# 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 |
