Worthington Steel posts Q1 2027 earnings miss and loss after Kloeckner acquisition
Worthington Steel reported adjusted earnings of $0.57 per share for the quarter ended August 31, missing the $0.68 consensus estimate. Net sales rose 212% year‑over‑year to $2.73 billion, driven by the recent acquisition of Kloeckner & Co, but the company recorded a net loss of $7 million. Total debt stood at $2.2 billion and free cash flow was negative $69 million. Management said integration will target $150 million of annual EBITDA synergies and aims to reduce leverage below 2.5 times EBITDA within 24 months.
Why it matters
The earnings miss and loss may pressure the share price and increase financing needs, as the company carries $2.2 billion of debt (the company said). Analysts note the high leverage and integration costs could limit near‑term cash generation.
Key facts
- 1Adjusted earnings were $0.57 per share, missing the $0.68 consensus estimate. investing.com
- 2Net sales increased 212% year‑over‑year to $2.73 billion. investing.com
- 3The company posted a net loss of $7 million, or $0.14 per share. investing.com
- 4Total debt was $2.2 billion. investing.com
- 5Free cash flow was negative $69 million. investing.com
- 6Management targets $150 million of annual EBITDA synergies and plans to cut leverage below 2.5 times EBITDA within 24 months. investing.com
Summary written by AlphAI from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.