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Shares of Worthington Enterprises (WOR +1.59%) rose on Wednesday after the industrial manufacturer highlighted its attractive artificial intelligence (AI)-driven growth prospects.

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Acquisitions are accelerating Worthington's expansion Worthington's net sales climbed 13% year over year to $344 million in its fiscal 2027 first quarter, which ended on Aug. 31.

Recent acquisitions drove six percentage points of that growth, while organic sales gains accounted for the rest. Worthington completed its purchase of LSI Group, a leading supplier of metal roof components, in January.

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AI infrastructure is a lucrative opportunity Worthington is seeing particularly strong growth in its data center-related sales. The company's ASME tanks, which are designed to meet strict standards set by the American Society of Mechanical Engineers, are increasingly being used in liquid cooling systems inside AI data centers.

Worthington believes the market for these tanks could grow more than 10x in the coming years, driven by soaring demand for AI infrastructure.

Worthington's free cash flow is surging All told, Worthington's adjusted net earnings grew 3% to $40 million. Its adjusted earnings per share, boosted by stock buybacks, rose 5% to $0.82. That bested Wall Street's estimates, which had called for per-share profits of $0.75.

Better still, Worthington's free cash flow nearly doubled to $54 million. Management indicated that this cash would enable it to acquire more businesses, while also rewarding investors with dividends and share repurchases.

"With growing free cash flow generation and a healthy balance sheet, we have the flexibility to invest in and pursue additional growth opportunities that fit our strategy," CEO Joe Hayek said.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

COLUMBUS, Ohio, Sept. 22, 2026 (GLOBE NEWSWIRE) -- Worthington Enterprises Inc. (NYSE: WOR), a designer and manufacturer of market-leading products and solutions for building, trade and specialty applications, today reported results for its fiscal 2027 first quarter ended August 31, 2026.

Recent Developments and First Quarter Highlights (all comparisons to the first quarter of fiscal 2026)

Net sales were $343.9 million, an increase of $40.2 million, or 13%, including 6% from recent acquisitions and 7% from organic growth.Net earnings increased 22% to $42.6 million, while adjusted net earnings increased 3% to $40.1 million and adjusted EBITDA grew 10% to $74.0 million.Earnings per share on a fully diluted basis (“EPS – diluted”) improved to $0.87 from $0.70 per share, while adjusted EPS – diluted increased to $0.82 per share compared to $0.78.Operating cash flow increased $25.7 million to $66.7 million, while free cash flow increased $26.1 million to $54.0 million.Repurchased 335,000 common shares for $18.2 million, leaving 4,230,000 common shares available under the existing repurchase authorization.Declared a quarterly dividend of $0.20 per share payable on December 29, 2026, to shareholders of record at the close of business on December 15, 2026.Renamed two business segments to better reflect their markets and applications: Building Products is now Building Performance Solutions, and Consumer Products is now Trade & Specialty Solutions.
“We started fiscal 2027 with solid performance as our teams continued to execute well and deliver for our customers,” said Worthington Enterprises President and CEO Joe Hayek. “We generated 7% organic growth, grew adjusted EBITDA by 10% and nearly doubled free cash flow. These results reflect the progress we are making as we continue to optimize and grow Worthington Enterprises.”

Financial highlights for the current year and prior year quarters are as follows:

(U.S. dollars in millions, except per share amounts)1Q 2027  1Q 2026 GAAP Financial Measures     Net sales$343.9  $303.7 Operating income 13.0   9.2 Earnings before income taxes 55.6   45.7 Net earnings 42.6   34.8 EPS – diluted 0.87   0.70 Net cash provided by operating activities 66.7   41.1       Non-GAAP Financial Measures (1)     Adjusted operating income$13.7  $13.9 Adjusted EBITDA 74.0   67.2 Adjusted net earnings 40.1   38.9 Adjusted EPS – diluted 0.82   0.78 Free cash flow 54.0   27.9  (1) Refer to the “GAAP / Non-GAAP Reconciliations” and the “Use of Non-GAAP Financial Measures and Definitions” sections of this release for additional information regarding the use of non-GAAP financial measures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Consolidated Quarterly Results 

Net sales for the first quarter of fiscal 2027 increased $40.2 million, or 13.2%, over the prior year quarter to $343.9 million. Recent acquisitions contributed $19.2 million to net sales in the current year quarter. Excluding the impact of acquisitions, net sales increased $21.0 million, or 6.9%, compared to the prior year quarter.

Operating income increased $3.8 million to $13.0 million. Adjusted operating income was relatively flat at $13.7 million compared to $13.9 million in the prior year quarter. The current year quarter benefited from $4.0 million in net tariff refunds related to the International Emergency Economic Powers Act (“IEEPA”), contributions from recent acquisitions and higher overall volume within Trade & Specialty Solutions. These benefits were offset by lower overall volume and unfavorable product mix within Building Performance Solutions.

Equity in net income of unconsolidated affiliates increased $3.9 million from the prior year quarter to $40.6 million, driven by higher contributions from WAVE and ClarkDietrich, which were up $2.7 million and $1.4 million, respectively.

Miscellaneous income, net was favorable by $4.2 million, primarily due to a pre-tax gain of $4.0 million related to an earnout agreement associated with the sale of the company’s former oil and gas products business, which was divested in January 2021.

Income tax expense was $13.0 million in the first quarter of fiscal 2027 compared to $10.9 million in the prior year quarter. The increase was driven by higher pre-tax earnings. Income tax expense in the first quarter of fiscal 2027 reflects an estimated annual effective tax rate of 24.1%, compared to 23.8% in the prior year quarter.

Balance Sheet and Cash Flow

Total debt of $305.6 million at quarter end consisted entirely of long-term debt and was relatively unchanged from May 31, 2026. During the quarter, the company amended its revolving credit facility to extend the maturity date to August 31, 2031. The company had no borrowings under its revolving credit facility as of August 31, 2026, leaving $500.0 million available for future use and providing substantial liquidity.

The company ended the quarter with cash of $55.1 million, an increase of $27.3 million over May 31, 2026, primarily driven by strong operating cash flow. During the first quarter of fiscal 2027, the company generated operating cash flow of $66.7 million, of which $12.8 million was invested in capital expenditures, resulting in free cash flow of $54.0 million, up from $27.9 million in the prior year quarter.

Quarterly Segment Results

On September 15, 2026, the company announced new names for its two business segments that better reflect the markets they serve, the value they provide to customers and the evolution of the company's product portfolio. The Building Products segment is now Building Performance Solutions and the Consumer Products segment is now Trade & Specialty Solutions. The changes are to the segment names only and do not affect the composition of the segments or the company's historical financial results.

Building Performance Solutions generated net sales of $215.1 million in the current year quarter, an increase of $30.3 million, or 16.4%, over the prior year quarter. The increase was driven by the impact of acquisitions, which contributed $19.2 million to net sales in the current year quarter. Excluding the impact of acquisitions, net sales increased $11.1 million, or 6.0%, compared to the prior year quarter. Adjusted EBITDA was relatively flat at $59.8 million, as higher contributions from WAVE and ClarkDietrich and earnings from recent acquisitions were offset by lower overall volume and unfavorable product mix.

Trade & Specialty Solutions generated net sales of $128.8 million in the current year quarter, up $9.9 million, or 8.3%, from the prior year quarter, driven by higher volume and higher average selling prices. Adjusted EBITDA increased $7.9 million to $24.0 million, driven by the impact of higher net sales and the net benefit of IEEPA tariff refunds.

Outlook

“We're very encouraged by our start to fiscal 2027 and the opportunities we see across our businesses, including rapidly growing demand for our engineered ASME tanks used in liquid cooling systems for data centers,” Hayek said. “Our teams remain focused on innovation, operational improvement and developing new ways to create value for our customers. With growing free cash flow generation and a healthy balance sheet, we have the flexibility to invest in and pursue additional growth opportunities that fit our strategy."

Conference Call

The company will review fiscal 2027 first quarter results during its quarterly conference call on September 23, 2026, at 8:30 a.m. Eastern Time. Details regarding the conference call can be found on the company website at www.WorthingtonEnterprises.com.

Upcoming Investor and Analyst Day – November 10, 2026

Worthington Enterprises will host an Investor and Analyst Day on November 10 in New York City where members of the company’s leadership team will provide an in-depth review of the company’s strategy, financial performance and long-term growth opportunities, including perspectives on Building Performance Solutions and Trade & Specialty Solutions.

The event will begin at 9:30 a.m. Eastern Time. Joe Hayek, president and chief executive officer; Colin Souza, vice president and chief financial officer; Jimmy Bowes, president, Building Performance Solutions; and Steve Caravati, president, Trade & Specialty Solutions, are scheduled to deliver presentations.

Investors and analysts interested in participating virtually may register at this link: https://worthington-enterprises-investor-day-2026-11-10.open-exchange.net. In-person attendance is limited. Investors and analysts interested in attending in person should contact Marcus Rogier at [email protected].

About Worthington Enterprises

Worthington Enterprises Inc. (NYSE: WOR) is a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences. Building Performance Solutions (formerly Building Products) delivers essential engineered products that enhance performance across residential and commercial buildings, including critical facilities such as data centers. Its products support building systems, and climate and comfort applications. The segment primarily serves OEMs and distributors. Trade & Specialty Solutions (formerly Consumer Products) includes market-leading brands used by professional tradespeople and consumers across tools, portable propane and helium and other specialty applications. The Worthington Enterprises portfolio includes Balloon Time®, Bernzomatic®, ClarkDietrich, Coleman® propane cylinders, Elgen, General®, HALO™, LEVEL5 Tools®, Ragasco®, Roof Hugger®, Well-X-Trol® and Worthington Armstrong Venture (WAVE), among others.

Headquartered in Columbus, Ohio, Worthington Enterprises employs approximately 4,000 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”). We wish to take advantage of the safe harbor provisions included in the Act. Forward-looking statements reflect our 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; 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; 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; 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 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; effects of pandemics and widespread health crises 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 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 our 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 our 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; 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 we participate; 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 we do 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 we participate 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, 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, foreign currency exchange rate exposure and the acceptance of our 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 our operations and financial results; deviation of actual results from estimates and/or assumptions used in the application of its significant accounting policies; the level of imports and import prices in our 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 our 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, which may increase our healthcare and other costs and negatively impact our operations and financial results; the effects of tax laws in the United States and potential changes for such laws, which may increase our costs and negatively impact our 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 our filings with the United States Securities and Exchange Commission, including those described in “Part I – Item 1A. – Risk Factors” of the Annual Report on Form 10-K for the fiscal year ended May 31, 2026.

Forward-looking statements should be construed in the light of such risks. We note 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. We do not undertake, and hereby disclaim, 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 common share amounts)
      Three Months Ended   August 31,   2026  2025 Net sales $343,886  $303,707 Cost of goods sold  252,988   221,423 Gross profit  90,898   82,284 Selling, general and administrative expense  77,158   70,565 Restructuring and other expense, net  717   2,476 Operating income  13,023   9,243 Other income (expense):      Miscellaneous income (expense), net  4,081   (156)Interest expense, net  (2,097)  (63)Equity in net income of unconsolidated affiliates  40,594   36,657 Earnings before income taxes  55,601   45,681 Income tax expense  13,029   10,860 Net earnings  42,572   34,821 Net loss attributable to noncontrolling interest  -   (327)Net earnings attributable to controlling interest $42,572  $35,148        Basic      Weighted average common shares outstanding  48,568   49,264 Earnings per share attributable to controlling interest $0.88  $0.71        Diluted      Weighted average common shares outstanding  49,165   50,026 Earnings per share attributable to controlling interest $0.87  $0.70        Cash dividends declared per common share $0.20  $0.19           WORTHINGTON ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
         August 31,  May 31,   2026  2026 Assets      Current assets:      Cash and cash equivalents $55,067  $27,725 Receivables, less allowances of $1,290 and $1,310, respectively  185,659   228,168 Inventories      Raw materials  119,778   110,536 Work in process  11,292   9,490 Finished products  91,515   87,270 Total inventories  222,585   207,296 Income taxes receivable  10,342   20,016 Prepaid expenses and other current assets  49,054   41,269 Total current assets  522,707   524,474 Investments in unconsolidated affiliates  119,639   118,048 Operating lease assets  40,979   42,888 Goodwill  499,116   500,784 Other intangible assets, net of accumulated amortization of $112,044 and $106,944, respectively  317,172   322,761 Other assets  28,009   28,215 Property, plant and equipment:      Land  8,728   8,732 Buildings and improvements  136,370   136,441 Machinery and equipment  406,857   411,030 Construction in progress  75,275   66,509 Total property, plant and equipment  627,230   622,712 Less: accumulated depreciation  314,102   311,818 Total property, plant and equipment, net  313,128   310,894 Total assets $1,840,750  $1,848,064        Liabilities and equity      Current liabilities:      Accounts payable $105,525  $115,203 Accrued compensation, contributions to employee benefit plans and related taxes  36,635   41,728 Dividends payable  10,194   9,814 Other accrued items  34,572   45,832 Current operating lease liabilities  7,970   7,982 Income taxes payable  1,151   867 Total current liabilities  196,047   221,426 Other liabilities  56,834   56,657 Distributions in excess of investment in unconsolidated affiliate  102,293   105,349 Long-term debt  305,552   305,896 Noncurrent operating lease liabilities  34,028   35,883 Deferred income taxes, net  98,804   95,813 Total liabilities  793,558   821,024 Shareholders’ equity  1,047,192   1,027,040 Total liabilities and equity $1,840,750  $1,848,064           WORTHINGTON ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
      Three Months Ended   August 31,   2026  2025 Operating activities:      Net earnings $42,572  $34,821 Adjustments to reconcile net earnings to net cash provided by operating activities:      Depreciation and amortization  15,628   13,086 Provision for deferred income taxes  3,030   2,957 Bad debt income  (134)  (21)Equity in net income of unconsolidated affiliates, net of distributions  (4,743)  (181)Net gain on sale of assets  (3,972)  - Stock-based compensation  3,996   3,427 Unrealized gain on investment in marketable securities  (20)  - Changes in assets and liabilities, net of impact of acquisitions:      Receivables  41,900   14,107 Inventories  (15,289)  (15,816)Accounts payable  (8,874)  (11,946)Accrued compensation and employee benefits  (5,092)  (10,399)Other operating items, net  (2,271)  11,026 Net cash provided by operating activities  66,731   41,061        Investing activities:      Investment in property, plant and equipment  (12,754)  (13,195)Acquisitions, net of cash acquired  (2,393)  (92,235)Proceeds from sale of assets, net of selling costs  1,030   - Net cash used by investing activities  (14,117)  (105,430)       Financing activities:      Dividends paid  (9,402)  (8,576)Purchase of common shares  (18,212)  (6,259)Principal payments on long-term obligations  (318)  (197)Proceeds from issuance of common shares, net of tax withholdings  2,660   (3,552)Net cash used by financing activities  (25,272)  (18,584)Increase (decrease) in cash and cash equivalents  27,342   (82,953)Cash and cash equivalents at beginning of period  27,725   250,075 Cash and cash equivalents at end of period $55,067  $167,122           WORTHINGTON ENTERPRISES, INC.
SEGMENT INFORMATION
(Dollars in thousands)
      Three Months Ended   August 31,   2026  2025 Net sales      Building Performance Solutions $215,087  $184,769 Trade & Specialty Solutions  128,799   118,938 Consolidated $343,886  $303,707        Adjusted EBITDA      Building Performance Solutions $59,782  $59,944 Trade & Specialty Solutions  24,014   16,148 Total reportable segments  83,796   76,092 Other (1)  (1,839)  (1,663)Unallocated Corporate  (7,938)  (7,218)Consolidated $74,019  $67,211        Adjusted EBITDA margin      Building Performance Solutions  27.8%  32.4%Trade & Specialty Solutions  18.6%  13.6%Consolidated  21.5%  22.1%       Equity income by unconsolidated affiliate      WAVE (1) $35,051  $32,386 ClarkDietrich (1)  7,382   5,934 Other (2)  (1,839)  (1,663)Consolidated $40,594  $36,657 _______________ (1) Equity income contributed by the WAVE and ClarkDietrich joint ventures is included in Building Performance Solutions segment results.

(2) Other includes the equity in net income of unconsolidated affiliates of the Workhorse and heiserTEC (formerly referred to as the Sustainable Energy Solutions joint venture) joint ventures.

 WORTHINGTON ENTERPRISES, INC.
GAAP / NON-GAAP RECONCILIATIONS
(Dollars in thousands, except per share amounts)  For more information regarding the non-GAAP financial measures, refer to the “Use of Non-GAAP Financial Measures and Definitions” section of this release.

Consolidated Results – Adjusted Earnings per Share – Diluted

 Three Months Ended August 31, 2026  Operating
Income  Earnings
Before
Income
Taxes  Income
Tax
Expense  Net
Earnings (1)  Diluted
EPS (1) GAAP$13,023  $55,601  $13,029  $42,572  $0.87 Restructuring and other expense, net 717   717   (174)  543   0.01 Non-cash gains in miscellaneous income, net (2) -   (4,020)  977   (3,043)  (0.06)Non-GAAP$13,740  $52,298  $12,226  $40,072  $0.82                       Three Months Ended August 31, 2025  Operating
Income  Earnings
Before
Income
Taxes  Income
Tax
Expense  Net
Earnings (1)  Diluted
EPS (1) GAAP$9,243  $45,681  $10,860  $35,148  $0.70 Amortization of inventory step-up (3) 2,151   2,151   (513)  1,638   0.04 Restructuring and other expense, net 2,476   2,476   (377)  2,099   0.04 Non-GAAP$13,870  $50,308  $11,750  $38,885  $0.78                      Consolidated Results – Adjusted EBITDA

  Three Months Ended   August 31,   2026  2025 Net earnings (GAAP) $42,572  $34,821 Plus: Net loss attributable to noncontrolling interest  -   327 Net earnings attributable to controlling interest  42,572   35,148 Interest expense, net  2,097   63 Income tax expense  13,029   10,860 EBIT (4)  57,698   46,071 Amortization of inventory step-up (3)  -   2,151 Restructuring and other expense, net  717   2,476 Non-cash gains in miscellaneous income, net (2)  (4,020)  - Adjusted EBIT (4)  54,395   50,698 Depreciation and amortization  15,628   13,086 Stock-based compensation  3,996   3,427 Adjusted EBITDA (non-GAAP) $74,019  $67,211        Net earnings margin (GAAP)  12.4%  11.5%Adjusted EBITDA margin (non-GAAP)  21.5%  22.1%_______________         (1) Excludes the impact of noncontrolling interest.

(2) Includes a pre-tax gain of $4,000 during the first quarter of fiscal 2027 related to an earnout arrangement associated with the sale of the company’s former oil and gas products business, which was divested in January 2021.

(3) Reflects the amortization of the step-up to fair market value of acquired inventory related to the Elgen acquisition in fiscal 2026.

(4) EBIT and adjusted EBIT are non-GAAP financial measures. However, these measures are not used by management to evaluate our performance, engage in financial and operational planning, or to determine incentive compensation. Instead, they are included as subtotals in the reconciliation of net earnings to adjusted EBITDA, which is a non-GAAP financial measure used by management.

Consolidated Results – Free Cash Flow

The following table provides a reconciliation of net cash provided by operating activities to free cash flow and the calculation of operating cash flow conversion and free cash flow conversion for the periods presented.

      Three Months Ended   August 31,   2026  2025 Net cash provided by operating activities (GAAP) $66,731  $41,061 Investment in property, plant, and equipment  (12,754)  (13,195)Free cash flow (non-GAAP) $53,977  $27,866        Net earnings attributable to controlling interest (GAAP) $42,572  $35,148 Adjusted net earnings attributable to controlling interest (non-GAAP) $40,072  $38,885        Operating cash flow conversion (GAAP) (1)  157%  117%Free cash flow conversion (non-GAAP)  135%  72%_______________         (1) Operating cash flow conversion is defined as net cash provided by operating activities divided by net earnings attributable to controlling interest.

 WORTHINGTON ENTERPRISES, INC.
USE OF NON-GAAP FINANCIAL MEASURES AND DEFINITIONS  NON-GAAP FINANCIAL MEASURES. These materials include certain financial measures that are not calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Non-GAAP financial measures typically exclude items that management believes are not reflective of, and thus should not be included when evaluating the performance of our ongoing operations. Management uses these non-GAAP financial measures to evaluate ongoing performance, engage in financial and operational planning, and determine incentive compensation. Management believes these non-GAAP financial measures provide useful supplemental information regarding the performance of our ongoing operations and should not be considered as an alternative to the comparable GAAP financial measure. Additionally, management believes these non-GAAP financial measures allow for meaningful comparisons and analysis of trends in our businesses and enables investors to evaluate operations and future prospects in the same manner as management.

The following provides an explanation of each non-GAAP financial measure presented in these materials:

Adjusted operating income (loss) is defined as operating income (loss) excluding the items listed below, to the extent naturally included in operating income (loss).

Adjusted net earnings is defined as net earnings attributable to controlling interest excluding the after-tax effect of the excluded items outlined below.

Adjusted EPS – diluted is defined as adjusted net earnings divided by diluted weighted-average common shares outstanding for the applicable period.

Adjusted EBITDA is the measure by which we evaluate segment performance and our overall profitability. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA excludes additional items including, but not limited to, those listed below, as well as other items that management believes are not reflective of, and thus should not be included when evaluating the performance of our ongoing operations. Adjusted EBITDA also excludes stock-based compensation due to its non-cash nature, which is consistent with how management assesses operating performance and determines incentive compensation. At the segment level, adjusted EBITDA includes expense allocations for centralized corporate back-office functions that exist to support the day-to-day business operations. Public company and other governance costs are held at the corporate level within the unallocated corporate and other category.

Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net sales.

Free cash flow is a non-GAAP financial liquidity measure that is used to assess our ability to generate cash beyond what is required for our business operations and capital expenditures. We define free cash flow as net cash flows from operating activities less investment in property, plant, and equipment.

Free cash flow conversion is a non-GAAP financial measure that is used to measure how much of our adjusted net earnings attributable to controlling interest is converted into cash. We define free cash flow conversion as free cash flow divided by adjusted net earnings.

EXCLUSIONS FROM NON-GAAP FINANCIAL MEASURES

Management believes it is useful to exclude the following items from its non-GAAP financial measures for its own and investors’ assessment of the business for the reasons identified below. Additionally, management may exclude other items from non-GAAP financial measures that do not occur in the ordinary course of our ongoing business operations and note them in the reconciliation from net earnings to the non-GAAP financial measure adjusted EBITDA.

Amortization of inventory step-up represents the increase in inventory fair value associated with our acquisitions. The increase in inventory fair value is amortized to cost of sales over the period that the related inventory is sold. The amortization of inventory step-up is excluded because it is a non-cash expense that is not indicative of ongoing operating results.Impairment charges are excluded because they do not occur in the ordinary course of our ongoing business operations, are inherently unpredictable in timing and amount, and are non-cash, which management believes facilitates the comparison of historical, current and forecasted financial results.Restructuring activities consist of established programs that are intended to fundamentally change our operations, and as such are excluded from its non-GAAP financial measures. Our restructuring programs may include closing or consolidating production facilities or moving manufacturing of a product to another location, realignment of the management structure of a business unit in response to changing market conditions or general rationalization of headcount. Our restructuring activities generally give rise to employee-related costs, such as severance pay, and facility-related costs, such as exit costs and gains or losses on asset disposals but may include other incremental costs associated with our restructuring activities. Restructuring and other expense, net, may also include other nonrecurring items included in operating income but incremental to our normal business activities. These items are excluded because they are not indicative of the ongoing operations of our underlying business.Non-cash (gains) losses in miscellaneous (income) expense are excluded due to their non-cash nature and the fact that they do not occur in the normal course of business and may obscure analysis of trends and financial performance. Sonya L. Higginbotham
Senior Vice President
Chief of Corporate Affairs, Communications and Sustainability
614.438.7391
[email protected]

Marcus A. Rogier
Treasurer and Investor Relations Officer
614.840.4663
[email protected]

200 Old Wilson Bridge Rd.
Columbus, Ohio 43085
WorthingtonEnterprises.com

For Immediate ReleaseChicago, IL – September 17, 2026 – Today, Zacks Equity as Trex Company, Inc. (TREX - Free Report) and Worthington Enterprises, Inc. (WOR - Free Report) .

Industry: Wood

Link: https://www.zacks.com/commentary/2990788/2-wood-stocks-positioned-to-weather-industry-challenges

The U.S. wood industry continues to face pressure from weak housing affordability, elevated mortgage rates and subdued consumer confidence, which are restraining new-home construction and remodeling demand. Low existing-home turnover, elevated freight and manufacturing costs, volatile commodity pricing and excess OSB supply are also weighing on demand visibility and margins. Weather disruptions and import volatility add further uncertainty for the Zacks Building Products – Wood industry players.

Nevertheless, several factors support the industry’s longer-term outlook. Demand for value-added products such as decking, siding and engineered wood remains encouraging, aided by product innovation and broader distribution. Repair and remodeling activity is supported by an aging housing stock and homeowner equity, while deferred projects could strengthen demand if financing conditions improve. 

Lean inventories, disciplined supply, firmer lumber pricing and reduced imports are also supportive. Investments in automation, technology and productivity should further improve efficiency and help producers manage changing market conditions. These factors are likely to aid companies such as Trex Company, Inc. and Worthington Enterprises, Inc.

Industry DescriptionThe Zacks Building Products – Wood industry includes forest product companies and manufacturers of lumber as well as other wood products used in home construction, repair and remodeling, along with the development of outdoor structures. Companies in the industry design, manufacture, source and sell flooring products like tile, wood, laminate, vinyl and natural stone flooring products, as well as decorative and installation accessories. 

The industry players are also involved in the manufacturing and distribution of wood and plastic composite products, along with related accessories, mainly for residential decking and railing applications. The industry also includes timberland real estate investment trusts, or REITs.

4 Trends Shaping the Future of Building Products - Wood IndustryWeak Housing Affordability Restrains Wood Demand: The industry’s prospects are highly correlated with the U.S. housing and the R&R market (considered one of the largest in terms of lumber demand) conditions. Elevated mortgage rates, weak consumer confidence and persistent affordability pressures continue to restrain single-family construction. 

Homebuilders are responding with incentives while remaining disciplined on new starts and speculative inventory, limiting demand for structural lumber, OSB and engineered wood products. Low existing-home turnover is also weighing on remodeling activity, as fewer home transactions reduce a traditional trigger for renovation spending. Until financing conditions and consumer sentiment improve meaningfully, residential wood-product demand is likely to remain uneven.

Freight, Input Costs and Commodity Volatility Pressure Margins: Elevated transportation and manufacturing costs remain a significant concern for the wood industry. Tight trucking capacity, higher fuel expenses and regulatory changes affecting freight markets are keeping logistics costs high, while resin, raw-material and other input expenses add further pressure. 

Commodity markets are also uneven, with OSB facing excess supply and soft pricing even as lumber markets show greater strength. Weather-related disruptions and import volatility add another layer of uncertainty. Although pricing actions and productivity initiatives can offset some pressure, persistent cost inflation and volatile commodity pricing could continue to constrain industry margins in 2026.

Value-Added Products and Remodeling Support Demand: The industry is increasingly shifting toward differentiated, branded and value-added building products rather than relying solely on commodity wood. Demand remains encouraging for decking, siding, engineered products and solutions that reduce installation time or labor requirements. 

At the same time, traditional wood decking faces a structural challenge from composite and alternative-material products as manufacturers target conversion from pressure-treated lumber. Product innovation, broader price-point offerings and stronger distribution networks are becoming increasingly important tools for capturing consumer spending and market share.

Repair and remodeling activity also remains relatively stable, supported by an aging U.S. housing stock and healthy homeowner equity. Although larger discretionary projects remain constrained, deferred renovation activity could provide a stronger demand catalyst once consumer confidence and financing conditions improve.

Supply Discipline, Lean Inventories and Efficiency Gains: Industry participants are maintaining lean inventories and increasingly relying on just-in-time purchasing, helping prevent excessive channel stock amid uncertain demand. At the same time, supply constraints have supported firmer lumber pricing, while reduced imports have helped strengthen plywood market conditions. 

Producers are also investing in automation, technology, capacity optimization and productivity initiatives to lower costs and improve throughput. These measures should strengthen operating efficiency and help the industry respond more effectively to demand changes while limiting the risk of excess commodity capacity.

Zacks Industry Rank Indicates Dull ProspectsThe Zacks Building Products – Wood industry is a nine-stock group within the broader Construction sector. The Zacks Wood industry currently carries a Zacks Industry Rank #171, which places it in the bottom 31% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of a lower earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group’s earnings growth potential. Since July 2026, the industry’s earnings estimates for 2026 have decreased to $2.05 per share from $2.09.

Despite the industry’s blurred near-term view, we will present a few stocks that one may consider adding to their portfolio. Before that, it’s worth taking a look at the industry’s shareholder returns and current valuation.

Industry Lags S&P 500, Outperforms SectorThe Zacks Building Products – Wood industry has outperformed the broader Zacks Construction sector but lagged the Zacks S&P 500 Composite over the past year.

Over this period, the industry has gained 2.4% against the broader sector’s 4.4% decline. The Zacks S&P 500 Composite has gained 16.4% over this period.

Industry's Current ValuationOn the basis of the forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing wood stocks, the industry trades at 23.41X compared with the S&P 500’s 19.78X and the sector’s 18.06X.

Over the last five years, the industry has traded as high as 29.47X, as low as 10.18X and at a median of 19.13X.

2 Wood Stocks to Keep an Eye OnWe have highlighted two stocks from the industry that have been capitalizing on fundamental strengths.

Trex: Based in Winchester, VA, Trex produces composite decking and railing products. Trex is benefiting from stronger consumer engagement, expanding wood-conversion opportunities and improving demand across decking and railing. Its enhanced entry-level products are helping attract more price-sensitive customers, while increased marketing and contractor-focused initiatives are strengthening brand reach. 

The upgraded distribution network should support broader availability and share gains from smaller brands. Trex is also accelerating production at its Little Rock facility, which should improve capacity utilization, freight efficiency and operating leverage over time. Continued product innovation, material-science capabilities, expansion into PVC decking and selective M&A provide additional avenues for long-term growth.

Trex — a Zacks Rank #3 (Hold) company — has lost 18.9% over the past year. Nonetheless, so far this year, TREX stock has gained 24.3%, outperforming the industry’s 3.2% rise. Trex’s earnings surpassed the consensus mark in two of the last four reported quarters and missed on the other two occasions, with the average being 125.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Worthington: Headquartered in Columbus, OH, Worthington is an industrial manufacturing company. The company is benefiting from continued product innovation, strategic acquisitions and operational transformation. Worthington is expanding into emerging opportunities such as data-center liquid cooling, while its broader building-products portfolio offers cross-selling potential as data-center construction grows. 

A strong pipeline of new consumer products and wider retail placement should support organic growth in mature markets. The integration of Elgen and LSI also broadens Worthington’s capabilities across the building envelope. Meanwhile, automation, AI-enabled technologies and 80/20 initiatives should improve efficiency and create operating leverage, supporting scalable long-term growth.

Worthington — a Zacks Rank #3 company — has lost 10.9% over the past year. Nonetheless, so far this year, WOR stock has gained 5.4%, outperforming the industry’s 3.2% rise. The Zacks Consensus Estimate for WOR’s fiscal 2027 earnings per share calls for 14.2% growth. Worthington’s has a VGM Score of A.

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HomeEarnings AnalysisIndustrial 

SummaryWorthington Enterprises is downgraded to "Hold" after a double miss in Q4 earnings and a sharp post-earnings selloff.WOR’s valuation aligns with historical averages, with mixed PEG and price-to-sales ratios, and current trading near fair value.Q4 saw stable adjusted EBITDA margins, $55 million free cash flow, and a dividend hike, but profitability trends remain lackluster.Technical signals suggest a bearish false breakout, with shares likely to churn between $50–$60 amid declining long-term momentum. Daria Matveeva/iStock via Getty Images

Worthington Enterprises, Inc. (WOR) reported soft fiscal Q4 earnings this week. The Industrials-sector company saw its shares plunge by more than 9% after a double miss. But the drop came after a strong return since my previous analysis in September

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COLUMBUS, Ohio, June 23, 2026 (GLOBE NEWSWIRE) -- Worthington Enterprises Inc. (NYSE: WOR), a designer and manufacturer of market-leading building and consumer products that improve everyday life by elevating spaces and experiences, today reported results for its fiscal 2026 fourth quarter and full-year ended May 31, 2026.

Recent Developments and Highlights (comparisons to the prior-year period unless otherwise stated)

Fourth Quarter fiscal 2026

Net sales were $371.5 million, an increase of 17%, including $44.1 million from recent acquisitions and 3% from organic growth.Net earnings increased to $48.1 million from $3.6 million, while adjusted net earnings were $47.7 million and adjusted EBITDA was $83.5 million.Earnings per share on a fully diluted basis (“EPS – diluted”) improved to $0.97 from $0.08 per share, while adjusted EPS – diluted was $0.97 per share compared to $1.06.Operating cash flow increased $9.2 million to $71.6 million, while free cash flow increased $5.8 million to $55.1 million.Repurchased 350,000 common shares for $18.2 million, leaving 4,565,000 common shares available under the company’s existing repurchase authorization.Declared a quarterly dividend of $0.20 per common share payable on September 29, 2026, to shareholders of record at the close of business on September 15, 2026, representing a 5% increase, or $0.01 per share, compared to the prior quarter. Full-Year fiscal 2026

Net sales were $1.4 billion, an increase of 20%, including $121.7 million from recent acquisitions and 9% from organic growth. Net earnings increased 63% to $155.0 million, while adjusted net earnings increased 8% to $167.6 million and adjusted EBITDA grew 12% to $295.8 million.EPS – diluted improved to $3.14 from $1.92 per share, while adjusted EPS – diluted increased to $3.37 per share from $3.09 per share.Operating cash flow increased 8% to $226.1 million, while free cash flow improved 7% to $170.2 million.Completed the acquisitions of Elgen Manufacturing (“Elgen”) and LSI Group (“LSI”), further expanding the company’s building products portfolio and strengthening its position across the building envelope.
“We closed fiscal 2026 with another quarter of solid performance, delivering positive organic growth and strong free cash flow while continuing to execute our strategy,” said Worthington Enterprises President and CEO Joe Hayek. “For the full year, our teams drove double-digit growth in adjusted EBITDA, expanded margins in our wholly owned businesses and maintained a strong balance sheet. I want to thank my colleagues around the world for their continued commitment to serving our customers and delivering value for our shareholders. Their dedication continues to strengthen our business.”

Financial highlights for the current year and prior year quarters are as follows:

(U.S. dollars in millions, except per share amounts) 4Q 2026  4Q 2025 GAAP Financial Measures      Net sales $371.5  $317.9 Operating income (loss)  23.2   (30.4)Earnings before income taxes  59.8   8.3 Net earnings  48.1   3.6 EPS – diluted  0.97   0.08 Net cash provided by operating activities  71.6   62.4        Non-GAAP Financial Measures (1)      Adjusted operating income $25.5  $21.8 Adjusted EBITDA  83.5   85.1 Adjusted net earnings  47.7   53.1 Adjusted EPS – diluted  0.97   1.06 Free cash flow  55.1   49.3  (1)   Refer to the “GAAP / Non-GAAP Reconciliations” and the “Use of Non-GAAP Financial Measures and Definitions” sections of this release for additional information regarding the use of non-GAAP financial measures and reconciliations to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Consolidated Quarterly Results 

Net sales for the fourth quarter of fiscal 2026 increased $53.6 million, or 16.9%, over the prior year quarter to $371.5 million. Recent acquisitions contributed $44.1 million to net sales in the current year quarter. Excluding the impact of acquisitions, net sales increased $9.5 million, or 3.0%, compared to the prior year quarter.

Operating income increased $53.6 million to $23.2 million. Results in the prior year quarter included nonrecurring items totaling $52.2 million, resulting primarily from the non-cash write-down of intangible assets in the General Tools & Instruments (“GTI”) business. On an adjusted basis, operating income increased $3.7 million in the quarter to $25.5 million, reflecting contributions from recent acquisitions.

Equity in net income of unconsolidated affiliates decreased $4.6 million from the prior year quarter to $38.1 million, primarily due to lower contributions from ClarkDietrich, which were down $6.8 million. Contributions from WAVE remained strong at $32.3 million and were largely consistent with the prior year quarter, while higher contributions from the Workhorse and SES joint ventures partially offset the decline. Equity income in the prior year quarter included a $3.4 million non-cash impairment charge at the SES joint venture.

Income tax expense was $11.7 million in the fourth quarter of fiscal 2026, compared to $4.7 million in the prior year quarter. The increase was driven by higher pre-tax earnings. Income tax expense in the fourth quarter of fiscal 2026 reflects an annual effective rate of 22.9%, compared to 26.1% in the prior year, which was impacted by certain discrete items. On an adjusted basis, the annual effective tax rate was 23.3%, compared to 23.0% in the prior year.

Balance Sheet and Cash Flow

Total debt at quarter end was $305.9 million, consisting entirely of long-term debt, an increase of $3.0 million from May 31, 2025, 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, 2026, leaving $500.0 million available for future use and providing substantial liquidity.

The company ended the quarter with cash of $27.7 million, a decrease of $222.4 million from May 31, 2025, primarily reflecting the acquisitions of Elgen and LSI. During the fourth quarter of fiscal 2026, the company generated operating cash flow of $71.6 million, of which $16.5 million was invested in capital expenditures, resulting in free cash flow of $55.1 million, up from $49.3 million in the prior year quarter. Capital expenditures in the current year quarter included approximately $6.6 million related to ongoing facility modernization projects, which remain on track and are expected to be completed during fiscal 2027.

Quarterly Segment Results

Building Products generated net sales of $245.3 million in the current year quarter, an increase of $53.0 million, or 27.6%, over the prior year quarter. The increase was primarily driven by the impact of acquisitions, which contributed $44.1 million to net sales in the current year quarter. Excluding the impact of acquisitions, net sales increased $8.9 million, or 4.6% compared to the prior year quarter. Adjusted EBITDA decreased $2.7 million, mainly driven by a $6.8 million decline in equity income contributions from ClarkDietrich and less favorable product mix compared to the prior year quarter.

Consumer Products generated net sales of $126.1 million in the current year quarter, up $0.6 million from the prior year quarter, driven by higher average selling prices, which were mostly offset by lower volume. Adjusted EBITDA increased $3.5 million to $24.3 million, driven by gross margin improvement and lower SG&A expense.

Outlook

“As we enter fiscal 2027, we are building on the momentum we created this year,” Hayek said. “Our teams remain focused on innovation, transformation and strategic M&A as we continue to strengthen our market positions, integrate recent acquisitions, expand our capabilities and deliver value for our customers. Supported by strong free cash flow generation and a healthy balance sheet, we are excited about the opportunities ahead and remain focused on creating long-term shareholder value.”

Conference Call

The company will review fiscal 2026 fourth quarter and full-year results during its quarterly conference call on June 24, 2026, 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 heating and cooling, cooking, construction and water solutions, and building systems including HVAC and metal roofing components, 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®, BPD, Coleman® (propane cylinders), CoMet®, Elgen, Garden Weasel®, General®, HALO™, Hawkeye™, LEVEL5 Tools®, Logan Stampings, Mag Torch®, NEXI™, Pactool International®, PowerCore™, Ragasco®, Roof Hugger®, 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”). We wish 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; 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; 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; 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 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; effects of pandemics and widespread health crises and the various responses of governmental and nongovernmental authorities thereto on economies and markets, and on the company’s 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 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; 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 we participate; 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 we do 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 we participate 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, 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, 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 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, 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 Annual Report on Form 10-K for the fiscal year ended May 31, 2025.

Forward-looking statements should be construed in the light of such risks. We note 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. We do not undertake, and hereby disclaim, 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 common share amounts)         Three Months Ended  Twelve Months Ended   May 31,  May 31,   2026  2025  2026  2025 Net sales $371,456  $317,884  $1,381,292  $1,153,762 Cost of goods sold  269,568   224,650   1,003,017   834,727 Gross profit  101,888   93,234   378,275   319,035 Selling, general and administrative expense  77,935   71,454   294,966   268,413 Impairment of long-lived assets  -   50,813   -   50,813 Restructuring and other expense, net  794   1,372   7,100   10,524 Operating income (loss)  23,159   (30,405)  76,209   (10,715)Other income (expense):            Miscellaneous income (expense), net  1,358   (4,031)  (3,244)  (3,222)Interest (expense) income, net  (2,885)  60   (6,248)  (2,090)Equity in net income of unconsolidated affiliates  38,141   42,707   134,631   144,836 Earnings before income taxes  59,773   8,331   201,348   128,809 Income tax expense  11,708   4,717   46,313   33,839 Net earnings  48,065   3,614   155,035   94,970 Net loss attributable to noncontrolling interest  (81)  (263)  (1,050)  (1,083)Net earnings attributable to controlling interest $48,146  $3,877  $156,085  $96,053              Basic            Weighted average common shares outstanding  48,795   49,253   49,073   49,395 Earnings per share attributable to controlling interest $0.99  $0.08  $3.18  $1.94              Diluted            Weighted average common shares outstanding  49,404   49,997   49,716   50,131 Earnings per share attributable to controlling interest $0.97  $0.08  $3.14  $1.92              Cash dividends declared per common share $0.19  $0.17  $0.76  $0.68   WORTHINGTON ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
      May 31,   2026  2025 Assets      Current assets:      Cash and cash equivalents $27,725  $250,075 Receivables, less allowances of $1,310 and $907, respectively  228,168   215,824 Inventories      Raw materials  110,536   80,522 Work in process  9,490   9,408 Finished products  87,270   79,463 Total inventories  207,296   169,393 Income taxes receivable  20,016   12,720 Prepaid expenses and other current assets  41,269   37,358 Total current assets  524,474   685,370 Investments in unconsolidated affiliates  118,048   129,262 Operating lease assets  42,888   22,699 Goodwill  500,784   376,480 Other intangible assets, net of accumulated amortization of $106,944 and $88,887, respectively  322,761   190,398 Other assets  28,215   20,717 Property, plant and equipment:      Land  8,732   8,703 Buildings and improvements  136,441   132,742 Machinery and equipment  411,030   372,798 Construction in progress  66,509   33,326 Total property, plant and equipment  622,712   547,569 Less: accumulated depreciation  311,818   277,343 Total property, plant and equipment, net  310,894   270,226 Total assets $1,848,064  $1,695,152        Liabilities and equity      Current liabilities:      Accounts payable $115,203  $103,205 Accrued compensation, contributions to employee benefit plans and related taxes  41,728   43,864 Dividends payable  9,814   9,172 Other accrued items  45,832   34,478 Current operating lease liabilities  7,982   6,014 Income taxes payable  867   109 Total current liabilities  221,426   196,842 Other liabilities  56,657   53,364 Distributions in excess of investment in unconsolidated affiliate  105,349   103,767 Long-term debt  305,896   302,868 Noncurrent operating lease liabilities  35,883   17,173 Deferred income taxes, net  95,813   82,901 Total liabilities  821,024   756,915 Shareholders' equity - controlling interest  1,027,040   937,187 Noncontrolling interest  -   1,050 Total equity  1,027,040   938,237 Total liabilities and equity $1,848,064  $1,695,152   WORTHINGTON ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
         Three Months Ended  Twelve Months Ended   May 31,  May 31,   2026  2025  2026  2025 Operating activities:            Net earnings $48,065  $3,614  $155,035  $94,970 Adjustments to reconcile net earnings to net cash provided by operating activities:            Depreciation and amortization  15,870   12,555   57,272   48,262 Impairment of long-lived assets  -   50,813   -   50,813 Provision for (benefit from) deferred income taxes  627   (7,568)  8,439   (18,439)Impairment of investment in note receivable  -   5,000   -   5,000 Bad debt expense (income)  246   (31)  358   3,158 Equity in net income of unconsolidated affiliates, net of distributions  (3,630)  (2,041)  5,361   8,769 Net loss on sale of assets  295   824   3,290   277 Stock-based compensation  3,230   3,399   13,734   16,186 Unrealized (gain) loss on investment in marketable securities  (610)  -   975   - Changes in assets and liabilities, net of impact of acquisitions:            Receivables  3,836   (13,238)  7,706   (22,261)Inventories  (9,858)  (4,058)  (11,557)  11,500 Accounts payable  7,185   13,219   3,820   619 Accrued compensation and employee benefits  (1,166)  6,435   (1,986)  1,807 Other operating items, net  7,511   (6,509)  (16,328)  9,083 Net cash provided by operating activities  71,601   62,414   226,119   209,744              Investing activities:            Investment in property, plant and equipment  (16,492)  (13,086)  (55,913)  (50,580)Acquisitions, net of cash acquired  278   (6,862)  (304,148)  (95,018)Proceeds from sale of assets, net of selling costs  227   11   245   13,455 Investment in non-marketable equity securities, net of distributions  (138)  (85)  (251)  (2,958)Net cash used by investing activities  (16,125)  (20,022)  (360,067)  (135,101)             Financing activities:            Dividends paid  (9,350)  (8,396)  (36,890)  (33,903)Purchase of common shares  (18,382)  (9,831)  (43,710)  (30,883)Net repayments of short-term borrowings  (4,792)  -   -   - Principal payments on long-term obligations  (1,094)  -   (1,854)  - Proceeds from issuance of common shares, net of tax withholdings  (112)  3,066   (5,948)  (4,007)Net cash used by financing activities  (33,730)  (15,161)  (88,402)  (68,793)Increase (decrease) in cash and cash equivalents  21,746   27,231   (222,350)  5,850 Cash and cash equivalents at beginning of period  5,979   222,844   250,075   244,225 Cash and cash equivalents at end of period $27,725  $250,075  $27,725  $250,075   WORTHINGTON ENTERPRISES, INC.
SEGMENT INFORMATION
(Dollars in thousands)         Three Months Ended  Twelve Months Ended   May 31,  May 31,   2026  2025  2026  2025 Net sales            Building Products $245,309  $192,316  $861,456  $654,137 Consumer Products  126,147   125,568   519,836   499,625 Consolidated $371,456  $317,884  $1,381,292  $1,153,762              Adjusted EBITDA            Building Products $68,544  $71,253  $240,310  $212,831 Consumer Products  24,270   20,791   91,157   82,676 Total reportable segments  92,814   92,044   331,467   295,507 Other (1)  (228)  638   (5,309)  (2,672)Unallocated Corporate  (9,063)  (7,622)  (30,330)  (27,869)Consolidated $83,523  $85,060  $295,828  $264,966              Adjusted EBITDA margin            Building Products  27.9%  37.0%  27.9%  32.5%Consumer Products  19.2%  16.6%  17.5%  16.5%Consolidated  22.5%  26.8%  21.4%  23.0%             Equity income by unconsolidated affiliate            WAVE (2) $32,285  $32,622  $118,063  $110,100 ClarkDietrich (2)  6,084   12,836   21,877   40,795 Other (1)  (228)  (2,751)  (5,309)  (6,059)Consolidated $38,141  $42,707  $134,631  $144,836  (1)   Other includes the equity in net income of unconsolidated affiliates of the Workhorse and the SES joint ventures.

(2)   Equity income contributed by the WAVE and ClarkDietrich joint ventures is included in Building Products segment results.

 WORTHINGTON ENTERPRISES, INC.
GAAP / NON-GAAP RECONCILIATIONS
(Dollars in thousands, except per share amounts) For more information regarding the non-GAAP financial measures, refer to the “Use of Non-GAAP Financial Measures and Definitions” section of this release.
 Consolidated Results – Adjusted Earnings per Share – Diluted
    Three Months Ended May 31, 2026     Earnings                 Before  Income        Effective  Operating  Income  Tax  Net  Diluted  Tax  Income  Taxes  Expense  Earnings(1)  EPS(1)  Rate(1) GAAP$23,159  $59,773  $11,708  $48,146  $0.97   19.6%Amortization of inventory step-up(2) 1,500   1,500   (321)  1,179   0.02    Restructuring and other expense, net(3) 794   794   (133)  661   0.02    Non-cash gains in miscellaneous income, net(4) -   (610)  157   (453)  -    Discrete tax item(8) -   -   (1,837)  (1,837)  (0.04)   Non-GAAP$25,453  $61,457  $13,842  $47,696  $0.97   22.5%  Three Months Ended May 31, 2025     Earnings              Operating  Before  Income        Effective  Income  Income  Tax  Net  Diluted  Tax  (Loss)  Taxes  Expense  Earnings(1)  EPS(1)  Rate(1) GAAP$(30,405) $8,331  $4,717  $3,877  $0.08   54.9%Impairment of long-lived assets(3) 50,813   50,813   (10,387)  40,426   0.81    Restructuring and other expense, net(3) 1,372   1,372   (164)  1,208   0.02    Non-cash losses in miscellaneous expense, net(4) -   5,000   -   5,000   0.10    Non-recurring loss in equity income(5) -   3,387   (801)  2,586   0.05    Non-GAAP$21,780  $68,903  $16,069  $53,097  $1.06   23.2%  Twelve Months Ended May 31, 2026     Earnings                 Before  Income        Effective  Operating  Income  Tax  Net  Diluted  Tax  Income  Taxes  Expense  Earnings(1)  EPS(1)  Rate(1) GAAP$76,209  $201,348  $46,313  $156,085  $3.14   22.9%Amortization of inventory step-up(2) 5,151   5,151   (1,209)  3,942   0.08    Restructuring and other expense, net(3) 7,100   7,100   (1,425)  5,675   0.12    Non-cash losses in miscellaneous expense, net(4) -   3,925   (229)  3,696   0.07    Discrete tax item(8) -   -   (1,837)  (1,837)  (0.04)   Non-GAAP$88,460  $217,524  $51,013  $167,561  $3.37   23.3%  Twelve Months Ended May 31, 2025     Earnings              Operating  Before  Income        Effective  Income  Income  Tax  Net  Diluted  Tax  (Loss)  Taxes  Expense  Earnings(1)  EPS(1)  Rate(1) GAAP$(10,715) $128,809  $33,839  $96,053  $1.92   26.1%Amortization of inventory step-up(2) 1,477   1,477   (350)  1,127   0.02    Impairment of long-lived assets(3) 50,813   50,813   (10,387)  40,426   0.81    Restructuring and other expense, net(3) 10,524   10,524   (796)  9,728   0.19    Non-cash losses in miscellaneous expense, net(4) -   5,000   -   5,000   0.10    Non-recurring loss in equity income(5) -   3,387   (801)  2,586   0.05    Non-GAAP$52,099  $200,010  $46,173  $154,920  $3.09   23.0% Consolidated Results – Adjusted EBITDA

  Three Months Ended  Twelve Months Ended   May 31,  May 31,   2026  2025  2026  2025 Net earnings (GAAP) $48,065  $3,614  $155,035  $94,970 Plus: Net loss attributable to noncontrolling interest  81   263   1,050   1,083 Net earnings attributable to controlling interest  48,146   3,877   156,085   96,053 Interest expense (income), net  2,885   (60)  6,248   2,090 Income tax expense  11,708   4,717   46,313   33,839 EBIT(6)  62,739   8,534   208,646   131,982 Amortization of inventory step-up(2)  1,500   -   5,151   1,477 Impairment of long-lived assets(3)  -   50,813   -   50,813 Restructuring and other expense, net(3)  794   1,372   7,100   10,524 Non-cash (gains) losses in miscellaneous (income) expense, net(4)  (610)  5,000   3,925   5,000 Non-recurring loss in equity income(5)  -   3,387   -   3,387 Adjusted EBIT(6)  64,423   69,106   224,822   203,183 Depreciation and amortization  15,870   12,555   57,272   48,262 Stock-based compensation(7)  3,230   3,399   13,734   13,521 Adjusted EBITDA (non-GAAP) $83,523  $85,060  $295,828  $264,966              Net earnings margin (GAAP)  12.9%  1.1%  11.2%  8.2%Adjusted EBITDA margin (non-GAAP)  22.5%  26.8%  21.4%  23.0% (1)   Excludes the impact of noncontrolling interest.

(2)   Reflects the amortization of the step-up to fair market value of acquired inventory related to the LSI and Elgen acquisitions in fiscal 2026 and the Ragasco acquisition in fiscal 2025.

(3)   Significant pre-tax impairment and restructuring charges include the following:

Impairment of long-lived assets: Non-cash charge of $50,050 in the fourth quarter of 2025 related to the write-down of intangible assets associated with GTI.Restructuring and other expense, net: A charge of $4,536 in fiscal 2025 related to an increase in the fair value of the contingent liability associated with the Ragasco earnout. (4)   Reflects the following non-cash activity in miscellaneous (income) expense, net:

A loss of $2,950 incurred during the second quarter of fiscal 2026 in connection with the divestiture of the company’s 49% interest in the composite assets of its SES joint venture on October 16, 2025. In exchange for the company’s interest in the divested assets, it received common shares of both Hexagon Composites and Hexagon Purus.Unrealized (gains) losses during fiscal 2026 associated with the marketable securities noted directly above.A pre-tax charge of $5,000 during the fourth quarter of fiscal 2025 to write down an investment in a note receivable that was determined to be other than temporarily impaired. (5)   Reflects a non-cash impairment charge of $3,387 at the SES joint venture during the fourth quarter of fiscal 2025

(6)   EBIT and adjusted EBIT are non-GAAP financial measures. However, these measures are not used by management to evaluate the company’s performance, engage in financial and operational planning, or to determine incentive compensation. Instead, they are included as subtotals in the reconciliation of net earnings to adjusted EBITDA, which is a non-GAAP financial measure used by management.

(7)   Excludes $2,665 of stock-based compensation reported in restructuring and other expense, net in the company’s consolidated statement of earnings during fiscal 2025 related to the accelerated vesting of certain outstanding equity awards upon retirement of a key employee.

(8)   Reflects the release of a FIN 48 reserve associated with a non-recurring gain recognized in fiscal 2021.

Consolidated Results - Free Cash Flow

The following tables provide a reconciliation of net cash provided by operating activities to free cash flow and the calculation of operating cash flow conversion to free cash flow conversion for the three and 12 months ended May 31, 2026 and 2025.

  Three Months Ended  Twelve Months Ended   May 31,  May 31,   2026  2025  2026  2025 Net cash provided by operating activities (GAAP) $71,601  $62,414  $226,119  $209,744 Investment in property, plant, and equipment  (16,492)  (13,086)  (55,913)  (50,580)Free cash flow (non-GAAP) $55,109  $49,328  $170,206  $159,164              Net earnings attributable to controlling interest (GAAP) $48,146  $3,877  $156,085  $96,053 Adjusted net earnings attributable to controlling interest (non-GAAP) $47,696  $53,097  $167,561  $154,920              Operating cash flow conversion (GAAP)(1)  149%  1,610%  145%  218%Free cash flow conversion (non-GAAP)  116%  93%  102%  103% (1)   Operating cash flow conversion is defined as net cash provided by operating activities divided by net earnings attributable to controlling interest.

WORTHINGTON ENTERPRISES, INC.
USE OF NON-GAAP FINANCIAL MEASURES AND DEFINITIONS

NON-GAAP FINANCIAL MEASURES. These materials include certain financial measures that are not calculated and presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Non-GAAP financial measures typically exclude items that management believes are not reflective of, and thus should not be included when evaluating the performance of the company’s ongoing operations. Management uses these non-GAAP financial measures to evaluate ongoing performance, engage in financial and operational planning, and determine incentive compensation. Management believes these non-GAAP financial measures provide useful supplemental information regarding the performance of the company’s ongoing operations and should not be considered as an alternative to the comparable GAAP financial measure. Additionally, management believes these non-GAAP financial measures allow for meaningful comparisons and analysis of trends in the company’s businesses and enables investors to evaluate operations and future prospects in the same manner as management.

The following provides an explanation of each non-GAAP financial measure presented in these materials:

Adjusted operating income (loss) is defined as operating income (loss) excluding the items listed below, to the extent naturally included in operating income (loss).

Adjusted net earnings is defined as net earnings attributable to controlling interest excluding the after-tax effect of the excluded items outlined below.

Adjusted EPS – diluted is defined as adjusted net earnings divided by diluted weighted-average common shares outstanding for the applicable period.

Adjusted EBITDA is the measure by which management evaluates segment performance and overall profitability. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA excludes additional items including, but not limited to, those listed below, as well as other items that management believes are not reflective of, and thus should not be included when evaluating the performance of ongoing operations. Adjusted EBITDA also excludes stock-based compensation due to its non-cash nature, which is consistent with how management assesses operating performance and determines incentive compensation. At the segment level, adjusted EBITDA includes expense allocations for centralized corporate back-office functions that exist to support the day-to-day business operations. Public company and other governance costs are held at the corporate level within the unallocated corporate and other category.

Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net sales.

Free cash flow is a non-GAAP financial liquidity measure that is used by the company to assess its ability to generate cash beyond what is required for its business operations and capital expenditures. The company defines free cash flow as net cash flows from operating activities less investment in property, plant, and equipment.

Free cash flow conversion is a non-GAAP financial measure that is used by the company to measure how much of its adjusted net earnings attributable to controlling interest is converted into cash. The company defines free cash flow conversion as free cash flow divided by adjusted net earnings.

EXCLUSIONS FROM NON-GAAP FINANCIAL MEASURES

Management believes it is useful to exclude the following items from its non-GAAP financial measures for its own and investors’ assessment of the business for the reasons identified below. Additionally, management may exclude other items from non-GAAP financial measures that do not occur in the ordinary course of the company’s ongoing business operations and note them in the reconciliation from net earnings to the non-GAAP financial measure adjusted EBITDA.

Amortization of inventory step-up represents the increase in inventory fair value associated with the company’s acquisitions. The increase in inventory fair value is amortized to cost of sales over the period that the related inventory is sold. The amortization of inventory step-up is excluded because it is a non-cash expense that is not indicative of ongoing operating results.Impairment charges are excluded because they do not occur in the ordinary course of the company’s ongoing business operations, are inherently unpredictable in timing and amount, and are non-cash, which management believes facilitates the comparison of historical, current and forecasted financial results.Restructuring activities consist of established programs that are intended to fundamentally change the company’s operations, and as such are excluded from its non-GAAP financial measures. The company’s restructuring programs may include closing or consolidating production facilities or moving manufacturing of a product to another location, realignment of the management structure of a business unit in response to changing market conditions or general rationalization of headcount. The company’s restructuring activities generally give rise to employee-related costs, such as severance pay, and facility-related costs, such as exit costs and gains or losses on asset disposals but may include other incremental costs associated with the company’s restructuring activities. Restructuring and other expense, net, may also include other nonrecurring items included in operating income but incremental to the company’s normal business activities. These items are excluded because they are not indicative of the ongoing operations of the company’s underlying business.Non-cash (gains) losses in miscellaneous (income) expense are excluded due to their non-cash nature and the fact that they do not occur in the normal course of business and may obscure analysis of trends and financial performance.Non-recurring loss in equity income is excluded because it does not occur in the normal course of business and is inherently unpredictable in timing and amount. Sonya L. Higginbotham
Senior Vice President
Chief of Corporate Affairs, Communications and Sustainability
614.438.7391
[email protected]

Marcus A. Rogier
Treasurer and Investor Relations Officer
614.840.4663
[email protected]

200 Old Wilson Bridge Rd.
Columbus, Ohio 43085
WorthingtonEnterprises.com