Core Viewpoint - Hexagon Composites ASA has fully acquired the alternative fuels business of Sustainable Energy Solutions (SES), enhancing its European presence and operational synergies [2][5]. Company Overview - SES is a prominent European supplier of high-pressure cylinders and systems for compressed gases, with its alternative fuels division, SES Composites, manufacturing composite cylinders in Poland and operating a valve assembly facility in Germany [3]. - Hexagon Composites focuses on providing safe and innovative solutions for cleaner energy, facilitating the storage, transportation, and conversion of clean energy across various applications [9]. Financial Performance - In 2024, SES Composites reported a revenue of EUR 28 million and an EBITDA of EUR 700,000 on a pro-forma basis. For 2025, projected revenue and EBITDA are expected to be EUR 33 million and EUR 2 million, respectively [5]. Transaction Details - The acquisition is valued at an Enterprise Value of EUR 11.7 million, with a preliminary net purchase price of EUR 6.1 million, to be settled partly in Hexagon Composites shares and partly in Hexagon Purus shares [6]. - Worthington will receive 2,117,851 Hexagon Composites shares (1.0% of outstanding shares) and 19,555,225 Hexagon Purus shares (4.6% of outstanding shares), resulting in a post-transaction ownership of 33.8% in Hexagon Purus [8]. Strategic Implications - The acquisition is expected to create a more focused industrial gas business for Hexagon, allowing for increased strategic focus on value creation in existing and emerging segments [4]. - The move is aligned with the ongoing energy transition in Europe, where natural gas remains a critical component [5].

Industry Overview - The Zacks Building Products – Wood industry is currently facing challenges such as rising construction costs, potential housing project delays, and affordability concerns for consumers [1] - Spending on home repair and remodeling has decreased from pandemic highs due to elevated mortgage rates impacting consumer budgets [1][2] - There is a strong need for investments in critical replacements and modernization of aging housing stock, alongside increased funding for infrastructure and carbon/ESG-related projects [2][6] Trends Impacting the Industry - The U.S. housing market is constrained by high interest rates and low consumer confidence, affecting demand for lumber and remodeling [4] - The reimplementation of tariffs on Canadian softwood lumber could lead to supply shortages and increased material costs, as Canada supplies about 30% of U.S. softwood lumber [4] - Volatility in lumber prices remains a significant concern, impacting inventory costs and profit margins [5] Company Strategies - Companies are focusing on acquisitions, product innovation, and efficient cost-reduction strategies to navigate current challenges [7][8] - Operational excellence is being emphasized, including improvements in merchandising, harvest, and transportation efficiencies [8] Industry Performance - The Zacks Building Products – Wood industry has outperformed the broader Zacks Construction sector and the S&P 500 over the past year, gaining 21.6% compared to the sector's 8.8% and the S&P 500's 12.3% [13] - The industry currently has a Zacks Industry Rank of 155, placing it in the bottom 37% of over 250 Zacks industries, indicating dull near-term prospects [9][10] Earnings Outlook - Analysts have shown decreasing confidence in the industry's earnings growth potential, with aggregate earnings estimates for 2025 declining from $2.22 to $2.11 per share [11] - Despite the bleak near-term outlook, some companies are highlighted for their potential to capitalize on fundamental strengths [12] Notable Companies - **Worthington Enterprises, Inc. (WOR)**: Gained 48.4% over the past year, with an upward estimate revision for fiscal 2026 earnings to $3.65 from $3.14 per share [22] - **PotlatchDeltic Corporation (PCH)**: Gained 5% over the past year, with an upward estimate revision for 2025 earnings to 88 cents from 83 cents per share [26] - **Trex Company, Inc. (TREX)**: Experienced a loss of 20.9% over the past year, but has seen an upward estimate revision for 2025 earnings to $2.21 from $2.16 per share [30]

Core Viewpoint - Worthington Enterprises (WOR) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][9]. Earnings Estimate Revisions - The current quarter's earnings estimate is $0.80 per share, reflecting a +60% change from the previous year's figure [6]. - The Zacks Consensus Estimate for the current quarter has increased by 60% over the last 30 days, with one estimate raised and no negative revisions [6]. - For the full year, the earnings estimate stands at $3.65 per share, representing an +18.89% change from the year-ago number [7]. - There has been a positive trend in estimate revisions for the current year, with one estimate moving up and no negative revisions [7]. Analyst Optimism and Stock Performance - The rising trend in estimate revisions is driven by growing analyst optimism regarding the earnings prospects of Worthington Enterprises, which is expected to be reflected in its stock price [2]. - The Zacks Rank system, which categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell), has shown that Zacks 1 Ranked stocks have generated an average annual return of +25% since 2008 [3]. - Worthington Enterprises currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates [8]. Investment Potential - The stock has appreciated by 8.3% over the past four weeks due to strong estimate revisions, suggesting further upside potential [9].

Core Insights - Worthington Steel, Inc. (NYSE: WS) has experienced a strong performance following its separation from Worthington Enterprises (WOR) in the spring of last year [1]. Group 1 - The investing group "Value In Corporate Events" focuses on providing members with opportunities related to IPOs, mergers & acquisitions, earnings reports, and changes in corporate capital allocation [1]. - The service covers approximately 10 major events each month, aiming to identify the best investment opportunities [1].

Core Insights - The previous investment stance on Worthington Enterprises, Inc. (NYSE: WOR) was a hold rating due to concerns over earnings growth amid macroeconomic weakness and declining steel prices [1] Group 1: Company Analysis - The 4Q25 results indicated some performance metrics that may influence future investment decisions, although specific details were not provided [1] - The investment strategy focuses on long-term investments while also considering short-term opportunities to uncover alpha [1] - The approach is centered on bottom-up analysis, assessing the fundamental strengths and weaknesses of individual companies [1] Group 2: Investment Strategy - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Group 1 - Worthington Enterprises, Inc. held its Fourth Quarter Fiscal 2025 Earnings Call on June 25, 2025, featuring key executives including the CEO and CFO [1][2][3] - The call was introduced by Marcus Rogier, the Treasurer and Investor Relations Officer, who welcomed participants and outlined the agenda [2][3] - The company emphasized that certain statements made during the call are forward-looking and subject to risks and uncertainties [4] Group 2 - The earnings call included references to non-GAAP financial measures, with reconciliations available in the earnings release [5] - Joseph B. Hayek, the President and CEO, was set to provide opening remarks following the introduction [6]

Financial Data and Key Metrics Changes - In Q4, the company reported a revenue increase of 14% year-over-year, excluding the deconsolidation of SCS, and an 8% increase when excluding both SCS and revenues at Bradesco [5] - Gross margin improved to 29.3% from 24.8% year-over-year, while adjusted EBITDA margin rose to 26.8% from 19.8% [5][16] - Adjusted earnings from continuing operations were $1.06 per share, up from $0.74 per share in the prior year quarter [15] Business Line Data and Key Metrics Changes - Consumer Products Q4 net sales were $126 million, essentially flat compared to the prior year, with adjusted EBITDA of $21 million and a margin of 16.6%, up from 13.6% [20] - Building Products Q4 net sales grew 25% year-over-year to $192 million, with adjusted EBITDA of $71 million, representing a margin of 37% compared to 33.6% in the prior year [21][22] Market Data and Key Metrics Changes - The company noted that volumes in the consumer segment remain closely tied to point of sale activity, with cautious consumer behavior impacting overall demand [20] - The building products segment experienced a strong seasonal quarter, with volumes up 19% both sequentially and year-over-year [21] Company Strategy and Development Direction - The company continues to leverage its business system focusing on innovation, transformation, and M&A to drive growth [5][8] - The recent acquisition of LG Manufacturing is seen as a strategic fit that complements the existing building products business and is expected to enhance margins and cash flows [9][50] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, citing ongoing tariff and economic uncertainties but emphasizing a strong focus on customer care and operational efficiency [12][44] - The company aims to achieve a gross margin over 30% and maintain SG&A as a percentage of sales at 20% or less in the coming years [29] Other Important Information - The company announced a quarterly dividend increase of 12% to $0.19 per share, reflecting strong earnings and a commitment to returning capital to shareholders [19] - Free cash flow for the full fiscal year totaled $159 million, representing a 103% conversion rate relative to adjusted net earnings [18] Q&A Session Summary Question: Can you break down margin growth? - Management indicated that half of the margin expansion was due to the deconsolidation of SES, with the rest driven by volume growth and product mix improvements [26][27] Question: What were the drivers for Wave's contributions? - Contributions were attributed to a mix of volume demand, project timing, and pricing, with steady performance expected moving forward [30][32] Question: What are the expectations for organic growth? - Management noted that while visibility is limited due to macroeconomic factors, they remain cautiously optimistic about organic growth in both consumer and building products [44][49] Question: How does the company approach pricing amid input cost inflation? - The company is actively working on price risk mitigation strategies and hedging to manage input cost volatility, particularly in steel [59] Question: What are the objectives for the next year? - Management emphasized a focus on long-term growth, investing in culture, automation, and strategic M&A while navigating economic uncertainties [99]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported a revenue increase of 14% year-over-year, excluding the deconsolidation of SCS, and an 8% increase when excluding both SCS and revenues at Bradesco [6][15] - Gross margin improved to 29.3% from 24.8% year-over-year, while adjusted EBITDA margin rose to 26.8% from 19.8% [6][17] - Adjusted earnings from continuing operations were $1.06 per share, up from $0.74 per share in the prior year quarter [16] Business Line Data and Key Metrics Changes - Consumer Products segment reported Q4 net sales of $126 million, essentially flat compared to the prior year, with adjusted EBITDA of $21 million and a margin of 16.6% [21] - Building Products segment saw Q4 net sales grow 25% year-over-year to $192 million, with adjusted EBITDA of $71 million and a margin of 37% [22][23] Market Data and Key Metrics Changes - The company noted that volumes in the Building Products segment were up 19% both sequentially and year-over-year, indicating strong seasonal demand [22] - The consumer environment remains cautious, but the company believes its market-leading brands position it well for long-term growth as conditions normalize [21] Company Strategy and Development Direction - The company continues to leverage its business system focusing on innovation, transformation, and strategic M&A to drive growth [6][10] - The recent acquisition of LG Manufacturing is seen as a strategic fit that complements the existing building products business and is expected to enhance margins and cash flows [10][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning for long-term growth despite current tariff and economic uncertainties [13][50] - The focus remains on optimizing operations and investing in future growth opportunities while managing through economic challenges [13][99] Other Important Information - The company announced a quarterly dividend increase of 12% to $0.19 per share, reflecting strong earnings and a commitment to returning capital to shareholders [20][66] - Free cash flow for the full fiscal year totaled $159 million, representing a 103% conversion rate relative to adjusted net earnings [19] Q&A Session Summary Question: Margin growth breakdown - Management indicated that half of the margin expansion was due to the deconsolidation of SES, with the rest driven by volume growth and product mix improvements [28][30] Question: Wave contributions - Contributions from Wave were attributed to a mix of volume demand and pricing, with steady performance expected moving forward [32][34] Question: Regasco revenue and EBITDA contributions - Regasco contributed approximately $16.5 million in revenue and about $2 million in EBITDA during the quarter [43] Question: Steel input costs and pricing - Management noted that steel prices have fluctuated, but efforts are in place to mitigate price risks and manage costs effectively [61] Question: Elgin acquisition details - The acquisition of Elgin is expected to create synergies in operational efficiency and customer overlap, with a focus on improving margins [51][82] Question: Tariff impacts on building products - Management acknowledged the challenges posed by tariffs but emphasized the company's strong domestic manufacturing position and ability to respond to market demands [88][92]

Q 4 F Y 2 5 E A R N I N G S S U M M A R Y J U N E 2 4 , 2 0 2 5 NEGATIVES CPG BPG Notes to Investors FORWARD-LOOKING STATEMENTS. Selected statements in this presentation constitute "forward-looking statements," as that term is used in the Private Securities Litigation Reform Act of 1995 (the "Act"). Worthington Enterprises, Inc. (the "Company" or "Worthington") wishes to take advantage of the safe harbor provisions included in the Act. Forward-looking statements reflect the Company's current expectations, e ...

Company Performance - Worthington Enterprises (WOR) reported quarterly earnings of $1.06 per share, exceeding the Zacks Consensus Estimate of $0.76 per share, and up from $0.74 per share a year ago, representing an earnings surprise of +39.47% [1] - The company posted revenues of $317.88 million for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 3.65%, although this is a slight decrease from year-ago revenues of $318.8 million [2] - Over the last four quarters, Worthington Enterprises has surpassed consensus EPS estimates two times and topped consensus revenue estimates once [2] Stock Performance - Worthington Enterprises shares have increased approximately 47.6% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $260.1 million, and for the current fiscal year, it is $3.14 on revenues of $1.17 billion [7] Industry Outlook - The Building Products - Wood industry, to which Worthington Enterprises belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Worthington Enterprises may be influenced by the overall outlook for the industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]