Worthington Enterprises Achieves Remarkable First Quarter Growth

Worthington Enterprises Sees Strong Start to Fiscal 2026

Worthington Enterprises Inc. (NYSE: WOR), a premier designer and manufacturer of innovative products, has reported impressive financial results for the first quarter of fiscal 2026. The company has shown strong performance, particularly in its Building Products segment, marking a successful start to the year.

Recent Achievements and Financial Highlights

In comparison to the previous year's first quarter, Worthington's net sales surged to $303.7 million, reflecting an 18% increase. This robust growth is attributed to higher volumes within the Building Products segment and significant contributions from the newly acquired Elgen Manufacturing.

Improved Earnings and Key Financial Metrics

The company also reported a remarkable increase in net earnings, reaching $34.8 million—a 45% rise when compared to the previous year. Adjusted EBITDA also experienced growth, climbing 34% to a robust $65.1 million. Furthermore, Worthington's diluted earnings per share improved from $0.48 to $0.70, indicating strong financial health and effectiveness in operational execution.

The company maintained operational strength despite challenges, generating operating cash flow of $41.1 million while managing a free cash flow of $27.9 million. This was slightly lower than the previous year's figures, influenced by increased investments aimed at modernizing their facilities.

Share Repurchases and Dividend Declarations

Worthington's commitment to returning value to shareholders is evident in its recent share repurchase program, which saw the company buy back 100,000 shares for $6.3 million. As a testament to its financial stability, the company declared a quarterly dividend of $0.19 per common share, payable at the end of December.

Acquisition of Elgen Manufacturing Boosts Capabilities

The strategic acquisition of Elgen Manufacturing for $91.2 million is expected to enhance Worthington’s capabilities in the HVAC market. This move not only strengthens their existing portfolio but also positions them to capture new opportunities within the commercial construction sector, further solidifying their growth strategy.

Quotes from Leadership

CEO Joe Hayek emphasized the company's positive trajectory, stating, “We started the fiscal year with solid momentum led by strong performance in our Building Products segment. Our teams are executing well, supported by strong customer relationships and transformative operational practices.”

Outlook for the Future

Looking ahead, the company is optimistic about maintaining its growth momentum. The combination of strategic acquisitions, a strong balance sheet, and a commitment to innovation through their Worthington Business System positions them to deliver long-term value to stakeholders. Hayek reiterated that the addition of Elgen offers a broader reach within the building envelope, reinforcing the company's market position.

In conclusion, Worthington Enterprises has made a commendable start to fiscal 2026, showcasing significant improvements in sales, earnings, and strategic initiatives. The actions taken today are set to secure growth for the future, positioning the company favorably in a competitive market.

Frequently Asked Questions

What were Worthington Enterprises' net sales for the first quarter of fiscal 2026?

Worthington Enterprises reported net sales of $303.7 million for the first quarter of fiscal 2026, an 18% increase from the previous year.

How much did Worthington’s net earnings increase in the first quarter?

Net earnings increased by 45% to reach $34.8 million compared to the same period last year.

What is the significance of the Elgen Manufacturing acquisition?

The acquisition of Elgen Manufacturing allows Worthington to enhance its offerings in the HVAC sector, contributing to overall revenue growth and market expansion.

How does Worthington Enterprises plan to return value to its shareholders?

The company has initiated a share repurchase program and declared a quarterly dividend, affirming its commitment to returning value to shareholders.

What is the company’s outlook for future growth?

Worthington Enterprises is confident in its growth trajectory, bolstered by strategic acquisitions, a strong balance sheet, and a focus on innovation.

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