Worthington Enterprises (WOR) investor relations material

Executive summary

• Q3 FY26 net sales rose 24% year-over-year to $379 million, driven by higher volumes, innovation, transformation initiatives, and strategic acquisitions, notably LSI Group.

• Adjusted EBITDA increased 15% to $85 million, with adjusted EPS marking its sixth consecutive quarter of year-over-year growth, reaching $0.98, up from $0.91.

• Free cash flow for Q3 was $48 million, with operating cash flow at $62 million and capital expenditures totaling $14 million, including $4 million for facility modernization.

• 100,000 shares repurchased for $5–5.4 million; $0.19 per share dividend declared for June 2026.

• Continued investment in workforce development and recognized for workplace culture and productivity.

Financial highlights

• Q3 consolidated net sales were $379 million, up 24% from $305 million in the prior year quarter.

• Adjusted EBITDA for Q3 was $85 million (22.3% margin), up from $74 million (24.2% margin) a year ago.

• Gross profit increased to $109 million from $89 million, with gross margin at 28.9% versus 29.3% last year.

• Trailing 12-month adjusted EBITDA reached $297 million, up $54 million year-over-year.

• Free cash flow conversion rate for Q3 was 99%; TTM free cash flow conversion at 95%.

Outlook and guidance

• Expect continued organic growth and acquisition-driven expansion, with a focus on innovation, operational efficiency, and facility modernization.

• Data center-related products expected to drive multi-year growth, with significant investments in capacity and engineering.

• Management expects strong positioning heading into FY2027, citing consistent free cash flow and a robust balance sheet.

• No specific quantitative guidance provided for Q4 or beyond, but trends in organic growth are expected to persist.