Worthington Enterprises (WOR) investor relations material

Executive summary

• Fiscal 2026 net sales reached $1.4 billion, up 20% year-over-year, with 9% organic growth and $121.7 million from acquisitions.

• Adjusted EBITDA grew 12% to $296 million, with a margin of 21%.

• Free cash flow totaled $170 million, with net leverage at 0.9x and a focus on disciplined capital allocation.

• Integrated acquisitions of Elgen and LSI, expanding the building products portfolio and capabilities.

• Q4 net earnings rose to $48.1 million from $3.6 million a year ago, with adjusted net earnings at $47.7 million.

Financial highlights

• Q4 net sales were $371 million, up 17% year-over-year, with $44.1 million from acquisitions and 3% organic growth.

• Q4 adjusted EBITDA was $83.5 million (22.5% margin); full-year adjusted EBITDA was $295.8 million (21.4% margin).

• Q4 GAAP and adjusted EPS were $0.97; full-year adjusted EPS rose to $3.37 from $3.09.

• Operating cash flow in Q4 was $72 million; free cash flow for the year totaled $170 million, a 102% conversion rate.

• Net debt at year-end was $278 million, with net debt to trailing adjusted EBITDA below 1x.

Outlook and guidance

• Focus on organic growth, innovation, and strategic acquisitions in high-margin markets.

• Expect continued growth in ASME water tanks for data centers, with at least $13 million in Q1 fiscal 2027 shipments.

• Margin headwinds in cooling and construction are expected to normalize by Q2 fiscal 2027.

• Building Products margins are expected to remain in the low teens, with potential for further expansion.

• Strong free cash flow and a healthy balance sheet support long-term shareholder value creation.