Worthington Enterprises (WOR) Q2 2026 earnings summary

Executive summary

• Net sales rose 19–19.5% year-over-year to $327–$327.5 million, driven by strong Building Products performance and the Elgen acquisition.

• Adjusted EBITDA increased to $60–$60.5 million, with a margin of 18.5%, and adjusted EPS grew to $0.65 from $0.60 year-over-year.

• Free cash flow for the quarter was $39–$39.1 million, with capital expenditures of $12–$12.4 million, including facility modernization.

• Announced $205 million acquisition of LSI Group, expected to close in January 2026, and continued integration of Elgen.

• Continued momentum in new product launches and expanded retail partnerships, notably with Costco and other major retailers.

Financial highlights

• Building Products net sales grew 31.9–32% to $207.5–$208 million; adjusted EBITDA increased to $53 million with a 25.5% margin.

• Consumer Products net sales were $119.9–$120 million, up 2.7–3% year-over-year; adjusted EBITDA flat at $15–$15.3 million, with a 12.7% margin.

• Gross profit increased to $84.6–$85 million, though gross margin declined to 25.8% from 27% due to Elgen integration and higher conversion costs.

• Free cash flow conversion rate was 95.6–120% for the quarter; operating cash flow conversion was 189%.

• Dividend of $0.19 per share declared, payable in March 2026.

Outlook and guidance

• Management anticipates a seasonally stronger second half, with expectations for continued growth in revenue and profitability.

• LSI acquisition expected to close in January 2026, anticipated to be accretive to margins, EPS, and free cash flow.

• Facility modernization projects and strategic investments may impact near-term free cash flow.

• Focus remains on operational efficiency, portfolio diversification, and growth through acquisitions.