#Worthington Enterprises Posts Higher Sales and Earnings
Worthington Enterprises Inc. (NYSE: WOR), a Columbus, Ohio, manufacturer of building, trade and specialty products, reported net sales of $343.9 million for its fiscal 2027 first quarter, up 13% from a year earlier. Net earnings rose 22% to $42.6 million for the quarter ended August 31, 2026, the company said.
The report is the first issued under new segment names. Worthington Enterprises renamed its Building Products segment to Building Performance Solutions and its Consumer Products segment to Trade & Specialty Solutions on September 15, 2026. The company said the change affects segment names only and does not alter segment composition or historical results.
Building Performance Solutions supplies engineered components for residential and commercial construction, including cooling systems used in data centers. Trade & Specialty Solutions includes consumer and professional brands such as Bernzomatic and Coleman propane cylinders.
#Worthington Enterprises Posts 22% Earnings Growth on Acquisitions, Organic Gains
Net earnings increased 22% to $42.6 million in the quarter. Adjusted net earnings, a non-GAAP measure that excludes specified items, rose 3% to $40.1 million.
Adjusted EBITDA grew 10% to $74 million. Earnings per diluted share improved to $0.87 from $0.70 a year earlier, while adjusted earnings per diluted share rose to $0.82 from $0.78.
Operating income increased $3.8 million to $13 million. The company said the gain was helped by $4 million in net tariff refunds tied to the International Emergency Economic Powers Act, along with contributions from recent acquisitions.
Equity income from unconsolidated affiliates rose $3.9 million to $40.6 million, driven by higher contributions from joint ventures WAVE and ClarkDietrich, up $2.7 million and $1.4 million, respectively.
Miscellaneous income was favorable by $4.2 million, largely reflecting a $4 million gain tied to an earnout agreement linked to the company's former oil and gas products business, which it divested in January 2021.
"We started fiscal 2027 with solid performance as our teams continued to execute well and deliver for our customers. 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," Joe Hayek, President and CEO, Worthington Enterprises, said in the earnings release.
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#Worthington Enterprises Renames Segments as Sales Climb Across Both Units
Building Performance Solutions generated net sales of $215.1 million, up 16.4% from a year earlier. Acquisitions contributed $19.2 million of that growth, while net sales excluding acquisitions rose 6%.
Segment adjusted EBITDA for Building Performance Solutions was little changed at $59.8 million, as gains from acquisitions and joint ventures were offset by lower volume and product mix.
Trade & Specialty Solutions generated net sales of $128.8 million, up 8.3%, driven by higher volume and average selling prices. Segment adjusted EBITDA increased $7.9 million to $24 million.
#Worthington Enterprises Repurchases $18.2 Million in Shares, Extends Credit Line to 2031
The company repurchased 335,000 common shares for $18.2 million during the quarter, leaving 4,230,000 shares available under its existing buyback authorization.
Worthington Enterprises declared a quarterly dividend of $0.20 per share, payable December 29, 2026, to shareholders of record as of December 15, 2026.
Operating cash flow increased $25.7 million to $66.7 million, while free cash flow increased $26.1 million to $54 million.
The company ended the quarter with cash of $55.1 million, up $27.3 million from May 31, 2026, which it attributed to strong operating cash flow.
Total debt stood at $305.6 million, unchanged from the prior quarter. Worthington Enterprises amended its revolving credit facility during the quarter to extend the maturity date to August 31, 2031, and had no borrowings against the facility, leaving $500 million available.
Hayek said the company sees growing demand for its engineered ASME tanks used in liquid cooling systems for data centers and has the flexibility to pursue further growth opportunities given its cash generation and balance sheet. The company said trade policy changes, raw material costs and broader economic conditions remain among the factors that could affect future results.