Financial 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 by 386% to $20.9 million from $4.3 million in the prior year quarter[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 by 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, a substantial increase 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, representing 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 last year, representing an increase of 78.5%[28]. - Adjusted EBITDA from continuing operations for the three months ended February 28, 2025, was $73,779 thousand, compared to $66,871 thousand for the same period in 2024, reflecting a growth of 10.8%[35]. - Net earnings attributable to controlling interest (GAAP) surged to $39,663 thousand in Q1 2025, compared to $22,000 thousand in Q1 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 Q1 2025 from $133,181 thousand in Q1 2024, a growth of 4.0%[38]. - Building Products segment net sales rose to $164,810 thousand in Q1 2025, compared to $148,190 thousand in Q1 2024, representing an increase of 11.2%[38]. - Total reportable segments' volume increased to 24,321 thousand units in Q1 2025 from 22,432 thousand units in Q1 2024, a growth of 8.4%[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 declared cash dividends of $0.17 per share for the three months ended February 28, 2025, compared to $0.16 per share in the same period last year[24]. - 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]. - Free cash flow (non-GAAP) rose to $44,427 thousand in Q1 2025, up from $40,104 thousand in Q1 2024, indicating an increase of 10.0%[36]. Balance Sheet and Assets - Total assets as of February 28, 2025, were $1.682 billion, an increase from $1.639 billion as of May 31, 2024[26]. - 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]. - Total liabilities decreased slightly to $743.483 million as of February 28, 2025, compared to $747.625 million as of May 31, 2024[26]. - Shareholders' equity attributable to controlling interest increased to $937.208 million as of February 28, 2025, from $888.879 million as of May 31, 2024[26]. - Total debt remained relatively unchanged at $293.9 million, with no borrowings under the revolving credit facility, leaving $500 million available for future use[11]. Expenses and Tax Rate - The company incurred restructuring and other expenses of $5,374 thousand for the three months ended February 28, 2025, compared to $698 thousand in the same period last year[31]. - The effective tax rate for diluted earnings per share from continuing operations was 25.0% for the three months ended February 28, 2025, compared to 45.6% for the same period in 2024[31]. - The company’s net cash used by investing activities was $13,478 thousand for the three months ended February 28, 2025, compared to $18,664 thousand in the prior year, indicating a decrease of 27.0%[28]. - The company’s net cash used by financing activities was $14,614 thousand for the three months ended February 28, 2025, compared to $235,053 thousand in the same period last year, a decrease of 93.8%[28]. Other Financial Metrics - Adjusted EBITDA margin from continuing operations improved to 24.2% in Q1 2025 from 21.1% in Q1 2024[38]. - Free cash flow conversion (non-GAAP) was 98% in Q1 2025, slightly down from 100% in Q1 2024[36]. - Equity income from unconsolidated affiliates decreased to $32,081 thousand in Q1 2025 from $43,235 thousand in Q1 2024, a decline of 25.7%[38].
Worthington Industries(WOR_V) - 2025 Q3 - Quarterly Results