Worthington Industries(US:WOR)2025-03-28 19:27Financial 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].