Financial Data and Key Metrics Changes - The company reported a revenue increase of over 19% year-over-year in Q2, with adjusted EBITDA growing by 8% year-over-year, reaching $60 million [4][5][16] - Adjusted earnings per share rose to $0.65, up from $0.60 in the prior year quarter [14] - The adjusted EBITDA margin improved to 18.5% compared to 20% a year ago [5][16] Business Line Data and Key Metrics Changes - In the consumer products segment, net sales increased by 3% to $120 million, with adjusted EBITDA remaining flat at $15 million [20] - The building products segment saw a 32% year-over-year growth in net sales to $208 million, driven by higher volumes and contributions from the Elgen acquisition [21] - Excluding Elgen, building products net sales grew by 16% year-over-year, reflecting strength across multiple categories [21] Market Data and Key Metrics Changes - The company noted cautious consumer sentiment and muted construction activity impacting market conditions, but still managed to gain market share [12] - The performance of joint ventures was highlighted, with WAVE contributing $26 million in equity earnings, while ClarkDietrich's earnings were lower due to a challenging market environment [22] Company Strategy and Development Direction - The company aims to optimize its business through organic growth and strategic acquisitions, with a focus on increasing margins [5][6] - The planned acquisition of LSI, a leader in metal roofing components, is expected to enhance the company's position in engineered building systems and create long-term shareholder value [6][11] - The company continues to leverage the Worthington Business System, focusing on innovation, transformation, and M&A to maximize success [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current environment and positioning for long-term growth despite challenges in the housing market and construction activity [12][13] - The company is optimistic about growth prospects in the back half of the fiscal year, particularly in consumer products and building products [20][21] Other Important Information - The company declared a quarterly dividend of $0.19 per share, payable in March 2026 [19] - The acquisition of LSI is expected to close in January 2026 and will be funded primarily with cash on hand [19][11] Q&A Session Summary Question: Can you expand on the strategy for growth from the acquisition of LSI? - Management highlighted the complementary nature of acquisitions and the focus on leveraging manufacturing expertise and innovation to create value [26][27] Question: What are the opportunities involved in data centers? - Management noted that several segments, including WAVE and ClarkDietrich, provide products for data centers, indicating a meaningful growth opportunity [31][33] Question: What drives the healthy margin profile of LSI? - Management indicated that LSI's business is driven by resilient retrofit demand and strong customer relationships, contributing to its high margins [39][40] Question: How much of the building products growth is due to pricing versus volume? - Management stated that the growth was primarily driven by volume, with a focus on gaining market share through innovation [42][44] Question: What is the outlook for ClarkDietrich? - Management expects no worse than flat sequential performance moving forward, with a focus on cost-saving initiatives [46][47] Question: How does the company plan to balance capital allocation? - Management expressed a balanced approach to capital structure, considering strategic M&A and returns to shareholders while maintaining growth [50]

Financial Performance - Consolidated net sales reached $327 million, a 19% increase year-over-year, driven by higher volumes in Building Products and contributions from Elgen[7] - Building Products achieved Adj EBITDA of $53 million in Q2, up from $47 million in the prior year, with a 25.5% Adj EBITDA margin[7] - Consumer Products reported Adj EBITDA of $15 million in Q2, flat compared to the prior year, with a 12.7% Adj EBITDA margin[7] - Free cash flow for Q2 was $39 million, with $12 million in capex spend, including $6 million related to facility modernization projects[7] - Adjusted EBITDA reached $60 million with a margin of 18.5% compared to $56 million with a margin of 20.5% in Q2 FY25[8] - Adjusted EPS was $0.65 compared to $0.60 in Q2 FY25[8] Capital Allocation - The company repurchased 250 thousand shares of common stock during Q2 for $14 million, at an average purchase price of $54.87, with 5.0 million shares remaining on the repurchase authorization as of November 30, 2025[7] - A dividend of $0.19 per share was declared, payable in March 2026[7] Strategic Initiatives - An agreement was made to acquire LSI Group, a manufacturer of commercial metal roof clips, accessories, and retrofit systems, for approximately $205 million, expected to close in January 2026[7] - The company's net sales are $1.3 Billion, with Adjusted EBITDA of $284 million[86]

分组1 - Worthington Enterprises reported quarterly earnings of $0.65 per share, missing the Zacks Consensus Estimate of $0.72 per share, but showing an increase from $0.60 per share a year ago, resulting in an earnings surprise of -9.72% [1] - The company posted revenues of $327.45 million for the quarter ended November 2025, surpassing the Zacks Consensus Estimate by 8.54% and increasing from $274.05 million year-over-year [2] - Worthington Enterprises has outperformed the S&P 500, with shares gaining about 44% since the beginning of the year compared to the S&P 500's gain of 15.9% [3] 分组2 - The earnings outlook for Worthington Enterprises is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for Worthington Enterprises was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is $1.00 on revenues of $325.5 million, and for the current fiscal year, it is $3.58 on revenues of $1.28 billion [7] 分组3 - The outlook for the Building Products - Wood industry, to which Worthington Enterprises belongs, is currently in the bottom 7% of over 250 Zacks industries, which may impact the stock's performance [8]

Core Insights - Worthington Enterprises Inc. reported solid financial results for the second quarter of fiscal 2026, with year-over-year growth in net sales, adjusted EPS, EBITDA, and free cash flow, driven primarily by strong performance in the Building Products segment [3][5][12]. Financial Highlights - Net sales increased by $53.4 million, or 19.5%, to $327.5 million compared to the second quarter of fiscal 2025 [4][5]. - Operating income rose to $12.3 million from $3.5 million in the prior year quarter, while adjusted operating income increased to $13.9 million from $6.1 million [4][6]. - Net earnings decreased by 3% to $27.0 million, while adjusted net earnings increased by 7% to $32.5 million [5][6]. - Adjusted EBITDA grew by 8% to $60.5 million [5][6]. - Free cash flow improved by 15% to $39.1 million [5][10]. Segment Performance - Consumer Products segment generated net sales of $119.9 million, a 2.7% increase over the prior year quarter, with adjusted EBITDA remaining relatively flat at $15.3 million [12][34]. - Building Products segment achieved net sales of $207.5 million, a 31.9% increase, with adjusted EBITDA rising to $53.0 million [13][34]. Recent Developments - The company announced an agreement to acquire LSI Group for approximately $205 million, expected to close in January 2026, which aligns with its growth strategy in niche markets [5][14]. - Worthington Enterprises repurchased 250,000 common shares for $13.7 million, leaving 5,015,000 shares remaining under its repurchase authorization [5][10]. Balance Sheet and Cash Flow - The company ended the quarter with cash of $180.3 million, a decrease of $69.8 million from the previous quarter, primarily due to the acquisition of Elgen [10][11]. - Total debt at quarter-end was $305.3 million, with no borrowings under its revolving credit facility [11][10].

Core Viewpoint - Worthington Enterprises Inc. has signed a definitive agreement to acquire LSI Group, LLC for approximately $205 million, enhancing its Building Products portfolio and expanding its market presence in the commercial metal roofing sector [1][2][3] Company Overview - Worthington Enterprises is a designer and manufacturer of market-leading brands that improve everyday life, operating primarily in two segments: Building Products and Consumer Products [10][11] - The Building Products segment includes solutions for heating, cooling, construction, and water applications, while the Consumer Products segment focuses on tools and outdoor living [10] Acquisition Details - The acquisition of LSI Group is expected to close in January 2026, pending regulatory approval and customary closing conditions [2] - LSI Group is recognized as one of the largest U.S. manufacturers of standing seam metal roof clips and retrofit components, with brands such as BPD, Logan Stampings, LSI Metal Fabrication, and Roof Hugger [1][7] Strategic Importance - The acquisition is aimed at strengthening Worthington's Building Products portfolio and enhancing customer engagement across the building envelope [3] - LSI's reputation for superior quality, industry-leading lead times, and strong customer relationships aligns with Worthington's values and commitment to customer support [3][5] Market Demand - There is a growing demand for resilient, energy-efficient, and durable roofing systems as building owners prioritize stronger structures in response to evolving weather patterns and rising energy costs [3] - The retrofit market, served by LSI's Roof Hugger brand, offers advantages such as lower installation costs and improved energy efficiency compared to full roof replacements [4] Leadership and Culture - Robert Baker, the owner and president of LSI Group, will continue to lead the business post-acquisition, emphasizing a people-first culture and commitment to innovation [5][8] - The partnership is expected to accelerate innovation and expand reach, delivering greater value to customers and enhancing investment in the Logansport community [8]

Core Points - Worthington Enterprises Inc. declared a quarterly dividend of $0.19 per share, payable on March 27, 2026, to shareholders of record on March 13, 2026, marking a continuous dividend payment since its IPO in 1968 [1] - The board appointed Charles Chiappone as a new member, who brings extensive experience from his previous roles at Armstrong World Industries and Worthington Armstrong Venture [2][3] - The company will hold its quarterly earnings conference call on December 17, 2025, at 8:30 a.m. ET to discuss its fiscal second quarter results [3][5] Company Overview - Worthington Enterprises is a designer and manufacturer of market-leading brands that enhance everyday life, operating in two primary segments: Building Products and Consumer Products [6] - The Building Products segment includes solutions for heating, cooling, construction, and water systems, while the Consumer Products segment covers tools, outdoor living, and celebrations [6] - The company is headquartered in Columbus, Ohio, and employs approximately 6,000 people across North America and Europe [7] Corporate Philosophy and Community Engagement - Founded in 1955, Worthington Enterprises follows a people-first philosophy, prioritizing shareholder earnings while empowering employees to innovate and grow [8] - The company actively engages with local communities through volunteer efforts and workforce development programs, and it reports annually on its corporate citizenship and sustainability initiatives [8]

Group 1: Investment Strategy Overview - Riverwater Partners' Small Cap Strategy reported solid results for Q3 2025 but lagged behind the benchmark due to the market's preference for lower-quality companies [1] - The strategy focuses on higher-quality companies with enduring fundamentals, consistent revenue, and a transparent path to profitability [1] - The firm believes the strategy is well-positioned despite the challenging market conditions [1] Group 2: Worthington Enterprises, Inc. Overview - Worthington Enterprises, Inc. (NYSE:WOR) is an industrial manufacturing company operating through Consumer Products and Building Products segments [2][3] - The one-month return for Worthington Enterprises was 9.63%, and its shares gained 51.15% over the last 52 weeks, closing at $57.74 per share with a market capitalization of $2.875 billion on December 15, 2025 [2] - The Consumer Products segment produces various items under well-known brands, while the Building Products segment manufactures pressurized containment solutions and benefits from profitable joint ventures [3] Group 3: Company Strategy and Positioning - Following its 2023 spin-off from Worthington Industries, Worthington Enterprises has repositioned itself as a focused, asset-light growth platform [3] - The company employs a three-pillar strategy of transformation, innovation, and strategic M&A to drive growth [3]

With U.S. stock futures trading lower this morning on Tuesday, some of the stocks that may grab investor focus today are as follows:Wall Street expects Duluth Holdings Inc. (NASDAQ:DLTH) to report a quarterly loss of 46 cents per share on revenue of $118.50 million before the opening bell, according to data from Benzinga Pro. Duluth shares gained 5.4% to $3.30 in after-hours trading.B Riley Financial Inc. (NASDAQ:RILY) reported earnings of $4.50 per share for the second quarter, versus a year-ago loss of $1 ...

Core Insights - Worthington Enterprises, Inc. is set to release its second-quarter earnings results on December 16, with analysts expecting earnings of 70 cents per share, an increase from 60 cents per share in the same period last year [1] - The consensus estimate for Worthington's quarterly revenue is $310.60 million, compared to $274.05 million a year earlier [1] Group 1: Recent Performance - Worthington Enterprises reported better-than-expected results for its first quarter, leading to a 1.5% increase in share price, closing at $58.00 [2] - Analysts have provided various ratings for Worthington, with Canaccord Genuity maintaining a Buy rating and adjusting the price target from $81 to $73 [3] - Goldman Sachs has a Sell rating on the stock but raised the price target from $44 to $50 [3]

Core Viewpoint - Worthington Enterprises Inc. will hold its quarterly earnings conference call on December 17, 2025, to discuss its fiscal second quarter results, which will be released on December 16, 2025 [1]. Group 1: Conference Call Details - The earnings conference call is scheduled for Wednesday, December 17, 2025, at 8:30 a.m. ET [3]. - A live audio webcast registration is available, and a replay will be accessible approximately two hours after the call [2]. Group 2: Company Overview - Worthington Enterprises is a designer and manufacturer of brands that enhance everyday life, operating in two main segments: Building Products and Consumer Products [4]. - The Building Products segment includes solutions for heating, cooling, cooking, construction, and water systems, while the Consumer Products segment focuses on tools, outdoor living, and celebrations [4]. - The company employs around 6,000 people across North America and Europe [5]. Group 3: Corporate Philosophy and Community Engagement - Founded in 1955, Worthington Enterprises follows a people-first philosophy, prioritizing shareholder earnings while empowering employees to innovate [6]. - The company actively engages with local communities through volunteer efforts and workforce development programs, and it reports annually on its corporate citizenship and sustainability initiatives [6].