Elgen Manufacturing Worthington Enterprises acquires Elgen Manufacturing. COLUMBUS, Ohio, June 19, 2025 (GLOBE NEWSWIRE) -- Worthington Enterprises (NYSE: WOR), a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences, today announced its acquisition of Elgen Manufacturing (Elgen) of Closter, New Jersey. Elgen is a market-leading designer and manufacturer of HVAC parts and components, ductwork and structural framing primarily used in commercial ...

LIVE CONFERENCE CALL DETAILS | Date: | Wednesday, June 25, 2025 | | --- | --- | | Webcast Link: | https://events.q4inc.com/attendee/393759253 | | Starting Time: | 8:30 a.m. ET | | Conference ID: | 1777337 | | Domestic Participants: | 888-330-3567 | About Worthington Enterprises Worthington Enterprises (NYSE: WOR) is a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences. The Company operates with two primary business segments: Building Products an ...

Financial Performance - Net sales for the three months ended February 28, 2025, were $304,524, a decrease of 3.9% compared to $316,755 for the same period in 2024[28]. - Gross profit increased to $89,247 for the three months ended February 28, 2025, compared to $73,112 for the same period in 2024, reflecting a gross margin improvement[28]. - Operating income for the three months ended February 28, 2025, was $20,868, significantly higher than $4,281 for the same period in 2024[28]. - Net earnings from continuing operations for the three months ended February 28, 2025, were $39,339, compared to $22,000 for the same period in 2024, representing an increase of 78.5%[28]. - Comprehensive income for the three months ended February 28, 2025, was $37,344, compared to $28,323 for the same period in 2024[30]. - Net earnings for the three months ended February 28, 2025, were $39,339 thousand, a significant increase from $22,000 thousand for the same period in 2024, representing an increase of 79.5%[33]. - Adjusted EPS from continuing operations for the three months ended February 28, 2025, was $0.91, an increase of $0.11 compared to $0.80 in the prior year quarter[122]. - Net earnings for the nine months ended February 28, 2025, were $92,176, compared to $66,763 for the same period in 2024, representing a year-over-year increase of 38.1%[76]. Assets and Liabilities - Total assets increased to $1,682,004 as of February 28, 2025, up from $1,638,637 as of May 31, 2024[26]. - Total current assets decreased to $633,964 as of February 28, 2025, from $673,893 as of May 31, 2024[26]. - Total liabilities decreased to $743,483 as of February 28, 2025, from $747,625 as of May 31, 2024[26]. - The company had no borrowings outstanding under its multi-year revolving Credit Facility as of February 28, 2025, leaving $500 million available for use[65]. - The company’s retained earnings increased to $637.875 million as of February 28, 2025, from $611.974 million at the end of November 2024[67]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended February 28, 2025, was $147,330 thousand, compared to $244,806 thousand for the same period in 2024, reflecting a decrease of 39.7%[33]. - The company reported a net cash used by investing activities of $115,079 thousand for the nine months ended February 28, 2025, compared to $116,504 thousand for the same period in 2024, indicating a slight decrease of 1.2%[33]. - Cash and cash equivalents at the end of the period were $222,844 thousand as of February 28, 2025, compared to $227,310 thousand as of February 29, 2024, showing a decrease of 2.1%[33]. - The company received a one-time cash dividend of $150 million from Worthington Steel, which was used to pay off the 2024 Notes[110]. Dividends and Share Repurchase - The company declared cash dividends of $0.17 per common share for the three months ended February 28, 2025, compared to $0.16 for the same period in 2024[28]. - The total cash dividends declared during the nine months ended February 28, 2025, were $16,061,000[76]. - The company repurchased a total of 500,000 common shares during the nine months ended February 28, 2025, leaving 5,565,000 shares available for repurchase[69]. Segment Performance - WAVE's net sales for the three months ended February 28, 2025, were $118.357 million, a slight increase from $117.248 million in the same period of 2024, while net earnings decreased to $50.531 million from $51.706 million[58]. - ClarkDietrich reported a significant decline in net sales for the three months ended February 28, 2025, at $271.184 million, down from $316.269 million in 2024, with net earnings dropping to $37.944 million from $71.164 million[58]. - Other segment net sales increased to $70.258 million for the three months ended February 28, 2025, compared to $64.421 million in 2024, but incurred a net loss of $8.432 million[58]. - Total reportable segments net sales for the nine months ended February 28, 2025, were $835.9 million, a slight increase of $0.6 million or 0.1% compared to $835.3 million in the prior year[123]. Economic and Market Conditions - U.S. residential construction spending increased by 1.6% year-over-year to $940.578 billion as of February 28, 2025[118]. - U.S. non-residential construction spending rose by 3.9% year-over-year to $1,255.176 billion as of February 28, 2025[118]. - Existing home sales declined by 2.7% year-over-year to 4.3 million units as of February 2025, indicating persistent supply challenges[118]. - Authorized housing permits decreased by 6.8% year-over-year to 1,456 units, signaling caution among builders[118]. - The Architectural Billings Index (ABI) fell to 45.5 in February 2025, indicating a contraction in demand for architectural services[119]. - The company expects ongoing economic uncertainty and tighter financial conditions to negatively influence consumer purchasing behavior and overall market demand in the near term[114]. Restructuring and Expenses - The company incurred restructuring and other expenses totaling $9.152 million for the nine months ended February 28, 2025, primarily due to early retirement and severance costs[61]. - The total liability associated with restructuring activities as of February 28, 2025, is expected to be paid within the next 12 months, amounting to $402,000[61]. - The company reported restructuring and other expenses of $5,374 million for the three months ended February 28, 2025, compared to $698 million in the same period last year, indicating a significant increase[80]. Risk Management and Controls - The company has established strict counterparty credit guidelines to manage counterparty credit risk associated with derivative financial instruments[92]. - The company maintains effective disclosure controls and procedures, ensuring timely and accurate reporting of required information[165][166]. - Market risks have not materially changed from those disclosed in the 2024 Form 10-K[164]. - The critical accounting estimates have not significantly changed from those discussed in the 2024 Form 10-K[163]. - Worthington Enterprises' risk factors remain consistent with those disclosed in the 2024 Form 10-K, with no significant changes noted[170].

Financial Performance - Net sales for Q3 2025 were $304.5 million, a decrease of 4% compared to $316.8 million in Q3 2024, primarily due to the deconsolidation of the former Sustainable Energy Solutions segment[4]. - Operating income increased significantly to $20.9 million from $4.3 million in the prior year, reflecting a $16.6 million improvement[4]. - Earnings before income taxes rose 30% to $52.6 million, while adjusted EBITDA from continuing operations grew 10% to $73.8 million[4]. - Earnings per share (EPS) from continuing operations (diluted) increased 80% to $0.79, and adjusted EPS grew 14% to $0.91[4]. - Operating cash flow increased 14% to $57.1 million, and free cash flow rose 11% to $44.4 million compared to $40.1 million in the prior year[4]. - Net earnings from continuing operations for the three months ended February 28, 2025, were $39.339 million, up 79.5% from $22.000 million in the prior year[24]. - Earnings per share (EPS) for continuing operations was $0.80 for the three months ended February 28, 2025, compared to $0.45 for the same period in 2024, reflecting a 77.8% increase[24]. - Net earnings for the three months ended February 28, 2025, were $39,339 thousand, a significant increase from $22,000 thousand in the same period of 2024, representing an increase of 78.5%[28]. - Net earnings attributable to controlling interest (GAAP) surged to $39,663 thousand in February 2025, compared to $22,000 thousand in February 2024, reflecting an increase of 80.5%[36]. Segment Performance - Consumer Products segment net sales were $139.7 million, an increase of 4.9%, while Building Products segment net sales rose 11.2% to $164.8 million[12][13]. - Consumer Products segment net sales increased to $139,714 thousand in February 2025 from $133,181 thousand in February 2024, a growth of 4.0%[38]. - Building Products segment net sales rose to $164,810 thousand in February 2025, up from $148,190 thousand in February 2024, representing an increase of 11.3%[38]. Cash Flow and Dividends - The company repurchased 150,000 shares of common stock for $6.2 million, leaving 5,565,000 shares remaining on the repurchase authorization[4]. - The company declared a quarterly dividend of $0.17 per share, payable on June 27, 2025[4]. - The company reported cash dividends declared per share of $0.17 for the three months ended February 28, 2025, compared to $0.16 for the same period in 2024[24]. - The company ended the quarter with cash of $222.8 million, a decrease of $21.4 million from the previous quarter[10]. - Cash and cash equivalents decreased to $222.844 million as of February 28, 2025, down from $244.225 million as of May 31, 2024[26]. - The company reported net cash provided by operating activities of $57,131 thousand for the three months ended February 28, 2025, up from $50,121 thousand in the prior year, an increase of 14.0%[28]. - Net cash provided by operating activities increased to $57,131 thousand in February 2025 from $50,121 thousand in February 2024, representing a growth of 4.0%[36]. - Free cash flow (non-GAAP) rose to $44,427 thousand in February 2025, up from $40,104 thousand in February 2024, indicating an increase of 8.0%[36]. - Free cash flow conversion (non-GAAP) was 98% in February 2025, slightly down from 100% in February 2024[36]. Balance Sheet and Assets - Total assets increased to $1.682 billion as of February 28, 2025, compared to $1.639 billion as of May 31, 2024, showing a growth of 2.6%[26]. - Total current liabilities were $180.388 million as of February 28, 2025, slightly up from $178.376 million as of May 31, 2024[26]. - Shareholders' equity attributable to controlling interest increased to $937.208 million as of February 28, 2025, compared to $888.879 million as of May 31, 2024[26]. Strategic Outlook - The company remains confident in its long-term growth strategy, focusing on capital allocation, strategic M&A, and shareholder value creation despite market uncertainties[14].

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Financial Data and Key Metrics Changes - The company reported GAAP earnings from continuing operations of $0.79 per share, up from $0.44 in the prior year quarter, reflecting strong earnings growth [20] - Adjusted EBITDA for the quarter was $74 million, an increase from $67 million in Q3 of last year, with an adjusted EBITDA margin of over 24% compared to 21% last year [24] - Consolidated net sales for the quarter were $305 million, a 3.9% decrease from $317 million in the prior year quarter, primarily due to the deconsolidation of the former Sustainable Energy Solutions segment [22][23] Business Line Data and Key Metrics Changes - Consumer Products net sales grew 5% year-over-year to $140 million, with adjusted EBITDA of $29 million and a margin of 20.5% [29] - Building Products Q3 net sales grew 11% year-over-year to $165 million, with adjusted EBITDA of $53 million and a margin of 32% [32] - The decline in equity earnings from joint ventures, particularly ClarkDietrich, negatively impacted overall performance, contributing $9 million in equity earnings for the quarter [34][36] Market Data and Key Metrics Changes - The company experienced improved demand as it returned to more seasonally normal trends across its value streams, contributing to revenue growth [10] - The Building Products team demonstrated resilience in navigating current market conditions, with a focus on heating, cooling, construction, and water infrastructure [36] Company Strategy and Development Direction - The company continues to leverage the Worthington Business System, focusing on innovation, transformation, and M&A as growth drivers [10][18] - Investments in automation and facility modernization are ongoing, with a commitment to enhancing operational efficiency [15][25] - The company aims to maintain a strong balance sheet and liquidity to pursue growth through acquisitions, targeting market-leading businesses [18][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating cost pressures related to tariffs and supply chain issues, highlighting a proactive approach to managing costs [41][42] - The company remains optimistic about future demand, particularly in the Consumer Products segment, despite ongoing macroeconomic uncertainty [31][132] - Management emphasized the importance of maintaining strong relationships with retail partners to ensure product availability and meet customer needs [131] Other Important Information - The company declared a quarterly dividend of $0.17 per share payable in June 2025 [29] - Free cash flow totaled $144 million on a trailing 12-month basis, representing a 104% free cash flow conversion rate relative to adjusted net earnings [27] Q&A Session Summary Question: How are tariffs being navigated in today's market? - Management indicated that they are well-positioned as a domestic manufacturer and have diversified sourcing capabilities to manage cost increases, with pending price increases announced on many products [41][45] Question: What are the contributing factors for progress in the core product's EBITDA margin? - Management noted a positive mix shift and return to seasonally normal demand levels, with the wholly-owned business margin improving significantly [50][51] Question: Can you provide an update on the M&A pipeline? - Management stated that the M&A pipeline remains healthy, with ongoing assessments of opportunities despite macroeconomic uncertainty [92] Question: What is the outlook for free cash flow conversion? - Management expressed a target to sustain free cash flow conversion rates above 100%, despite ongoing capital expenditures for facility modernization [75] Question: How much did new product initiatives contribute to growth this quarter? - Management clarified that new product initiatives did not significantly contribute to the current quarter's growth but are expected to drive future revenue and margin improvements [82][85]

Worthington Enterprises (WOR) Q3 2025 Earnings Call March 26, 2025 08:30 AM ET Company Participants Marcus Rogier - IR & TreasurerJoseph B. Hayek - President and CEOColin Souza - VP & CFOKathryn Thompson - Founding Partner & CEODaniel Moore - Partner - Director of Research Conference Call Participants Charles Perron-Piché - AnalystBrian McNamara - MD & Senior Analyst - ConsumerWalter Liptak - Industry Analyst Operator Good morning, and welcome to the Worthington Enterprises Third Quarter Fiscal twenty twent ...

Q 3 F Y 2 0 2 5 E A R N I N G S S U M M A R Y M A R C H 2 5 , 2 0 2 5 NEGATIVES CPG BPG Q3 FY2025 / Recent Highlights Consolidated net sales declined 3.9% year over year driven by the SES deconsolidation, but profitability improved with gross margin increasing to 29.3% from 23.1% and Adj. EBITDA margin rising to 24.2% from 21.1% in the prior year quarter Building Products Adj. EBITDA of $53 million and Adj. EBITDA margin of 32.3% in Q3 maintaining a solid performance compared to $53 million and 35.8% in the ...

Financial Data and Key Metrics Changes - Worthington Enterprises reported GAAP earnings from continuing operations of $0.79 per share, up from $0.44 in the prior year quarter, reflecting strong earnings growth [15] - Adjusted EBITDA for the quarter was $74 million, an increase from $67 million in Q3 of the previous year, with an adjusted EBITDA margin of over 24% compared to 21% last year [17][19] - Consolidated net sales for the quarter were $305 million, a 3.9% decrease from $317 million in the prior year quarter, primarily due to the deconsolidation of the former Sustainable Energy Solutions segment [16][19] Business Line Data and Key Metrics Changes - Consumer products net sales grew 5% year over year to $140 million, with adjusted EBITDA of $29 million and a 20.5% margin [20] - Building products net sales increased 11% year over year to $165 million, with adjusted EBITDA of $53 million and a 32% margin [21] - Excluding the Sustainable Energy Solutions segment, sales grew over 8%, driven by the Regasco acquisition and improved demand [16][19] Market Data and Key Metrics Changes - The consumer products segment benefited from higher volumes despite ongoing macroeconomic uncertainty, while the building products segment saw strong performance in heating, cooling, and water businesses [20][21] - Joint ventures contributed $35 million in dividends during the quarter, with a 110% cash conversion rate on net equity income [18] Company Strategy and Development Direction - The company continues to leverage its business system focusing on innovation, transformation, and M&A to maximize near and long-term success [7][13] - Worthington is investing in automation and facility modernization to enhance operational efficiency and is embracing AI across its facilities [12][13] - The company aims to maintain a strong balance sheet and liquidity to pursue growth through acquisitions, focusing on market-leading businesses that can enhance margins and free cash flows [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current operating environment, emphasizing the company's domestic manufacturing strength and diversified sourcing capabilities [28] - The company anticipates continued growth driven by strong market positions and innovative product offerings, despite potential macroeconomic challenges [14][23] - Management highlighted the importance of maintaining a disciplined approach to capital allocation while pursuing growth opportunities [18][55] Other Important Information - The company declared a quarterly dividend of $0.17 per share payable in June 2025 [19] - Free cash flow totaled $144 million on a trailing twelve-month basis, representing a 104% free cash flow conversion rate relative to adjusted net earnings [18] Q&A Session Summary Question: How are tariffs being navigated in today's market? - Management indicated that they are well-positioned as a domestic manufacturer and have diversified sourcing capabilities to manage cost pressures, including potential price increases [28][30] Question: What are the contributing factors for progress in core products' EBITDA margin? - The building products business saw an EBITDA margin increase from 6% to 11% year over year, driven by positive mix shifts and seasonal demand recovery [36] Question: Can you provide an update on the M&A pipeline? - The M&A pipeline remains healthy, with ongoing assessments of opportunities despite current market uncertainties [68] Question: What is the outlook for free cash flow conversion? - Management aims to sustain free cash flow conversion above 100%, even with ongoing capital expenditures for facility modernization [55] Question: How is the company addressing the challenges in the consumer segment? - Management noted that they are proactively working with retail partners to manage inventory levels and ensure product availability, which has led to healthy demand [99]

Core Viewpoint - Worthington Enterprises Inc. reported strong financial results for the third quarter of fiscal 2025, showcasing year-over-year growth in revenue, adjusted EBITDA, and adjusted EPS despite a decrease in net sales due to the deconsolidation of a segment [1][2][3]. Financial Highlights - Net sales for Q3 2025 were $304.5 million, a decrease of $12.2 million or 3.9% from Q3 2024, primarily due to the deconsolidation of the SES segment [2][3]. - Operating income increased significantly to $20.9 million from $4.3 million in the prior year [1][4]. - Earnings before income taxes rose by 30% to $52.6 million, while adjusted EBITDA from continuing operations grew by 10% to $73.8 million [3][4]. - Net earnings from continuing operations were $39.7 million, up from $22.0 million, leading to an 80% increase in diluted EPS from continuing operations to $0.79 [1][3]. Cash Flow and Capital Management - The company generated $57.1 million in net cash from operating activities, an increase of 14% from the previous year, with free cash flow rising to $44.4 million [3][7]. - Worthington repurchased 150,000 shares of common stock for $6.2 million, leaving 5,565,000 shares remaining under its repurchase authorization [3][4]. Segment Performance - The Consumer Products segment reported net sales of $139.7 million, an increase of 4.9% driven by higher volumes [9]. - The Building Products segment generated net sales of $164.8 million, an increase of 11.2%, attributed to contributions from Ragasco and a favorable product mix [10]. Equity Income and Tax Expense - Equity income decreased by $11.2 million to $32.1 million, primarily due to lower contributions from ClarkDietrich [5]. - Income tax expense decreased by $5.2 million to $13.2 million, reflecting a lower estimated annual effective tax rate of 24.4% [6]. Balance Sheet Overview - The company ended the quarter with cash of $222.8 million, down from $244.2 million at the end of the previous quarter [7][26]. - Total debt remained relatively unchanged at $293.9 million, with no borrowings under its revolving credit facility [8][26]. Future Outlook - The company expressed confidence in its ability to drive long-term growth and deliver shareholder value, supported by a strong balance sheet and disciplined capital allocation strategy [11].