Worthington Enterprises Reports Third Quarter Fiscal 2025 Results

Core Viewpoint - Worthington Enterprises Inc. reported strong financial results for the third quarter of fiscal 2025, showcasing year-over-year growth in revenue, adjusted EBITDA, and adjusted EPS despite a decrease in net sales due to the deconsolidation of a segment [1][2][3]. Financial Highlights - Net sales for Q3 2025 were $304.5 million, a decrease of $12.2 million or 3.9% from Q3 2024, primarily due to the deconsolidation of the SES segment [2][3]. - Operating income increased significantly to $20.9 million from $4.3 million in the prior year [1][4]. - Earnings before income taxes rose by 30% to $52.6 million, while adjusted EBITDA from continuing operations grew by 10% to $73.8 million [3][4]. - Net earnings from continuing operations were $39.7 million, up from $22.0 million, leading to an 80% increase in diluted EPS from continuing operations to $0.79 [1][3]. Cash Flow and Capital Management - The company generated $57.1 million in net cash from operating activities, an increase of 14% from the previous year, with free cash flow rising to $44.4 million [3][7]. - Worthington repurchased 150,000 shares of common stock for $6.2 million, leaving 5,565,000 shares remaining under its repurchase authorization [3][4]. Segment Performance - The Consumer Products segment reported net sales of $139.7 million, an increase of 4.9% driven by higher volumes [9]. - The Building Products segment generated net sales of $164.8 million, an increase of 11.2%, attributed to contributions from Ragasco and a favorable product mix [10]. Equity Income and Tax Expense - Equity income decreased by $11.2 million to $32.1 million, primarily due to lower contributions from ClarkDietrich [5]. - Income tax expense decreased by $5.2 million to $13.2 million, reflecting a lower estimated annual effective tax rate of 24.4% [6]. Balance Sheet Overview - The company ended the quarter with cash of $222.8 million, down from $244.2 million at the end of the previous quarter [7][26]. - Total debt remained relatively unchanged at $293.9 million, with no borrowings under its revolving credit facility [8][26]. Future Outlook - The company expressed confidence in its ability to drive long-term growth and deliver shareholder value, supported by a strong balance sheet and disciplined capital allocation strategy [11].