Worthington Enterprises reported second-quarter fiscal 2026 results for the period ended November 30, 2025, showing strong top-line growth alongside modest pressure on GAAP earnings. Net sales rose 19% to $327.5 million, driven by volume growth in Building Products and contributions from the Elgen Manufacturing acquisition completed in June 2025. GAAP net earnings declined 3% to $27.0 million, while diluted EPS was essentially flat at $0.55. On an adjusted basis, net earnings rose 7% to $32.5 million, and adjusted EPS increased to $0.65, reflecting improved operating performance and cash generation.
#Financial Performance Breakdown
Revenue growth of $53.4 million was largely attributable to Building Products, which benefited from increased volume and incremental sales from Elgen. Operating income rose to $12.3 million from $3.5 million in the prior year quarter. Excluding restructuring and other expenses, adjusted operating income increased to $13.9 million.
Adjusted EBITDA grew 8% to $60.5 million, reflecting volume leverage despite certain offsetting items. Below the operating line, results were affected by several non-operational factors. Miscellaneous expense increased by $4.2 million, primarily related to the divestment of the company’s 49% interest in the Sustainable Energy Solutions joint venture’s composite business and a mark-to-market loss on securities received as consideration.
Equity income declined $5.4 million year over year to $29.1 million, mainly due to lower contributions from ClarkDietrich, partially offset by improved performance at WAVE. Operating cash flow increased 5% to $51.5 million. Capital expenditures totaled $12.4 million, including $5.8 million for facility modernization, resulting in free cash flow of $39.1 million, up 15% from the prior year quarter. Cash on hand declined to $180.3 million, primarily reflecting the Elgen acquisition, while total long-term debt increased modestly to $305.3 million. The company maintained full availability under its $500 million revolving credit facility.
#Strategic and Operational Highlights
Segment performance continued to diverge. Consumer Products generated net sales of $119.9 million, up 2.7% year over year, driven by a favorable product mix despite slightly lower volumes. Adjusted EBITDA for the segment was relatively flat at $15.3 million, as higher conversion costs offset mix benefits.
Building Products delivered net sales of $207.5 million, an increase of 31.9% from the prior year quarter. Volume growth across wholly owned businesses, including Elgen, supported adjusted EBITDA growth of $5.8 million to $53.0 million.
Management highlighted continued strength in this segment as a primary driver of consolidated results. During the quarter, Worthington also repurchased 250,000 shares for $13.7 million and declared a quarterly dividend of $0.19 per share, payable in March 2026. Subsequent to quarter-end, the company announced an agreement to acquire LSI Group for approximately $205 million, expanding its presence in commercial metal roofing components.
#Management Commentary and Outlook
CEO Joe Hayek characterized the quarter as one of solid execution, citing growth in net sales, adjusted EPS, EBITDA, and free cash flow. Management emphasized continued momentum in Building Products and stable performance in Consumer Products amid a cautious consumer environment.
Looking ahead, Hayek noted that the back half of the fiscal year is typically seasonally stronger and highlighted the pending LSI Group acquisition as aligned with the company’s strategy of building leadership positions in niche markets. Management also acknowledged ongoing execution and integration considerations tied to recent and pending acquisitions.
#Investor Takeaway and Risk Framing
The second quarter underscores Worthington Enterprises’ ability to translate acquisition-driven and organic volume growth into higher adjusted earnings and cash flow, even as GAAP results were influenced by non-recurring items and equity income variability.
Balance sheet flexibility remains intact, though recent and planned acquisitions introduce integration and execution risk. Overall, the quarter reflects steady operational progress within a single reporting period, with results shaped by both strategic investments and external market conditions.