Worthington Enterprises Reports Second Quarter Fiscal 2026 Results

Core Insights - Worthington Enterprises Inc. reported solid financial results for the second quarter of fiscal 2026, with year-over-year growth in net sales, adjusted EPS, EBITDA, and free cash flow, driven primarily by strong performance in the Building Products segment [3][5][12]. Financial Highlights - Net sales increased by $53.4 million, or 19.5%, to $327.5 million compared to the second quarter of fiscal 2025 [4][5]. - Operating income rose to $12.3 million from $3.5 million in the prior year quarter, while adjusted operating income increased to $13.9 million from $6.1 million [4][6]. - Net earnings decreased by 3% to $27.0 million, while adjusted net earnings increased by 7% to $32.5 million [5][6]. - Adjusted EBITDA grew by 8% to $60.5 million [5][6]. - Free cash flow improved by 15% to $39.1 million [5][10]. Segment Performance - Consumer Products segment generated net sales of $119.9 million, a 2.7% increase over the prior year quarter, with adjusted EBITDA remaining relatively flat at $15.3 million [12][34]. - Building Products segment achieved net sales of $207.5 million, a 31.9% increase, with adjusted EBITDA rising to $53.0 million [13][34]. Recent Developments - The company announced an agreement to acquire LSI Group for approximately $205 million, expected to close in January 2026, which aligns with its growth strategy in niche markets [5][14]. - Worthington Enterprises repurchased 250,000 common shares for $13.7 million, leaving 5,015,000 shares remaining under its repurchase authorization [5][10]. Balance Sheet and Cash Flow - The company ended the quarter with cash of $180.3 million, a decrease of $69.8 million from the previous quarter, primarily due to the acquisition of Elgen [10][11]. - Total debt at quarter-end was $305.3 million, with no borrowings under its revolving credit facility [11][10].