Worthington Industries Stock Earnings Reports

Worthington Enterprises reported a strong Q2 FY2026: consolidated revenue of $327 million (up >19% YoY; +10% ex-Elgen), GAAP EPS $0.55 and adjusted EPS $0.65 (up from $0.60 prior year), and adjusted EBITDA of $60 million (up from $56 million). Trailing 12-month adjusted EBITDA is $284 million (margin ~23% vs. 20% a year ago). Management highlighted continued organic growth driven by Building Products volume gains (cooling, heating/cooking, water) and Consumer Products placement wins, while Elgen integration temporarily pressured gross margin. Worthington announced a planned acquisition of LSI (purchase price ~$205 million; LTM sales $51.1M, adjusted EBITDA ~$22.4M), expected to close in January 2026 and to be accretive to margins, EPS and free cash flow. Cash flow remained solid: operating cash flow $52M, free cash flow $39M in the quarter, trailing 12-month free cash flow $161M (96% conversion), $180M cash on hand, $305M long-term funded debt, undrawn $500M revolver; net debt/TTM adjusted EBITDA ~0.4x. Capital allocation included $10M dividends, $14M share repurchases (250k shares), and continued focus on disciplined M&A. Near-term headwinds include mixed end markets (muted construction, cautious consumers) and a temporary earnings drag from Elgen reset and an SES JV divestiture; management expects Elgen to improve post-integration and LSI to add resilient retrofit-driven revenue. Key priorities: continue organic share gains through innovation, complete integrations (Elgen, LSI), sustain margin improvement via the Worthington Business System (innovation, transformation, M&A), and maintain conservative leverage while returning capital opportunistically.