Worthington Steel(US:WS)2025-06-27 20:15Financial Performance - Net sales for Q4 2025 were $832.9 million, a decrease of 9% from $911.0 million in Q4 2024[5] - Operating income for Q4 2025 was $66.4 million, down from $67.3 million in the prior year quarter[5] - Net earnings attributable to controlling interest increased to $55.7 million, compared to $53.2 million in Q4 2024[5] - Adjusted net earnings per diluted share were $1.05, slightly down from $1.06 in the prior year quarter[5] - Gross margin decreased by $4.0 million to $127.0 million, primarily due to lower toll margins[8] - Net sales for the three months ended May 31, 2025, were $832.9 million, a decrease of 8.6% compared to $911.0 million for the same period in 2024[23] - Gross margin for the twelve months ended May 31, 2025, was $388.6 million, down from $439.8 million in 2024, reflecting a decrease of 11.6%[23] - Operating income for the twelve months ended May 31, 2025, was $147.0 million, a decline of 24.3% from $194.5 million in 2024[23] - Net earnings attributable to controlling interest for the twelve months ended May 31, 2025, were $110.7 million, down 28.5% from $154.7 million in 2024[23] - Adjusted EBITDA for the twelve months ended May 31, 2025, was $215.1 million, down 25.7% from $289.7 million for the twelve months ended May 31, 2024[37] - Adjusted EBIT for the twelve months ended May 31, 2025, was $149.1 million, compared to $224.4 million for the same period in 2024, reflecting a decline of 33.5%[49] Cash Flow and Debt - Free cash flow for Q4 2025 was $8.4 million, compared to negative free cash flow of $9.2 million in Q4 2024[12] - The company ended Q4 2025 with a net debt position of $113.5 million[13] - Cash, cash equivalents, and restricted cash at the end of the period were $92.9 million, up from $40.2 million at the beginning of the period, reflecting an increase of 131.7%[29] - The company reported a net cash provided by operating activities of $230.3 million for the twelve months ended May 31, 2025, compared to $199.5 million in 2024, an increase of 15.5%[29] - The trailing twelve months free cash flow as of May 31, 2025, was $99.9 million, indicating strong cash generation capabilities[43] - Total debt as of May 31, 2025, was $151.5 million, with net debt calculated at $113.5 million after accounting for $38.0 million in cash and cash equivalents[44] Dividends and Shareholder Returns - A quarterly dividend of $0.16 per share was declared, payable on September 26, 2025[14] - The company declared cash dividends of $0.64 per share for the twelve months ended May 31, 2025, compared to $0.32 per share in 2024, a 100% increase[23] Market Position and Recognition - The company gained market share in key sectors and was recognized as a top workplace for the 13th consecutive year[3] Operational Adjustments - The company incurred restructuring and other expenses of $1.0 million for the three months ended May 31, 2025, compared to none in the same period of 2024[37] - The company incurred restructuring and other expenses of $1.0 million in Q4 2025, compared to $0.5 million in Q3 2025, indicating ongoing operational adjustments[41] Performance Metrics - The volume of steel sold for the three months ended May 31, 2025, was 982,180 tons, a decrease of 4.6% from 1,029,565 tons in the same period of 2024[37] - The company reported a net earnings margin of 6.7% for the three months ended May 31, 2025, compared to 5.8% for the same period in 2024[37] - Interest expense for Q4 2025 was $1.0 million, a decrease from $1.4 million in Q3 2025, showing improved cost management[40] - The company reported an EBITDA of $89.8 million for Q4 2025, up from $36.8 million in Q3 2025, marking a 143% increase[40] - Adjusted EBITDA for Q4 2025 was $87.0 million, compared to $41.9 million in Q3 2025, reflecting a 107% quarter-over-quarter growth[40] - Net earnings attributable to controlling interest for Q4 2025 reached $55.7 million, a significant increase from $13.8 million in Q3 2025[40]