Worthington Enterprises Reports First Quarter Fiscal 2026 Results

Worthington Enterprises Inc., a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences, reported results for its fiscal 2026 first quarter ended August 31, 2025.

Recent Developments and First Quarter Highlights

(all comparisons to the first quarter of fiscal 2025)

• Net sales were $303.7 million, an increase of 18%.
• Net earnings increased 45% to $34.8 million, while adjusted EBITDA grew 34% to $65.1 million.
• Earnings per share (“EPS”) – diluted improved from $0.48 to $0.70 per share, while adjusted EPS – diluted increased from $0.50 to $0.74 per share.
• Operating cash flow of $41.1 million was flat compared to the prior year quarter, while free cash flow decreased 12% to $27.9 million, driven by increased capital expenditures related to ongoing facility modernization projects.
• Repurchased 100,000 common shares for $6.3 million leaving 5,265,000 common shares remaining on the Company’s repurchase authorization.
• Declared a quarterly dividend of $0.19 per common share payable on December 29, 2025, to shareholders of record at the close of business on December 15, 2025.
• 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, on June 18, 2025, for $91.2 million, net of cash acquired.
  

“We started the fiscal year with solid momentum led by strong performance in our Building Products segment,” said Worthington Enterprises President and CEO Joe Hayek. “Volume growth in Building Products and increased contributions from WAVE helped drive meaningful earnings improvement, while our Consumer Products team delivered solid results despite a challenging macro environment. Throughout the business, our teams continue to execute well, supported by strong customer relationships, a transformational mindset and a portfolio of market-leading brands that support our long-term growth strategy.”

Consolidated Quarterly Results

Net sales for the first quarter of fiscal 2026 increased $46.4 million, or 18.0%, over the prior year quarter to $303.7 million, driven by higher volumes in Building Products, including contributions from Elgen.

Operating income of $9.2 million was favorable $13.9 million compared to the operating loss in the prior year quarter. On an adjusted basis, excluding restructuring and other expense, operating income increased $15.3 million in the quarter to $11.7 million, driven by higher volumes within Building Products.

Equity income increased $1.2 million over the prior year quarter to $36.7 million, due to higher contributions from WAVE, which was up $4.5 million, partially offset by a $2.8 million decrease in equity earnings at ClarkDietrich.

Income tax expense was $10.9 million in the first quarter of fiscal 2026 compared to $6.8 million in the prior year quarter. The increase was driven by higher pre-tax earnings. Income tax expense in the first quarter of fiscal 2026 reflects an estimated annual effective rate of 23.8% compared to 24.5% in the prior year quarter.

Balance Sheet and Cash Flow

The Company ended the first quarter with cash of $167.1 million, a decrease of $83.0 million from May 31, 2025, driven by the purchase of Elgen. During the first quarter of fiscal 2026, the Company generated operating cash flow of $41.1 million, of which $13.2 million was invested in capital expenditures, resulting in free cash flow of $27.9 million, down from $31.5 million in the prior year quarter. Capital expenditures in the current year quarter included approximately $8.6 million related to ongoing facility modernization projects.

Total debt at quarter end was $306.0 million, consisting entirely of long-term debt, an increase of $3.1 million from May 31, 2025, due to the remeasurement of the Company’s euro denominated notes. The Company had no borrowings under its revolving credit facility as of August 31, 2025, leaving $500.0 million available for future use.

Quarterly Segment Results

Consumer Products generated net sales of $118.9 million in the current year quarter, up $1.3 million from the prior year quarter, as favorable product mix was largely offset by lower volumes. Adjusted EBITDA was $16.1 million, down $1.6 million from the prior year quarter, primarily due to lower volumes and increased SG&A expense.

Building Products generated net sales of $184.8 million, up $45.1 million, or 32.2%, from the prior year quarter. The increase was driven by higher volumes and the inclusion of Elgen, which contributed $20.9 million in net sales. Adjusted EBITDA increased $18.1 million to $57.8 million, primarily due to volume growth in the wholly owned businesses. The quarter included $2.2 million in incremental expenses related to the Elgen acquisition from the purchase accounting step up in inventory to fair value, resulting in a nominal contribution to adjusted EBITDA from Elgen.

Outlook

“We have had a strong start to our fiscal year and believe we are well positioned for the future,” Hayek said. “The addition of Elgen strengthens our presence in commercial HVAC and broadens our reach within the building envelope. Backed by a strong balance sheet, consistent free cash flow and the Worthington Business System of innovation, transformation and acquisitions, our teams remain focused on executing our strategy and delivering long-term value for customers and shareholders.”

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 heating and cooling, cooking, construction and water solutions, and building systems including HVAC components, 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®, Bernzomatic®, Coleman® (propane cylinders), CoMet®, Elgen, Garden Weasel®, General®, HALO™, Hawkeye™, Level5 Tools®, Mag Torch®, NEXI™, Pactool International®, PowerCore™, Ragasco®, Well-X-Trol® and XLite™, among others.

Contact:

Sonya L. Higginbotham – Senior Vice President, Chief of Corporate Affairs, Communications and Sustainability – sonya.higginbotham@wthg.com – (614) 438-7391

Source: Worthington Enterprises, Inc.