Workflow
Worthington Steel(WS)
icon
Search documents
Worthington Steel(WS) - 2025 Q2 - Quarterly Report
2025-01-13 21:30
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended November 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-41830 WORTHINGTON STEEL, INC. (Exact name of registrant as specified in its charte ...
Worthington Steel(WS) - 2024 Q3 - Quarterly Results
2024-12-20 21:07
Financial Performance - Net sales for Q2 fiscal 2025 were $739.0 million, a decrease of 9% from $808.0 million in Q2 fiscal 2024[2] - Operating income increased to $18.9 million compared to an operating loss of $8.8 million in the prior year quarter[2] - Net earnings attributable to controlling interest were $12.8 million, or $0.25 per diluted share, compared to a net loss of $6.0 million, or $0.12 per diluted share, in the prior year[2] - Adjusted net earnings per diluted share attributable to controlling interest were $0.19, up from $0.11 in the prior year quarter[2] - Net earnings for the six months ended November 30, 2024, were $48.3 million, a decrease from $60.0 million in the same period last year, representing a decline of approximately 19.0%[11] - Net sales for the three months ended November 30, 2024, were $739.0 million, a decrease of 8.5% compared to $808.0 million for the same period in 2023[17] - For the three months ended November 30, 2024, net earnings attributable to controlling interest were $12.8 million, compared to a loss of $6.0 million in the prior year, marking a significant turnaround[25] - For the six months ended November 30, 2024, net sales were $1,573.0 million, down from $1,713.8 million in 2023, a decrease of 8.2%[28] Cash Flow and Liquidity - Cash and cash equivalents as of November 30, 2024, were $52.0 million, with net cash provided by operating activities at $68.0 million[4] - Free cash flow for Q2 fiscal 2025 was $33.2 million, down from $121.0 million in the prior year quarter[4] - Net cash provided by operating activities increased to $122.6 million, compared to $119.2 million for the same period last year, reflecting a growth of about 2.9%[11] - Cash and cash equivalents at the end of the period were $52.0 million, down from $214.4 million, reflecting a decrease of approximately 75.7%[11] - The company reported a net cash provided by financing activities of $(55.6) million, a decrease from $118.9 million in the same period last year[11] - Free cash flow for the six months ended November 30, 2024, was $33.2 million, consistent with $33.1 million in the prior year, demonstrating stable cash generation[29] Assets and Liabilities - Total current assets decreased to $857.4 million as of November 30, 2024, down from $1,001.8 million as of May 31, 2024[18] - Total liabilities decreased to $594.2 million as of November 30, 2024, compared to $748.9 million as of May 31, 2024, indicating a reduction of 20.7%[18] - Total assets decreased to $1,739.3 million as of November 30, 2024, down from $1,866.4 million as of May 31, 2024[18] - The company had no long-term debt borrowings as of November 30, 2024, indicating a strong balance sheet position[29] Operational Highlights - Gross margin increased by $19.8 million to $80.0 million, driven by higher direct spreads despite lower volume[3] - Gross margin for the three months ended November 30, 2024, was $80.0 million, representing a gross margin percentage of 10.8%, down from 7.4% in the prior year[17] - Operating income for the six months ended November 30, 2024, was $62.3 million, compared to $60.9 million for the same period in 2023, reflecting a year-over-year increase of 2.3%[17] - Adjusted EBITDA for the three months ended November 30, 2024, increased to $30.6 million, up from $23.0 million in the same period of 2023, reflecting a growth of 33.0%[25] - The adjusted EBITDA margin for the six months ended November 30, 2024, was 5.5%, compared to 7.0% in the prior year, indicating a decrease in profitability[28] - The company reported a pension settlement gain of $2.7 million for the six months ended November 30, 2024, which positively impacted earnings[28] Strategic Initiatives - The company executed a definitive agreement to acquire a controlling equity stake in Italy-based Sitem S.p.A., enhancing its product offerings in electric motor laminations[2] - The company is focusing on future growth opportunities following its separation from Worthington Enterprises, Inc., with expectations for improved operational performance[16] - The company anticipates potential benefits from transformation and innovation efforts, aiming to enhance competitive positioning and market share[16] - Forward-looking statements indicate expectations for future cash positions and operational performance, with a focus on maintaining margins and improving profitability[16] Dividends - The company declared a quarterly dividend of $0.16 per share, payable on March 28, 2025[4] - The company declared cash dividends of $0.16 per share for the three months ended November 30, 2024[17]
The Plunge In Worthington Steel Represents A Buying Opportunity
Seeking Alpha· 2024-12-20 13:00
One thing about the market that makes it a double-edged sword is the fact that volatility can change the picture of your returns on a dime. A great example of this can be seen by looking at myCrude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential.Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat ...
Worthington Steel(WS) - 2025 Q2 - Earnings Call Transcript
2024-12-19 18:49
Financial Data and Key Metrics - Adjusted EBITDA for Q2 2025 was $30.6 million, up from $23 million in the prior year quarter [8] - Earnings per share (EPS) for Q2 2025 was $0.25, compared to a loss of $0.12 per share in the same period last year [8] - Net sales for the quarter were $739 million, down 9% from the prior year quarter due to lower volumes and lower average selling prices [35] - Shipments for the quarter were 936,000 tons, down 3% year-over-year [35] - Cash flow from operations was $68 million, and free cash flow was $33.2 million [42] Business Line Performance - Automotive market shipments were down 2% year-over-year, with a significant 30% decrease in volume from one major OEM customer [36][37] - Construction market volumes decreased by 20% year-over-year, influenced by a shift in market mix and unexpected automotive order cuts [40][41] - Heavy truck market is expected to remain slow in the first half of 2025 but could see growth in the second half due to regulatory changes [23] Market Performance - The US automotive market showed positive signs in November, with overall vehicle sales reaching their highest levels since May 2021 [22] - The construction market is expected to see moderate growth in 2025, particularly in data centers and manufacturing sectors [23] - Europe remains a high-growth market for electric vehicles, with 80% of vehicles produced expected to be battery electric or hybrids by 2030 [11] Strategic Developments and Industry Competition - The company announced the acquisition of a 52% stake in Sitem Group, strengthening its presence in Europe and expanding its electrical steel lamination business [11][12] - The company continues to implement its transformation strategy, focusing on continuous improvement in quality, service, and cost efficiency [14][15] - Worthington Steel was recognized as a military-friendly employer for the 10th consecutive year and included in Computerworld's list of Top Places to Work in IT [18][19] Management Commentary on Operating Environment and Future Outlook - Management expressed cautious optimism for the automotive market, expecting OEMs to adjust their commercial strategies and rebuild market share [21][61] - Lower interest rates and decreasing inflation are expected to provide positive momentum for the construction market [23] - The company remains positive about its long-term prospects, citing strong customer relationships, an experienced leadership team, and a sound strategy [24] Other Important Information - The company released its first Corporate Citizenship and Sustainability Report, highlighting achievements in safety, carbon emissions reduction, and community support [17] - A new member, Scott Kelly, was added to the Board of Directors, bringing expertise in operations and the energy industry [20] - Capital expenditures for fiscal 2025 are expected to increase to $125 million, up from the previous estimate of $110 million, due to timing changes and additional projects [43][44] Q&A Session Summary Question: What caused the significant drop in EBITDA per ton, and when will profitability return to previous levels? - The drop was primarily due to unexpected volume declines, increased SG&A expenses (including bad debt and professional fees), and underperformance at Serviacero [54] - Management expects profitability to stabilize as the automotive market recovers and the company adjusts to the current challenges [61] Question: What are the implications of potential US trade policy changes under a new administration? - The company does not expect significant disruptions from potential tariffs, as it sources locally and has operations in Canada and Mexico that mitigate risks [71] - Management believes that any trade policy changes will likely be negotiated without major disruptions to the North American supply chain [71] Question: Are there any signs of recovery in the company's end markets? - Management sees cautious optimism in the automotive market, with potential recovery in the latter half of 2025 driven by lower interest rates and regulatory changes [74][75] - The construction market is expected to see moderate growth, while the heavy truck market may pick up later in the year due to regulatory changes [74]
Worthington Steel, Inc. (WS) Q2 Earnings Miss Estimates
ZACKS· 2024-12-18 23:26
Company Performance - Worthington Steel, Inc. reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.70 per share, representing an earnings surprise of -72.86% [1] - The company posted revenues of $739 million for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 5.87%, but down from $808 million year-over-year [2] - Over the last four quarters, Worthington Steel has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Movement and Outlook - Worthington Steel shares have increased approximately 40.1% since the beginning of the year, outperforming the S&P 500's gain of 26.9% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.86 for the coming quarter and $2.95 for the current fiscal year [7] - The estimate revisions trend for Worthington Steel is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Steel - Specialty industry, to which Worthington Steel belongs, is currently in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]
Worthington Steel(WS) - 2025 Q1 - Quarterly Report
2024-10-15 20:15
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission File Number: 001-41830 WORTHINGTON STEEL, INC. (Exact name of registrant as specified in its charter) ...
Worthington Steel(WS) - 2024 Q2 - Quarterly Results
2024-09-30 20:53
EXHIBIT 99.1 Melissa Dykstra Vice President Corporate Communications and Investor Relations Phone: 614-840-4144 Melissa.Dykstra@worthingtonsteel.com 100 W. Old Wilson Bridge Rd. Columbus, OH 43085 WorthingtonSteel.com Worthington Steel Reports First Quarter Fiscal 2025 Results COLUMBUS, Ohio, September 25, 2024 – Worthington Steel, Inc. (NYSE: WS), a market-leading, value-added metals processing company, today reported financial results for the fiscal 2025 first quarter ended August 31, 2024. First Quarter ...
Worthington Steel(WS) - 2025 Q1 - Earnings Call Transcript
2024-09-26 14:58
Worthington Steel, Inc. (NYSE:WS) Q1 2025 Earnings Conference Call September 26, 2024 8:30 AM ET Company Participants Melissa Dykstra - VP of Corporate Communications and IR Geoffrey Gilmore - President and CEO Jeffrey Klingler - EVP and COO Timothy Adams - VP and CFO Conference Call Participants Martin Englert - Seaport Research Philip Gibbs - KeyBanc Capital Markets John Tumazos - John Tumazos Very Independent Research Operator Thank you for standing by and welcome to the Worthington Steel’s First Quarter ...
Worthington Steel: Shares Fall Despite Exceeding Q1 Estimates
Seeking Alpha· 2024-09-26 12:30
September 25th ended up being a disappointing day for shareholders of Worthington Steel (NYSE: WS ). This is because shares of the company dropped as much as 6.5% in after-hours trading. This was in response to management Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential. Subscribers get to use a 50+ stock model account, in-depth cash flow analy ...
Worthington Steel(WS) - 2024 Q4 - Annual Report
2024-08-02 20:33
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended May 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to _______ Commission File Number 001-41830 WORTHINGTON STEEL, INC. (Exact name of registrant as specified in its charter) Securities register ...