Worthington Steel(WS) - 2024 Q4 - Annual Results

Financial Performance - Net sales for Q3 2025 were $687.4 million, a decrease of 15% from $805.8 million in Q3 2024[5] - Operating income fell to $18.3 million, down 73% from $66.3 million in the prior year quarter[5] - Net earnings attributable to controlling interest decreased to $13.8 million, compared to $49.0 million in Q3 2024[10] - Adjusted EBIT for Q3 2025 was $25.3 million, down from $66.9 million in Q3 2024[5] - Gross margin decreased by $38.9 million to $81.2 million, primarily due to lower direct spreads[8] - Net sales for the three months ended February 28, 2025, were $687.4 million, a decrease of 14.7% compared to $805.8 million for the same period in 2024[22] - Operating income for the three months ended February 28, 2025, was $18.3 million, significantly lower than $66.3 million for the same period in 2024, representing a decline of 72.4%[22] - Net earnings attributable to controlling interest for the nine months ended February 28, 2025, were $55.0 million, compared to $101.5 million for the same period in 2024, a decrease of 45.9%[22] - Adjusted EBITDA for the nine months ended February 28, 2025, was $128.1 million, a decline of 37.0% from $203.2 million for the same period in 2024[37] - Adjusted EBIT for the nine months ended February 28, 2025, was $79.0 million, compared to $154.0 million for the same period in 2024[49] Cash Flow and Assets - Cash and cash equivalents as of February 28, 2025, were $63.3 million, with net cash provided by operating activities at $53.8 million[12] - Free cash flow for Q3 2025 was $25.2 million, compared to $22.3 million in the prior year quarter[12] - Total current assets as of February 28, 2025, were $912.6 million, down from $1,001.8 million as of May 31, 2024, a reduction of 8.9%[25] - Cash and cash equivalents increased to $63.3 million as of February 28, 2025, compared to $40.2 million as of May 31, 2024, an increase of 57.7%[25] - The company reported a net cash provided by operating activities of $176.4 million for the nine months ended February 28, 2025, compared to $163.9 million for the same period in 2024, an increase of 7.6%[29] - Net cash provided by operating activities for Q3 2025 was $53.8 million, down from $68.0 million in Q2 2025[43] Dividends and Shareholder Returns - A quarterly dividend of $0.16 per share was declared, payable on June 27, 2025[5] - Cash dividends declared per share remained consistent at $0.16 for both the three months ended February 28, 2025, and February 29, 2024[22] Debt and Liabilities - Total liabilities decreased to $656.6 million as of February 28, 2025, from $748.9 million as of May 31, 2024, a decline of 12.3%[27] - Total debt as of February 28, 2025, was $112.2 million, with net debt calculated at $48.9 million after accounting for cash and cash equivalents of $63.3 million[44] - The company’s interest expense, net, for the nine months ended February 28, 2025, was $6.1 million, an increase from $3.6 million in the same period last year[37] - Interest expense for Q3 2025 was $1.4 million, compared to $2.1 million in Q2 2025[40] Operational Metrics - Direct tons sold decreased by 7% and toll tons sold decreased by 15% compared to the prior year quarter[7] - The volume of steel sold for the three months ended February 28, 2025, was 881,410 tons, down 10.6% from 985,668 tons in the same period last year[37] - The adjusted EBIT margin for the three months ended February 28, 2025, was 3.7%, compared to 8.3% for the same period in 2024[37] Impairments and Costs - The company incurred impairment of assets totaling $7.4 million for the nine months ended February 28, 2025, compared to $1.4 million for the same period in 2024[22] - The company experienced an impairment of assets of $7.4 million for the three months ended February 28, 2025, which was excluded from non-GAAP measures[35] - For the nine months ended February 28, 2025, the company incurred $19.5 million in separation costs, which are excluded from non-GAAP measures[34] Other Notable Events - The company is progressing on acquiring a controlling equity stake in Italy-based Sitem S.p.A., with regulatory approval received[5] - The company reported a pension settlement gain of $(2.7) million for the nine months ended February 28, 2025[49] - Net earnings attributable to controlling interest for Q3 2025 were $13.8 million, up from $12.8 million in Q2 2025, and $28.4 million in Q1 2025[40] - Adjusted EBITDA for Q3 2025 was $41.9 million, compared to $30.6 million in Q2 2025 and $55.6 million in Q1 2025[40] - Free cash flow for Q3 2025 was $25.2 million, a decrease from $33.2 million in Q2 2025 and $33.1 million in Q1 2025[43] - The trailing 12 months adjusted EBITDA as of February 28, 2025, was $214.6 million[40] - The company reported a GAAP net earnings per diluted share of $0.27 for the three months ended February 28, 2025, compared to $0.98 for the same period in 2024[35]