COLUMBUS, Ohio, Sept. 09, 2025 (GLOBE NEWSWIRE) -- Worthington Enterprises Inc. (NYSE: WOR) will hold its quarterly earnings conference call Wednesday, September 24 at 8:30 a.m. ET. The Company will discuss its fiscal first quarter results, which will be released after the market closes on September 23. Please click here to register for the September 24 live audio webcast or visit IR.worthingtonenterprises.com. For those unable to listen live, a replay will be available in the Investors section of the Compa ...

Summary of Worthington Enterprises (WOR) FY Conference Call Company Overview - Worthington Enterprises separated from its steel business in December 2023, positioning itself as a leader in building and consumer products [2][8] - The company emphasizes a "people first" culture with profit-sharing incentives for all employees [4][6] - Worthington operates in niche markets, aiming for leadership positions rather than competing in larger markets [7][8] Financial Performance - For FY 2025, Worthington reported revenues of $1.2 billion and EBITDA of $263 million, achieving an EBITDA margin of just under 23% [52][53] - The company targets long-term growth of 6% to 8%, with a goal of reaching 24% EBITDA margins over time [53][54] - Year-over-year improvement was noted from FY 2024 to FY 2025, with positive momentum heading into FY 2026 [12] Impact of COVID-19 - The pandemic initially boosted demand for home improvement products as consumers engaged in repair and remodel projects [11] - Demand patterns have since stabilized and normalized post-COVID, allowing the company to streamline operations and capture efficiencies [11][12] Joint Ventures - Worthington has significant joint ventures with Wave and Clark Dietrich, which contribute to its building products segment [13][14] - Wave generated over $100 million in free cash flow last year, while Clark Dietrich contributed around $40 million [16] - Both JVs benefit from growth in sectors such as data centers, healthcare, and education [19] Consumer Business Segments - The consumer business is divided into three segments: tools, outdoor living, and celebrations, with key brands including Coleman and Balloon Time [21][22] - The company is focused on optimizing margins and introducing innovative products to drive growth [22][38] M&A Strategy - Worthington is actively seeking acquisitions in niche markets with leadership positions and sustainable competitive advantages [41][42] - The M&A environment has been slow due to uncertainty, but there is pent-up demand for acquisitions [40][41] - The recent acquisition of Elgin enhances Worthington's exposure to the HVAC market [45][46] Tariffs and Market Conditions - Approximately 80% of Worthington's products are sourced and sold domestically, which mitigates the impact of tariffs [32][33] - The company views tariffs as potentially neutral to positive, as they can create a level playing field against foreign competitors [34] Consumer Sentiment - The current consumer sentiment is cautious, with inflation impacting spending habits [56][57] - The company believes that a healthy consumer is essential for growth, and products may see increased demand as consumers opt for DIY projects over travel [58] Conclusion - Worthington Enterprises is positioned for growth through its focus on niche markets, strong joint ventures, and a commitment to innovation and operational efficiency [8][12][38] - The company remains optimistic about future opportunities despite current market uncertainties and consumer caution [58][59]

Company Overview - Worthington Enterprises (NYSE: WOR) is a designer and manufacturer of market-leading brands that enhance everyday life by improving spaces and experiences [3] - The company operates in two primary business segments: Building Products and Consumer Products [3] - The Building Products segment includes solutions for heating and cooling, cooking, construction, and water systems, while the Consumer Products segment focuses on tools, outdoor living, and celebrations [3] - Worthington Enterprises employs approximately 6,000 people across North America and Europe [4] Leadership and Strategy - President and CEO Joe Hayek and CFO Colin Souza will participate in a fireside chat at the Canaccord Genuity 45 Annual Growth Conference on August 12, 2025 [1][2] - The discussion will focus on the company's strategies for accelerating long-term growth and shareholder value through the Worthington Business System, which emphasizes innovation, transformation, and mergers and acquisitions (M&A) [2] Corporate Philosophy and Community Engagement - Founded in 1955, Worthington Enterprises follows a people-first philosophy, prioritizing shareholder earnings as its primary corporate goal [5] - The company empowers employees to innovate and grow within attractive markets, while also engaging with local communities through volunteer efforts and workforce development programs [5]

Group 1 - Simpson Manufacturing (SSD) is a notable stock in the Construction sector, currently outperforming the sector with a year-to-date return of 8.2% compared to the sector average of 3.8% [4] - The Construction group ranks 9 within the Zacks Sector Rank, which evaluates 16 different groups based on the average Zacks Rank of individual stocks [2] - SSD holds a Zacks Rank of 2 (Buy), with a 1.5% increase in the consensus estimate for full-year earnings over the past three months, indicating positive analyst sentiment [3] Group 2 - Simpson Manufacturing is part of the Building Products - Miscellaneous industry, which consists of 30 companies and currently ranks 67 in the Zacks Industry Rank, with an average loss of 0.8% this year [5] - Worthington Enterprises (WOR), another stock in the Construction sector, has a year-to-date return of 54.5% and a Zacks Rank of 1 (Strong Buy), with a 16.2% increase in its consensus EPS estimate over the past three months [4][5] - The Building Products - Wood industry, to which Worthington Enterprises belongs, ranks 231 and has gained 8.5% this year [6]

Part I [Business](index=13&type=section&id=Item%201.%20Business) Worthington Enterprises is a leading designer and manufacturer of consumer and building products, operating through two main segments and recently separated its steel processing business - The company operates under two reportable segments: Consumer Products and Building Products, founded in 1955 and formerly known as Worthington Industries, Inc[31](index=31&type=chunk) - On December 1, 2023, the company completed the separation of its former steel processing business into Worthington Steel, Inc. (NYSE: WS), with its results now reported as discontinued operations for all prior periods[33](index=33&type=chunk)[34](index=34&type=chunk) - The company's strategy is rooted in the Worthington Business System, applying lean techniques and a disciplined approach to capital deployment, operational optimization, and strategic investments[32](index=32&type=chunk)[36](index=36&type=chunk) - Key strategic developments include the acquisition of Elgen (HVAC components, June 2025), Ragasco (composite propane cylinders, June 2024), and an 80% stake in Halo (outdoor cooking, February 2024), along with a joint venture for its Sustainable Energy Solutions business with Hexagon in May 2024[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) Segment Net Sales Contribution | Segment | FY2025 Net Sales % | FY2024 Net Sales % | FY2023 Net Sales % | | :--- | :--- | :--- | :--- | | Consumer Products | 43% | 40% | 39% | | Building Products | 57% | 50% | 51% | - The company's primary raw materials are steel, aluminum, copper, and propane, with a steel supply agreement with the newly separated Worthington Steel[64](index=64&type=chunk)[65](index=65&type=chunk) - As of May 31, 2025, the company had approximately **3,400 employees**, with its human capital strategy centered on a "people-first" culture, talent development, safety, and diversity, equity, and inclusion[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[76](index=76&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company faces numerous risks from operations, the recent steel business separation, and general economic conditions, including market cyclicality, raw material volatility, and cybersecurity threats - **Business & Operational Risks:** The company's sales are heavily concentrated in the consumer products and construction end markets, making it vulnerable to economic downturns, inflation, and reduced consumer confidence[79](index=79&type=chunk) - **Raw Material Risks:** Operating results can be adversely affected by volatility in the price and availability of raw materials, particularly steel, aluminum, zinc, copper, and helium, with potential inability to pass all cost increases to customers[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - **Customer and Competition Risks:** The loss of a key customer could have an adverse effect, and the company faces intense competition on price, quality, and delivery from a variety of domestic and foreign competitors[85](index=85&type=chunk)[91](index=91&type=chunk) - **Technology Risks:** The company is subject to information system security risks, including cybersecurity breaches, and acknowledges risks associated with its increasing reliance on AI technologies, such as potential system failures, data privacy issues, and an evolving regulatory landscape[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) - **Separation Risks:** The company may not realize the anticipated benefits of the Separation from Worthington Steel, and there is a risk that the transaction could fail to qualify as a tax-free reorganization, resulting in significant tax liabilities for the company and its shareholders[116](index=116&type=chunk)[117](index=117&type=chunk)[118](index=118&type=chunk) - **Shareholder Influence:** John P. McConnell, former Executive Chairman, beneficially owns approximately **35% of outstanding common shares**, giving him significant influence in matters requiring a shareholder vote, including those requiring a 75% supermajority[108](index=108&type=chunk) [Unresolved Staff Comments](index=41&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[129](index=129&type=chunk) [Cybersecurity](index=41&type=section&id=Item%201C.%20Cybersecurity) Worthington Enterprises maintains a comprehensive cybersecurity risk management program overseen by the Audit Committee, focusing on threat identification, prevention, and response - The company has an enterprise risk management program that includes cybersecurity, with oversight provided by the Audit Committee, which receives quarterly updates from the CIO and CISO[130](index=130&type=chunk)[132](index=132&type=chunk) - The cybersecurity program includes threat and vulnerability management, employee education, identity and access controls, continuous monitoring by a Security Operation Center, incident response exercises, and a risk management program for critical third-party vendors[134](index=134&type=chunk) - The company has an AI governance council to review and evaluate the risks of AI technology[134](index=134&type=chunk) - During fiscal 2025, the company states that risks from cybersecurity threats have not materially affected, and are not reasonably likely to materially affect, its strategy, results of operations, or financial condition[136](index=136&type=chunk) [Properties](index=42&type=section&id=Item%202.%20Properties) The company's principal offices are in Columbus, Ohio, with over 4 million square feet of owned or leased manufacturing space, considered well-maintained and sufficient Number of Facilities by Segment (Owned & Leased) | Segment/Venture | Total Facilities | Owned | Leased | | :--- | :--- | :--- | :--- | | **Operating Segments** | | | | | Consumer Products | 4 | 2 | 2 | | Building Products | 10 | 7 | 3 | | **Consolidated JV** | | | | | Halo | 1 | 0 | 1 | | **Unconsolidated JVs** | | | | | ClarkDietrich | 15 | 2 | 13 | | Sustainable Energy Solutions | 3 | 3 | 0 | | WAVE | 7 | 2 | 5 | | Workhorse | 3 | 0 | 3 | | **Total** | **43** | **16** | **27** | [Legal Proceedings](index=43&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings but does not expect a material adverse effect on its financial position or results - The company does not believe that any current legal proceedings, individually or in aggregate, will have a material adverse effect on its business, financial position, results of operation or cash flows[140](index=140&type=chunk) [Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[141](index=141&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=45&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Worthington Enterprises' common shares trade on the NYSE under 'WOR', with a history of quarterly dividends and recent share repurchases, leaving 5.365 million shares available - The company's common shares trade on the New York Stock Exchange (NYSE) under the symbol **'WOR'**[152](index=152&type=chunk) - The company has paid a dividend every quarter since becoming a public company in 1968, but there is no guarantee this will continue, with the Board reviewing the dividend quarterly[153](index=153&type=chunk) Issuer Purchases of Equity Securities (Q4 FY2025) | Period | Total Shares Purchased | Average Price Paid | Shares Purchased as Part of Program | Maximum Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | :--- | | Mar 2025 | 1,119 | $41.74 | - | 5,565,000 | | Apr 2025 | 154,097 | $47.64 | 152,000 | 5,413,000 | | May 2025 | 48,084 | $54.06 | 48,000 | 5,365,000 | | **Total** | **203,300** | **$47.81** | **200,000** | **5,365,000** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2025, net sales from continuing operations decreased 7.4% to **$1.15 billion**, while gross profit increased 11.9% to **$319.0 million**, and adjusted EBITDA rose to **$263.5 million**, with **$209.7 million** in operating cash flow Fiscal 2025 vs. 2024 Consolidated Results (Continuing Operations) | Metric | Fiscal 2025 | Fiscal 2024 | Change | Change % | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,153.8 M | $1,245.7 M | ($91.9 M) | (7.4%) | | Gross Profit | $319.0 M | $285.0 M | $34.0 M | 11.9% | | Operating Loss | ($10.7 M) | ($73.5 M) | $62.8 M | N/A | | Net Earnings from Cont. Ops. | $96.1 M | $35.2 M | $60.9 M | 173.0% | | Diluted EPS from Cont. Ops. | $1.92 | $0.70 | $1.22 | 174.3% | | Adjusted EBITDA from Cont. Ops. | $263.5 M | $251.0 M | $12.5 M | 5.0% | - The decrease in consolidated net sales was primarily due to the deconsolidation of the former Sustainable Energy Solutions operating segment on May 29, 2024, though net sales for the two reportable segments (Consumer and Building Products) increased by **3.5%** year-over-year[191](index=191&type=chunk)[195](index=195&type=chunk) - Gross margin improved to **27.6%** in FY2025 from **22.9%** in FY2024, driven by favorable product mix in both segments, contributions from the Ragasco acquisition, and the deconsolidation of the lower-margin Sustainable Energy Solutions business[192](index=192&type=chunk) - Equity income decreased by **$22.9 million** to **$144.8 million**, largely due to margin compression and lower contributions from the ClarkDietrich joint venture[198](index=198&type=chunk)[199](index=199&type=chunk) - The company recognized a **$50.1 million** impairment charge in fiscal 2025 related to the write-down of intangible assets associated with its GTI business[196](index=196&type=chunk) Cash Flow Summary (in millions) | Activity | Fiscal 2025 | Fiscal 2024 | Fiscal 2023 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $209.7 | $290.0 | $625.4 | | Net cash used by investing activities | ($135.1) | ($140.8) | ($71.8) | | Net cash used by financing activities | ($68.8) | ($359.9) | ($133.1) | - Key uses of cash in fiscal 2025 included **$95.0 million** for the Ragasco acquisition, **$50.6 million** in capital expenditures, **$33.9 million** in dividends, and **$30.9 million** for share repurchases[205](index=205&type=chunk) - The company maintains a **$500.0 million** revolving credit facility, which was undrawn as of May 31, 2025, providing significant liquidity[208](index=208&type=chunk)[217](index=217&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from interest rates, foreign currency, and commodity prices through debt structure, forward contracts, and derivatives, with minimal interest rate exposure in FY25 - **Interest Rate Risk:** Exposure is primarily from borrowing activities, managed with a mix of fixed and variable rate debt, with a hypothetical 100 basis point rate increase having no impact in fiscal 2025 as the variable-rate Credit Facility was undrawn[239](index=239&type=chunk) - **Foreign Currency Exchange Risk:** The company uses forward contracts to manage transactional exposure and has designated its Euro-denominated debt as a non-derivative hedge of its net investment in its Portuguese operations[242](index=242&type=chunk) - **Commodity Price Risk:** The company is exposed to price fluctuations in steel, natural gas, copper, zinc, and other raw materials, managing a portion of this exposure using derivative financial instruments[243](index=243&type=chunk) Fair Value of Outstanding Derivative Contracts (in millions) | Contract Type | Fair Value (Net Liability) FY2025 | Fair Value (Net Liability) FY2024 | | :--- | :--- | :--- | | Commodity contracts | ($0.0) M | $0.5 M | | Foreign currency exchange contracts | ($6.9) M | ($1.2) M | | **Total** | **($6.4) M** | **($0.5) M** | [Financial Statements and Supplementary Data](index=68&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements and notes, with KPMG LLP providing an unqualified opinion, noting sufficiency of audit evidence over equity in unconsolidated affiliates as a critical audit matter [Report of Independent Registered Public Accounting Firm](index=69&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) KPMG LLP issued an unqualified opinion on the consolidated financial statements and internal control over financial reporting, identifying sufficiency of audit evidence over equity in net income of unconsolidated affiliates as a critical audit matter - The auditor, KPMG LLP, issued an unqualified opinion, stating the financial statements are presented fairly in all material respects[251](index=251&type=chunk) - KPMG also issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of May 31, 2025[252](index=252&type=chunk) - A Critical Audit Matter was identified concerning the "Sufficiency of audit evidence over equity in net income of unconsolidated affiliates," totaling **$144.8 million** in fiscal 2025, requiring subjective auditor judgment due to the nature and structure of the affiliates[256](index=256&type=chunk)[257](index=257&type=chunk) [Consolidated Financial Statements](index=71&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show total assets of **$1.70 billion** and equity of **$938.2 million** as of May 31, 2025, with fiscal 2025 net sales of **$1.15 billion** and operating cash flow of **$209.7 million** Consolidated Balance Sheet Highlights (in thousands) | Account | May 31, 2025 | May 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $685,370 | $673,893 | | Total Assets | $1,695,152 | $1,638,637 | | Total Current Liabilities | $196,842 | $178,376 | | Long-Term Debt | $302,868 | $298,133 | | Total Liabilities | $756,915 | $747,625 | | Total Shareholders' Equity | $938,237 | $891,012 | Consolidated Statement of Earnings Highlights (in thousands) | Account | FY 2025 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | | Net Sales | $1,153,762 | $1,245,703 | $1,418,496 | | Gross Profit | $319,035 | $285,019 | $323,588 | | Operating Income (Loss) | ($10,715) | ($73,459) | $29,819 | | Net Earnings from Cont. Ops. | $94,970 | $34,980 | $125,751 | | Diluted EPS from Cont. Ops. | $1.92 | $0.70 | $2.55 | [Notes to Consolidated Financial Statements](index=78&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail the Worthington Steel separation, deconsolidation of Sustainable Energy Solutions, **$144.8 million** in equity income from unconsolidated JVs, **$50.1 million** impairment charges, debt structure, and recent acquisitions - **Note B - Discontinued Operations:** The results of the separated Worthington Steel business are presented, with net sales for this discontinued operation totaling **$1.67 billion** in fiscal 2024 and **$3.50 billion** in fiscal 2023[325](index=325&type=chunk) - **Note C - Investments in Unconsolidated Affiliates:** The company holds investments in four JVs: ClarkDietrich (25%), WAVE (50%), Sustainable Energy Solutions (49%), and Workhorse (20%), which generated total equity income of **$144.8 million** in fiscal 2025[328](index=328&type=chunk)[198](index=198&type=chunk) - **Note D - Goodwill and Other Long-Lived Assets:** A pre-tax impairment charge of **$50.1 million** was recorded in Q4 FY2025 on intangible assets of the GTI business, and in FY2024, a **$32.2 million** impairment charge was recorded related to the deconsolidation of the Sustainable Energy Solutions business[340](index=340&type=chunk)[341](index=341&type=chunk) - **Note H - Debt:** As of May 31, 2025, total long-term debt was **$302.9 million**, with the company also maintaining a **$500 million** revolving credit facility, which was undrawn[349](index=349&type=chunk)[355](index=355&type=chunk) - **Note P - Acquisitions:** The company acquired Ragasco on June 3, 2024, for a total purchase price of **$108.6 million**, which added **$41.6 million** to goodwill, and an 80% interest in Halo on February 1, 2024, for **$9.6 million**[416](index=416&type=chunk)[420](index=420&type=chunk)[421](index=421&type=chunk) - **Note T - Related Party Transactions:** Following the Separation, the company has a Steel Supply and Services Agreement with Worthington Steel, with purchases under this agreement totaling **$113.4 million** in fiscal 2025[459](index=459&type=chunk) - **Note U - Subsequent Events:** On June 18, 2025, after the fiscal year-end, the company acquired Elgen, a provider of HVAC parts, for approximately **$93.0 million**[461](index=461&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=129&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable to the company - Not applicable[464](index=464&type=chunk) [Controls and Procedures](index=129&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of May 31, 2025, excluding the recently acquired Ragasco - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of May 31, 2025[466](index=466&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of May 31, 2025, with the independent auditor, KPMG LLP, also issuing an unqualified opinion on the effectiveness of internal controls[472](index=472&type=chunk)[473](index=473&type=chunk) - Management's assessment of internal control over financial reporting excluded the operations of Ragasco, which was acquired in fiscal 2025[469](index=469&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of fiscal 2025 that have materially affected, or are reasonably likely to materially affect, internal controls[467](index=467&type=chunk) [Other Information](index=134&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fourth quarter of fiscal 2025 - No director or officer adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended May 31, 2025[484](index=484&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=135&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2025 Proxy Statement - The information required by this item is incorporated by reference from the registrant's definitive Proxy Statement for its 2025 Annual Meeting of Shareholders[488](index=488&type=chunk) [Executive Compensation](index=135&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2025 Proxy Statement - The information required by this item is incorporated by reference from the registrant's definitive Proxy Statement for its 2025 Annual Meeting of Shareholders[492](index=492&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=135&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the 2025 Proxy Statement - The information required by this item is incorporated by reference from the registrant's definitive Proxy Statement for its 2025 Annual Meeting of Shareholders[493](index=493&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=135&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related transactions and director independence is incorporated by reference from the 2025 Proxy Statement - The information required by this item is incorporated by reference from the registrant's definitive Proxy Statement for its 2025 Annual Meeting of Shareholders[494](index=494&type=chunk) [Principal Accountant Fees and Services](index=135&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the 2025 Proxy Statement - The information required by this item is incorporated by reference from the registrant's definitive Proxy Statement for its 2025 Annual Meeting of Shareholders[495](index=495&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=136&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the consolidated financial statements, financial statement schedule II, and a comprehensive list of exhibits, including governance documents and material contracts - This section lists the consolidated financial statements, financial statement schedules, and exhibits filed with the Form 10-K[497](index=497&type=chunk)[498](index=498&type=chunk)[499](index=499&type=chunk) - The audited financial statements of the unconsolidated affiliate, ClarkDietrich, are attached as Exhibit 99.2[502](index=502&type=chunk) [Form 10-K Summary](index=136&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for this item - None[500](index=500&type=chunk)

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]

Financial Performance - Net sales for Q4 fiscal 2025 were $317.9 million, a slight decrease of 0.3% compared to $318.8 million in Q4 fiscal 2024[4] - Net earnings from continuing operations increased 111% to $3.6 million, while adjusted EBITDA from continuing operations grew 35% to $85.1 million[4] - Adjusted EPS from continuing operations (diluted) increased from $0.74 to $1.06 per share[4] - Operating cash flow increased 38% to $62.4 million, and free cash flow rose 46% to $49.3 million[4] - Net earnings for the three months ended May 31, 2025, were $3,614,000, a significant improvement from a net loss of $32,049,000 in the same period of 2024[28] - The company reported a GAAP net earnings of $96,053,000 for the twelve months ended May 31, 2025, compared to $35,243,000 for the same period in 2024[38] - The adjusted EBITDA for the twelve months ended May 31, 2025, was $263,489,000, compared to $250,999,000 for the same period in 2024, indicating a positive trend in operational performance[36] Cash Flow and Dividends - The company ended the quarter with cash of $250.1 million, an increase of $5.9 million from the previous year[10] - Cash and cash equivalents increased to $250,075 thousand as of May 31, 2025, compared to $244,225 thousand in 2024, showing a growth of 2.9%[26] - The company declared cash dividends of $0.17 per share for the three months ended May 31, 2025, compared to $0.16 per share in the same period of 2024[24] - The company paid dividends totaling $33,903,000 for the twelve months ended May 31, 2025, compared to $56,819,000 in the previous year, reflecting a reduction in dividend payments[28] Segment Performance - Building Products segment net sales increased by $38.8 million, or 25.2%, to $192.3 million, driven by higher volumes and contributions from the Ragasco acquisition[13] - The Consumer Products segment reported net sales of $125,568,000 for the three months ended May 31, 2025, slightly up from $125,336,000 in the same period of 2024[31] - The Building Products segment achieved net sales of $192,316,000 for the three months ended May 31, 2025, compared to $153,551,000 in the same period of 2024, marking an increase of 25.2%[31] Impairment and Losses - The impairment of goodwill and long-lived assets for the three months ended May 31, 2025, was $50,813 thousand, up from $32,975 thousand in 2024[24] - The company incurred impairment charges of $50,813,000 for long-lived assets in the three months ended May 31, 2025, compared to $32,975,000 in the same period of 2024[34] Operational Metrics - Total assets rose to $1,695,152 thousand as of May 31, 2025, up from $1,638,637 thousand in 2024, indicating an increase of 3.4%[26] - Total liabilities increased to $756,915 thousand as of May 31, 2025, compared to $747,625 thousand in 2024, reflecting a rise of 1.8%[26] - Net cash provided by operating activities for the twelve months ended May 31, 2025, was $209,744,000, down from $289,976,000 in 2024, representing a decrease of approximately 27.7%[28] - The company’s operating cash flow conversion for the three months ended May 31, 2025, was 1,610%, a significant increase from (143%) in the same period of 2024[38] Acquisitions and Corporate Actions - The acquisition of Elgen Manufacturing was completed for approximately $93 million, enhancing the company's position in the HVAC market[4] - The company repurchased 200,000 shares of common stock for $9.8 million, with 5,365,000 shares remaining on the repurchase authorization[4] Tax and Adjustments - The effective tax rate for the three months ended May 31, 2025, was 54.9%, significantly higher than the effective tax rate of (18.8%) for the same period in 2024[34] - Adjusted operating income is defined as operating income excluding specific items, providing a clearer view of ongoing performance[41] - Adjusted net earnings from continuing operations exclude after-tax effects of certain items, offering a more accurate reflection of profitability[42] - Adjusted EBITDA from continuing operations is used to evaluate segment performance and overall profitability, excluding non-recurring items[43] - Free cash flow is defined as net cash flows from operating activities less investments in property, plant, and equipment, indicating liquidity[44] - Free cash flow conversion measures how much of adjusted net earnings is converted into cash, highlighting cash generation efficiency[45] - Impairment charges and restructuring activities are excluded from non-GAAP measures as they do not reflect ongoing operations[46] - Separation costs related to corporate functions are excluded as they are one-time in nature and not expected to recur[46] - Non-cash charges and losses on extinguishment of debt are excluded to avoid obscuring financial performance analysis[47] - Pension settlement charges and one-time tax effects of separation are excluded due to their non-recurring nature[47] - Corporate costs eliminated at separation reflect overhead costs that no longer exist post-separation, impacting financial reporting[47]

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].