10-Q · April 9, 2026
Worthington Enterprises delivered a strong operational quarter: net sales rose to $378,677,000 and GAAP diluted EPS was $0.92 (non-GAAP EPS $0.98). Adjusted EBITDA increased to $84,615,000 but adjusted EBITDA margin…
Earnings analysis · 10-Q
WOR earnings analysis
Filed October 9, 2026 · Our reading of the company's report
The latest report
Worthington Enterprises delivered strong year-over-year revenue and GAAP EPS growth, with revenue up 13.2% to $343.9 million and diluted EPS rising to $0.87 from $0.70. Trade & Specialty Solutions drove the operating…
Read full summary
Worthington Enterprises delivered strong year-over-year revenue and GAAP EPS growth, with revenue up 13.2% to $343.9 million and diluted EPS rising to $0.87 from $0.70. Trade & Specialty Solutions drove the operating improvement, while Building Performance Solutions revenue benefited from acquisitions but faced A2L destocking, unfavorable mix and higher conversion costs. Operating cash flow and free cash flow improved materially, and liquidity remains solid with $55.1 million of cash and $500.0 million of undrawn revolver capacity. However, margin quality was affected by a $4.0 million tariff-refund benefit, and steel inflation, supply constraints and elevated interest rates remain significant headwinds.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.87
What stood out
-
Revenue and EPS grew year over year
Net sales increased $40.2 million, or 13.2%, to $343.9 million from $303.7 million in the prior-year quarter. GAAP diluted EPS rose to $0.87 from $0.70, while adjusted diluted EPS increased to $0.82 from $0.78.
-
Trade segment delivered strong earnings growth
Trade & Specialty Solutions revenue rose 8.3% to $128.8 million, and adjusted EBITDA increased 49.1% to $24.0 million from $16.1 million, helped by higher volume, pricing and a $4.0 million IEEPA tariff-refund benefit.
-
Building revenue grew despite mix pressure
Building Performance Solutions revenue increased 16.4% to $215.1 million, including a $19.2 million acquisition contribution. Adjusted EBITDA was broadly flat at $59.8 million versus $59.9 million as higher WAVE and ClarkDietrich contributions offset lower volume and unfavorable mix.
-
Cash generation improved materially
Operating cash flow increased to $66.7 million from $41.1 million, while capital expenditures were $12.8 million, producing approximately $54.0 million of free cash flow. Capital expenditures represented approximately 3.7% of revenue.
-
Working capital supported liquidity
Cash and cash equivalents increased to $55.1 million from $27.7 million at May 31, 2026, while receivables declined $42.5 million to $185.7 million. Inventory increased $15.3 million to $222.6 million, reflecting higher raw-material inventory.
-
Liquidity runway remains strong
The amended credit facility extended maturity from September 27, 2028 to August 31, 2031 while retaining $500.0 million of commitments; no borrowings were outstanding at August 31, 2026.
What to watch
-
A2L destocking and construction weakness
Building Performance Solutions faced A2L-related normalization: lower cooling and construction volume and less favorable mix offset growth, while management said near-term construction demand would remain constrained by elevated rates. The segment's adjusted EBITDA margin fell to 27.8% from 32.4%.
-
Steel inflation and supply constraints
Hot-rolled steel averaged approximately $1,157 per ton in the quarter versus $834 per ton in August 2025, while cold-rolled steel reached approximately $1,415 per ton in August 2026 versus $1,050 per ton a year earlier. Management also reported constrained domestic availability and extended lead times.
-
Nonrecurring tariff benefit and input costs
The quarter benefited from approximately $4.0 million of IEEPA tariff refunds, with substantially all of the claim collected by August 31, 2026. This benefit is nonrecurring and may overstate underlying profitability; aluminum tariff pressure is expected to persist through fiscal 2027.
-
Rates and soft demand environment
Macroeconomic conditions remain adverse: second-quarter calendar 2026 GDP growth was 1.5%, August 2026 CPI was 3.4% year over year, and the 30-year mortgage rate was 6.66% at quarter-end. Management expects demand across both operating segments to remain uneven in the near term.
-
Lower cash balance increases liquidity sensitivity
Cash declined substantially compared with the prior-year quarter, ending at $55.1 million versus $167.1 million, although liquidity was supported by $500.0 million of undrawn credit capacity. Long-term debt remained $305.6 million at August 31, 2026.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management expects demand across both operating segments to remain uneven in the near term; it also expects near-term construction demand to remain constrained by elevated rates, while the A2L installed base is expected to create long-term opportunities.
Earlier filings 4
10-Q · October 8, 2025
Worthington Enterprises reported net sales of $303,707,000 for the three months ended August 31, 2025, up $46,399,000 versus the prior-year quarter (from $257,308,000). GAAP diluted EPS was $0.70 (non‑GAAP adjusted…
10-K · July 30, 2025
Worthington Enterprises reports a recovery in underlying operating performance in fiscal 2025 on an adjusted basis: adjusted EBITDA from continuing operations was $263,489,000 (up from $250,999,000 in fiscal 2024) and…
10-Q · January 10, 2025
Worthington Enterprises reported quarterly net sales of $274.046M (three months ended Nov 30, 2024) with gross profit of $74.059M and GAAP diluted EPS from continuing operations of $0.56. Revenue declined versus the…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.