WOR earnings analysis
What we found in WOR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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 compressed to 22.3% as the company deployed significant cash into acquisitions ($212,191,000 in the quarter), driving cash and working capital movements.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Top-line expansion
- Net sales increased to $378,677,000 for the quarter (three months ended February 28, 2026) versus $304,524,000 in the prior-year quarter — a year-over-year increase of $74,153,000 (filing: Consolidated Statements of Earnings).
- Improved operating profitability
- Operating income rose to $31,543,000 for the quarter from $20,868,000 in the prior-year quarter (filing: Consolidated Statements of Earnings), lifting operating margin to ~8.3% (31,543 / 378,677).
- EPS beat and recovery
- GAAP diluted EPS was $0.92 (three months ended February 28, 2026) versus $0.79 in the prior-year quarter; non-GAAP diluted EPS was $0.98 for the quarter (filing: Selected Non-GAAP Adjusted Results).
- Adjusted EBITDA up but margin down
- Adjusted EBITDA increased to $84,615,000 (from $73,779,000 in the prior-year quarter) but adjusted EBITDA margin narrowed to 22.3% from 24.2% (filing: Consolidated Results - Adjusted EBITDA).
- Material M&A deployment
- Investing cash outflows included acquisitions, net of cash acquired, of $212,191,000 in the quarter (filing: Consolidated Statements of Cash Flows), signaling aggressive inorganic growth.
- Operating cash flow positive; free cash flow in quarter
- Net cash provided by operating activities was $61,938,000 for the quarter and capex was $13,794,000, implying quarter free cash flow of $48,144,000 (filing: Consolidated Statements of Cash Flows).
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Sharp decline in cash balance
- Cash and cash equivalents decreased to $5,979,000 as of February 28, 2026 from $250,075,000 as of May 31, 2025 — a reduction of $244,096,000 (filing: Consolidated Balance Sheets).
- Large acquisition cash outlays
- The quarter included $212,191,000 of acquisitions, net of cash acquired (three months ended February 28, 2026), and $304,426,000 of acquisitions for the nine months — a significant use of cash (filing: Consolidated Statements of Cash Flows).
- Working capital contraction
- Current assets declined to $503,863,000 from $685,370,000 while current liabilities were $213,236,000 (filing: Consolidated Balance Sheets), reducing net working capital (current assets minus current liabilities) versus the prior year-end.
- Inventory and receivables increase
- Inventories rose to $197,588,000 (from $169,393,000) and receivables increased to $231,878,000 (from $215,824,000) as of February 28, 2026 versus May 31, 2025 (filing: Consolidated Balance Sheets).
- Short-term borrowings present
- Short-term borrowings of $4,792,000 were recorded at February 28, 2026 (none at May 31, 2025), and long-term debt increased to $307,256,000 from $302,868,000 (filing: Consolidated Balance Sheets).
- Margin mix / adjusted margin compression
- Despite higher adjusted EBITDA in dollars ($84,615,000), adjusted EBITDA margin compressed to 22.3% from 24.2% year over year (filing: Consolidated Results - Adjusted EBITDA), indicating margin pressure even with sales growth.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.92
- Gross margin
- 28.9%
- Operating margin
- 8.3%
What they said about what is next.
The Form 10-Q contains general forward-looking language but no explicit numeric quarterly or full‑year guidance. Management updated non-GAAP definitions beginning in the third quarter of fiscal 2026 and discloses material uses of cash (acquisitions). For quantitative outlook, management appears to defer to earnings releases/calls rather than embedding numeric guidance in this 10-Q.
The filing reads about the same as the one before it.
What came before.
- 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…
- 10-Q · April 9, 2024
- Worthington Enterprises reported quarterly net sales of $316,755,000 and diluted EPS attributable to controlling interest of $0.44 for the three months ended February 29, 2024. Revenue, gross profit and EPS all declined…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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