Financial Performance - The company reported a fiscal 2023 revenue of $1.5 billion, representing a 10% increase compared to fiscal 2022[1] - Adjusted earnings per diluted share from continuing operations for fiscal 2023 were $3.25, up 15% from $2.83 in fiscal 2022[20] - The company expects to achieve a 12% operating margin in fiscal 2024, up from 10% in fiscal 2023, due to cost management strategies and operational improvements[20] - Adjusted EBITDA from continuing operations for fiscal 2025 is $263.5 million, compared to $251.0 million in fiscal 2024, reflecting a year-over-year increase of approximately 4.6%[27] - The net earnings from continuing operations (GAAP) for fiscal 2025 are $94.97 million, significantly higher than the $34.98 million reported for fiscal 2024[27] - The company reported a diluted EPS of $3.07 for fiscal 2025, up from $2.84 in fiscal 2024, indicating strong earnings growth[25] Future Growth and Investments - The company anticipates a revenue growth of 8-10% for fiscal 2024, driven by new product launches and market expansion efforts[14] - The company is investing $50 million in AI technology to enhance operational efficiency and product development[15] - The company plans to expand its market presence in Europe, targeting a 20% increase in sales in that region by the end of fiscal 2025[14] - The company is exploring potential acquisitions to enhance its product offerings and market share, with a focus on complementary technologies[15] Corporate Actions and Restructuring - The separation of the steel processing business is expected to be completed by December 1, 2023, which is projected to unlock additional value for shareholders[12] - Corporate costs eliminated at Separation were $19.34 million in fiscal 2024, reflecting a reduction in overhead expenses post-Separation[26] - Restructuring and other expenses for fiscal 2025 total $10.52 million, a decrease from $29.33 million in fiscal 2024, suggesting improved operational stability[25] Tax and Impairment - The effective tax rate for fiscal 2025 is 26.1%, down from 52.6% in fiscal 2024, indicating improved tax efficiency[25] - Impairment charges for long-lived assets in fiscal 2025 amount to $50.81 million, compared to $32.98 million in fiscal 2024, highlighting ongoing asset valuation adjustments[25] Financial Instruments and Risks - The company has secured a $500 million unsecured revolving credit facility, maturing on September 27, 2028, to support future growth initiatives[1] - The company is exposed to foreign currency exchange risk but does not use derivative financial instruments to manage this risk; a 10% change in foreign currency exchange rates is not expected to materially impact financial results[243] - The company uses derivative financial instruments to manage exposure to fluctuations in commodity prices, including steel and natural gas[244] - The total fair value of derivative financial instruments was $(6.4) million in 2025, compared to $(0.5) million in 2024[246] Miscellaneous Financial Metrics - The total interest expense for fiscal 2025 is $2.09 million, an increase from $1.59 million in fiscal 2024, indicating rising borrowing costs[27] - Non-cash charges in miscellaneous expenses for fiscal 2025 are $5.0 million, compared to $19.18 million in fiscal 2024, indicating a decrease in non-recurring costs[27] - The company recognized a non-recurring loss in equity income of $3.39 million in fiscal 2025, compared to a gain of $2.78 million in fiscal 2024, reflecting volatility in equity investments[28] - A sensitivity analysis indicates that a 10% decline in market prices of steel, zinc, copper, or natural gas would not materially impact the value of hedges or reported results[245]
Worthington Industries(WOR_V) - 2025 Q4 - Annual Report