Financial Performance - Net sales for the three months ended February 28, 2025, were $304,524, a decrease of 3.9% compared to $316,755 for the same period in 2024[28] - Gross profit increased to $89,247 for the three months ended February 28, 2025, representing a 22.0% increase from $73,112 in the prior year[28] - Operating income for the three months ended February 28, 2025, was $20,868, significantly up from $4,281 in the same period last year[28] - Net earnings from continuing operations for the three months ended February 28, 2025, were $39,339, compared to $22,000 for the same period in 2024, marking an increase of 78.9%[28] - Comprehensive income for the three months ended February 28, 2025, was $37,344, compared to $28,323 for the same period in 2024, indicating a growth of 32.0%[30] - Net earnings for the three months ended February 28, 2025, were $39,339 thousand, a significant increase from $22,000 thousand for the same period in 2024, representing an increase of 79.5%[33] - Earnings per share for continuing operations increased to $0.80 for the three months ended February 28, 2025, compared to $0.45 for the same period in 2024[28] - Adjusted EPS from continuing operations for the three months ended February 28, 2025, was $0.91, an increase of $0.11 compared to $0.80 in the prior year quarter[124] Assets and Liabilities - Total assets increased to $1,682,004 as of February 28, 2025, up from $1,638,637 as of May 31, 2024[26] - Total current assets decreased to $633,964 as of February 28, 2025, from $673,893 as of May 31, 2024, reflecting a decline of 5.9%[26] - Cash and cash equivalents decreased to $222,844 as of February 28, 2025, down from $244,225 as of May 31, 2024[26] - The balance of retained earnings increased to $637,875 as of February 28, 2025, from $589,392 at the end of May 31, 2024, reflecting an increase of 8.2%[67] - Total liabilities for derivative financial instruments rose from $1,421 million on May 31, 2024, to $1,348 million on February 28, 2025[100] Cash Flow - Net cash provided by operating activities for the nine months ended February 28, 2025, was $147,330 thousand, compared to $244,806 thousand for the same period in 2024, reflecting a decrease of 39.7%[33] - The company reported a net cash used by investing activities of $115,079 thousand for the nine months ended February 28, 2025, compared to $116,504 thousand for the same period in 2024, indicating a slight decrease of 1.2%[33] - The company reported a net cash used by financing activities of $53,632 thousand for the nine months ended February 28, 2025, compared to $355,938 thousand for the same period in 2024, indicating a decrease of 85.0%[33] - Cash generated from operating activities was $147.3 million, down from $244.8 million in the prior year period, primarily due to lower net earnings[154] Segment Performance - WAVE's net sales for the three months ended February 28, 2025, were $118,357, compared to $117,248 for the same period in 2024, reflecting a growth of 0.9%[58] - ClarkDietrich reported a significant decline in net sales, with $271,184 for the three months ended February 28, 2025, down from $316,269 in the same period of 2024, a decrease of 14.2%[58] - Other segment net sales increased to $70,258 for the three months ended February 28, 2025, compared to $64,421 in the same period of 2024, an increase of 12.8%[58] - Consumer Products segment net sales increased by $6.5 million or 4.9% to $139.7 million in the current year quarter, driven by higher volumes[128] - Building Products segment net sales rose by $16.6 million or 11.2% to $164.8 million, attributed to contributions from Ragasco and a favorable product mix[128] Expenses - The company incurred restructuring and other expenses totaling $9,152 for the nine months ended February 28, 2025[61] - SG&A expenses decreased by $2.1 million or 3.2% to $63.0 million in the current year quarter, primarily due to lower profit sharing and bonus expenses[131] - Restructuring and other expenses for the three months ended February 28, 2025, amounted to $5,374 million, compared to $698 million in the same period of the previous year[80] Acquisitions and Investments - The company acquired Ragasco for a total purchase price of $108,563 million, which included cash consideration of $101,424 million and contingent consideration of $7,139 million[84] - Investments in unconsolidated affiliates totaled $112,939 thousand in distributions during the nine months ended February 28, 2025[54] Market Conditions - The company expects ongoing economic uncertainty and tighter financial conditions to negatively influence consumer purchasing behavior and overall market demand in the near term[115] - The U.S. residential construction spend increased by 1.6% year-over-year to $940.578 million, while non-residential construction spend rose by 3.9% to $1,255.176 million[119] - Existing home sales decreased by 2.7% year-over-year to 4.3 million units, indicating persistent supply challenges in the housing market[119] - Authorized housing permits fell by 6.8% year-over-year to 1,456 units, signaling caution among builders[119] - The Homebuilder Sentiment Index (HMI) dropped to 42.0, indicating that more builders view conditions as poor than favorable[119] - The Architectural Billings Index (ABI) decreased to 45.5, reflecting a contraction in demand for architectural services[120] Shareholder Returns - The company declared cash dividends of $0.17 per common share for the three months ended February 28, 2025, up from $0.16 in the same period last year[28] - The company reported a cash dividend declared of $16,061 for the nine months ended February 28, 2025[68] - The Board declared a quarterly dividend of $0.17 per common share, payable on June 27, 2025[159] - The company has repurchased a total of 500,000 common shares during the nine months ended February 28, 2025, leaving 5,565,000 shares available for repurchase[69] Risk and Compliance - The company is involved in various judicial and administrative proceedings but does not expect any material adverse effects on its business or financial position[170] - Risk factors have not changed significantly from those disclosed in the 2024 Form 10-K, which could materially affect the company's financial condition and future results[171] - There were no changes in internal control over financial reporting that materially affected the company during the period covered by this Form 10-Q[168] - Worthington Enterprises maintains disclosure controls and procedures that provide reasonable assurance regarding the accuracy of information disclosed under the Exchange Act[166]
Worthington Industries(WOR_V) - 2025 Q3 - Quarterly Report