Worthington Enterprises (WOR) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 net sales were $257.3M, down 17.5% year-over-year, mainly due to SES deconsolidation and lower Building Products volume.

• Adjusted EBITDA from continuing operations was $48.4M (18.8% margin), down from $65.9M YoY; adjusted EPS was $0.50, down from $0.75.

• Net earnings from continuing operations were $24.3M ($0.48 per share), compared to $26.8M ($0.54) YoY.

• Hexagon Ragasco acquisition completed for $100.3M–$102.2M, expanding Building Products; integration and Sustainable Energy Solutions JV progressed.

• 150,000 shares repurchased for $6.8M–$7M; $0.17/share dividend declared for December 2024.

Financial highlights

• Gross profit was $62.5M, down from $70M YoY, but gross margin improved to 24.3% from 22.3%.

• Adjusted EBITDA was $48.4M, down from $66M YoY; trailing 12-month adjusted EBITDA is $234M (19.6%–20% margin).

• Free cash flow was $32M; net cash from operating activities was $41.1M; $10M invested in capex, mainly for modernization.

• Cash and cash equivalents at quarter end were $178.5M; total debt was $300M.

• Income tax expense was $6.8M (24.5% effective rate), down from $9.0M (25.1%) YoY.

Outlook and guidance

• Management maintains a positive long-term outlook, citing strong brands, secular trends, and anticipated demand normalization.

• Lower interest rates expected to benefit demand, though near-term headwinds from inflation and high mortgage rates persist.

• Focus remains on organic growth, targeted M&A, and disciplined capital return.