Worthington Steel (NYSE:WS) Q3 2026 Earnings call March 26, 2026 08:30 AM ET Company ParticipantsGeoff Gilmore - President and CEOJohn Tumazos - PrincipalMelissa Dykstra - VP of Corporate Communications and Investor RelationsTim Adams - VP and CFOConference Call ParticipantsSamuel McKinney - AnalystOperatorGood morning, and welcome to Worthington Steel's third quarter fiscal year 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a questi ...

Worthington Steel (NYSE:WS) Q3 2026 Earnings call March 26, 2026 08:30 AM ET Company ParticipantsGeoffrey Gilmore - President and CEOJohn Tumazos - Principal and Managing MemberMelissa Dykstra - VP of Corporate Communications and Investor RelationsTimothy Adams - VP and CFOConference Call ParticipantsSamuel McKinney - Assistant VP and Equity Research AnalystOperatorGood morning, and welcome to Worthington Steel's Q3 fiscal year 2026 earnings call. After today's prepared remarks, we will host a question and ...

Worthington Steel (NYSE:WS) Q3 2026 Earnings call March 26, 2026 08:30 AM ET Speaker3Good morning, and welcome to Worthington Steel's third quarter fiscal year 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question press star one again. I will now hand the call over to Melissa Dykstra, Vice President of Corporate Communications and Investor Relations. Please ...

Worthington Steel Investor Presentation | March 2026 Safe Harbor Statement Selected statements contained in this release constitute "forward-looking statements," as that term is used in the Private Securities Litigation Reform Act of 1995 (the "Act"). The Company wishes to take advantage of the safe harbor provisions included in the Act. Forward- looking statements reflect the Company's current expectations, estimates or projections concerning future results or events. These statements are often identified ...

Worthington Steel, Inc. (WS) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -42.55%. A quarter ago, it was expected that this steel processing company would post earnings of $0.48 per share when it actually produced earnings of $0.38, delivering a surprise of -20.83%.Over the last fo ...

Core Viewpoint - Worthington Steel has lowered the minimum acceptance threshold for its voluntary takeover offer for Kloeckner & Co SE to 57.5% and will not change the offer price or terms [1][3]. Group 1: Offer Details - The acceptance period for the takeover offer has been extended from March 12, 2026, to March 26, 2026, following the reduction of the minimum acceptance threshold [1]. - As of March 9, 2026, Worthington Steel has secured approximately 56.9% of Kloeckner's issued share capital [1]. - Worthington Steel's all-cash offer is set at €11.00 per share, representing a 98% premium over Kloeckner's three-month volume-weighted average share price as of December 5, 2025 [1]. Group 2: Company Background - Worthington Steel is a metals processor with expertise in carbon flat-roll steel processing and operates 37 facilities across seven states and ten countries [1]. - Kloeckner is one of the largest independent steel and metal processors, with sales of approximately €6.6 billion in fiscal year 2024 and a distribution network of around 110 locations [1][3]. - Both companies emphasize sustainability and innovation in their operations, with Worthington Steel focusing on value-added processing capabilities [1].

Core Viewpoint - Worthington Steel is prepared with alternative acquisition targets if the $2.4 billion deal to acquire Kloeckner & Co does not materialize, as stated by the company's CEO [1][2]. Group 1: Acquisition Plans - Worthington Steel has a deadline of March 12 to secure at least 65% of Kloeckner's shares to finalize the acquisition, having already obtained 53% from major shareholder Swoctem and other tenders [2]. - The CEO expressed high confidence in achieving the acquisition goal, indicating that Kloeckner was the most strategically beneficial option among around 10 potential targets [2][3]. Group 2: Industry Context - The North American metals trading sector is experiencing significant consolidation, highlighted by Ryerson's recent merger with Olympic Steel and Thyssenkrupp's plans to divest its materials trading division [4].

Company Overview - Worthington Steel operates as a steel processor in North America, providing carbon flat-rolled steel, tailor-welded blanks, electrical steel laminations, and aluminum tailor-welded blanks, serving sectors such as automotive, heavy truck, agriculture, construction, and energy [5] - The company reported a revenue of $3.27 billion and a net income of $125.10 million for the trailing twelve months (TTM) [4] - Worthington Steel has a dividend yield of 1.54% and a 1-year price change of 48.59% as of February 28, 2026 [4] Recent Transactions - On February 3, 2026, Jon J. Bowsher, Director of Worthington Steel, acquired 2,500 shares of common stock for approximately $100,375, increasing his direct ownership by 16.24% [1][2][7] - Post-transaction, Bowsher's direct holdings are valued at approximately $794,628.13, representing 0.0352% of the company's shares outstanding [7] Strategic Developments - Worthington Steel is nearing the completion of its acquisition deal with German steel producer Kloeckner & Co., which is expected to be finalized in the second half of 2026 [6] - The acquisition is valued at $2.4 billion, offering Kloeckner shareholders approximately $13 in cash per share, and will position the combined entity as the second-largest steel center in North America [8] Market Performance - Worthington Steel's stock has shown consistent growth since its IPO in December 2023, with share prices rising every year, including a 19% increase in 2026 as of February 28 [9]

Summary of Worthington Steel Investor Call on M&A Announcement Company and Industry - **Company**: Worthington Steel (NYSE: WS) - **Acquisition Target**: Klöckner, a company listed on the Frankfurt Stock Exchange Core Points and Arguments 1. **Strategic Acquisition**: Worthington Steel is acquiring Klöckner to strengthen its position in high-value metals processing, enhance shareholder value, and create new opportunities for employees [3][4] 2. **Market Position**: Post-acquisition, Worthington Steel expects to become the second largest service center in North America, expanding its geographic reach and product offerings [4][12] 3. **Synergies and Growth Initiatives**: The acquisition is anticipated to generate approximately $150 million in annual run-rate synergies by the end of 2028, with about 50% expected to be realized in the first year [15][17] 4. **Financial Structure**: The transaction is an all-cash acquisition valued at approximately $2.4 billion, with an expected EBITDA margin of 7% and combined sales of $9.5 billion [15][16] 5. **Cultural Alignment**: Both companies share a focus on safety, operational excellence, and innovation, which is expected to facilitate a smooth integration process [3][5] 6. **Diversification**: The acquisition will broaden Worthington's product portfolio to include aluminum, stainless steel, long products, and downstream fabrication, enhancing resilience against market cyclicality [10][12] 7. **Geographic Expansion**: Klöckner's operations will enhance Worthington's presence, particularly in the southern U.S., where demand is growing due to manufacturing activity and reshoring trends [9][12] 8. **Operational Efficiency**: The integration is expected to improve operational efficiency through procurement savings, logistics optimization, and reduced administrative costs [18][20] Additional Important Content 1. **Shareholder Support**: Klöckner's largest shareholder, Swactim, has agreed to tender their shares in support of the acquisition [8] 2. **Market Dynamics**: The acquisition is seen as timely due to favorable market conditions for consolidation in the steel industry [53] 3. **Long-term Goals**: Worthington aims to achieve over 10% group EBITDA margins, which the acquisition is expected to accelerate [45][46] 4. **Integration Management**: A dedicated integration management office will oversee the synergy capture process, ensuring accountability and clear goals [26][60] 5. **European Market Exposure**: Approximately 20% of the combined company's revenue is expected to come from Europe, with a focus on North America for synergy realization [30][39] This summary encapsulates the key points discussed during the investor call regarding Worthington Steel's acquisition of Klöckner, highlighting the strategic rationale, expected synergies, and operational benefits of the transaction.

Acquisition Overview - Worthington Steel will acquire Kloeckner & Co for €11 per share in cash[11, 40, 57] - The implied enterprise value of the acquisition is $2.4 billion[40] - Approximately 42% of Kloeckner shares are already committed to accepting the offer[16, 39, 51] Strategic Rationale - The acquisition is expected to deliver $150 million in annual run-rate synergies by the end of FY 2028[13, 39, 47, 51, 59] - The combined company's sales are projected to be $9.5 billion, with an EBITDA margin of 70% including run-rate synergies[39, 43] - The acquisition creates the second-largest service center in North America[13, 34, 59] Financial Impact - The transaction is expected to be substantially accretive to Worthington Steel's EPS within the first full year of operation[14, 39, 44] - The expected pro forma net leverage at closing is approximately 40x[39, 51, 53, 56] - The target net leverage is approximately 25x within 24 months[13, 39, 53, 56, 59] Kloeckner's Business - Kloeckner has TTM sales of $63 billion and TTM shipments of 42 million tons[16] - Kloeckner's net debt was $12 billion as of September 30, 2025[16] - Distribution share in sales mix reduced from approximately 37% in 2021 to approximately 13% in 2025[22]