Worthington Industries(WOR) - 2025 Q2 - Quarterly Results

Financial Performance - Net sales for Q2 fiscal 2025 were $274.0 million, a decrease of 8.1$298.2 million in Q2 fiscal 2024, primarily due to the deconsolidation of the former Sustainable Energy Solutions segment[2][4] - Adjusted EPS from continuing operations increased by 5% to $0.60, while adjusted EBITDA rose by 2$56.2 million despite lower net sales[2][3] - Operating income improved to $3.5 million, a favorable change of$17.9 million compared to the operating loss of $14.4 million in the prior year quarter[5] - Net earnings from continuing operations for the three months ended November 30, 2024, were$28,009,000, up from $17,934,000 in the prior year, representing a 56.5$0.57, compared to $0.36 for the same period in 2023, marking a 58.3$28,260,000 for the three months ended November 30, 2024, compared to $24,302,000 in the prior year, an increase of 8.0$28,009,000, compared to $28,167,000 for the same period in 2023, a decrease of 0.6$116.7 million, down 2.2% year-over-year, while adjusted EBITDA increased by $2.8 million to$15.5 million[10] - Building Products segment net sales increased by 4.0% to $157.3 million, with adjusted EBITDA rising by$1.4 million to $47.2 million, driven by contributions from Ragasco[11] - Consumer Products segment net sales for the three months ended November 30, 2024, were$116,748 million, down from $119,389 million year-over-year, a decline of 2.2$157,298 million, compared to $151,303 million in the prior year, an increase of 4.0$193.8 million, down $50.4 million from the previous quarter, primarily due to the acquisition of Ragasco[8] - Total debt remained stable at$295.7 million, with no borrowings under the revolving credit facility, leaving $500.0 million available for future use[9] - Cash and cash equivalents at the end of the period were$193,805,000, down from $430,906,000, representing a decrease of 55.0$298,133,000 to $295,721,000, a decline of about 0.5$0.17 per share, payable on March 28, 2025[2] - Cash dividends declared per share were $0.17 for the three months ended November 30, 2024, down from$0.32 in the same period last year[23] Operational Efficiency - Gross profit increased to $74,059,000 for the three months ended November 30, 2024, compared to$63,278,000 for the same period in 2023, reflecting a gross margin improvement[23] - The company experienced a decrease in cost of goods sold to $199,987,000 for the three months ended November 30, 2024, from$234,951,000 in the same period last year, a reduction of 15.0%[23] - Net cash provided by operating activities for the three months ended November 30, 2024, was $49,053,000, compared to$134,990,000 for the same period in 2023, a decrease of 63.6%[27] Strategic Focus - The company is focused on transformation, innovation, and M&A to drive sustainable growth and deliver long-term value to shareholders[12] - The company incurred separation costs of $7,056,000 in the three months ended November 30, 2023, which were not present in the current quarter[23] - The company eliminated corporate costs at separation, which amounted to$9,671 million in the previous year[36] Non-GAAP Measures - Non-GAAP net earnings for the three months ended November 30, 2023, were $28,514,000, with diluted EPS of$0.57[29] - Non-GAAP adjusted EBITDA from continuing operations for the six months ended November 30, 2024, was $104,649 million, reflecting a margin of 19.7$68,395 million, up from $60,333 million in the previous year[36] Equity Income - Equity income decreased by$4.1 million to $34.6 million, impacted by lower contributions from ClarkDietrich and a prior year gain related to divestiture[6] - Equity in net income of unconsolidated affiliates was$34,556,000 for the three months ended November 30, 2024, compared to $38,668,000 in the same period last year, indicating a decrease of 10.9$24,564 million, compared to $21,428 million in the same period last year, an increase of 10.0%[34]