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]

Financial Performance - Consolidated net sales were \$318 million, flat year-over-year, with a gross margin increase to 29.3% from 24.8% and Adj EBITDA margin rising to 26.8% from 19.8%[9] - Building Products Adj EBITDA was \$71 million with a margin of 37.0%, improving from \$52 million and 33.7% in the prior year quarter[9, 10] - Consumer Products Adj EBITDA was \$21 million with a margin of 16.6%, improving from \$17 million and 13.7% in the prior year quarter[9, 10] - Free cash flow for Q4 was \$49 million, with capital expenditure of \$13 million, including \$8 million for facility modernization projects[9] - Adjusted EPS increased to \$1.06 from \$0.74 year-over-year[10] - Net sales for Building Products were \$192 million, up from \$154 million, and for Consumer Products were \$126 million, slightly up from \$125 million[10] Capital Allocation - The company repurchased 200 thousand shares of common stock for \$10 million at an average price of \$49.16, with 5.4 million shares remaining on the repurchase authorization[9] - A dividend of \$0.19 per share was declared, representing a 12% increase or \$0.02 per share compared to the prior quarter[9] - Elgen Manufacturing was acquired for approximately \$93 million on June 19, 2025[9] Key Financial Metrics (TTM as of Q4 FY25) - Net sales reached \$1.154 billion, with adjusted EBITDA of \$263 million and free cash flow of \$159 million[48]

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]

Core Insights - Worthington Enterprises Inc. reported strong fourth quarter results for fiscal 2025, showing year-over-year and sequential growth in adjusted EBITDA, adjusted EPS, and free cash flow, driven by effective cost management and execution in its Consumer and Building Products segments [3][4][6]. Financial Performance - Net sales for Q4 2025 were $317.9 million, a slight decrease of 0.3% compared to Q4 2024, primarily due to the deconsolidation of the Sustainable Energy Solutions segment [5][6][8]. - The operating loss improved to $30.4 million from $56.1 million in the prior year, with adjusted operating income rising to $21.8 million, an increase of $16.0 million [5][9]. - Net earnings from continuing operations increased by 111% to $3.6 million, with adjusted EBITDA growing 35% to $85.1 million [6][9]. - Earnings per share from continuing operations improved from a loss of $(0.64) to a profit of $0.08, while adjusted EPS rose from $0.74 to $1.06 [6][28]. Cash Flow and Capital Management - Operating cash flow increased by 38% to $62.4 million, and free cash flow rose by 46% to $49.3 million [6][12]. - The company repurchased 200,000 shares for $9.8 million and declared a quarterly dividend of $0.19 per share, a 12% increase from the previous quarter [6][12]. Segment Performance - Consumer Products segment generated net sales of $125.6 million, remaining flat year-over-year, while adjusted EBITDA increased by $3.7 million to $20.8 million [14]. - Building Products segment saw net sales rise by 25.2% to $192.3 million, with adjusted EBITDA increasing by $19.6 million to $71.3 million, driven by higher volumes and contributions from the Ragasco acquisition [15][18]. Strategic Developments - The acquisition of Elgen Manufacturing for approximately $93 million was completed on June 19, 2025, aligning with the company's growth strategy in niche markets [6][16]. - The company expressed confidence in its ability to drive sustainable growth and long-term value heading into fiscal 2026 [16].

Core Points - Worthington Enterprises Inc. declared a quarterly dividend of $0.19 per share, marking a 12% increase from the previous quarter [1] - The dividend will be payable on September 29, 2025, to shareholders of record on September 15, 2025 [1] - The company has consistently paid quarterly dividends since its IPO in 1968 [1] Company Overview - Worthington Enterprises operates in two primary business segments: Building Products and Consumer Products [5] - The Building Products segment includes solutions for cooking, heating, cooling, water, architectural ceilings, and metal framing [5] - The Consumer Products segment offers tools, outdoor living, and celebration solutions [5] - The company employs approximately 6,000 people across North America and Europe [6] Corporate Philosophy and Community Engagement - Founded in 1955, Worthington Enterprises follows a people-first philosophy, prioritizing shareholder earnings [7] - The company emphasizes employee empowerment and innovation within attractive markets [7] - Worthington engages with local communities through volunteer efforts and workforce development programs [7]

Core Viewpoint - Worthington Enterprises has acquired Elgen Manufacturing for approximately $93 million, enhancing its position in the HVAC market and aligning with its strategy to build leadership in niche markets [1][4]. Company Overview - Worthington Enterprises is a designer and manufacturer of brands that improve everyday life, operating primarily in two segments: Building Products and Consumer Products [5][6]. - The Building Products segment includes solutions for heating, cooling, construction, and water applications, while the Consumer Products segment covers tools and outdoor living [5]. Acquisition Details - Elgen Manufacturing, based in Closter, New Jersey, specializes in HVAC parts and components, generating net sales of $114.9 million and EBITDA of $13.3 million for the trailing 12 months ended April 30, 2025 [4]. - The acquisition is expected to create synergies and growth opportunities by leveraging Worthington's manufacturing expertise and distribution model [2][3]. Strategic Fit - The acquisition aligns with Worthington's strategy to acquire businesses with strong market positions, as Elgen's manufacturing processes and sales strategies complement those of Worthington [2][3]. - Elgen's products are used in commercial buildings, and its sales strategy focuses on direct sales to contractors and partnerships with distributors, enhancing customer service and lead times [2]. Leadership and Integration - Elgen's leadership team, including CEO David Young, will remain with the company, ensuring continuity and commitment to customer service and innovation [3].

Core Viewpoint - Worthington Enterprises Inc. will hold its quarterly earnings conference call on June 25, 2025, to discuss its fiscal fourth quarter results, which will be released after market close on June 24, 2025 [1]. Company Overview - Worthington Enterprises (NYSE: WOR) is a designer and manufacturer of market-leading brands that enhance everyday life through its two primary business segments: Building Products and Consumer Products [4]. - The Building Products segment includes solutions for cooking, heating, cooling, water, architectural and acoustical grid ceilings, and metal framing and accessories, while the Consumer Products segment focuses on tools, outdoor living, and celebrations [4]. - The company’s product brands include Balloon Time®, Bernzomatic®, Coleman® (propane cylinders), CoMet®, Garden-Weasel®, General®, HALO™, Hawkeye™, Level5 Tools®, Mag Torch®, NEXI™, Pactool International®, PowerCore™, Ragasco®, Well-X-Trol®, and XLite™ [4]. Employment and Corporate Philosophy - Worthington Enterprises is headquartered in Columbus, Ohio, and employs approximately 6,000 people across North America and Europe [5]. - Founded in 1955, the company follows a people-first philosophy, prioritizing shareholder earnings while empowering employees to innovate and grow within attractive markets [6]. - The company engages with local communities through volunteer efforts and the Worthington Companies Foundation, and actively participates in workforce development programs [6].

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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