Worthington Enterprises Reports Fourth Quarter Fiscal 2025 Results
COLUMBUS, Ohio, June 24, 2025 (GLOBE NEWSWIRE) -- Worthington Enterprises Inc. (NYSE:WOR), a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences, today reported results for its fiscal 2025 fourth quarter ended May 31, 2025.
Recent Developments and Fourth Quarter Highlights (all comparisons to the fourth quarter of fiscal 2024):
Net sales were $317.9 million, a decrease of 0.3%, reflecting the deconsolidation of the former Sustainable Energy Solutions segment ("SES"), nearly offset by volume growth and contributions from the Ragasco business acquired in the first quarter of fiscal 2025.
Net earnings from continuing operations increased 111% to $3.6 million, while adjusted EBITDA from continuing operations grew 35% to $85.1 million.
Earnings per share ("EPS") from continuing operations (diluted) improved from a loss of $(0.64) to $0.08 per share, while adjusted EPS from continuing operations (diluted) increased from $0.74 to $1.06 per share.
Operating cash flow increased 38% to $62.4 million, while free cash flow increased 46% to $49.3 million.
Repurchased 200,000 shares of common stock for $9.8 million, leaving 5,365,000 shares remaining on the Company's share repurchase authorization.
Declared a quarterly dividend of $0.19 per share payable on September 29, 2025, to shareholders of record at the close of business on September 15, 2025, a 12% increase, or $0.02 per share, compared to the prior quarter.
Acquired Elgen Manufacturing, a market-leading designer and manufacturer of HVAC parts and components, ductwork and structural framing primarily used in commercial buildings throughout North America. The acquisition closed on June 19, 2025, for approximately $93 million, subject to closing adjustments.
"We closed fiscal 2025 with a strong fourth quarter, delivering year-over-year and sequential growth in adjusted EBITDA, adjusted EPS and free cash flow," said Worthington Enterprises President and CEO Joe Hayek. "Consumer Products continued to perform well in a dynamic environment, driven by disciplined cost management and effective execution, while Building Products delivered robust top- and bottom-line growth, supported by improved volumes and steady contributions from WAVE and ClarkDietrich. Our results reflect the efforts of exceptional teams across our Company delivering value for shareholders. I want to thank all of our employees across the globe for their continued hard work and commitment to serving our customers."
Financial highlights for the fiscal 2025 and fiscal 2024 fourth quarters are as follows:
(U.S. dollars in millions, except per share amounts)
4Q 2025
4Q 2024
GAAP Financial Measures
Net sales
$
317.9
$
318.8
Operating loss
(30.4
)
(56.1
)
Earnings (loss) before income taxes
8.3
(26.8
)
Net earnings (loss) from continuing operations
3.9
(31.5
)
EPS from continuing operations - diluted
0.08
(0.64
)
Net cash provided by operating activities
62.4
45.2
Non-GAAP Financial Measures(1)
Adjusted operating income
$
21.8
$
5.8
Adjusted EBITDA from continuing operations
85.1
63.2
Adjusted EPS from continuing operations - diluted
1.06
0.74
Free cash flow
49.3
33.8
________________________________
(1)
Refer to the "Use of Non-GAAP Financial Measures and Definitions" section of this release for additional information regarding our use of non-GAAP financial measures, including reconciliations to the most comparable GAAP measures.
Consolidated Quarterly Results
Net sales for the fourth quarter of fiscal 2025 were down slightly from the prior year quarter to $317.9 million as the impact of the deconsolidation of SES effective May 29, 2024, was nearly offset by higher overall volumes and contributions from the Ragasco acquisition. Net sales in the prior year quarter included $39.9 million related to SES, which is now operated as an unconsolidated joint venture and its results are reported within equity income on the consolidated statement of earnings beginning June 1, 2024.
The operating loss of $30.4 million represented a $25.6 million improvement over the prior year quarter. Results in both the fiscal 2025 and prior year fourth quarters included nonrecurring items totaling $52.2 million and $61.8 million, respectively, primarily resulting from the non-cash write-down of intangible assets in the General Tools & Instruments ("GTI") business in the fiscal 2025 fourth quarter and the deconsolidation of the SES business in the prior year quarter. Excluding these items, adjusted operating income increased $16.0 million to $21.8 million on the impact of higher overall volume, particularly within the Building Products segment.
Equity income increased $2.3 million from the prior year quarter to $42.7 million, driven by higher contributions from WAVE and ClarkDietrich, which were up a combined $6.4 million over the prior year quarter. This was partially offset by a loss at the SES joint venture, which included a $3.4 million non-cash impairment charge that reduced equity income in the quarter.
Income tax expense was down slightly to $4.7 million, as the impact of discrete items in both periods more than offset higher pre-tax earnings from continuing operations. Income tax expense in the fourth quarter of fiscal 2025 reflects an annual effective rate of 26.1% compared to 52.6% in the prior year, which was impacted by discrete items related to the deconsolidation of the SES business. On an adjusted basis, the annual effective tax rate was 23.0% compared to 23.5% in the prior year.
Balance Sheet and Cash Flow
The Company ended the quarter with cash of $250.1 million, an increase of $5.9 million from May 31, 2024. During the fourth quarter, the Company generated operating cash flow of $62.4 million, of which $13.1 million was invested in capital expenditures, resulting in free cash flow of $49.3 million, up from $33.8 million in the prior year quarter. Capital expenditures in the fiscal 2025 fourth quarter included approximately $7.7 million related to ongoing facility modernization projects.
Total debt at quarter end was $302.9 million, consisting entirely of long-term debt, and increased $4.7 million from May 31, 2024, primarily due to the remeasurement of the Company's euro-denominated notes. The Company had no borrowings under its revolving credit facility as of May 31, 2025, leaving $500.0 million available for future use.
Quarterly Segment Results
Consumer Products generated net sales of $125.6 million, essentially flat compared to the prior year quarter, on slightly higher volume. Adjusted EBITDA increased $3.7 million over the prior year quarter to $20.8 million, driven by lower SG&A expenses and favorable product mix.
Building Products generated net sales of $192.3 million in the fiscal 2025 fourth quarter, an increase of $38.8 million, or 25.2%, over the prior year quarter. Growth was driven by higher overall volumes and contributions from the Ragasco acquisition. Adjusted EBITDA increased $19.6 million over the prior year quarter to $71.3 million on the impact of higher net sales and higher equity income contributions from WAVE and ClarkDietrich.
Outlook
"Heading into fiscal 2026, we are confident in our ability to continue to drive sustainable growth and long-term value," Hayek said. "Our recent acquisition of Elgen Manufacturing reflects our growth strategy of building and acquiring businesses with leadership positions in niche markets. Leveraging our people first performance-based culture, the Worthington Business System and a strong balance sheet, our teams are very well positioned to continue leading the way by focusing on innovative solutions that elevate spaces and experiences."
Conference Call
The Company will review fiscal 2025 fourth quarter results during its quarterly conference call on June 25, 2025, at 8:30 a.m. Eastern Time. Details regarding the conference call can be found on the Company website at www.WorthingtonEnterprises.com.
About Worthington Enterprises
Worthington Enterprises (NYSE:WOR) is a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences. The Company operates with two primary business segments: Building Products and Consumer Products. The Building Products segment includes cooking, heating, cooling and water solutions, architectural and acoustical grid ceilings and metal framing and accessories. The Consumer Products segment provides solutions for the tools, outdoor living and celebrations categories. Product brands within the Worthington Enterprises portfolio include Balloon Time®, Bernzomatic®, Coleman® (propane cylinders), CoMet®, Elgen, Garden Weasel®, General®, HALO™, Hawkeye™, Level5 Tools®, Mag Torch®, NEXI™, Pactool International®, PowerCore™, Ragasco®, Well-X-Trol® and XLite™, among others.
Headquartered in Columbus, Ohio, Worthington Enterprises and its joint ventures employ approximately 6,000 people throughout North America and Europe.
Founded in 1955 as Worthington Industries, Worthington Enterprises follows a people-first Philosophy with earning money for its shareholders as its first corporate goal. Worthington Enterprises achieves this outcome by empowering its employees to innovate, thrive and grow with leading brands in attractive markets that improve everyday life. The Company engages deeply with local communities where it has operations through volunteer efforts and The Worthington Companies Foundation, participates actively in workforce development programs and reports annually on its corporate citizenship and sustainability efforts. For more information, visit worthingtonenterprises.com.
Safe Harbor Statement
Selected statements contained in this release constitute "forward-looking statements," as that term is used in the Private Securities Litigation Reform Act of 1995 (the "Act"). The Company wishes to take advantage of the safe harbor provisions included in the Act. Forward-looking statements reflect the Company's current expectations, estimates or projections concerning future results or events. These statements are often identified by the use of forward-looking words or phrases such as "believe," "expect," "anticipate," "may," "could," "should," "would," "intend," "plan," "will," "likely," "estimate," "project," "position," "strategy," "target," "aim," "seek," "foresee" and similar words or phrases. These forward-looking statements include, without limitation, statements relating to: future or expected cash positions, liquidity and ability to access financial markets and capital; outlook, strategy or business plans; the anticipated benefits of the separation of the Company's Steel Processing business (the "Separation); the expected financial and operational performance of, and future opportunities for, the Company following the Separation; the Company's performance on a pro forma basis to illustrate the estimated effects of the Separation on historical periods; the tax treatment of the Separation transaction; future or expected growth, growth potential, forward momentum, performance, competitive position, sales, volumes, cash flows, earnings, margins, balance sheet strengths, debt, financial condition or other financial measures; pricing trends for raw materials and finished goods and the impact of pricing changes; the ability to improve or maintain margins; expected demand or demand trends for the Company or its markets; additions to product lines and opportunities to participate in new markets; expected benefits from transformation and innovation efforts; the ability to improve performance and competitive position at the Company's operations; anticipated working capital needs, capital expenditures and asset sales; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof; projected profitability potential; the ability to make acquisitions and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations; projected capacity and the alignment of operations with demand; the ability to operate profitably and generate cash in down markets; the ability to capture and maintain market share and to develop or take advantage of future opportunities, customer initiatives, new businesses, new products and new markets; expectations for Company and customer inventories, jobs and orders; expectations for the economy and markets or improvements therein; expectations for generating improving and sustainable earnings, earnings potential, margins or shareholder value; effects of judicial rulings; the ever-changing effects of the novel coronavirus ("COVID-19") pandemic and the various responses of governmental and nongovernmental authorities thereto on economies and markets, and on our customers, counterparties, employees and third-party service providers; and other non-historical matters.
Because they are based on beliefs, estimates and assumptions, forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Any number of factors could affect actual results, including, without limitation, those that follow: the uncertainty of obtaining regulatory approvals in connection with the Separation, including rulings from the Internal Revenue Service; the Company's ability to successfully realize the anticipated benefits of the Separation; the risks, uncertainties and impacts related to the COVID-19 pandemic, the duration, extent and severity of which are impossible to predict, including the possibility of future resurgence in the spread of COVID-19 or variants thereof, and the availability, effectiveness and acceptance of vaccines, and other actual or potential public health emergencies and actions taken by governmental authorities or others in connection therewith; the effect of national, regional and global economic conditions generally and within major product markets, including significant economic disruptions from COVID-19, the actions taken in connection therewith and the implementation of related fiscal stimulus packages; the effect of conditions in national and worldwide financial markets, including inflation, increases in interest rates and economic recession, and with respect to the ability of financial institutions to provide capital; the impact of tariffs, the adoption of trade restrictions affecting the Company's products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; changing oil prices and/or supply; product demand and pricing; changes in product mix, product substitution and market acceptance of the Company's products; volatility or fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities, labor and other items required by operations (especially in light of the COVID-19 pandemic and Russia's invasion of Ukraine); effects of sourcing and supply chain constraints; the outcome of adverse claims experience with respect to workers' compensation, product recalls or product liability, casualty events or other matters; effects of facility closures and the consolidation of operations; the effect of financial difficulties, consolidation and other changes within the steel, automotive, construction and other industries in which the Company participates; failure to maintain appropriate levels of inventories; financial difficulties (including bankruptcy filings) of original equipment manufacturers, end-users and customers, suppliers, joint venture partners and others with whom the Company does business; the ability to realize targeted expense reductions from headcount reductions, facility closures and other cost reduction efforts; the ability to realize cost savings and operational, sales and sourcing improvements and efficiencies, and other expected benefits from transformation initiatives, on a timely basis; the overall success of, and the ability to integrate, newly-acquired businesses and joint ventures, maintain and develop their customers, and achieve synergies and other expected benefits and cost savings therefrom; capacity levels and efficiencies, within facilities, within major product markets and within the industries in which the Company participates as a whole; the effect of disruption in the business of suppliers, customers, facilities and shipping operations due to adverse weather, casualty events, equipment breakdowns, labor shortages, interruption in utility services, civil unrest, international conflicts (especially in light of Russia's invasion of Ukraine), terrorist activities or other causes; changes in customer demand, inventories, spending patterns, product choices, and supplier choices; risks associated with doing business internationally, including economic, political and social instability (especially in light of Russia's invasion of Ukraine), foreign currency exchange rate exposure and the acceptance of the Company's products in global markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; the effect of inflation, interest rate increases and economic recession, which may negatively impact the Company's operations and financial results; deviation of actual results from estimates and/or assumptions used by the Company in the application of its significant accounting policies; the level of imports and import prices in the Company's markets; the impact of environmental laws and regulations or the actions of the United States Environmental Protection Agency or similar regulators which increase costs or limit the Company's ability to use or sell certain products; the impact of increasing environmental, greenhouse gas emission and sustainability regulations and considerations; the impact of judicial rulings and governmental regulations, both in the United States and abroad, including those adopted by the United States Securities and Exchange Commission and other governmental agencies as contemplated by the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of healthcare laws in the United States and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase the Company's healthcare and other costs and negatively impact the Company's operations and financial results; the effects of tax laws in the United States and potential changes for such laws, which may increase the Company's costs and negatively impact the Company's operations and financial results; cyber security risks; the effects of privacy and information security laws and standards; and other risks described from time to time in the Company's filings with the United States Securities and Exchange Commission, including those described in "Part I, Item 1A., Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2024.
Forward-looking statements should be construed in the light of such risks. The Company notes these factors for investors as contemplated by the Act. It is impossible to predict or identify all potential risk factors. Consequently, readers should not consider the foregoing list to be a complete set of all potential risks and uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. The Company does not undertake, and hereby disclaims, any obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
WORTHINGTON ENTERPRISES, INC.CONSOLIDATED STATEMENTS OF EARNINGS(In thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
May 31,
May 31,
2025
2024
2025
2024
Net sales
$
317,884
$
318,801
$
1,153,762
$
1,245,703
Cost of goods sold
224,650
239,802
834,727
960,684
Gross profit
93,234
78,999
319,035
285,019
Selling, general and administrative expense
71,454
73,210
268,413
283,471
Impairment of goodwill and long-lived assets
50,813
32,975
50,813
32,975
Restructuring and other expense, net
1,372
28,624
10,524
29,327
Separation costs
-
240
-
12,705
Operating loss
(30,405
)
(56,050
)
(10,715
)
(73,459
)
Other income (expense):
Miscellaneous expense, net
(4,031
)
(11,145
)
(3,222
)
(17,129
)
Loss on extinguishment of debt
-
-
-
(1,534
)
Interest income (expense), net
60
9
(2,090
)
(1,587
)
Equity in net income of unconsolidated affiliates
42,707
40,388
144,836
167,716
Earnings (loss) before income taxes
8,331
(26,798
)
128,809
74,007
Income tax expense
4,717
4,986
33,839
39,027
Net earnings (loss) from continuing operations
3,614
(31,784
)
94,970
34,980
Net earnings (loss) from discontinued operations
-
(265
)
-
82,841
Net earnings (loss)
3,614
(32,049
)
94,970
117,821
Net earnings (loss) attributable to noncontrolling interests
(263
)
(263
)
(1,083
)
7,197
Net earnings (loss) attributable to controlling interest
$
3,877
$
(31,786
)
$
96,053
$
110,624
Amounts attributable to controlling interest:
Net earnings (loss) from continuing operations
$
3,877
$
(31,521
)
$
96,053
$
35,243
Net earnings (loss) from discontinued operations
-
(265
)
-
75,381
Net earnings (loss) attributable to controlling interest
$
3,877
$
(31,786
)
$
96,053
$
110,624
Earnings (loss) per share - basic:
Continuing operations
$
0.08
$
(0.64
)
$
1.94
$
0.72
Discontinued operations
-
(0.01
)
-
1.53
Consolidated
$
0.08
$
(0.65
)
$
1.94
$
2.25
Earnings (loss) per share - diluted:
Continuing operations
$
0.08
$
(0.64
)
$
1.92
$
0.70
Discontinued operations
-
(0.01
)
-
1.50
Consolidated
$
0.08
$
(0.65
)
$
1.92
$
2.20
Weighted average common shares outstanding - basic
49,253
49,437
49,395
49,195
Weighted average common shares outstanding - diluted
49,997
49,437
50,131
50,348
Cash dividends declared per share
$
0.17
$
0.16
$
0.68
$
0.96
CONSOLIDATED BALANCE SHEETSWORTHINGTON ENTERPRISES, INC.(In thousands)
May 31,
2025
2024
Assets
Current assets:
Cash and cash equivalents
$
250,075
$
244,225
Receivables, less allowances of $907 and $343, respectively
215,824
199,798
Inventories
Raw materials
80,522
66,040
Work in process
9,408
11,668
Finished products
79,463
86,907
Total inventories
169,393
164,615
Income taxes receivable
12,720
17,319
Prepaid expenses and other current assets
37,358
47,936
Total current assets
685,370
673,893
Investment in unconsolidated affiliates
129,262
144,863
Operating lease assets
22,699
18,667
Goodwill
376,480
331,595
Other intangibles, net of accumulated amortization of $88,887 and $83,242, respectively
190,398
221,071
Other assets
20,717
21,342
Property, plant and equipment:
Land
8,703
8,657
Buildings and improvements
132,742
123,478
Machinery and equipment
372,798
321,836
Construction in progress
33,326
24,504
Total property, plant and equipment
547,569
478,475
Less: accumulated depreciation
277,343
251,269
Total property, plant and equipment, net
270,226
227,206
Total assets
$
1,695,152
$
1,638,637
Liabilities and equity
Current liabilities:
Accounts payable
$
103,205
$
91,605
Accrued compensation, contributions to employee benefit plans and related taxes
43,864
41,974
Dividends payable
9,172
9,038
Other accrued items
34,478
29,061
Current operating lease liabilities
6,014
6,228
