Worthington Enterprises Q1 Earnings Soar 44.5% on Strong Operations

TL;DR

**WOR's Q1 numbers are crushing it, showing strong operational gains and making it a solid buy for growth-focused traders.**

AI Summary

WORTHINGTON ENTERPRISES, INC. (WOR) reported a strong first quarter for fiscal 2026, with net earnings attributable to controlling interest increasing to $35.1 million, or $0.70 per diluted share, for the three months ended August 31, 2025, up from $24.3 million, or $0.48 per diluted share, in the prior year quarter. This represents a significant 44.5% increase in net earnings. Operating income also saw a substantial rise, reaching $45.7 million compared to $30.8 million in the same period last year, a 48.4% improvement. Adjusted EBITDA, a key non-GAAP metric, surged to $65.1 million from $48.4 million, indicating robust operational performance. The company's cash and cash equivalents decreased from $250.1 million to $167.1 million, while total inventories increased from $169.4 million to $201.6 million, reflecting potential strategic inventory build-up or slower sales. Goodwill increased by $35.8 million to $412.3 million, and other intangible assets, net, rose by $32.5 million to $222.9 million, suggesting recent acquisitions or revaluations. Restructuring and other expenses, net, increased to $2.5 million from $1.2 million, indicating ongoing operational adjustments.

Why It Matters

This strong Q1 performance by Worthington Enterprises signals healthy underlying business momentum, which is crucial for investors looking for growth in the industrial sector. The significant increase in net earnings and adjusted EBITDA suggests effective management and potentially favorable market conditions, positioning WOR competitively against peers. For employees, this could mean job security and potential for growth, while customers might benefit from continued product innovation and service. The broader market could see this as an indicator of resilience in manufacturing and construction-related industries, especially given the increase in goodwill and intangible assets which often follow strategic expansions or acquisitions.

Risk Assessment

Risk Level: medium — While net earnings and operating income saw substantial increases, the company's cash and cash equivalents decreased by $82.9 million, from $250.1 million to $167.1 million, and inventories increased by $32.2 million, from $169.4 million to $201.6 million. This could indicate cash flow pressures or slower inventory turnover, despite strong earnings. The increase in restructuring expenses to $2.5 million from $1.2 million also suggests ongoing operational changes that carry inherent execution risks.

Analyst Insight

Investors should consider WOR's strong earnings growth and operational efficiency as a positive signal, but closely monitor cash flow and inventory levels in future reports. The increase in goodwill and intangible assets warrants further investigation into recent acquisitions or strategic investments. This could be an opportune time to initiate or increase a position, assuming the inventory build-up is strategic and not indicative of demand issues.

Financial Highlights

total Assets

$1.74B

net Income

$35.1M

eps

$0.70

cash Position

$167.1M

Key Numbers

• $35.1M — Net earnings attributable to controlling interest (Increased 44.5% from $24.3M in prior year quarter)
• $0.70 — Diluted EPS (Increased from $0.48 in prior year quarter)
• $45.7M — Operating income (Increased 48.4% from $30.8M in prior year quarter)
• $65.1M — Adjusted EBITDA (Increased from $48.4M in prior year quarter)
• $167.1M — Cash and cash equivalents (Decreased from $250.1M as of May 31, 2025)
• $201.6M — Total inventories (Increased from $169.4M as of May 31, 2025)
• $412.3M — Goodwill (Increased from $376.5M as of May 31, 2025)
• $2.5M — Restructuring and other expense, net (Increased from $1.2M in prior year quarter)
• 49,665,056 — Common shares outstanding (As of October 1, 2025)
• $1.74B — Total assets (Increased from $1.70B as of May 31, 2025)

Key Players & Entities

• WORTHINGTON ENTERPRISES, INC. (company) — Registrant
• SEC (regulator) — Securities and Exchange Commission
• New York Stock Exchange (regulator) — Exchange where WOR is registered
• ClarkDietrich (company) — Unconsolidated affiliate
• Ragasco AS (company) — Unconsolidated affiliate
• WAVE (company) — Worthington Armstrong Venture
• PSLRA (regulator) — Private Securities Litigation Reform Act of 1995
• FASB (regulator) — Financial Accounting Standards Board
• U.S. Environmental Protection Agency (regulator) — Environmental regulator
• Bloomberg (company) — Financial news outlet

FAQ

Risk Factors

• Inventory Management [medium — operational]: Total inventories increased from $169.4 million to $201.6 million. This build-up could indicate strategic stocking for anticipated demand or potential challenges in sales velocity, impacting working capital and future profitability.
• Cash Position Decline [medium — financial]: Cash and cash equivalents decreased from $250.1 million to $167.1 million. While still substantial, this reduction warrants monitoring to ensure sufficient liquidity for ongoing operations, investments, and potential unforeseen expenditures.
• Restructuring Expenses [low — operational]: Restructuring and other expenses, net, rose to $2.5 million from $1.2 million in the prior year quarter. This increase suggests ongoing operational adjustments or integration costs, which could impact short-term profitability.
• Acquisition/Revaluation Impact [medium — financial]: Goodwill increased by $35.8 million to $412.3 million, and other intangible assets, net, rose by $32.5 million to $222.9 million. These significant increases point to recent acquisitions or revaluations, which carry integration risks and potential future impairment considerations.

Industry Context

The company operates in sectors influenced by raw material pricing trends and demand for finished goods. Competitive positioning and the ability to improve or maintain margins are critical factors. Innovation and transformation efforts are highlighted as drivers for future performance and market participation.

Regulatory Implications

The company utilizes safe harbor provisions under the PSLRA for forward-looking statements, indicating a need for careful communication regarding future expectations. Compliance with SEC reporting requirements is standard for publicly traded entities.

What Investors Should Do

1. Monitor inventory levels and turnover ratios.
2. Analyze the drivers behind the increase in goodwill and intangible assets.
3. Evaluate the sustainability of the strong earnings growth.
4. Assess the impact of increased restructuring expenses.

Glossary

Separation

The separation of the company's former steel processing business, effective December 1, 2023. (This event has a significant impact on the company's historical and future financial reporting and operational structure.)

Adjusted EBITDA

A non-GAAP financial measure representing earnings before interest, taxes, depreciation, and amortization, often adjusted for certain non-recurring items. (Used by the company to indicate robust operational performance, showing a surge to $65.1 million from $48.4 million.)

PSLRA

Private Securities Litigation Reform Act of 1995, as amended. (Provides a safe harbor for forward-looking statements made by the company, which are prevalent in the MD&A section.)

SG&A

Selling, general and administrative expenses. (A key component of operating expenses that impacts profitability and is closely watched by investors.)

Year-Over-Year Comparison

Compared to the prior year quarter, WORTHINGTON ENTERPRISES, INC. (WOR) demonstrated significant financial improvement. Net earnings attributable to controlling interest surged by 44.5% to $35.1 million, with diluted EPS rising to $0.70 from $0.48. Operating income saw a substantial 48.4% increase to $45.7 million, supported by a strong rise in Adjusted EBITDA to $65.1 million. However, cash and cash equivalents decreased to $167.1 million, while inventories grew to $201.6 million, indicating shifts in working capital. Goodwill and intangible assets also saw notable increases, suggesting strategic acquisitions or revaluations.

Key Financial Figures

• $500,000,000 — mer Price Index Credit Facility Our $500,000,000 unsecured revolving credit facility wit

Filing Documents

• wor-20250831.htm (10-Q) — 2840KB
• wor-ex31_1.htm (EX-31.1) — 17KB
• wor-ex31_2.htm (EX-31.2) — 17KB
• wor-ex32_1.htm (EX-32.1) — 10KB
• wor-ex32_2.htm (EX-32.2) — 10KB
• 0001193125-25-234399.txt ( ) — 13473KB
• wor-20250831.xsd (EX-101.SCH) — 1800KB
• wor-20250831_htm.xml (XML) — 3068KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets – August 31, 2025 and May 31, 2025 3 Consolidated Statements of Earnings – Three Months Ended August 31, 2025 and 2024 4 Consolidated Statements of Comprehensive Income – Three Months Ended August 31, 2025 and 2024 5 Consolidated Statements of Cash Flows – Three Months Ended August 31, 2025 and 2024 6 Condensed Notes to Consolidated Financial Statements (Unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 Item 4.

Controls and Procedures

Controls and Procedures 28

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 29 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 3. Defaults Upon Senior Securities 30 Item 4. Mine Safety Disclosures 30 Item 5. Other Information 30 Item 6. Exhibits 30

Signatures

Signatures 31 i Table of Contents COMMONLY USED OR DEFINED TERMS References in this Form 10-Q to "we," "our," "us" or the "Company" are collectively to Worthington Enterprises and its consolidated subsidiaries. In addition, the following terms, when used in this Form 10-Q, have the meanings set forth below: Term Definition ABI Architecture Billings Index ATSR Annualized absolute total shareholder return AOCI Accumulated other comprehensive income (loss) ASU Accounting Standards Update Board Board of Directors of Worthington Enterprises, Inc. CARES Act Coronavirus Aid, Relief and Economic Security Act CEO Chief Executive Officer ClarkDietrich Clarkwestern Dietrich Building Systems LLC CODM Chief Operating Decision Maker common shares The common shares, no par value, of Worthington Enterprises COVID-19 The novel coronavirus disease first known to originate in December 2019 CPI U.S. Core Consumer Price Index Credit Facility Our $500,000,000 unsecured revolving credit facility with a group of lenders current year quarter The three months ended August 31, 2025 DIY Do-it-yourself DMI Dodge Momentum Index EBIT Earnings before interest and taxes EBITDA Earnings before interest, taxes, depreciation, and amortization Elgen Elgen Manufacturing Company, Inc. EPS Earnings per common share equity income Equity in net income of unconsolidated affiliates ETR Effective income tax rate Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board first quarter of fiscal 2026 Our fiscal quarter ended August 31, 2025 fiscal 2024 Our fiscal year ended May 31, 2024 fiscal 2025 Our fiscal year ended May 31, 2025 fiscal 2026 Our fiscal year ended May 31, 2026 Form 10-Q This Quarterly Report on Form 10-Q for the quarterly period ended August 31, 2025 GAAP U.S. generally accepted accounting principles GDP U.S. gross dom

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations N.M. Not meaningful OCI Other comprehensive income (loss) prior year quarter The three months ended August 31, 2024 PSLRA Private Securities Litigation Reform Act of 1995, as amended Ragasco Ragasco AS SEC Securities and Exchange Commission Separation The separation of our former steel processing business, effective December 1, 2023 SG&A Selling, general and administrative expenses simple SOFR Simple Secured Overnight Financing Rate U.S. United States of America WAVE Worthington Armstrong Venture Workhorse Taxi Workhorse Holdings, LLC Worthington Enterprises Worthington Enterprises, Inc. (formerly known as Worthington Industries, Inc.) Worthington Steel Worthington Steel, Inc. 2025 Form 10-K Our Annual Report on Form 10-K for fiscal 2025 as filed with the SEC on July 30, 2025 2026 Form 10-K Our Annual Report on Form 10-K for fiscal 2026 ii Table of Contents C AUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Selected statements contained in this Form 10-Q, including, without limitation, in MD&A and in "Note D – Contingent Liabilities and Commitments," constitute "forward-looking statements," as that term is used in the PSLRA. We wish to take advantage of the safe harbor provisions included in the PSLRA. 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 capit

– Financ ial Statements

Item 1. – Financ ial Statements WORTHINGTON ENTERPRISES, INC. CONSOLIDATED B ALANCE SHEETS (In thousands) (Unaudited) August 31, May 31, 2025 2025 Assets Current assets: Cash and cash equivalents 167,122 $ 250,075 Receivables, less allowances of $ 906 and $ 907 , respectively 214,078 215,824 Inventories: Raw materials 103,069 80,522 Work in process 9,660 9,408 Finished products 88,831 79,463 Total inventories 201,560 169,393 Income taxes receivable 4,579 12,720 Prepaid expenses and other current assets 38,701 37,358 Total current assets 626,040 685,370 Investments in unconsolidated affiliates 129,678 129,262 Operating lease assets 39,603 22,699 Goodwill 412,304 376,480 Other intangible assets, net of accumulated amortization of $ 92,988 and $ 88,887 , respectively 222,889 190,398 Other assets 20,880 20,717 Property, plant and equipment: Land 8,735 8,703 Buildings and improvements 134,797 132,742 Machinery and equipment 384,904 372,798 Construction in progress 45,688 33,326 Total property, plant and equipment 574,124 547,569 Less: accumulated depreciation 287,381 277,343 Total property, plant and equipment, net 286,743 270,226 Total assets $ 1,738,137 $ 1,695,152 Liabilities and equity Current liabilities: Accounts payable $ 102,841 $ 103,205 Accrued compensation, contributions to employee benefit plans and related taxes 33,479 43,864 Dividends payable 9,999 9,172 Other accrued items 35,842 34,478 Current operating lease liabilities 7,556 6,014 Income taxes payable 71 109 Total current liabilities 189,788 196,842 Other liabilities 57,465 53,364 Distributions in excess of investment in unconsolidated affiliate 103,166 103,767 Long-term debt 306,010 302,868 Noncurrent operating lease liabilities 32,694 17,173 Deferred income taxes, net

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