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Worthington Enterprises Reports Fourth Quarter Fiscal 2025 Results

COLUMBUS, Ohio, June 24, 2025 (GLOBE NEWSWIRE) -- Worthington Enterprises Inc. (NYSE: WOR), a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences, today reported results for its fiscal 2025 fourth quarter ended May 31, 2025.

Recent Developments and Fourth Quarter Highlights (all comparisons to the fourth quarter of fiscal 2024):

• Net sales were $317.9 million, a decrease of 0.3%, reflecting the deconsolidation of the former Sustainable Energy Solutions segment (鈥淪ES鈥�), nearly offset by volume growth and contributions from the Ragasco business acquired in the first quarter of fiscal 2025.

• Net earnings from continuing operations increased 111% to $3.6 million, while adjusted EBITDA from continuing operations grew 35% to $85.1 million.
• Earnings per share (鈥�EPS鈥�) from continuing operations (diluted) improved from a loss of $(0.64) to $0.08 per share, while adjusted EPS from continuing operations (diluted) increased from $0.74 to $1.06 per share.
• Operating cash flow increased 38% to $62.4 million, while free cash flow increased 46% to $49.3 million.
• Repurchased 200,000 shares of common stock for $9.8 million, leaving 5,365,000 shares remaining on the Company鈥檚 share repurchase authorization.
• Declared a quarterly dividend of $0.19 per share payable on September 29, 2025, to shareholders of record at the close of business on September 15, 2025, a 12% increase, or $0.02 per share, compared to the prior quarter.
• Acquired Elgen Manufacturing, a market-leading designer and manufacturer of HVAC parts and components, ductwork and structural framing primarily used in commercial buildings throughout North America. The acquisition closed on June 19, 2025, for approximately $93 million, subject to closing adjustments.
  

鈥淲e closed fiscal 2025 with a strong fourth quarter, delivering year-over-year and sequential growth in adjusted EBITDA, adjusted EPS and free cash flow,鈥� said Worthington Enterprises President and CEO Joe Hayek. 鈥淐onsumer Products continued to perform well in a dynamic environment, driven by disciplined cost management and effective execution, while Building Products delivered robust top- and bottom-line growth, supported by improved volumes and steady contributions from WAVE and ClarkDietrich. Our results reflect the efforts of exceptional teams across our Company delivering value for shareholders.听I want to thank all of our employees across the globe for their continued hard work and commitment to serving our customers.鈥�

Financial highlights for the fiscal 2025 and fiscal 2024 fourth quarters are as follows:

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Consolidated Quarterly Results

Net sales for the fourth quarter of fiscal 2025 were down slightly from the prior year quarter to $317.9 million as the impact of the deconsolidation of SES effective May 29, 2024, was nearly offset by higher overall volumes and contributions from the Ragasco acquisition. Net sales in the prior year quarter included $39.9 million related to SES, which is now operated as an unconsolidated joint venture and its results are reported within equity income on the consolidated statement of earnings beginning June 1, 2024.

The operating loss of $30.4 million represented a $25.6 million improvement over the prior year quarter. Results in both the fiscal 2025 and prior year fourth quarters included nonrecurring items totaling $52.2 million and $61.8 million, respectively, primarily resulting from the non-cash write-down of intangible assets in the General Tools & Instruments (鈥淕TI鈥�) business in the fiscal 2025 fourth quarter and the deconsolidation of the SES business in the prior year quarter. Excluding these items, adjusted operating income increased $16.0 million to $21.8 million on the impact of higher overall volume, particularly within the Building Products segment.

Equity income increased $2.3 million from the prior year quarter to $42.7 million, driven by higher contributions from WAVE and ClarkDietrich, which were up a combined $6.4 million over the prior year quarter. This was partially offset by a loss at the SES joint venture, which included a $3.4 million non-cash impairment charge that reduced equity income in the quarter.听

Income tax expense was down slightly to $4.7 million, as the impact of discrete items in both periods more than offset higher pre-tax earnings from continuing operations. Income tax expense in the fourth quarter of fiscal 2025 reflects an annual effective rate of 26.1% compared to 52.6% in the prior year, which was impacted by discrete items related to the deconsolidation of the SES business. On an adjusted basis, the annual effective tax rate was 23.0% compared to 23.5% in the prior year.

Balance Sheet and Cash Flow

The Company ended the quarter with cash of $250.1 million, an increase of $5.9 million from May 31, 2024. During the fourth quarter, the Company generated operating cash flow of $62.4 million, of which $13.1 million was invested in capital expenditures, resulting in free cash flow of $49.3 million, up from $33.8 million in the prior year quarter. Capital expenditures in the fiscal 2025 fourth quarter included approximately $7.7 million related to ongoing facility modernization projects.

Total debt at quarter end was $302.9 million, consisting entirely of long-term debt, and increased $4.7 million from May 31, 2024, primarily due to the remeasurement of the Company鈥檚 euro-denominated notes. The Company had no borrowings under its revolving credit facility as of May 31, 2025, leaving $500.0 million available for future use.

Quarterly Segment Results

Consumer Products generated net sales of $125.6 million, essentially flat compared to the prior year quarter, on slightly higher volume. Adjusted EBITDA increased $3.7 million over the prior year quarter to $20.8 million, driven by lower SG&A expenses and favorable product mix.

Building Products generated net sales of $192.3 million in the fiscal 2025 fourth quarter, an increase of $38.8 million, or 25.2%, over the prior year quarter. Growth was driven by higher overall volumes and contributions from the Ragasco acquisition. Adjusted EBITDA increased $19.6 million over the prior year quarter to $71.3 million on the impact of higher net sales and higher equity income contributions from WAVE and ClarkDietrich.

Outlook

鈥淗eading into fiscal 2026, we are confident in our ability to continue to drive sustainable growth and long-term value,鈥� Hayek said. 鈥淥ur recent acquisition of Elgen Manufacturing reflects our growth strategy of building and acquiring businesses with leadership positions in niche markets. Leveraging our people first performance-based culture, the Worthington Business System and a strong balance sheet, our teams are very well positioned to continue leading the way by focusing on innovative solutions that elevate spaces and experiences."

Conference Call

The Company will review fiscal 2025 fourth quarter results during its quarterly conference call on June 25, 2025, at 8:30 a.m. Eastern Time. Details regarding the conference call can be found on the Company website at www.WorthingtonEnterprises.com.

About Worthington Enterprises

Worthington Enterprises (NYSE: WOR) is a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences. The Company operates with two primary business segments: Building Products and Consumer Products. The Building Products segment includes cooking, heating, cooling and water solutions, architectural and acoustical grid ceilings and metal framing and accessories. The Consumer Products segment provides solutions for the tools, outdoor living and celebrations categories. Product brands within the Worthington Enterprises portfolio include Balloon Time庐, Bernzomatic庐, Coleman庐 (propane cylinders), CoMet庐, Elgen, Garden Weasel庐, General庐, HALO鈩�, Hawkeye鈩�, Level5 Tools庐, Mag Torch庐, NEXI鈩�, Pactool International庐, PowerCore鈩�, Ragasco庐, Well-X-Trol庐 and XLite鈩�, among others.

Headquartered in Columbus, Ohio, Worthington Enterprises and its joint ventures employ approximately 6,000 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 鈥渇orward-looking statements,鈥� as that term is used in the Private Securities Litigation Reform Act of 1995 (the 鈥淎ct鈥�). The Company wishes to take advantage of the safe harbor provisions included in the Act. Forward-looking statements reflect the Company鈥檚 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 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥渕ay,鈥� 鈥渃ould,鈥� 鈥渟hould,鈥� 鈥渨ould,鈥� 鈥渋ntend,鈥� 鈥減lan,鈥� 鈥渨ill,鈥� 鈥渓ikely,鈥� 鈥渆stimate,鈥� 鈥減roject,鈥� 鈥減osition,鈥� 鈥渟trategy,鈥� 鈥渢arget,鈥� 鈥渁im,鈥� 鈥渟eek,鈥� 鈥渇oresee鈥� 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; the anticipated benefits of the separation of the Company鈥檚 Steel Processing business (the 鈥淪eparation); the expected financial and operational performance of, and future opportunities for, the Company following the Separation; the Company鈥檚 performance on a pro forma basis to illustrate the estimated effects of the Separation on historical periods; the tax treatment of the Separation transaction; 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 for the Company or its markets; 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 at the Company鈥檚 operations; 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 Company and customer 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; the ever-changing effects of the novel coronavirus (鈥淐OVID-19鈥�) pandemic 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 uncertainty of obtaining regulatory approvals in connection with the Separation, including rulings from the Internal Revenue Service; the Company鈥檚 ability to successfully realize the anticipated benefits of the Separation; the risks, uncertainties and impacts related to the COVID-19 pandemic 鈥� the duration, extent and severity of which are impossible to predict, including the possibility of future resurgence in the spread of COVID-19 or variants thereof 鈥� and the availability, effectiveness and acceptance of vaccines, and other actual or potential public health emergencies and actions taken by governmental authorities or others in connection therewith; the effect of national, regional and global economic conditions generally and within major product markets, including significant economic disruptions from COVID-19, the actions taken in connection therewith and the implementation of related fiscal stimulus packages; 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 the Company鈥檚 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 the Company鈥檚 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 (especially in light of the COVID-19 pandemic and Russia鈥檚 invasion of Ukraine); effects of sourcing and supply chain constraints; the outcome of adverse claims experience with respect to workers鈥� 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 the Company participates; 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 the Company does 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 the Company participates 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 (especially in light of Russia鈥檚 invasion of Ukraine), 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 (especially in light of Russia鈥檚 invasion of Ukraine), foreign currency exchange rate exposure and the acceptance of the Company鈥檚 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 the Company鈥檚 operations and financial results; deviation of actual results from estimates and/or assumptions used by the Company in the application of its significant accounting policies; the level of imports and import prices in the Company鈥檚 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 the Company鈥檚 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, especially in light of the COVID-19 pandemic, which may increase the Company鈥檚 healthcare and other costs and negatively impact the Company鈥檚 operations and financial results; the effects of tax laws in the United States and potential changes for such laws, which may increase the Company鈥檚 costs and negatively impact the Company鈥檚 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 the Company鈥檚 filings with the United States Securities and Exchange Commission, including those described in 鈥淧art I 鈥� Item 1A. 鈥� Risk Factors鈥� of the Company鈥檚 Annual Report on Form 10-K for the fiscal year ended May 31, 2024.

Forward-looking statements should be construed in the light of such risks. The Company notes 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. The Company does not undertake, and hereby disclaims, 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.

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Consolidated Results - Adjusted Earnings per Share from Continuing Operations - Diluted

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Consolidated Results - Adjusted EBITDA from Continuing Operations

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Consolidated Results - Free Cash Flow

The following tables provide a reconciliation of net cash provided by operating activities to free cash flow and the calculation of operating cash flow conversion to free cash flow conversion for the three months ended May 31, 2025 and 2024 and twelve months ended May 31, 2025. Cash flow information for the twelve months ended May 31, 2024 has not been presented because it is combined with the discontinued operations of Worthington Steel and is not meaningful for purposes of comparison. Refer to the consolidated Statements of Cash Flows for additional information.

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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 (鈥淕AAP鈥�). 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 the Company鈥檚 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 the Company鈥檚 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 the Company鈥檚 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 from continuing operations is defined as net earnings from continuing operations attributable to controlling interest (鈥渘et earnings from continuing operations鈥�) excluding the after-tax effect of the excluded items outlined below.

Adjusted earnings per diluted share from continuing operations (鈥淎djusted EPS from continuing operations - diluted鈥�) is defined as adjusted net earnings from continuing operations divided by diluted weighted-average shares outstanding).

Adjusted EBITDA from continuing operations is the measure by which management evaluates segment performance and overall profitability. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA from continuing operations 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 ongoing operations. Adjusted EBITDA from continuing operations 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 from continuing operations 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 from continuing operations margin is calculated by dividing adjusted EBITDA from continuing operations by net sales.

Free cash flow is a non-GAAP financial liquidity measure that is used by the Company to assess its ability to generate cash beyond what is required for its business operations and capital expenditures. The Company defines 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 by the Company to measure how much of its adjusted net earnings attributable to controlling interest is converted into cash. The Company defines free cash flow conversion as free cash flow divided by net earnings from continuing operations.

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鈥� 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 the Company鈥檚 ongoing business operations and note them in the reconciliation from net earnings from continuing operations to the non-GAAP financial measure adjusted EBITDA from continuing operations.

• Impairment charges are excluded because they do not occur in the ordinary course of the Company鈥檚 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 consists of established programs that are intended to fundamentally change the Company鈥檚 operations, and as such are excluded from its non-GAAP financial measures. The Company鈥檚 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. The Company鈥檚 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 the Company鈥檚 restructuring activities. Restructuring and other expense, net, may also include other nonrecurring items included in operating income but incremental to the Company鈥檚 normal business activities. These items are excluded because they are not part of the ongoing operations of the Company鈥檚 underlying business.
• Separation costs, which consist of direct and incremental costs incurred in connection with the completed Separation are excluded as they are one-time in nature and are not expected to occur in periods following the Separation. These costs include fees paid to third-party advisors, such as investment banking, audit and other advisory services as well as direct and incremental costs associated with the Separation of shared corporate functions. Results in fiscal 2024 also include incremental compensation expense associated with the modification of unvested short and long-term incentive compensation awards, as required under the employee matters agreement executed in conjunction with the Separation.
• Non-cash charges in miscellaneous 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.
• Loss on extinguishment of debt is excluded because it does not occur in the normal course of business and may obscure analysis of trends and financial performance. Additionally, the amount and frequency of this type of charge is not consistent and is significantly impacted by the timing and size of debt extinguishment transactions.
• Corporate costs eliminated at Separation reflect certain corporate overhead costs that no longer exist post-Separation. These costs were included in continuing operations as they represent general corporate overhead that was historically allocated to the Company鈥檚 former steel processing business but did not meet the requirements to be presented as discontinued operations.
• Pension settlement charges 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. These transactions typically result from the transfer of all or a portion of the total projected benefit obligation to third-party insurance companies.
• One-time tax effects of Separation are charges to income tax expense primarily related to non-deductible transaction costs. They are excluded because they are one-time in nature and not expected to occur in periods following the Separation.
• Non-recurring loss in equity income is excluded because it does not occur in the normal course of business and is inherently unpredictable in timing and amount.
  

Sonya L. Higginbotham
Senior Vice President
Chief of Corporate Affairs, Communications and Sustainability
614.438.7391
[email protected]

Marcus A. Rogier
Treasurer and Investor Relations Officer
614.840.4663
[email protected]

200 West Old听Wilson听Bridge听Rd.
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