Worthington Enterprises (WOR) CJS Securities 26th Annual "New Ideas for the New Year” Investor Conference summary

Company Overview and Strategic Focus

• Completed separation of steel processing business in December 2023, now focused on building and consumer products with a people-first, performance-based culture and profit-sharing incentives.

• Over 80% of products are sourced, manufactured, and sold in the U.S.; 6-7% are tariff-exposed imports.

• Business system emphasizes innovation, manufacturing excellence, and disciplined M&A for growth, targeting market leaders in niche, high-margin, low-capital-intensity businesses.

• Presented at the 26th Annual CJS Securities "New Ideas for The New Year" Investor Conference on January 14, 2026, with leadership outlining growth strategies and financial performance.

• Forward-looking statements address expectations for growth, acquisitions, operational improvements, and market expansion, while acknowledging industry and macroeconomic risks.

Business Segments and Performance

• Building Products segment includes heating, cooling, water, and systems/components, with recent acquisitions (Elgin/Elgen, LSI) expanding the segment and contributing to $749M net sales and $235M adjusted EBITDA (31% margin) for TTM Q2 FY2026.

• Key JVs: WAVE (ceiling grids, 50/50 with Armstrong, $496M net sales) and ClarkDietrich (25% owned, $1.17B net sales in FY2025), both delivering significant cash dividends and equity income.

• Consumer Products segment achieved $504M in net sales and $81M in adjusted EBITDA (16% margin) for TTM Q2 FY2026, with brands in tools, outdoor living, and celebrations, targeting both professional and DIY customers.

• Consumer products face headwinds from tariffs, high interest rates, and cautious consumer trends but remain resilient, expanding into new channels and increasing store count.

• Business has remained flat or up despite market challenges, indicating strong execution.

Acquisition Strategy and Recent Deals

• Disciplined M&A strategy targets market-leading, high-margin, asset-light businesses in niche markets that complement core competencies.

• Recent acquisitions: Elgin/Elgen (HVAC components, June 2025) and pending LSI Group (metal building components, expected close January 2026 for $205M cash at 9.1x TTM EBITDA), both seen as strong cultural and strategic fits.

• LSI Group acquisition expected to enhance margins, expand reach, and create value through operational synergies.

• Focus on operational excellence, supply chain leverage, and integration under the Worthington Business System.