohio, June 25, 2025 – Worthington Steel, Inc. (NYSE: WS), a leading metals processing company, reported its financial results for the fiscal 2025 fourth quarter that ended on May 31, 2025. Below is a summary of the key highlights and metrics from the report.

### Financial Highlights

#### Fourth Quarter Results (Comparison to Q4 2024)
– **Net Sales**:
– $832.9 million, a **decrease of 9%** from $911.0 million.

– **Operating Income**:
– $66.4 million, a **decrease of 1.3%** from $67.3 million.

– **Net Earnings Attributable to Controlling Interest**:
– $55.7 million compared to $53.2 million, an **increase of 4.7%**.

– **Net Earnings per Diluted Share**:
– $1.10, up from $1.06, reflecting a **growth of 3.8%**.

– **Adjusted Net Earnings per Diluted Share**:
– $1.05, down **slightly by 0.9%** from $1.06.

– **Adjusted EBIT**:
– $70.1 million compared to $70.4 million, a **slight decrease of 0.4%**.

### Full Year Results (Comparison to FY 2024)
– **Total Net Sales**:
– $3,093.3 million, a **decrease of 9.8%** from $3,430.6 million for FY 2024.

– **Total Operating Income**:
– $147.0 million, down **24.3%** from $194.5 million.

– **Net Earnings Attributable to Controlling Interest**:
– $110.7 million, compared to a decrease of **28.5%** from $154.7 million.

– **Net Earnings per Diluted Share**:
– $2.19, a drop of **29.5%** compared to $3.11.

– **Adjusted Net Earnings per Diluted Share**:
– $2.16, down **37%** from $3.42.

### Operational Highlights
– **Volume (Tons)**:
– 982,180 tons processed in Q4 2025, a reduction of **4.6%** from 1,029,565 tons in Q4 2024.

– **Gross Margin**:
– Declined by **$4.0 million** to $127.0 million, impacted mainly by lower toll margins.

– **Toll Selling Prices**:
– Decreased by **13%**, while direct selling prices decreased by **8%**.

### Acquisition Activity
– **Sitem Group**:
– A definitive agreement was reached to acquire a controlling equity stake in Italy-based Sitem S.p.A. The transaction closed on June 3, 2025.

### Recognition and Awards
– **Employee Satisfaction**:
– Named No. 1 Top Workplace in Columbus (large organization category) for the 13th consecutive year.

– **Supplier Awards**:
– Recognized as 2024 Supplier of the Year by General Motors and awarded as a John Deere Partner-level Supplier for 13 consecutive years.

### Dividend Declaration
– **Quarterly Dividend**:
– Declared a quarterly dividend of **$0.16** per share, payable on September 26, 2025, to shareholders of record by September 12, 2025.

### Balance Sheet & Cash Flow
– **Cash and Cash Equivalents**:
– As of May 31, 2025, Worthington Steel held $38.0 million in cash, compared to $40.2 million the previous year.

– **Restricted Cash**:
– Increased to $54.9 million due to acquisition preparations.

– **Free Cash Flow**:
– Generated free cash flow of **$8.4 million** for the quarter, in contrast to negative free cash flow of **$9.2 million** in Q4 2024.

– **Debt**:
– Total debt stood at $151.5 million, resulting in a net debt position of **$113.5 million**.

### Summary
Worthington Steel’s Q4 2025 results indicate mixed performance amid a challenging economic environment, with decreases in net sales and operating income but positive movements in net earnings and diluted earnings per share. The company continues to focus on acquisitions and recognitions as it aims for growth and operational improvements. The declared dividend reflects a commitment to returning value to shareholders amidst fluctuating market conditions.

Here are the extracted tables from the press release:

### WORTHINGTON STEEL, INC. CONSOLIDATED AND COMBINED STATEMENTS OF EARNINGS (In millions, except per share amounts) (Unaudited)

Three Months Ended Twelve Months Ended
May 31, 2025 2024 May 31, 2025 2024
Net sales $ 832.9 $ 911.0 $ 3,093.3 $ 3,430.6
Cost of goods sold 705.9 780.0 2,704.7 2,990.8
Gross margin 127.0 131.0 388.6 439.8
Selling, general and administrative expense 58.9 63.7 231.6 224.4
Impairment of assets 7.4 1.4
Restructuring and other expense, net 1.7 2.6
Separation costs 19.5
Operating income 66.4 67.3 147.0 194.5
Other income (expense):
Miscellaneous income, net 5.7 3.7 3.8 5.3
Interest expense, net (1.0) (2.4) (7.1) (6.0)
Equity in net income of unconsolidated affiliate 4.0 6.7 4.4 22.4
Earnings before income taxes 75.1 75.3 148.1 216.2
Income tax expense 16.2 17.6 28.8 46.1
Net earnings 58.9 57.7 119.3 170.1
Net earnings attributable to noncontrolling interests 3.2 4.5 8.6 15.4
Net earnings attributable to controlling interest $ 55.7 $ 53.2 $ 110.7 $ 154.7
Basic
Weighted average common shares outstanding(1) 49.5 49.3 49.5 49.3
Earnings per share attributable to controlling interest $ 1.13 $ 1.08 $ 2.24 $ 3.14
Diluted
Weighted average common shares outstanding(1) 50.5 50.4 50.5 49.8
Earnings per share attributable to controlling interest $ 1.10 $ 1.06 $ 2.19 $ 3.11
Common shares outstanding at end of period 49.5 49.3 49.5 49.3
Cash dividends declared per share $ 0.16 $ 0.16 $ 0.64 $ 0.32

### WORTHINGTON STEEL, INC. CONSOLIDATED BALANCE SHEETS (In millions, except share amounts) (Unaudited)

Assets May 31, 2025 May 31, 2024
Current assets:
Cash and cash equivalents $ 38.0 $ 40.2
Restricted cash 54.9
Receivables, less allowances of $3.8 and $3.2, respectively 438.7 472.6
Inventories
Raw materials 179.4 150.2
Work in process 165.6 176.8
Finished products 77.0 78.3
Total inventories 422.0 405.3
Income taxes receivable 0.1 4.2
Assets held for sale 11.5 2.9
Prepaid expenses and other current assets 83.3 76.6
Total current assets 1,048.5 1,001.8
Investment in unconsolidated affiliate 126.6 135.0
Operating lease assets 72.6 72.9
Goodwill 79.6 79.6
Other intangible assets, net of accumulated amortization of $50.3 and $45.3, respectively 67.9 77.0
Deferred tax asset 11.4 8.5
Other assets 7.0 16.8
Property, plant and equipment:
Land 38.6 37.9
Buildings and improvements 190.4 177.1
Machinery and equipment 942.6 893.8
Construction in progress 132.7 83.6
Total property, plant and equipment 1,304.3 1,192.4
Less: accumulated depreciation 756.1 717.6
Total property, plant and equipment, net 548.2 474.8
Total assets $ 1,961.8 $ 1,866.4
Liabilities and equity May 31, 2025 May 31, 2024
Current liabilities:
Accounts payable $ 402.5 $ 380.4
Short-term borrowings 149.2 148.0
Accrued compensation, contributions to employee benefit plans and related taxes 43.0 52.8
Dividends payable 9.3 8.7
Other accrued items 15.3 15.7
Current operating lease liabilities 7.7 7.6
Income taxes payable 4.5 5.2
Total current liabilities 631.5 618.4
Other liabilities 32.8 34.3
Long-term debt 2.3
Noncurrent operating lease liabilities 68.7 68.3
Deferred income taxes 28.6 27.9
Total liabilities 763.9 748.9
Preferred shares, without par value; authorized – 1,000,000 shares; no shares issued or outstanding
Common shares, without par value; authorized – 150,000,000 shares; issued and outstanding 49,548,895 shares and 49,331,514 shares, respectively
Additional Paid-in Capital 913.9 905.3
Retained Earnings 164.2 86.1
Accumulated other comprehensive loss, net of taxes of $(2.0) and $(1.7), respectively (4.0) (6.1)
Total Shareholders’ equity – controlling interest 1,074.1 985.3
Noncontrolling interests 123.8 132