Worthington Enterprises Reports First Quarter Fiscal 2027 Results
WORTHINGTON ENTERPRISES, INC. (WOR) filed an SEC Form 8-K — Results of Operations and Financial Condition. Worthington Enterprises Reports First Quarter Fiscal 2027 Results COLUMBUS, Ohio (September 22, 2026) – Worthington Enterprises Inc. (NYSE: WOR), a designer and manufacturer of market-leading products and solutions for building, trade and specialty applications, today reported re
How this was made
The 30-second read
Why it matters
The earnings release shows robust organic and acquisition‑driven growth, improved cash flow, and shareholder returns, which may influence valuation multiples.
Market read
First‑report earnings with better‑than‑expected metrics provide a clear trading catalyst for WOR.
What to watch
Potential headwinds from raw‑material cost inflation not detailed in the release.
Worthington Enterprises Reports First Quarter Fiscal 2027 Results
Net sales increased 13.2%, including 6.9% organic growth, while net earnings increased 22%, adjusted EBITDA increased 10% and free cash flow increased to $54.0 million. Adjusted operating income was relatively flat and Building Performance Solutions adjusted EBITDA was relatively flat amid lower volume and unfavorable product mix.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $343.9M | – | 13.2% |
| Gross profitGAAP | $90.90M | – | – |
| Selling, general and administrative expenseGAAP | $77.16M | – | – |
| Restructuring and other expense, netGAAP | $717K | – | – |
| Operating incomeGAAP | $13M | – | – |
| Adjusted operating incomenon-GAAP | $13.7M | – | relatively flat |
| Earnings before income taxesGAAP | $55.60M | – | – |
| Income tax expenseGAAP | $13M | – | – |
| Estimated annual effective tax rateGAAP | 24.1% | – | – |
| Net earningsGAAP | $42.6M | – | 22% |
| Net earnings attributable to controlling interestGAAP | $42.57M | – | – |
| EPS – basicGAAP | $ 0.88 | – | – |
| EPS – dilutedGAAP | $0.87 per share | – | – |
| Adjusted net earningsnon-GAAP | $40.1M | – | 3% |
| Adjusted EPS – dilutednon-GAAP | $0.82 per share | – | – |
| Adjusted EBITDAnon-GAAP | $74M | – | 10% |
| Net earnings marginGAAP | 12.4% | – | – |
| Adjusted EBITDA marginnon-GAAP | 21.5% | – | – |
| Equity in net income of unconsolidated affiliatesGAAP | $40.6M | – | – |
| Net cash provided by operating activitiesGAAP | $66.7M | – | increased $25.7 million |
| Investment in property, plant and equipmentGAAP | $12.8M | – | – |
| Free cash flownon-GAAP | $54M | – | increased $26.1 million |
| Operating cash flow conversionGAAP | 157% | – | – |
| Free cash flow conversionnon-GAAP | 135% | – | – |
| Cash and cash equivalentsGAAP | $55.1M | increase of $27.3 million | – |
| Total debtGAAP | $305.6M | relatively unchanged from May 31, 2026 | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Building Performance SolutionsRecent acquisitions contributed $19.2 million to net sales. Excluding acquisitions, net sales increased $11.1 million, or 6.0%. 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. | $215.1M | – | 16.4% |
| Trade & Specialty SolutionsHigher volume and higher average selling prices drove net sales. Adjusted EBITDA increased $7.9 million to $24.0 million, driven by higher net sales and the net benefit of IEEPA tariff refunds. | $128.8M | – | 8.3% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Repurchased 335,000 common shares for $18.2 million.
- 4,230,000 common shares remained 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.
- Dividends paid were $ 9,402 (In thousands), compared with $ 8,576 (In thousands).
What drove it
- Recent acquisitions contributed $19.2 million to consolidated net sales and $19.2 million to Building Performance Solutions net sales.
- Excluding acquisitions, consolidated net sales increased $21.0 million, or 6.9%.
- The quarter benefited from $4.0 million in net tariff refunds related to the International Emergency Economic Powers Act.
- Equity in net income of unconsolidated affiliates increased $3.9 million to $40.6 million, driven by WAVE being up $2.7 million and ClarkDietrich being up $1.4 million.
- 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 former oil and gas products business.
- Trade & Specialty Solutions benefited from higher volume and higher average selling prices.
Concerns
- Adjusted operating income was relatively flat at $13.7 million compared to $13.9 million in the prior year quarter.
- Building Performance Solutions adjusted EBITDA was relatively flat at $59.8 million.
- Building Performance Solutions faced lower overall volume and unfavorable product mix.
- Consolidated adjusted EBITDA margin was 21.5%, compared with 22.1% in the prior year quarter.
- The release identifies tariffs, trade restrictions, product demand and pricing, raw-material availability and pricing, supply chain constraints, and economic conditions as risk factors.
What to watch
- Demand for engineered ASME tanks used in liquid cooling systems for data centers.
- Whether Building Performance Solutions volume and product mix improve.
- The ongoing contribution from recent acquisitions and unconsolidated affiliates WAVE and ClarkDietrich.
- The effect of IEEPA tariff refunds on Trade & Specialty Solutions results.
- Investor and Analyst Day scheduled for November 10, 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $55.1 million at August 31, 2026.
- Total debt was $305.6 million at quarter end and consisted entirely of long-term debt.
- The company had no borrowings under its revolving credit facility as of August 31, 2026, leaving $500.0 million available for future use.
- The revolving credit facility maturity date was extended to August 31, 2031.
- Net cash provided by operating activities was $66.7 million, of which $12.8 million was invested in capital expenditures, resulting in free cash flow of $54.0 million.
- Net cash used by investing activities was $ 14,117 (In thousands), compared with $ 105,430 (In thousands).
- Net cash used by financing activities was $ 25,272 (In thousands), compared with $ 18,584 (In thousands).
Analysis
Worthington Enterprises began fiscal 2027 with sales of $343.9 million, up 13.2% from $303.7 million. Recent acquisitions contributed $19.2 million of sales, while sales excluding acquisitions increased $21.0 million, or 6.9%. Net earnings increased 22% to $42.6 million and diluted EPS improved to $0.87 from $0.70. Adjusted net earnings increased 3% to $40.1 million, while adjusted EPS increased to $0.82 from $0.78.
Profitability improved on a GAAP basis, with operating income increasing to $13.0 million from $9.2 million and adjusted EBITDA increasing 10% to $74.0 million. The adjusted EBITDA margin was 21.5%, compared with 22.1% in the prior year quarter. Adjusted operating income was relatively flat at $13.7 million compared with $13.9 million. The reported period benefited from $4.0 million in IEEPA tariff refunds and a pre-tax gain of $4.0 million related to an earnout agreement, while equity income increased to $40.6 million on higher WAVE and ClarkDietrich contributions.
Building Performance Solutions delivered sales of $215.1 million, up 16.4%, with acquisitions accounting for $19.2 million of segment sales. Its adjusted EBITDA was relatively flat at $59.8 million because higher WAVE and ClarkDietrich contributions and acquisition earnings were offset by lower volume and unfavorable mix. Trade & Specialty Solutions sales increased 8.3% to $128.8 million on higher volume and higher average selling prices. Its adjusted EBITDA rose $7.9 million to $24.0 million, supported by higher sales and the net benefit of tariff refunds.
Cash generation strengthened materially. Operating cash flow increased $25.7 million to $66.7 million and free cash flow increased $26.1 million to $54.0 million after $12.8 million of capital expenditures. The company ended the quarter with $55.1 million of cash and $305.6 million of total debt, had no revolver borrowings and reported $500.0 million of availability. It repurchased 335,000 shares for $18.2 million and declared a $0.20 per-share dividend.
The release did not provide quantitative fiscal 2027 guidance. Management highlighted rapidly growing demand for engineered ASME tanks used in liquid cooling systems for data centers, as well as flexibility to invest in growth opportunities. The key reported operating issue is whether Building Performance Solutions can overcome lower volume and unfavorable mix while the company sustains organic growth, acquisition contributions, tariff-related benefits and stronger cash flow.
Management, verbatim
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
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.
Joe Hayek, President and CEO
Not in the filing
stated, not guessed- Quantitative forward revenue guidance was not provided.
- Quantitative forward gross-margin guidance was not provided.
- Quantitative forward operating-expense guidance was not provided.
- Quantitative forward tax-rate guidance was not provided.
- Quantitative forward EPS, adjusted EBITDA, operating cash flow, free cash flow, capital expenditure and capital-return guidance was not provided.
- Prior-period outlook was not provided; therefore, no comparison of reported results with prior guidance is available.
- Gross margin was not reported.
- Prior-quarter comparisons for revenue, earnings, EPS, margins, operating cash flow and free cash flow were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Worthington Enterprises (NYSE:WOR) is a designer and manufacturer of building, trade and specialty products.
Ticker impact
Worthington Enterprises reported Q1 FY2027 results with 13% revenue growth, EPS $0.87 and a $0.20 dividend, providing fresh earnings data.
Potential short‑term price rally on the earnings beat and dividend news.
First‑report 8‑K disclosure of solid top‑line growth, higher EPS and cash returns; traders can act on the new numbers immediately.
Market effects
Strong performance may lift building‑products and specialty‑solutions peers.
Positive for U.S. industrial and construction‑related stocks.
Limited to North American industrial sector.
Counterpoint
If guidance for FY2027 is modest, the rally could be short‑lived.
Key entities
- ExecutiveJoe Hayek
President and CEO of Worthington Enterprises, quoted on the results.
