WOR

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by strong organic growth in the Water business and Trade and Specialty Solutions, partially offset by a difficult year-over-year comparison in Cooling and Construction. The Building Performance Solutions segment faced headwinds as channel inventories rightsized following the A2L refrigerant mandate, leading to lower demand for new cylinders compared to the prior year's pre-transition surge. Management attributed production and scheduling disruptions to industry-wide steel availability constraints and extended lead times, which impacted the Cooling, Construction, and Balloon businesses. Strategic focus on the Worthington Business System and 80/20 initiatives matured in the Water business, leading to improved resource allocation and value creation. The company is successfully pivoting legacy hydronic and pressure vessel expertise into the high-growth data center market, specifically for liquid cooling and thermal management solutions. Trade and Specialty Solutions saw margin expansion driven by pricing discipline, improved manufacturing performance, and the integration of automation and AI-enabled tools. Management expects ASME tank revenues for data centers to grow sequentially quarter-over-quarter through the balance of fiscal 2027. The market for liquid cooling and thermal management ASME tanks is projected to potentially reach 10x the size of the legacy market within the next few years. Guidance assumes that Cooling and Construction headwinds will normalize in the second half of the fiscal year as the installed base of A2L equipment creates long-term service and replacement demand. The company is actively investing in engineering talent, new equipment, and production capacity to support the accelerating pipeline of data center infrastructure opportunities. Capital allocation will remain balanced with a bias toward M&A, leveraging a strong balance sheet to pursue strategic fits in attractive niches where Worthington can add unique value. Adjusted earnings included a net pretax benefit of approximately $4 million, or $0.06 per share, related to IEEPA tariff refunds. The A2L refrigerant transition created an estimated $7 million year-over-year headwind to adjusted EBITDA in the current quarter due to inventory normalization. Steel availability constraints and extended lead times were estimated to have cost the company a few million dollars in the quarter due to shipment and manufacturing delays. The company realized a $0.05 per share gain from a contingent earn-out related to the 2021 divestiture of its former oil and gas business. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that while 232 tariffs and chilled imports have tightened the market, Worthington's scale and supplier relationships provide a competitive advantage. The company has taken pricing actions where appropriate to offset increased input costs and has limited visibility into steel availability beyond the end of the calendar year. Revenues for data center ASME tanks in Q1 matched the entire prior fiscal year's total of $13 million. Management highlighted that while the pipeline is encouraging, the timing of revenue conversion can be 18 to 24 months after a data center is green-lit. The strategy involves a mix of internal capacity expansion and partnering with third-party manufacturers to meet accelerating demand. Management believes high cash flow is sustainable, citing an 8 to 9-day reduction in the cash conversion cycle over the last year. Improvements are driven by 80/20 principles, more efficient inventory management, and optimized customer and supplier terms. While data center construction remains decentralized, management is increasingly collaborating across value streams to refer opportunities and provide more comprehensive solutions than in previous years. The goal is to get 'spec-ed in' to the basis of design for fluid management and structural solutions early in the data center development process.

Interested in Worthington Enterprises, Inc.? Here are five stocks we like better. Worthington Enterprises reported a strong fiscal Q1: Sales rose 13% to $344 million, adjusted EPS increased to $0.82, and adjusted EBITDA grew 10% to $74 million, despite housing, steel-supply and A2L refrigerant-transition headwinds. Cash generation improved significantly: Operating cash flow rose to $67 million and free cash flow nearly doubled to $54 million. The company also repurchased $18 million of shares, paid a $0.20 quarterly dividend and ended the quarter with $250 million in net debt. Data-center demand is emerging as a major growth opportunity: Revenue from ASME tanks used in liquid-cooling systems reached $13 million in the quarter, with management expecting sequential growth through fiscal 2027 and a potentially much larger market over the next several years. 3 Hot Software Stocks Breaking Out to New Highs Worthington Enterprises (NYSE:WOR) reported a 13% increase in fiscal 2027 first-quarter sales to $344 million, supported by 7% organic growth and $19 million of revenue from recent acquisitions. Adjusted earnings per share rose to $0.82 from $0.78 a year earlier, while adjusted EBITDA increased 10% to $74 million. President and Chief Executive Officer Joe Hayek said the company began the fiscal year strongly despite market and operating pressures, including cooling and construction comparisons related to the A2L refrigerant transition, muted new-home sales and constrained steel availability. → These 3 AI Stocks Sold Off Hard—Even as Their Outlooks Improved Put Steel In Your Portfolio With These Dividend Stocks “While we face some market and operating headwinds, our team continued to execute, serve our customers, and make progress on our strategic initiatives,” Hayek said. Operating cash flow increased to $67 million from $41 million in the prior-year quarter, while free cash flow nearly doubled to $54 million from $28 million. On a trailing 12-month basis, free cash flow reached a record $196 million, representing a 116% conversion rate relative to adjusted net earnings, according to Chief Financial Officer Colin Souza. → Insiders Signal Deep Value In DICK’s Sporting Goods Worthington Posts Strong Results, But Earnings Fall On One-Off Adjustments The company spent $13 million on capital expenditures during the quarter, paid $9 million in dividends and repurchased 335,000 shares for $18 million. Worthington ended the quarter with net debt of $250 million and trailing 12-month adjusted EBITDA of $303 million. Its board declared a quarterly dividend of $0.20 per share, payable in December 2026. Souza said working-capital measures helped support the cash-flow performance. The company reduced its cash conversion cycle by roughly eight to nine days over the prior year and lowered net working capital as a percentage of sales by nearly 3% over the past couple of years. → Coach’s Momentum Powers Tapestry Despite the Stock’s Sharp Pullback Building Performance Solutions, formerly called Building Products, reported a 16% increase in sales to $215 million. Acquisitions contributed $19 million of sales, while organic sales rose 6%, driven by the company’s water and European businesses. Those gains were partly offset by lower revenue in cooling and construction. Segment adjusted EBITDA was essentially flat at $60 million, and the adjusted EBITDA margin was 27.8%. Worthington said the year-over-year comparison was affected by the normalization of A2L refrigerant-cylinder demand after a period of unusually strong inventory building ahead of the regulatory transition. Souza said the A2L-related comparison reduced first-quarter adjusted EBITDA by approximately $7 million, more than the company had expected a quarter earlier. Channel inventories are taking longer to normalize, particularly amid a muted housing market, and the company expects the second quarter to remain a difficult comparison. However, management expects improvement in the seasonally stronger third and fourth quarters. Hayek described A2L as a timing and comparison issue rather than a structural change in the business. He said new residential equipment is now largely using A2L refrigerants, expanding the installed base for service and replacement demand over time. Tight steel supply and extended lead times also disrupted production schedules and shipments in cooling, construction and Balloon Time during the quarter. Hayek said the issue likely cost the company “a few million dollars” in the period. Worthington has taken pricing actions where appropriate and expects to be better positioned through the end of the calendar year, though management said visibility beyond that point remains limited. Worthington highlighted accelerating demand for engineered ASME tanks used in liquid-cooling and thermal-management systems for data centers. The company shipped approximately $13 million of those tanks for data centers during fiscal 2026, then generated another $13 million in related revenue during the first quarter alone. Management expects ASME tank revenue from this value stream to grow sequentially in each of the remaining fiscal 2027 quarters, with more growth weighted toward the back half of the year. Hayek cautioned that the company’s opportunity pipeline is not revenue and that data-center projects can take 18 to 24 months to move from an announced project to equipment demand. Still, Hayek said industry sources indicate that the market for liquid-cooling and thermal-management ASME tanks could become more than 10 times the size of the legacy market over the next several years. Worthington is investing in engineering talent, equipment and production capacity, while also working with manufacturing partners to supplement internal capacity. The company also said data-center construction benefits other operations, including WAVE, ClarkDietrich, Elgen and LSI Group. Management said it is increasingly coordinating among its businesses and making introductions across product lines, though Hayek said describing the approach as formal bundling would be an overstatement. Trade and Specialty Solutions, formerly Consumer Products, posted an 8% increase in sales to $129 million. Adjusted EBITDA rose to $24 million from $16 million, and the segment’s adjusted EBITDA margin expanded to 18.6% from 13.6%. Souza attributed the improvement to higher volumes, average selling prices, stronger manufacturing performance and a benefit from IEEPA tariff refunds. The company recorded a net pretax benefit of about $4 million, or $0.06 per share, from those refunds during the quarter. Portable propane and tools recorded broad-based growth, supported by higher volumes, expanded distribution and pricing actions, according to Souza. Balloon Time was the primary exception, with lower volume reflecting a strong prior-year comparison as well as steel-related supply constraints. Worthington said it is extending its 80/20 operating discipline from the water business into portable fuel and torch products, aiming to simplify the portfolio, improve mix and support sustainable margin improvement. The company also said it continues to pursue acquisitions where it sees strategic and cultural fit, citing ongoing integration progress at Elgen and LSI Group. Worthington Enterprises, Inc (NYSE: WOR) is a diversified manufacturer and branded products company focused primarily on consumer and building-product markets. The company develops, manufactures and markets products used by consumers, contractors and other professional customers. Its consumer products activities include outdoor living, lawn and garden, tools and related products. Its portfolio has included brands such as Bernzomatic, Balloon Time, Mag-Torch and General Tools, although its product portfolio may change as the company manages its businesses and brands. Worthington Enterprises also participates in the building-products industry, supplying products used in commercial and residential construction. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Worthington Enterprises Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Worthington Enterprises (WOR) is back in focus after its fiscal first quarter update, with higher sales, firmer earnings per share, and a fresh quarterly dividend giving investors new numbers to dissect. Worthington Enterprises has ridden this earnings and dividend news into a stronger tape, with a 7 day share price return of 8.43% and a year to date gain of 13.43% at a share price of $58.94. However, the 1 year total shareholder return is slightly down 0.80%, while the 3 year and 5 year total shareholder returns of 45.93% and 87.30% point to longer term momentum that many investors will still keep in mind. Spot 85 AI infrastructure stocks that, like Worthington Enterprises, are tied into the build out of data center and cooling infrastructure driving this latest earnings reaction. Worthington Enterprises now trades about 11% below the average analyst target and at a deeper discount to some fair value estimates, even after this earnings pop. Is that caution signaling risk or mispricing the story ahead of valuation work? Worthington Enterprises closed at $58.94, while the most followed narrative framework pegs fair value closer to $65.40, creating a gap that analysts are trying to explain with product rollouts, partnerships, and efficiency projects. See why 3 investors see Worthington Enterprises as 10% undervalued. This most followed storyline links that $65.40 fair value to a discount rate of 8.66% and forecasts that earnings grow by 8.71% a year, with profit margins eventually reaching about 14.05%. Those inputs sit alongside a forecast for roughly 4% annual revenue expansion and a future P/E of 17.77x that is lower than the current Machinery industry level referenced in the narrative. The same framework ties that fair value to a consensus analyst target near $65.40, with the highest target at $76.00 and the lowest at $47.00. That spread shows there is still disagreement on how much the recent 62.5% earnings growth and higher net margin of 11.3% should matter when set against slower expected top line growth than the broader US market. For anyone weighing this story, the key tension is simple. The model views Worthington Enterprises as trading at about a 9.9% discount to its $65.40 fair value. At the same time, it acknowledges that both revenue and earnings are forecast to grow slower than the wider US market, even as recent buybacks and margin gains help support the bottom line. Result: Fair Value of $65.40 (UNDERVALUED) Still, Worthington Enterprises faces pressure from trade and tariff uncertainty, as well as from weaker equity earnings tied to softer steel pricing, which could challenge that valuation story. Find out about the key risks to this Worthington Enterprises narrative. If this update leaves you sensing cautious optimism around Worthington Enterprises, act quickly and compare that view with your own analysis. To see what the current upside case looks like in detail, review the 3 key rewards. Do not stop at Worthington Enterprises. Use the Simply Wall St screener to quickly surface fresh ideas that match your risk comfort and return goals before the market moves. Target potential upside by focusing on quality businesses trading below their estimated worth through the 29 high quality undervalued stocks. Prioritize resilient balance sheets and steady fundamentals by scanning the list of solid balance sheet and fundamentals (23 results) for companies built to handle tougher conditions. Hunt for overlooked opportunities with strong underpinnings by turning to the 16 high quality undiscovered gems before they reach everyone else's radar. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WOR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Wed, Sept. 23, 2026 President and Chief Executive Officer - Joseph Hayek Chief Financial Officer - Colin Souza Treasurer and Investor Relations Officer - Marcus Rogier Operator: Hello, everyone. Thank you for joining us, and welcome to the Worthington Enterprises Fiscal Year 2027 First Quarter Earnings Call. [Operator Instructions] I will now hand the conference over to Marcus Rogier, Treasurer and Investor Relations Officer. Marcus, please go ahead. Marcus Rogier: Thank you, Paige. Good morning, everyone, and thank you for joining us for Worthington Enterprises First Quarter Fiscal 2027 Earnings Call. On the call today are Joe Hayek, our President and Chief Executive Officer; and Colin Souza, our Chief Financial Officer. Before we begin, I'd like to remind everyone that certain statements made during today's call are forward-looking in nature and subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. For more information on these risks and uncertainties, please refer to our earnings release issued yesterday after the market close, which is available on the Investor Relations section of our website. Additionally, our remarks today will include references to non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures can also be found in the earnings release. Today's call is being recorded, and a replay will be available later on our website at worthingtonenterprises.com. With that, I'll turn the call over to Joe for opening remarks. Joseph Hayek: Thank you, Marcus. Good morning, everyone. Welcome to Worthington Enterprises Fiscal 2027 First Quarter Earnings Call. We had a strong start to fiscal 2027. While we faced some market and operating headwinds, our team continued to execute, serve our customers and make progress on our strategic initiatives. I want to thank my colleagues around the world for the focus, creativity and grit they bring to Worthington every day. In Q1, we grew sales by 13% year-over-year, including 7% organically. Adjusted EBITDA increased by 10% to $74 million, and we generated $54 million of free cash flow, nearly double the prior year quarter. Adjusted EPS was $0.82 compared with $0.78 a year ago. We continue to deploy capital thoughtfully in the quarter, including the repurchase of 335,000 shares of our common stock. While we're pleased with our progress, the quarter was not without challenges. Building Performance Solutions, as we anticipated, faced headwinds in our Cooling and Construction business. As channel inventories are rightsized and new home sales are muted, demand for newly mandated A2L refrigerant cylinders is lower than it was a year ago, creating a difficult comparison. Additionally, steel availability across the industry remains tight and lead times in the quarter were extended. That created some disruptions in production and scheduling for both Cooling and Construction and for our Balloon business. Our teams are actively working through these issues every day, prioritizing our customers and ensuring that we are the best partner that we can be. While we faced some headwinds in the quarter, our performance was a reflection of our businesses and our people's resilience. Trade and Specialty Solutions delivered strong sales and EBITDA growth as that team continues executing at a high level. Our Water business is performing very well as our 80/20 work matures and helps us focus on resources on the products and opportunities that create the most value. WAVE and ClarkDietrich also delivered higher equity earnings and were important contributors in the quarter. As we optimize and grow Worthington, our strategy is not complicated. We're leveraging the Worthington Business System, transformation to improve our businesses, disciplined M&A to add capabilities and strengthen our portfolio and innovation to grow organically where we have attractive opportunities. We continue to use 80/20 to optimize our businesses as we sharpen our focus, improve working capital and allocate resources where they matter most. We've seen meaningful progress in our water business and are now extending that discipline into our portable fuel and torch businesses. We're also continuing to improve productivity through automation, AI-enabled tools and other transformation initiatives. We remain disciplined about growth through M&A, and we're focused on opportunities where we believe we can bring unique advantages as an owner and create long-term value. Our integration of LSI continues to progress well, and there, we're focused on reaching more prospective customers and introducing them to LSI's compelling value proposition. I want to spend a little more time this morning on organic growth because we're increasingly seeing our innovation capabilities translate into meaningful commercial opportunities. One of the most topical examples of the kind of organic growth opportunities we're trying to create and develop at Worthington is our engineered ASME tanks. These engineered tanks have played an important role in commercial buildings across the world for decades. Increasingly, as new chipsets generate significantly more heat, data center designers and operators are embracing liquid cooling. Engineered tanks like ours help manage the cooling fluids used in liquid cooling systems and as such, are a critical component of those data centers and the cooling infrastructure. We've been a market leader in these engineered ASME tanks for years. The market we believe has consistently been plus or minus $200 million a year for some time. Given the projected growth in data centers and increasing adoption of liquid cooling in those data centers, industry sources suggest the market for liquid cooling and thermal management ASME tanks alone could be more than 10x the size of the legacy market in the next few years. To grow in and with this important end market, we took capabilities we already had, listen closely to our customers, leverage our engineering and innovation expertise and created an emerging suite of liquid cooling and thermal management solutions. As a result, what started as a promising new application for us has quickly developed into an increasingly meaningful growth opportunity. As a reminder, in fiscal '26, we shipped roughly $13 million of ASME tanks for data centers. In the first quarter of fiscal '27, we generated an additional $13 million of revenue from that value stream, essentially matching what we did in the entire prior fiscal year. Near term, we believe that our ASME tank revenues will continue to grow sequentially quarter-over-quarter through the balance of this fiscal year. In addition, while this market is in the early stages of development, our pipeline suggests that, one, our solutions can play a meaningful role in this evolving architecture; and two, the market's growth is continuing to accelerate. To be clear, our pipeline is not revenue, and there is always some uncertainty around the timing and conversion of these opportunities, but the size and the quality of the opportunities in front of us is encouraging, and we are investing in equipment, engineering talent and production capacity to support the customers we're servicing today and the opportunities we see ahead. Solid financial results we're generating and the great opportunities ahead of us are a credit to our people. Worthington has always believed that people are our most important asset, and that is as true today as it has ever been. As an example, we were recently named one of America's most innovative businesses for 2027 by Business Insider. Criteria they use included the number and impact of company's technological innovations, the reputation among peers for fostering innovation and how the company's investment in R&D compares to others in their industries. We were also recognized in the quarter by USA TODAY and Points of Light as one of America's most charitable companies. This honor reflects our deeply rooted commitment to communities where we live and work, including volunteerism and support from the Worthington Companies Foundation. Much is being asked of our teams every day as we navigate volatile markets, geopolitical instability, inflation, elevated interest rates, supply constraints and operational challenges. We're very grateful for the way our colleagues continue to prioritize our customers and one another. We're proud of how we started our fiscal year. There's more work to do, but we continue to see tangible evidence that our strategy is working. We see it in organic growth driven by innovation and productivity gains through transformation and successful M&A integration and ultimately, in cash generation. In addition, our end markets, brands, capabilities and strategy position us exceptionally well to continue driving profitable growth. Most importantly, we have a talented team that cares deeply about each other, our customers and our company. Before I turn it over to Colin, who will spend a few more minutes on our financial performance in the quarter, I would like to remind everyone that we'll be hosting our Investor Day in New York on November 10. We're looking forward to discussing our businesses, the opportunities we see for profitable growth and how we're positioning Worthington Enterprises to create long-term value. We hope you'll join us. Colin? Colin Souza: Thank you, Joe, and good morning, everyone. We delivered a strong start to fiscal 2027, 7% organic sales growth, record trailing 12-month free cash flow of $196 million, continued improvement across our trade and Specialty Solutions businesses, strong performance from our joint ventures and meaningful progress in several of our strategic growth platforms. GAAP earnings in Q1 were $0.87 per share compared to $0.70 per share in the prior year period. The current quarter included a net benefit of $0.05 per share from nonrecurring and restructuring items, primarily related to a gain realized from a contingent earn-out associated with the sale of our former oil and gas business, which was divested in January of 2021. The prior year quarter included $0.08 per share of restructuring and other expenses. Excluding these items in both periods, adjusted earnings were $0.82 per share, up from $0.78 per share in the prior year quarter. Included in adjusted earnings for Q1 was a net pretax benefit of approximately $4 million or $0.06 per share related to IEEPA tariff refunds. Consolidated sales increased 13% to $344 million, demonstrating continued momentum across the underlying portfolio in addition to the contribution from our recent acquisitions, which added $19 million in net sales for Q1. Gross profit increased by nearly 11% in the quarter, while gross margin was 26.4% versus 27.1% a year ago, primarily reflecting lower volumes and less favorable mix in Building Performance Solutions, where Cooling and Construction faced a particularly difficult prior year comparison. Adjusted EBITDA was $74 million compared to $67 million in the prior year quarter, while adjusted EBITDA margin was 21.5%. Importantly, even excluding the net tariff refunds, adjusted EBITDA increased year-over-year, reflecting underlying improvement across several of our businesses. On a trailing 12-month basis, adjusted EBITDA increased to $303 million. Turning to our capital allocation. We remain focused on reinvesting in our businesses and pursuing strategic acquisitions while returning excess cash to shareholders via dividends and share repurchases. Free cash flow remains one of our most important operating metrics and Q1 demonstrated the strength of our cash generation. Operating cash flow was $67 million, up from $41 million a year ago, while free cash flow increased to $54 million from $28 million, which is our second strongest quarter since becoming Worthington Enterprises behind Q4 of fiscal 2026. Our discipline around cash flow generation was evident again in Q1, supported by effective working capital management across the organization. On a trailing 12-month basis, free cash flow increased to $196 million, representing a 116% conversion rate relative to adjusted net earnings and our highest mark since becoming Worthington Enterprises. This level of cash flow provides us with the flexibility to reinvest in our businesses, pursue additional growth opportunities and return capital to shareholders, supporting our ability to create value over time. Capital expenditures totaled $13 million in the quarter, and we returned capital to shareholders through $9 million in dividends and spent $18 million to repurchase 335,000 shares of our common stock. Our joint ventures continue to deliver strong cash generation, providing $36 million in dividends during the quarter, representing 88% of equity income. Turning to our balance sheet and liquidity. We closed the quarter with TTM adjusted EBITDA of $303 million and net debt of $250 million. We continue to maintain a strong balance sheet with significant financial flexibility to execute our strategy. Yesterday, our Board of Directors declared a quarterly dividend of $0.20 per share payable in December 2026. Before I turn to segment performance, and as a reminder, we recently renamed our 2 business segments to better reflect the markets they serve, the solutions they provide to customers and the continued evolution of our portfolio. Building Products is now Building Performance Solutions and Consumer Products is now Trade and Specialty Solutions. While the names have changed, the composition of the segments and our historical financial results remain unchanged. In Building Performance Solutions, Q1 net sales grew 16% year-over-year to $215 million, up from $185 million in the prior year quarter. Recent acquisitions contributed $19 million of net sales in the quarter, while organic sales increased 6%, driven by -- primarily by strength in our Water and European businesses, partially offset by lower revenue in our Cooling and Construction business. Adjusted EBITDA was essentially flat at $60 million compared to the prior year quarter with an adjusted EBITDA margin of 27.8%. As Joe mentioned, the year-over-year comparison for Building Performance Solutions was impacted by the normalization of demand in cooling and Construction following the A2L refrigerant transition as well as less favorable product mix. Tight steel availability and extended lead times also created production scheduling and shipment timing challenges during the quarter. We continue to view the A2L impact as a timing and comparison issue rather than a structural change in the business. Importantly, adoption remains strong and continued installation of A2L equipment supports current demand for our products while also building an installed base that we believe will create an attractive long-term service and replacement opportunity. Our teams have worked diligently and prioritized customer needs throughout this period while positioning the business to benefit as these temporary headwinds normalize. We are particularly encouraged by the accelerating opportunity in our water business, where demand for engineered ASME tanks supporting liquid cooling applications for data centers continues to grow. As Joe discussed, this is becoming an increasingly meaningful organic growth platform for Worthington. WAVE delivered another record quarter with equity income increasing approximately $3 million year-over-year to $35 million. ClarkDietrich also improved with equity income increasing more than $1 million year-over-year to $7 million despite commercial construction activity outside of data centers remaining relatively soft. We are pleased with the performance of LSI and continue to see attractive opportunities to expand the scale, profitability and diversification of our Building Performance Solutions platform. In Trade and Specialty Solutions, Q1 net sales grew 8% year-over-year to $129 million, up from $119 million in the prior year quarter, driven by a combination of higher overall volumes and average selling prices. Adjusted EBITDA increased to $24 million from $16 million in the prior year quarter, while adjusted EBITDA margin expanded to 18.6% from 13.6%. The improvement in profitability reflected higher sales, pricing and improved manufacturing performance, along with the net benefit from IEEPA tariff refunds we discussed earlier. Importantly, underlying profitability improved, excluding the tariff benefit, particularly in our tools and portable fuel businesses. We are pleased with the performance of the segment, which continues to demonstrate the resilience of our portfolio of market-leading brands. Looking ahead, we remain focused on driving profitable organic growth through the Worthington Business System, including continued innovation and transformation across the segment, along with opportunities to expand distribution. We've seen good results from 80/20 in our water business, and we're now applying those same principles to portable fuel and torch to simplify the portfolio, improve mix and drive sustainable margin improvement. Overall, we are encouraged by our start to fiscal 2027. We are driving continued organic growth through innovation and solid execution, improving performance across several of our wholly owned businesses, strong contributions from our joint ventures and growing in attractive end markets like data centers, all while generating near record cash flows. These results provide further evidence that our strategy is working. Looking ahead, we see multiple opportunities to strengthen earnings through continued execution, maturing 80/20, normalization in Cooling and Construction, growth in higher-value applications, continued progress integrating recent acquisitions and continued productivity improvements through the Worthington Business System. We believe these initiatives are improving the quality, sustainability and trajectory of our earnings and cash flows, strengthening our ability to invest for growth and create long-term value for our shareholders. With that, we're happy to take your questions. Operator: [Operator Instructions] Your first question comes from the line of Brian Biros with Thompson Research Group. Brian Biros: I want to start with a question just about the steel market overall. You mentioned it's tight, lead times extended, not the ideal supply chain setup, but Worthington should be in a position to, I guess, navigate that better than almost every other competitor you guys have. So maybe help us understand kind of where things stand today in the field and kind of what Worthington can do that others can't to navigate that. Joseph Hayek: Sure. Brian, it's a very topical good question. And steel market has absolutely tightened. We are seeing longer lead times and certainly, price of steel has come up in certain areas. You probably -- it did start last fall when the 232 tariffs on imported raw steel doubled, that really chilled imports. And since then, you've seen the price of steel creep steadily up and the market started to see some lead times get extended. That was certainly the case in Q1. But as you say, tight markets can create challenges, but there are also environments where we think some of our capabilities really do matter. We're a pretty sophisticated buyer of steel. We have very strong supplier relationships, and we have a broad manufacturing footprint, gives us additional options to manage through periods of constrained supply. So we've been actively managing in that environment by looking across suppliers, products and our network to be sure that we're serving customers and maintaining access to materials. When it's been appropriate, we have taken pricing actions as well since input costs have increased the way that they did. So the availability was a headwind for us in Q1, particularly as we mentioned in Cooling and Construction and Balloon Time. We do think that we're better positioned going forward, certainly through the end of the calendar year. Beyond that, we have limited visibility. That doesn't mean we don't necessarily think that it will get worse again beyond that. But as I said, we just don't have a lot of great visibility kind of into the new calendar year. We ultimately think about that as it probably cost us a few million dollars in the quarter. Brian Biros: Okay. Helpful. And a follow-up, I guess, would be on maybe on the JV WAVE, up 8%, great to see on an already pretty strong comp anyway. So maybe some more clarity on kind of what the driving factor for that was, if that's data center demand starting to flow through distribution yet? Is that pricing just from steel or maybe just strong core end markets? More commentary on kind of the demand for that would be helpful. Colin Souza: Sure, Brian. So WAVE, as you mentioned, another really excellent quarter, delivering record equity income of $35 million, and we continue to be very pleased with the performance of that business and the team there. The end markets at WAVE, they remain generally stable, although performance varies by sector. So education, health care, transportation and as you mentioned, data centers continue to remain healthy and drive volume, while channels like retail and office are a little more muted. So WAVE also does benefit from meaningful exposure to repair and remodel activity, which tends to be more resilient than the new commercial construction space. So they're a little insulated there, which is good. The team continues to really innovate around solutions that help contractors reduce labor and improve installation efficiency, and that's always going to be valuable in the market. And they continue to create meaningful value for their customers that way, and that supports the attractive economics of the business. And so more broadly, WAVE is just a great example of the types of businesses that we like to own. They're a market leader in an attractive niche with strong customer relationships, differentiated products and the ability to perform very well across different market environments. And as we look into Q2, there is normal seasonality to the business. Q1 is a strong quarter for them always during the year. But we would expect as we look into Q2, some sequential moderation. But overall, they remain very healthy, and we're very confident in the team there. Operator: Your next question comes from the line of Walt Liptak with Seaport Research. Walter Liptak: Good quarter. I wanted to ask about the data center product. And it sounds like you hit the targets that you set out to get the $13 million. I wonder if you could talk about just the experience during the quarter, any -- as you're going through any ramp costs or productivity that you're working through? And as you've been able to maintain and come out with the new ASME products, are you able to get more visibility beyond kind of what you've talked about in the past, which is getting to kind of that run rate of $13 million in revenue per quarter? Joseph Hayek: Sure, Walt. We're talking here about ASME tanks that people aren't sure stands for the American Society of Mechanical Engineers. It's a certain code and approval process. But these are tanks that are used in liquid cooling systems that support the next-gen computing infrastructure. They're purpose-built vessels used for liquid cooling and thermal management. And we've actually been in this business for a long time. We've been innovating in pressure and hydronic systems for 80 years. In fact, Amtrol invented the first pre-pressurized, not to get too tight colonial diaphragm expansion tank 70 years ago. So this isn't new to us. But as we listen to customers and understood what they were trying and needed to accomplish, we knew we could be helpful. So we leveraged the core competency, our engineering and innovation expertise and created this emerging suite of solutions that we think really do help our customers solve problems that they're trying to solve. And so you said it, $13 million last year, $13 million in Q1. We do think that we should grow sequentially in Q2, Q3 and Q4, more of that growth being weighted on the back half of the year, the back part of the year. But keep in mind that this market is still developing, and these opportunities are sometimes 18 to 24 months removed from a "announcement" that you might hear about a data center being green lit. And so we do think that we'll have some variability from quarter-to-quarter, but this is a multiyear opportunity. We think it's accelerating. And as I mentioned before, we think that the liquid cooling and thermal management market just for data centers could be 10x what the legacy market was in the next few years. And so we absolutely have invested and are continuing to invest in engineering talent in new equipment and in production capacity as we're really trying to be and believe that we're very well positioned to be part of the solution. And so if you think about the way people describe this market, they talk about hyperscalers, data center builders and then ultimately, they get into kind of the picks and shovels that make data centers work. it's oversimplifying, but you can think of our solutions as types of picks and shovels. And so we make various kinds of tanks and separators. But what really sets us apart is the services that we can provide around these solutions, our engineering expertise, our design expertise, ultimately helping our customers design or refine their designs for these fluid management solutions. And ideally, if we're good, we get sort of spec-ed in, thought about you think things like the basis of design, but we'd like to get spec-ed in to some of these designs as we go forward. And then I think we'll be able to grow in and grow with this market pretty nicely. Walter Liptak: Okay. I appreciate it. And yes, good luck with that rapidly expanding market. I wonder if you could talk about the strategy that you guys are going after. I think you've talked about some capacity expansions. You just mentioned engineering and production. I wonder if you can talk about what you're doing there. Joseph Hayek: Sure. So it is a pretty fulsome approach, heavy on design, engineering and process, a lot of capacity expansion and investments in our own facilities. But in cases where it makes sense for somebody else to manufacture these, we've got a group of partners that we are relying on and that we are partnering with to help us essentially expand our own capacity and ultimately do the design work, do the commercial work, do all the things that need to happen, but ultimately take advantage of some capacity that's already in the ground. Operator: Your next question comes from the line of Susan Maklari with Goldman Sachs. Susan Maklari: My first question is around the broader state of the consumer and what you're seeing there. It sounds like from what we've been hearing from the homebuilders, things certainly moderated in the quarter as rates rose and the geopolitical environment. Can you just talk a bit about what you're seeing now and what that implies as we think about the growth in the next couple of quarters? Joseph Hayek: Sure. So within Trade and Specialty, one of the reasons, obviously, that we decided to realign and rename those, Susan, as you know, is an awful lot of our products that were sold through what's historically been consumer end up in the hands of contractors. They're working on commercial buildings or residential buildings. But for us, it's really around that team continuing to execute exceptionally well. They've got good pricing discipline. They've done a really good job commercially. There's a lot of energy around NPD and new products that we expect kind of to see in the back half of our fiscal year. But I would say, generally, yes, you're right. Interest rates are still high, but people are still repairing, remodeling. Unemployment is still pretty low, and we've always used unemployment as a pretty good kind of indicator for us. And so we haven't seen any material weakness in our customers. Point of sale is hanging in there. And so we think that our products are awfully resilient and have typically shown that way. And it's not as though the market is worse than it was in the past 3 years. So it's been relatively steady from that perspective. Susan Maklari: Okay. That's helpful. And then can you also give us an update on the integration of the recent acquisitions that you've done? And any comments on the M&A pipeline in general, given the operating conditions and the move in rates? Colin Souza: Yes. Thanks, Susan. So I'll take the pipeline question first, and we continue to see a healthy pipeline of opportunities, a slight uptick, if anything, more recently with just activity there, which is good. And as you know, we're focused on businesses where we see strong strategic and cultural fit. These are in attractive niches and where Worthington has a clear opportunity to create some additional value. And we've got a strong balance sheet. We've got really good free cash flow generation, like we talked about earlier and low leverage. And that creates significant financial flexibility for us to pursue these opportunities when they make sense. Our capital allocation framework is balanced, as you know, with a bias towards growth, and we're actively evaluating opportunities, and we feel good about what we're seeing there. Just on the recent acquisitions, so we also -- we continue to feel pretty good about our most recent acquisitions, both Elgen and LSI. In the quarter, the acquisitions contributed approximately $19 million of sales just in Q1. With Elgen specifically, we've made good progress on that integration. It's been over a year at this point. We're focused heavily on the operations and deploying the Worthington Business System to really realize the full potential of the business. The commercial HVAC end markets that they serve remain pretty healthy, and we continue to believe Elgen has significant opportunity over time. On LSI, that's our most recent acquisition we closed in January. It's earlier in the integration process, but we are very pleased with performance there. It's a high-quality business, really attractive margins, a strong position in a very specialized niche. They are a critical component of the overall kind of metal roofing system, which is an attractive market to be in. So we're increasingly focused on LSI with how we can deploy Worthington's capabilities to accelerate growth. We think that's the real unlock for LSI. And most importantly, kind of both of those businesses, Elgen and LSI are great cultural fits. people are our most important asset. And with the acquisitions, we'd much rather spend our time improving operations, expanding commercial opportunities than trying to change the culture. And in both cases, we feel pretty good about the teams there and the culture at those businesses. Joseph Hayek: Yes. And Susan, the only thing I would add, Colin, is absolutely right. When you talk about the increase in rates and the rate environment, that's actually a good thing for us. We, as you know, have a pretty good balance sheet and have a fair amount of liquidity if competitive situations arise for an acquisition, our borrowing base and our borrowing basis is probably going to be better than a lot of the folks that we might be in competition with. So environments like this are actually better for us, relatively speaking, than when interest rates are very, very low and capital is everywhere. Operator: Your next question comes from the line of Walter Liptak with Seaport Research. Walter Liptak: Okay. I've got a couple of follow-ups. One on the free cash flow, as you guys pointed out, was very strong. I wonder if you could talk about some of the programs that you guys are doing to improve working capital? And is that -- is this sort of a onetime inflow of cash from working capital accounts? Or is this going to be -- can you continue to generate high levels of free cash flow? Colin Souza: Yes. So thanks, Walt. It's been -- this has been an important point for us, and we're really pleased with the cash flow generation. As you mentioned, as we talked about earlier, up $26 million year-over-year from an operating and free cash flow standpoint, $196 million in free cash flow on a trailing 12-month basis, that's the highest it's been. The working capital measures we've been very intentional about, which has been helping us drive that free cash flow generation, and we believe it is sustainable. We've been working hard with our teams to continue to pull levers to really compound our cash flow. And in particular, it's shown up, as we talked about in our working capital. And so just from a cash conversion cycle standpoint, just over the last year, I think we're down about 8 or 9 days, which we're really pleased with over that period. And then just from a net working capital as a percent of sales, we're down, I think, almost 3% just over the last couple of years. And so that's a lot of incremental things working around customer terms, working around our supply base and then just more efficiently and effectively managing inventory, things like 80/20 always play a role in that as well. And so we're really pleased with the performance and do view it as sustainable. As we move forward, we're going to continue to drive that free cash flow generation, and there is some normal kind of cyclicality or seasonality to it. We do have an extra tax payment in Q2, which is normal course. But outside of that, we feel pretty good from a free cash flow standpoint. Walter Liptak: Okay. All right. And then just the last one for me. The A2L tough comparison. We saw that last quarter. It's here again. How -- that inventory correction that's going on, how long do you think it will take to clear? Do you expect more, especially in the second quarter going into the end of the calendar year? And at what point do you think we start getting on to a positive comp? Colin Souza: Yes. So Walt, so it is -- that transition, it did have an impact in the quarter. The unfavorable mix was primarily driven by Cooling and Construction business and the difficult comparison there related to A2L. Just a little more background there. The prior year benefited from this unusually strong demand as manufacturers, distributors, contractors simultaneously established inventory ahead of this regulated transition. And that included kind of heavy demand on our products, obviously. And we estimate the year-over-year impact to adjusted EBITDA this quarter was approximately $7 million, which is more than we anticipated a quarter ago. And Joe mentioned this earlier, channel inventories are taking a little longer to normalize and particularly against the backdrop of muted housing environment. We expect Q2 to remain a difficult comparison because of that prior year quarter benefited from the A2L-related volumes. But as we move to the second half of the year, Q3 and Q4 are seasonally stronger in this market, including in construction. So we do expect normalization there. And importantly, we continue to view this primarily as more of a timing and comparison issue rather than a change in the long-term fundamentals of the business. Nearly all the new residential equipment now utilizes A2L refrigerants. And so every new installation expands the installed base for our products. And over time, that should create a growing service and repair opportunity for the products that we sell into this space. Operator: Your next question comes from the line of Brian McNamara with Canaccord Genuity. Brian McNamara: Just one for me as all my other questions have been addressed. Can you characterize or quantify the growth you're seeing in data centers outside of ASME tanks, whether it be WAVE, Elgen or LSI? And specifically, are you bundling your solutions there to win business? Or has it largely been kind of a la carte to this point? Joseph Hayek: It's a great question, Brian. It's Joe. The way that we think about data centers, we talked a lot about the ASME tanks. But yes, absolutely, every data center is a commercial building. a number of our value streams provide building performance solutions that are integral to the way those buildings function and setting them up to do what they're supposed to do. That certainly includes WAVE and ClarkDietrich, Elgen and LSI. Across those value streams, data centers are a very important part of the growth that we're seeing. And I would say our revenues are growing commensurate, maybe a bit better or a bit worse depending on the application with the proliferation of data centers. Because of the market and data centers operate the way that they do, it's relatively decentralized from a construction and from a gut perspective. So the bundling would be an overstatement, but we are increasingly collaborating across value streams and talking about opportunities and prioritizing and ultimately kind of making the case that we can refer or otherwise make more introductions for other pieces of our business that we probably couldn't a couple of years ago. Brian McNamara: Maybe just a quick follow-up on that. I think in Q3 last year, you said that your business -- data center business was expected to triple in fiscal '26. But it sounds like the ASME tanks are about to quadruple at least if they sequentially grow each quarter this year. How would we -- can we at least characterize the other businesses exposed to data centers that you guys own kind of multiplying this year? Is that a fair way to characterize the growth you're seeing there? Joseph Hayek: So your question, Brian, the non-ASME tanks -- Ask that again. I misunderstood it maybe. Brian McNamara: Say that again? Joseph Hayek: I think I misunderstood your question. Can you ask it again? Brian McNamara: Yes. So I think in Q3, I think you said your data center business overall last year was expected to triple. I don't know where that landed. Are we expecting that kind of same maybe doubling, tripling kind of this year? It sounds like the ASME tanks are going to at least quadruple if you grow sequentially quarter after quarter this year. Joseph Hayek: Yes, right. So yes, we have $13 million was effectively 3x what it had been the year before. We did that in Q1, which on a run rate sort of would have it being 4x, but we think that -- and we said this much that we're going to grow sequentially. So yes, it's -- we do absolutely believe that this market is accelerating. Operator: Your next question comes from the line of Will Gildea with CJS Securities. Will Gildea: Can you add some more color on the really solid growth in Trade and Specialty Solutions? I think you described as volume and price driven. Just wondering, are there any product lines or end customers where you saw more strength in the quarter? Colin Souza: Yes. So thanks, Will. So the Trade and Specialty Solutions segment, really good performance in the quarter. Sales increased approximately 8%, driven by a combination of higher overall volumes and selling prices. We saw some good broad-based growth across most of the portfolio, particularly portable propane and tools. Those were driven by higher volumes, expanded distribution and then both those segments had some pricing actions as well, which was helpful. The Balloon Time business was the primary exception. Volumes were down, but that was more a function of a really strong prior year comparison, which impacted in the current quarter. So more broadly, really pleased with the performance of the segment, and they had good margin expansion even excluding the tariffs kind of positive in the quarter as well. Will Gildea: That is very helpful. And then just one more. I think you described increasing raw material prices as a headwind of a few million dollars. How quickly can you mitigate that? And how are you thinking about mitigating that? And does that headwind get worse throughout to the end of the calendar year? Or does it improve? Joseph Hayek: Yes. So just to make sure I clarify, Will. My comment on a few million dollars was around steel being late and ultimately us needing to prioritize and think about shipments and manufacturing and things like that. We do think that near term, we'll be in better shape there. Steel is more expensive than it was a year ago. But also, as we mentioned, that's not ideal, but we have taken price actions where we thought we needed to. But these are environments where we ultimately can separate ourselves from others. And so with our relationships and our capabilities and our optionality, it's something that we'll continue to address, and I think we'll address it successfully with the caveat, obviously, that things are certainly more expensive than they were a year ago from a raw material perspective, and that's true across the board. Operator: There are no further questions at this time. I will now turn the call back to Joe for any closing remarks. Joseph Hayek: Thank you, and thank you all for joining us this morning. We look forward to potentially seeing some of you at our Investor Day in November. Hope you have a great day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Worthington Enterprises, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Worthington Enterprises wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $389,154!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,406,303!* Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 23, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Worthington (WOR) Q1 2027 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Consolidated Sales: Increased 13% year-over-year to $344 million; organic growth of 7%; acquisitions added $19 million in net sales. Gross Profit: Increased nearly 11% year-over-year. Gross Margin: 26.4% vs. 27.1% a year ago, reflecting lower volumes and less favorable mix in Building Performance Solutions. Adjusted EBITDA: $74 million, up 10% from $67 million a year ago; adjusted EBITDA margin of 21.5%; TTM adjusted EBITDA of $303 million. GAAP EPS: $0.87 per share vs. $0.70 per share in the prior year period. Adjusted EPS: $0.82 per share vs. $0.78 per share a year ago. Operating Cash Flow: $67 million, up from $41 million a year ago. Free Cash Flow: $54 million, up from $28 million a year ago; TTM free cash flow of $196 million (116% conversion rate vs. adjusted net earnings). Capital Expenditures: $13 million in the quarter. Share Repurchases: 335,000 shares repurchased for $18 million. Dividends: $9 million returned to shareholders; quarterly dividend of $0.20 per share declared, payable December 2026. Joint Venture Dividends: $36 million, representing 88% of equity income. Net Debt: $250 million. Building Performance Solutions Net Sales: Grew 16% year-over-year to $215 million; organic sales up 6%; acquisitions contributed $19 million. Building Performance Solutions Adjusted EBITDA: Essentially flat at $60 million; adjusted EBITDA margin of 27.8%. Trade & Specialty Solutions Net Sales: Grew 8% year-over-year to $129 million. Trade & Specialty Solutions Adjusted EBITDA: Increased to $24 million from $16 million; adjusted EBITDA margin expanded to 18.6% from 13.6%. WAVE Equity Income: Increased approximately $3 million year-over-year to $35 million (record quarter). ClarkDietrich Equity Income: Increased more than $1 million year-over-year to $7 million. Data Center ASME Tank Revenue: $13 million in Q1 fiscal 2027, matching full prior fiscal year total of roughly $13 million. IEEPA Tariff Refunds: Net pre-tax benefit of approximately $4 million, or $0.06 per share, included in adjusted earnings. Warning! GuruFocus has detected 5 Warning Signs with WOR. Is WOR fairly valued? Test your thesis with our free DCF calculator. Release Date: September 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sales grew 13% year-over-year, with 7% organic growth, and adjusted EBITDA increased 10% to $74 million. Free cash flow nearly doubled to $54 million, with trailing 12-month free cash flow reaching a record $196 million. Trade & Specialty Solutions delivered strong performance with 8% sales growth and adjusted EBITDA margin expansion to 18.6% from 13.6%. The water business is performing well, and the company is extending 80/20 principles to portable propane and torch businesses. The data center opportunity is accelerating, with $13 million in ASME tank revenue in Q1 alone, matching the entire prior fiscal year, and expected sequential growth ahead. Building Performance Solutions faced headwinds in cooling and construction, with adjusted EBITDA flat year-over-year and margin pressure. Tight steel availability and extended lead times disrupted production and scheduling, costing a few million dollars in the quarter. The A2L refrigerant transition created a difficult year-over-year comparison, with an estimated $7 million negative impact on adjusted EBITDA. Balloon Time volumes declined due to a strong prior year comparison, and the business faced steel-related challenges. The consumer and construction environment remains muted with high interest rates, and commercial construction activity outside of data centers is relatively soft. Q: Can you characterize or quantify the growth you are seeing in data centers outside of ASME tanks, whether it be WAVE, Elgen, or LSI? Specifically, are you bundling your solutions there to win business or has it largely been a la carte to this point?A: Joseph Hayek (CEO) explained that every data center is a commercial building, and a number of Worthington's value streams including WAVE, ClarkDietrich, Elgen, and LSI provide building performance solutions integral to how those buildings function. Data centers are a very important part of the growth across those value streams, with revenues growing roughly commensurate with the proliferation of data centers. Because the market is relatively decentralized from a construction perspective, "bundling" would be an overstatement, but the company is increasingly collaborating across value streams and making warm introductions for other pieces of the business that it could not a couple of years ago. Q: I think in Q3 last year, you said that your data center business was expected to triple in fiscal 2026. It sounds like the ASME tanks are about to quadruple at least if they sequentially grow each quarter this year. Can we at least characterize the other businesses exposed to data centers that you guys own kind of multiplying this year?A: Joseph Hayek (CEO) confirmed that the $13 million shipped in Q1 was effectively 3x what it had been the year before, and on a run-rate basis would put it at roughly 4x. He reiterated that ASME tank revenues are expected to grow sequentially quarter-over-quarter through the balance of the fiscal year, and that the company absolutely believes this market is accelerating. Q: I wanted to ask about the data center product. It sounds like you hit the targets that you set out to get the $13 million. I wonder if you could talk about just the experience during the quarter, as you're going through any ramp costs or productivity that you're working through. And as you've been able to maintain and come out with new ASME products, are you able to get more visibility beyond what you've talked about in the past, which is getting to that run rate of $13 million in revenue per quarter?A: Joseph Hayek (CEO) explained that ASME stands for the American Society of Mechanical Engineers, a certain code and approval process, and that these tanks are used in liquid cooling systems supporting next-gen computing infrastructure. Worthington has been innovating in pressure and hydraulic systems for 80 years, and AMTROL invented the first pre-pressurized diaphragm expansion tank 70 years ago. The company leveraged its engineering and innovation expertise to create an emerging suite of solutions. He noted $13 million last year and $13 million in Q1, with sequential growth expected in Q2, Q3, and Q4, weighted toward the back half of the year. He cautioned that opportunities are sometimes 18 to 24 months removed from a data center being greenlit, so there will be quarter-to-quarter variability, but this is a multi-year opportunity that is accelerating, with the liquid cooling and thermal management market for data centers potentially 10x the legacy market in the next few years. Worthington is investing in engineering talent, new equipment, and production capacity, positioning its solutions as "picks and shovels" for data centers, differentiated by engineering and design services that ideally get the company specced into designs. Q: I wonder if you could talk about the strategy that you guys are going after. I think you have talked about some capacity expansions. You just mentioned engineering and production. I wonder if you can talk about what you are doing there?A: Joseph Hayek (CEO) described a fulsome approach heavy on design, engineering, and process, with significant capacity expansion and investments in Worthington's own facilities. Where it makes sense for others to manufacture, the company has a group of partners it relies on and partners with to expand capacity, while Worthington handles the design work, commercial work, and other necessary functions, ultimately taking advantage of capacity already in the ground. Q: I want to start with a question just about the steel market overall. You mentioned it is tight, lead times extended, not the ideal supply chain setup, but Worthington should be in a position to navigate that better than almost every other competitor. Maybe help us understand kind of where things stand today in the field and kind of what Worthington can do that others can not to navigate that?A: Joseph Hayek (CEO) said the steel market has absolutely tightened, with longer lead times and higher prices in certain areas. It started last fall when Section 232 tariffs on imported raw steel doubled, which chilled imports; since then steel prices have crept steadily up and lead times extended, which was the case in Q1. He noted that tight markets create challenges but also environments where Worthington's capabilities matter: it is a sophisticated buyer of steel with strong supplier relationships and a broad manufacturing footprint giving additional options. The company has actively managed by looking across suppliers and products in its network to maintain access to materials, and has taken pricing actions where appropriate since input costs increased. Availability was a headwind in Q1, particularly in cooling and construction and Balloon Time, and he estimated it cost the company a few million dollars in the quarter. He said Worthington is better positioned through the end of the calendar year, with limited visibility beyond that. Q: A follow-up would be on maybe on the JV WAVE, up 8%. Great to see on an already pretty strong comp anyway. So maybe some more clarity on what the driving factor for that was, if that is data center demand starting to flow through distribution yet. Is that pricing just from steel or maybe just strong core end markets?A: Colin Souza (CFO) said WAVE delivered another excellent quarter with record equity income of $35 million. End markets remain generally stable, though performance varies by sector: education, healthcare, transportation, and data centers remain healthy and drive volume, while retail and office are more muted. WAVE also benefits from meaningful exposure to repair and remodel activity, which tends to be more resilient than new commercial construction. The team continues to innovate around solutions that help contractors reduce labor and improve installation efficiency, supporting attractive economics. He noted normal seasonality Q1 is always a strong quarter and expected some sequential moderation in Q2, but overall the business remains very healthy. Q: My first question is around just the broader state of the consumer and what you're seeing there. It sounds like from what we've been hearing from the home builders, things certainly moderated in the quarter as rates rose in the geopolitical environment. Can you just talk a bit about what you're seeing now and what that implies as we think about the For the complete transcript of the earnings call, please refer to the full earnings call transcript.

COLUMBUS, Ohio, Sept. 22, 2026 (GLOBE NEWSWIRE) -- Worthington Enterprises Inc. (NYSE: WOR), a designer and manufacturer of market-leading products and solutions for building, trade and specialty applications, today reported results for its fiscal 2027 first quarter ended August 31, 2026. Recent Developments and First Quarter Highlights (all comparisons to the first quarter of fiscal 2026) Net sales were $343.9 million, an increase of $40.2 million, or 13%, including 6% from recent acquisitions and 7% from organic growth. Net earnings increased 22% to $42.6 million, while adjusted net earnings increased 3% to $40.1 million and adjusted EBITDA grew 10% to $74.0 million. Earnings per share on a fully diluted basis (“EPS – diluted”) improved to $0.87 from $0.70 per share, while adjusted EPS – diluted increased to $0.82 per share compared to $0.78. Operating cash flow increased $25.7 million to $66.7 million, while free cash flow increased $26.1 million to $54.0 million. Repurchased 335,000 common shares for $18.2 million, leaving 4,230,000 common shares available under the existing repurchase authorization. Declared a quarterly dividend of $0.20 per share payable on December 29, 2026, to shareholders of record at the close of business on December 15, 2026. Renamed two business segments to better reflect their markets and applications: Building Products is now Building Performance Solutions, and Consumer Products is now Trade & Specialty Solutions. “We started fiscal 2027 with solid performance as our teams continued to execute well and deliver for our customers,” said Worthington Enterprises President and CEO Joe Hayek. “We generated 7% organic growth, grew adjusted EBITDA by 10% and nearly doubled free cash flow. These results reflect the progress we are making as we continue to optimize and grow Worthington Enterprises.”Financial highlights for the current year and prior year quarters are as follows: (1) Refer to the “GAAP / Non-GAAP Reconciliations” and the “Use of Non-GAAP Financial Measures and Definitions” sections of this release for additional information regarding the use of non-GAAP financial measures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP. Consolidated Quarterly Results Net sales for the first quarter of fiscal 2027 increased $40.2 million, or 13.2%, over the prior year quarter to $343.9 million. Recent acquisitions contributed $19.2 million to net sales in the current year quarter. Excluding the impact of acquisitions, net sales increased $21.0 million, or 6.9%, compared to the prior year quarter. Operating income increased $3.8 million to $13.0 million. Adjusted operating income was relatively flat at $13.7 million compared to $13.9 million in the prior year quarter. The current year quarter benefited from $4.0 million in net tariff refunds related to the International Emergency Economic Powers Act (“IEEPA”), contributions from recent acquisitions and higher overall volume within Trade & Specialty Solutions. These benefits were offset by lower overall volume and unfavorable product mix within Building Performance Solutions. Equity in net income of unconsolidated affiliates increased $3.9 million from the prior year quarter to $40.6 million, driven by higher contributions from WAVE and ClarkDietrich, which were up $2.7 million and $1.4 million, respectively. Miscellaneous income, net was favorable by $4.2 million, primarily due to a pre-tax gain of $4.0 million related to an earnout agreement associated with the sale of the company’s former oil and gas products business, which was divested in January 2021. Income tax expense was $13.0 million in the first quarter of fiscal 2027 compared to $10.9 million in the prior year quarter. The increase was driven by higher pre-tax earnings. Income tax expense in the first quarter of fiscal 2027 reflects an estimated annual effective tax rate of 24.1%, compared to 23.8% in the prior year quarter. Balance Sheet and Cash Flow Total debt of $305.6 million at quarter end consisted entirely of long-term debt and was relatively unchanged from May 31, 2026. During the quarter, the company amended its revolving credit facility to extend the maturity date to August 31, 2031. The company had no borrowings under its revolving credit facility as of August 31, 2026, leaving $500.0 million available for future use and providing substantial liquidity. The company ended the quarter with cash of $55.1 million, an increase of $27.3 million over May 31, 2026, primarily driven by strong operating cash flow. During the first quarter of fiscal 2027, the company generated operating cash flow of $66.7 million, of which $12.8 million was invested in capital expenditures, resulting in free cash flow of $54.0 million, up from $27.9 million in the prior year quarter. Quarterly Segment Results On September 15, 2026, the company announced new names for its two business segments that better reflect the markets they serve, the value they provide to customers and the evolution of the company's product portfolio. The Building Products segment is now Building Performance Solutions and the Consumer Products segment is now Trade & Specialty Solutions. The changes are to the segment names only and do not affect the composition of the segments or the company's historical financial results. Building Performance Solutions generated net sales of $215.1 million in the current year quarter, an increase of $30.3 million, or 16.4%, over the prior year quarter. The increase was driven by the impact of acquisitions, which contributed $19.2 million to net sales in the current year quarter. Excluding the impact of acquisitions, net sales increased $11.1 million, or 6.0%, compared to the prior year quarter. Adjusted EBITDA was relatively flat at $59.8 million, as higher contributions from WAVE and ClarkDietrich and earnings from recent acquisitions were offset by lower overall volume and unfavorable product mix. Trade & Specialty Solutions generated net sales of $128.8 million in the current year quarter, up $9.9 million, or 8.3%, from the prior year quarter, driven by higher volume and higher average selling prices. Adjusted EBITDA increased $7.9 million to $24.0 million, driven by the impact of higher net sales and the net benefit of IEEPA tariff refunds. Outlook “We're very encouraged by our start to fiscal 2027 and the opportunities we see across our businesses, including rapidly growing demand for our engineered ASME tanks used in liquid cooling systems for data centers,” Hayek said. “Our teams remain focused on innovation, operational improvement and developing new ways to create value for our customers. With growing free cash flow generation and a healthy balance sheet, we have the flexibility to invest in and pursue additional growth opportunities that fit our strategy." Conference Call The company will review fiscal 2027 first quarter results during its quarterly conference call on September 23, 2026, at 8:30 a.m. Eastern Time. Details regarding the conference call can be found on the company website at www.WorthingtonEnterprises.com. Upcoming Investor and Analyst Day – November 10, 2026 Worthington Enterprises will host an Investor and Analyst Day on November 10 in New York City where members of the company’s leadership team will provide an in-depth review of the company’s strategy, financial performance and long-term growth opportunities, including perspectives on Building Performance Solutions and Trade & Specialty Solutions. The event will begin at 9:30 a.m. Eastern Time. Joe Hayek, president and chief executive officer; Colin Souza, vice president and chief financial officer; Jimmy Bowes, president, Building Performance Solutions; and Steve Caravati, president, Trade & Specialty Solutions, are scheduled to deliver presentations. Investors and analysts interested in participating virtually may register at this link: https://worthington-enterprises-investor-day-2026-11-10.open-exchange.net. In-person attendance is limited. Investors and analysts interested in attending in person should contact Marcus Rogier at [email protected]. About Worthington Enterprises Worthington Enterprises Inc. (NYSE: WOR) is a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences. Building Performance Solutions (formerly Building Products) delivers essential engineered products that enhance performance across residential and commercial buildings, including critical facilities such as data centers. Its products support building systems, and climate and comfort applications. The segment primarily serves OEMs and distributors. Trade & Specialty Solutions (formerly Consumer Products) includes market-leading brands used by professional tradespeople and consumers across tools, portable propane and helium and other specialty applications. The Worthington Enterprises portfolio includes Balloon Time®, Bernzomatic®, ClarkDietrich, Coleman® propane cylinders, Elgen, General®, HALO™, LEVEL5 Tools®, Ragasco®, Roof Hugger®, Well-X-Trol® and Worthington Armstrong Venture (WAVE), among others. Headquartered in Columbus, Ohio, Worthington Enterprises employs approximately 4,000 people throughout North America and Europe. Founded in 1955 as Worthington Industries, Worthington Enterprises follows a people-first Philosophy with earning money for its shareholders as its first corporate goal. Worthington Enterprises achieves this outcome by empowering its employees to innovate, thrive and grow with leading brands in attractive markets that improve everyday life. The company engages deeply with local communities where it has operations through volunteer efforts and The Worthington Companies Foundation, participates actively in workforce development programs and reports annually on its corporate citizenship and sustainability efforts. For more information, visit worthingtonenterprises.com. 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”). We wish to take advantage of the safe harbor provisions included in the Act. Forward-looking statements reflect our current expectations, estimates or projections concerning future results or events. These statements are often identified by the use of forward-looking words or phrases such as “believe,” “expect,” “anticipate,” “may,” “could,” “should,” “would,” “intend,” “plan,” “will,” “likely,” “estimate,” “project,” “position,” “strategy,” “target,” “aim,” “seek,” “foresee” and similar words or phrases. These forward-looking statements include, without limitation, statements relating to: future or expected cash positions, liquidity and ability to access financial markets and capital; outlook, strategy or business plans; future or expected growth, growth potential, forward momentum, performance, competitive position, sales, volumes, cash flows, earnings, margins, balance sheet strengths, debt, financial condition or other financial measures; pricing trends for raw materials and finished goods and the impact of pricing changes; the ability to improve or maintain margins; expected demand or demand trends; additions to product lines and opportunities to participate in new markets; expected benefits from transformation and innovation efforts; the ability to improve performance and competitive position; anticipated working capital needs, capital expenditures and asset sales; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof; projected profitability potential; the ability to make acquisitions and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations; projected capacity and the alignment of operations with demand; the ability to operate profitably and generate cash in down markets; the ability to capture and maintain market share and to develop or take advantage of future opportunities, customer initiatives, new businesses, new products and new markets; expectations for inventories, jobs and orders; expectations for the economy and markets or improvements therein; expectations for generating improving and sustainable earnings, earnings potential, margins or shareholder value; effects of judicial rulings; effects of pandemics and widespread health crises and the various responses of governmental and nongovernmental authorities thereto on economies and markets, and on our customers, counterparties, employees and third-party service providers; and other non-historical matters. Because they are based on beliefs, estimates and assumptions, forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Any number of factors could affect actual results, including, without limitation, those that follow: the effect of conditions in national and worldwide financial markets, including inflation, increases in interest rates and economic recession, and with respect to the ability of financial institutions to provide capital; the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; changing oil prices and/or supply; product demand and pricing; changes in product mix, product substitution and market acceptance of our products; volatility or fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities, labor and other items required by operations; effects of sourcing and supply chain constraints; the outcome of adverse claims experience with respect to workers’ compensation, product recalls or product liability, casualty events or other matters; effects of facility closures and the consolidation of operations; the effect of financial difficulties, consolidation and other changes within the steel, automotive, construction and other industries in which we participate; failure to maintain appropriate levels of inventories; financial difficulties (including bankruptcy filings) of original equipment manufacturers, end-users and customers, suppliers, joint venture partners and others with whom we do business; the ability to realize targeted expense reductions from headcount reductions, facility closures and other cost reduction efforts; the ability to realize cost savings and operational, sales and sourcing improvements and efficiencies, and other expected benefits from transformation initiatives, on a timely basis; the overall success of, and the ability to integrate, newly-acquired businesses and joint ventures, maintain and develop their customers, and achieve synergies and other expected benefits and cost savings therefrom; capacity levels and efficiencies, within facilities, within major product markets and within the industries in which we participate as a whole; the effect of disruption in the business of suppliers, customers, facilities and shipping operations due to adverse weather, casualty events, equipment breakdowns, labor shortages, interruption in utility services, civil unrest, international conflicts, terrorist activities or other causes; changes in customer demand, inventories, spending patterns, product choices, and supplier choices; risks associated with doing business internationally, including economic, political and social instability, foreign currency exchange rate exposure and the acceptance of our products in global markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; the effect of inflation, interest rate increases and economic recession, which may negatively impact our operations and financial results; deviation of actual results from estimates and/or assumptions used in the application of its significant accounting policies; the level of imports and import prices in our markets; the impact of environmental laws and regulations or the actions of the United States Environmental Protection Agency or similar regulators which increase costs or limit our ability to use or sell certain products; the impact of increasing environmental, greenhouse gas emission and sustainability regulations and considerations; the impact of judicial rulings and governmental regulations, both in the United States and abroad, including those adopted by the United States Securities and Exchange Commission and other governmental agencies as contemplated by the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of healthcare laws in the United States and potential changes for such laws, which may increase our healthcare and other costs and negatively impact our operations and financial results; the effects of tax laws in the United States and potential changes for such laws, which may increase our costs and negatively impact our operations and financial results; cyber security risks; the effects of privacy and information security laws and standards; and other risks described from time to time in our filings with the United States Securities and Exchange Commission, including those described in “Part I – Item 1A. – Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended May 31, 2026. Forward-looking statements should be construed in the light of such risks. We note these factors for investors as contemplated by the Act. It is impossible to predict or identify all potential risk factors. Consequently, readers should not consider the foregoing list to be a complete set of all potential risks and uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. We do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. (1) Equity income contributed by the WAVE and ClarkDietrich joint ventures is included in Building Performance Solutions segment results. (2) Other includes the equity in net income of unconsolidated affiliates of the Workhorse and heiserTEC (formerly referred to as the Sustainable Energy Solutions joint venture) joint ventures. For more information regarding the non-GAAP financial measures, refer to the “Use of Non-GAAP Financial Measures and Definitions” section of this release. Consolidated Results – Adjusted Earnings per Share – Diluted Consolidated Results – Adjusted EBITDA (1) Excludes the impact of noncontrolling interest. (2) Includes a pre-tax gain of $4,000 during the first quarter of fiscal 2027 related to an earnout arrangement associated with the sale of the company’s former oil and gas products business, which was divested in January 2021. (3) Reflects the amortization of the step-up to fair market value of acquired inventory related to the Elgen acquisition in fiscal 2026. (4) EBIT and adjusted EBIT are non-GAAP financial measures. However, these measures are not used by management to evaluate our performance, engage in financial and operational planning, or to determine incentive compensation. Instead, they are included as subtotals in the reconciliation of net earnings to adjusted EBITDA, which is a non-GAAP financial measure used by management. Consolidated Results – Free Cash Flow The following table provides a reconciliation of net cash provided by operating activities to free cash flow and the calculation of operating cash flow conversion and free cash flow conversion for the periods presented. (1) Operating cash flow conversion is defined as net cash provided by operating activities divided by net earnings attributable to controlling interest. NON-GAAP FINANCIAL MEASURES. These materials include certain financial measures that are not calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Non-GAAP financial measures typically exclude items that management believes are not reflective of, and thus should not be included when evaluating the performance of our ongoing operations. Management uses these non-GAAP financial measures to evaluate ongoing performance, engage in financial and operational planning, and determine incentive compensation. Management believes these non-GAAP financial measures provide useful supplemental information regarding the performance of our ongoing operations and should not be considered as an alternative to the comparable GAAP financial measure. Additionally, management believes these non-GAAP financial measures allow for meaningful comparisons and analysis of trends in our businesses and enables investors to evaluate operations and future prospects in the same manner as management. The following provides an explanation of each non-GAAP financial measure presented in these materials: Adjusted operating income (loss) is defined as operating income (loss) excluding the items listed below, to the extent naturally included in operating income (loss). Adjusted net earnings is defined as net earnings attributable to controlling interest excluding the after-tax effect of the excluded items outlined below. Adjusted EPS – diluted is defined as adjusted net earnings divided by diluted weighted-average common shares outstanding for the applicable period. Adjusted EBITDA is the measure by which we evaluate segment performance and our overall profitability. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA excludes additional items including, but not limited to, those listed below, as well as other items that management believes are not reflective of, and thus should not be included when evaluating the performance of our ongoing operations. Adjusted EBITDA also excludes stock-based compensation due to its non-cash nature, which is consistent with how management assesses operating performance and determines incentive compensation. At the segment level, adjusted EBITDA includes expense allocations for centralized corporate back-office functions that exist to support the day-to-day business operations. Public company and other governance costs are held at the corporate level within the unallocated corporate and other category. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net sales. Free cash flow is a non-GAAP financial liquidity measure that is used to assess our ability to generate cash beyond what is required for our business operations and capital expenditures. We define free cash flow as net cash flows from operating activities less investment in property, plant, and equipment. Free cash flow conversion is a non-GAAP financial measure that is used to measure how much of our adjusted net earnings attributable to controlling interest is converted into cash. We define free cash flow conversion as free cash flow divided by adjusted net earnings. EXCLUSIONS FROM NON-GAAP FINANCIAL MEASURES Management believes it is useful to exclude the following items from its non-GAAP financial measures for its own and investors’ assessment of the business for the reasons identified below. Additionally, management may exclude other items from non-GAAP financial measures that do not occur in the ordinary course of our ongoing business operations and note them in the reconciliation from net earnings to the non-GAAP financial measure adjusted EBITDA. Amortization of inventory step-up represents the increase in inventory fair value associated with our acquisitions. The increase in inventory fair value is amortized to cost of sales over the period that the related inventory is sold. The amortization of inventory step-up is excluded because it is a non-cash expense that is not indicative of ongoing operating results. Impairment charges are excluded because they do not occur in the ordinary course of our ongoing business operations, are inherently unpredictable in timing and amount, and are non-cash, which management believes facilitates the comparison of historical, current and forecasted financial results. Restructuring activities consist of established programs that are intended to fundamentally change our operations, and as such are excluded from its non-GAAP financial measures. Our restructuring programs may include closing or consolidating production facilities or moving manufacturing of a product to another location, realignment of the management structure of a business unit in response to changing market conditions or general rationalization of headcount. Our restructuring activities generally give rise to employee-related costs, such as severance pay, and facility-related costs, such as exit costs and gains or losses on asset disposals but may include other incremental costs associated with our restructuring activities. Restructuring and other expense, net, may also include other nonrecurring items included in operating income but incremental to our normal business activities. These items are excluded because they are not indicative of the ongoing operations of our underlying business. Non-cash (gains) losses in miscellaneous (income) expense are excluded due to their non-cash nature and the fact that they do not occur in the normal course of business and may obscure analysis of trends and financial performance. Sonya L. HigginbothamSenior Vice PresidentChief of Corporate Affairs, Communications and [email protected] Marcus A. RogierTreasurer and Investor Relations [email protected] 200 Old Wilson Bridge Rd.Columbus, Ohio 43085WorthingtonEnterprises.com

Worthington Enterprises (WOR) came out with quarterly earnings of $0.82 per share, beating the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.74 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.81%. A quarter ago, it was expected that this metal manufacturer would post earnings of $1.04 per share when it actually produced earnings of $0.97, delivering a surprise of -6.73%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Worthington Enterprises, which belongs to the Zacks Building Products - Wood industry, posted revenues of $343.89 million for the quarter ended August 2026, surpassing the Zacks Consensus Estimate by 3.55%. This compares to year-ago revenues of $303.71 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Worthington Enterprises shares have added about 12.8% since the beginning of the year versus the S&P 500's gain of 13.4%. While Worthington Enterprises has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Worthington Enterprises was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.78 on $351.6 million in revenues for the coming quarter and $3.75 on $1.49 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Wood is currently in the bottom 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Construction sector, PulteGroup (PHM), is yet to report results for the quarter ended September 2026. The results are expected to be released on October 22. This homebuilder is expected to post quarterly earnings of $2.63 per share in its upcoming report, which represents a year-over-year change of -11.2%. The consensus EPS estimate for the quarter has been revised 0.8% lower over the last 30 days to the current level. PulteGroup's revenues are expected to be $4.12 billion, down 6.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Worthington Enterprises, Inc. (WOR) : Free Stock Analysis Report PulteGroup, Inc. (PHM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

COLUMBUS, Ohio, Sept. 22, 2026 (GLOBE NEWSWIRE) -- The Worthington Enterprises Inc. (NYSE: WOR) board of directors today declared a quarterly dividend of $0.20 per share. The dividend is payable on December 29, 2026, to shareholders of record on December 15, 2026. The company has paid a quarterly dividend since its initial public offering in 1968. The fiscal first quarter board meeting concluded the service of Michael Endres, Ozey Horton, Jr., and Virgil Winland. Collectively, Endres, Horton and Winland have 97 years of service and affiliation with the company. “Mike, Ozey and Virgil have each made an extraordinary contribution to Worthington Enterprises, and we are deeply grateful for their many years of service,” said Chairman of the Board John Blystone. “Together, they brought tremendous experience, sound judgment and a genuine commitment to doing what is right for the company and its shareholders. On behalf of the entire board, I thank Mike, Ozey and Virgil for their leadership, counsel and friendship, and for the lasting impact they have made on Worthington Enterprises.” Worthington Enterprises will hold its quarterly earnings conference call tomorrow at 8:30 a.m. ET. The company will discuss its fiscal first quarter results, which will be released after the market closes this afternoon. About Worthington Enterprises Worthington Enterprises Inc. (NYSE: WOR) is a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences. Building Performance Solutions (formerly Building Products) delivers essential engineered products that enhance performance across residential and commercial buildings, including critical facilities such as data centers. Its products support building systems, and climate and comfort applications. The segment primarily serves OEMs and distributors. Trade & Specialty Solutions (formerly Consumer Products) includes market-leading brands used by professional tradespeople and consumers across tools, portable propane and helium and other specialty applications. The Worthington Enterprises portfolio includes Balloon Time®, Bernzomatic®, ClarkDietrich, Coleman® propane cylinders, Elgen, General®, HALO™, LEVEL5 Tools®, Ragasco®, Roof Hugger®, Well-X-Trol® and Worthington Armstrong Venture (WAVE), among others. Headquartered in Columbus, Ohio, Worthington Enterprises employs approximately 4,000 people throughout North America and Europe. Founded in 1955 as Worthington Industries, Worthington Enterprises follows a people-first Philosophy with earning money for its shareholders as its first corporate goal. Worthington Enterprises achieves this outcome by empowering its employees to innovate, thrive and grow with leading brands in attractive markets that improve everyday life. The company engages deeply with local communities where it has operations through volunteer efforts and The Worthington Companies Foundation, participates actively in workforce development programs and reports annually on its corporate citizenship and sustainability efforts. For more information, visit worthingtonenterprises.com. Forward-Looking Statements Statements by Worthington Enterprises that are not limited to historical information constitute “forward-looking statements” under federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from those expected by Worthington Enterprises. Readers should evaluate forward-looking statements in the context of such risks, uncertainties and other factors, many of which are described in Worthington Enterprises’ filings with the Securities and Exchange Commission (“SEC”). Forward-looking statements are qualified by the cautionary statements included in Worthington Enterprises’ SEC filings and other public communications. This press release speaks only as of the date hereof. Worthington Enterprises does not undertake any obligation to update or revise its forward-looking statements except as required by applicable law or regulation. Sonya L. HigginbothamSenior Vice PresidentChief of Corporate Affairs, Communications and [email protected] Marcus A. RogierTreasurer and Investor Relations [email protected] 200 Old Wilson Bridge Rd.Columbus, Ohio 43085WorthingtonEnterprises.com