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Worthington Steel: Even After Surging, This Stock Offers Upside
Seeking Alphaยท 2025-06-26 22:40
Group 1 - Worthington Steel, Inc. (NYSE: WS) experienced a significant share price increase of approximately 20.5% on June 26th following the release of its financial results for the final quarter [1] - The company is part of a sector that focuses on cash flow generation, particularly in oil and natural gas, indicating strong value and growth prospects [1] Group 2 - Crude Value Insights provides an investing service and community that emphasizes cash flow analysis and investment opportunities in the oil and gas sector [2] - Subscribers to Crude Value Insights benefit from access to a 50+ stock model account and in-depth cash flow analyses of exploration and production (E&P) firms [2]
Worthington Steel: Recovering, It Is Cyclical After All
Seeking Alphaยท 2025-06-26 22:24
Core Insights - Worthington Steel, Inc. (NYSE: WS) has experienced a strong performance following its separation from Worthington Enterprises (WOR) in the spring of last year [1]. Group 1 - The investing group "Value In Corporate Events" focuses on providing members with opportunities related to IPOs, mergers & acquisitions, earnings reports, and changes in corporate capital allocation [1]. - The service covers approximately 10 major events each month, aiming to identify the best investment opportunities [1].
Trump now wields sweeping veto power over U.S. Steel. Here's how the 'golden share' works
CNBCยท 2025-06-26 15:12
Core Points - President Donald Trump holds significant veto power over U.S. Steel's decisions through a "golden share" arrangement, which will transition to the Treasury and Commerce Departments after his presidency [2][5] - The merger between U.S. Steel and Japan's Nippon Steel was approved by Trump under a national security agreement, despite his initial opposition [3][4] - U.S. Steel is now a wholly owned subsidiary of Nippon Steel North America, with its shares ceasing to trade on the New York Stock Exchange following the deal [6] Company Decisions Affected by Veto Power - Changing U.S. Steel's name and relocating its headquarters outside the U.S. [7] - Closing, idling, or selling production locations through 2035, including Granite City Works by 2027 [7] - Cutting employee base salaries through 2030 [7] - Reducing, waiving, or delaying a $10.8 billion capital investment timeline [7] - Acquiring any competing business in the U.S. [7]
Worthington Steel(WS) - 2025 Q4 - Earnings Call Transcript
2025-06-26 13:32
Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2025 was $87 million, slightly up from $86.5 million in the prior year quarter [4] - Earnings per share increased to $1.1 from $1.06 year-over-year [5][17] - Net sales decreased by $78 million or 9% year-over-year to $833 million, primarily due to lower direct selling prices [23] - Estimated pretax inventory holding gains were $20.8 million compared to losses of $3.4 million in the prior year quarter, a favorable swing of $24.2 million [20] Business Line Data and Key Metrics Changes - Automotive shipments increased by 5% year-over-year, contributing positively to overall performance [24] - Construction market volumes were down 5% year-over-year, consistent with historical fourth-quarter levels [26] - Agricultural market volumes decreased by 40% compared to the prior year quarter due to softness in agricultural equipment and increased competition [26] - Toll processing tons were down 11% year-over-year, impacted by various factors including customer decisions and the idling of a facility [27] Market Data and Key Metrics Changes - Market pricing for hot rolled coil started the year at just under $700 per ton, spiked to $950 per ton due to tariffs, and then fell to approximately $850 per ton [22] - The U.S. transformer market is expected to double over the next ten years, driven by electrification demand [9] Company Strategy and Development Direction - The company is focused on three strategic pillars: investments in electrical steel, margin-accretive growth through strategic CapEx and acquisitions, and base business improvements [7] - The acquisition of a 52% stake in CEDIM enhances the company's position in the European electric motor lamination market [10][30] - The company is embracing artificial intelligence to improve productivity and quality [13] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the macroeconomic environment and ongoing uncertainty around tariffs [15] - The company is focused on improving processes and gaining market share despite headwinds [15] - Management believes the right strategy and strong customer relationships will drive future growth [15] Other Important Information - The company announced a quarterly dividend of $0.16 per share payable on September 26, 2025 [29] - Cash flow from operations was $54 million, with free cash flow of $8 million [28] Q&A Session Summary Question: How did the company achieve a richer mix of direct tons and stronger metal spreads? - Management noted that Q4 is typically the strongest quarter, and while volume was flat year-over-year, there was a significant quarter-over-quarter increase [36][37] Question: What is the outlook for galvanized spreads moving into fiscal year 2026? - Management expressed cautious optimism, citing tariff impacts and increased anti-dumping measures that may improve market conditions [40][42] Question: How can the company continue to succeed in the automotive market despite OEM destocking? - Management highlighted significant market share gains and strong relationships with automotive customers as key factors for success [44][47] Question: What are the competitive dynamics in the Taylor welded blanks business? - Management explained that the market is highly technical with few players in North America, and they are focused on lightweighting and part consolidation [52][56]
Worthington Enterprises: Risk Reward Not Attractive At The Current Multiple
Seeking Alphaยท 2025-06-26 12:46
Core Insights - The previous investment stance on Worthington Enterprises, Inc. (NYSE: WOR) was a hold rating due to concerns over earnings growth amid macroeconomic weakness and declining steel prices [1] Group 1: Company Analysis - The 4Q25 results indicated some performance metrics that may influence future investment decisions, although specific details were not provided [1] - The investment strategy focuses on long-term investments while also considering short-term opportunities to uncover alpha [1] - The approach is centered on bottom-up analysis, assessing the fundamental strengths and weaknesses of individual companies [1] Group 2: Investment Strategy - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]
Worthington Steel(WS) - 2025 Q4 - Earnings Call Presentation
2025-06-25 22:50
Worthington Steel Investor Presentation | June 2025 Safe Harbor Statement Selected statements contained in this release constitute "forward-looking statements," as that term is used in the Private Securities Litigation Reform Act of 1995 (the "Act"). The Company wishes to take advantage of the safe harbor provisions included in the Act. Forward-looking statements reflect the Company's current expectations, estimates or projections concerning future results or events. These statements are often identified by ...
Olympic Steel (ZEUS) Earnings Call Presentation
2025-06-25 15:35
Forward-Looking Statements Statements contained in this presentation that are not historical facts are forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those expressed in the forward- looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Please refer to the Company's Securities and Exchange Commission filings for further information ...
Commercial Metals Earnings Miss Estimates in Q3, Sales Dip Y/Y
ZACKSยท 2025-06-24 15:56
Core Insights - Commercial Metals Company (CMC) reported adjusted earnings per share (EPS) of 74 cents for Q3 fiscal 2025, missing the Zacks Consensus Estimate of 85 cents and reflecting a 27.5% decline year over year [1][10] Financial Performance - Net sales for the quarter were $2.02 billion, slightly down from $2.08 billion in the previous year but exceeding the Zacks Consensus Estimate of $2.01 billion [2] - Cost of goods sold decreased by 1% year over year to $1.72 billion, while gross profit fell 11.9% to $300 million [2] - Core EBITDA was reported at $204 million, down 20.3% year over year [2] Segment Performance - North America Steel Group generated net sales of $1.56 billion, down from $1.67 billion year over year, with adjusted EBITDA of approximately $186 million compared to $246 million in the prior year [3] - Europe Steel Group's revenues increased by 18.6% year over year to $247.6 million, with adjusted EBITDA turning positive at $3.6 million [4] - Emerging Businesses Group reported net sales of $197 million, up from $188.5 million year over year, with adjusted EBITDA growth of 7.9% [5] Cash Flow and Balance Sheet - Cash and cash equivalents at the end of Q3 fiscal 2025 were $893 million, up from $858 million at the end of fiscal 2024 [6] - Long-term debt increased to $1.30 billion from $1.15 billion at the end of fiscal 2024 [6] - Cash generated from operating activities for the nine months ended May 31, 2025, was around $400 million, down from $548 million in the prior year [6] Dividend Declaration - The company declared a quarterly dividend of 18 cents per share, payable on July 9 to shareholders of record as of June 30, 2025 [7] Future Outlook - CMC anticipates improved consolidated financial results in Q4 fiscal 2025 compared to Q3 [8] - The North America Steel Group's adjusted EBITDA margin is expected to increase sequentially, driven by higher steel product margins [9] - Financial results for the Emerging Businesses Group are projected to improve both sequentially and year over year due to project backlogs [9]
Commercial Metals (CMC) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
ZACKSยท 2025-06-23 14:31
Core Insights - Commercial Metals (CMC) reported revenue of $2.02 billion for the quarter ended May 2025, a decrease of 2.8% year-over-year, with EPS at $0.74 compared to $1.02 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.01 billion by 0.49%, while the EPS fell short of the consensus estimate of $0.85 by 12.94% [1] Financial Performance Metrics - Average selling price per ton for raw materials in North America was $809, below the estimated $951.15 [4] - Steel products metal margin per ton in Europe was $293, slightly above the estimated $289.43 [4] - Average selling price per ton for downstream products in North America was $1,212, lower than the estimated $1,252.19 [4] - Cost of ferrous scrap utilized per ton in North America was $360, compared to the estimated $353.17 [4] - Steel products metal margin per ton in North America was $499, slightly above the estimated $495.12 [4] - External tons shipped for steel products in Europe totaled 359 thousand, exceeding the estimated 317.31 thousand [4] - Steel products tons shipped in North America were 798 thousand, below the estimated 812.17 thousand [4] Sales Performance - Net sales from external customers in North America were $1.56 billion, below the estimated $1.60 billion, representing a 6.5% decrease year-over-year [4] - Net sales from external customers in Corporate and Other were $12.65 million, slightly below the estimated $13.13 million, but showed a 30.1% increase year-over-year [4] - Net sales from external customers in Europe were $247.59 million, exceeding the estimated $215.88 million, reflecting an 18.6% year-over-year increase [4] Stock Performance - Shares of Commercial Metals have returned +5.5% over the past month, outperforming the Zacks S&P 500 composite's +0.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]
STLD Issues Q2 Guidance, Expects Higher Steel Operations Earnings
ZACKSยท 2025-06-23 14:01
Core Insights - Steel Dynamics, Inc. (STLD) has provided earnings guidance for Q2 2025, estimating earnings per share (EPS) in the range of $2.00 to $2.04, an increase from $1.44 in Q1 2025 but a decrease from $2.72 in Q2 2024 [1][8] Group 1: Steel Operations - Profitability from steel operations is expected to be significantly higher than in Q1 2025, driven by wider metal spreads and an increase in average realized steel pricing, which is rising faster than scrap raw material costs [2] - Long product steel shipments have increased sequentially, while flat rolled volumes have slightly decreased due to inventory overhang from coated flat rolled steel imports [2] - The energy, non-residential building, automotive, and industrial sectors are continuing to drive demand for steel [2] - Steel division's pretax earnings are projected to be reduced by approximately $32 million in Q2 2025 due to a noncash write-off of consumable assets [2] Group 2: Metals Recycling Operations - Earnings from metals recycling operations are expected to remain stable sequentially in Q2 2025, with higher shipments compensating for lower realized pricing [3] Group 3: Steel Fabrication Operations - Earnings from steel fabrication operations are anticipated to decline in Q2 2025 compared to the previous quarter, attributed to consistent shipments and metal spread compression as raw material costs rise and average realized sales prices fall slightly [4] - The pace of order activity has increased, and the order backlog has strengthened, extending into 2025 with attractive pricing [4] - Demand is primarily driven by the commercial, data center, manufacturing, warehouse, and healthcare sectors [4] Group 4: Aluminum Operations - The aluminum team is successfully commissioning the Columbus, MS aluminum flat rolled products mill and the San Luis Potosi satellite recycled slab facility, with the first aluminum ingot cast in January 2025 in Mississippi and in March 2025 in Mexico [5] - The company expects to begin shipping material in mid-2025 [5] Group 5: Stock Performance - Shares of Steel Dynamics have decreased by 0.4% over the past year, contrasting with a 31.8% decline in its industry [5]