Financial Performance - Net sales for Q2 2026 were $327.5 million, an increase of 19% compared to Q2 2025[4]. - Adjusted net earnings increased by 7% to $32.5 million, while net earnings decreased by 3% to $27.0 million[4]. - Adjusted EBITDA grew 8% to $60.5 million, with operating income rising to $12.3 million from $3.5 million in the prior year[4][7]. - Free cash flow improved by 15% to $39.1 million, up from $33.9 million in the prior year quarter[4][11]. - Consumer Products segment generated net sales of $119.9 million, a 2.7% increase over the prior year quarter[13]. - Gross profit for the six months ended November 30, 2025, was $166,913 thousand, up 22.3% from $136,554 thousand in the prior year[25]. - Operating income for the three months ended November 30, 2025, increased to $12,264 thousand, compared to $3,521 thousand in the same period of 2024[25]. - Net earnings attributable to controlling interest for the six months ended November 30, 2025, were $62,476 thousand, a 19.0% increase from $52,513 thousand in 2024[25]. - Adjusted EBITDA for the six months ended November 30, 2025, was $125,538,000, compared to $104,649,000 for the same period in 2024, marking a 20.0% increase[39]. - The adjusted net earnings attributable to controlling interest for the three months ended November 30, 2025, was $32,460,000, up from $30,241,000 in the same period of 2024, indicating a 7.4% increase[42]. Segment Performance - Building Products segment net sales increased by 31.9% to $207.5 million, driven by higher volumes and contributions from Elgen Manufacturing[14]. - The Building Products segment reported net sales of $207,528 thousand for the three months ended November 30, 2025, a 32.0% increase from $157,298 thousand in the same period of 2024[31]. Cash Flow and Debt - Operating cash flow increased by 5% to $51.5 million, with capital expenditures of $12.4 million during the quarter[11]. - Total debt at quarter end was $305.3 million, an increase of $2.4 million from the previous quarter[12]. - The company reported a net cash provided by operating activities of $51,518 thousand for the three months ended November 30, 2025, compared to $49,053 thousand in the same period of 2024[29]. - The company’s operating cash flow conversion for the three months ended November 30, 2025, was 189%, compared to 174% in the prior year[42]. - Free cash flow for the three months ended November 30, 2025, was $39,086,000, up from $33,892,000 in the prior year, indicating a 15.0% growth[42]. Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.19 per common share, payable on March 27, 2026[4]. - Dividends paid in the three months ended November 30, 2025, were $9,623 thousand, compared to $8,969 thousand in the same period of 2024[29]. Acquisition - The company announced an agreement to acquire LSI Group for approximately $205 million, expected to close in January 2026[4][15]. Other Financial Metrics - Adjusted EBITDA margin for the consolidated results was 18.5% for the three months ended November 30, 2025, down from 20.5% in the same period of 2024[31]. - The loss on the partial sale of investment in SES was $2,950,000 for the three months ended November 30, 2025[39]. - The company incurred a restructuring and other expense of $1,644,000 for the three months ended November 30, 2025, compared to $2,620,000 in the prior year[39]. - For the three months ended November 30, 2025, the GAAP diluted EPS was $0.55, while the non-GAAP diluted EPS increased to $0.65, reflecting a 18.2% increase[35].
Worthington Industries(WOR_V) - 2026 Q2 - Quarterly Results