Worthington Enterprises Q3 Results Beat Expectations But Stock Price Declines

Columbus, Ohio - Worthington Enterprises Inc. (NYSE: WOR) reported third-quarter earnings that exceeded analyst expectations, but the stock fell 3.6% after the announcement.

The company’s adjusted earnings per share for the quarter ending February 28 were $0.98, beating the consensus estimate of $0.96 by $0.02. Revenue reached $378.7 million, surpassing the expected $349.41 million and up 24% from $304.5 million in the same period last year.

Revenue growth was mainly driven by increased sales volume and recent acquisitions, which contributed $32.2 million to sales.

Adjusted EBITDA increased 15% year-over-year to $84.6 million. Operating cash flow grew 8% to $61.9 million, and free cash flow increased 8% to $48.1 million. The company completed the acquisition of LSI Group on January 16, paying approximately $205 million. LSI Group is a manufacturer of metal roof fasteners.

President and CEO Joe Hayek stated, “We once again delivered strong and steady performance, with adjusted EPS and EBITDA achieving year-over-year growth for the sixth consecutive quarter. Our team achieved solid organic growth in both business segments, significantly boosting sales and earnings.”

The Building Products segment generated $223.9 million in sales, up 36% from last year, with adjusted EBITDA rising to $58.8 million. The Consumer Products segment saw sales increase 11% to $154.8 million, with adjusted EBITDA climbing to $35.5 million.

The company announced a quarterly dividend of $0.19 per share, payable on June 29 to shareholders of record as of June 15. During this quarter, Worthington repurchased 100,000 shares for $5.4 million.

As of the end of the quarter, total debt was $312 million, and the company’s available funds under its revolving credit facility totaled $495.2 million.

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