Worthington Enterprises (WOR) investor relations material

Executive summary

• Net sales reached $344 million in Q1 FY27, up 13% year-over-year, with 7% organic growth and $19 million from acquisitions; trailing twelve-month net sales were $1.4 billion.

• Adjusted EBITDA rose 10% to $74 million with a 21.5% margin; adjusted EPS increased to $0.82 from $0.78; GAAP EPS was $0.87, including a $0.05 net benefit from non-recurring items.

• Free cash flow nearly doubled to $54 million, with a conversion rate of 116%; operating cash flow was $67 million.

• Strategic focus on innovation, disciplined M&A, and operational transformation drove performance, supported by recent acquisitions and product innovations.

• Recognition for innovation and charitable contributions highlighted company culture and community commitment.

Financial highlights

• Consolidated sales reached $344 million, up 13% year-over-year, with $19 million from recent acquisitions.

• Gross profit increased nearly 11%; gross margin was 26.4% versus 27.1% a year ago.

• Adjusted EBITDA margin was 21.5%; trailing 12-month adjusted EBITDA reached $303 million.

• Operating cash flow was $67 million, up from $41 million; trailing 12-month free cash flow hit $196 million.

• Net debt stood at $250 million at quarter end; net leverage was 0.8x, with $555 million in liquidity.

Outlook and guidance

• Expect sequential growth in ASME tank revenues for data centers through the fiscal year.

• Anticipate normalization in cooling and construction demand in the second half, with Q2 remaining a tough comparison.

• Focus remains on organic growth, innovation, and integration of recent acquisitions, especially in data center infrastructure and environmentally friendly solutions.

• Continued emphasis on maintaining investment grade rating and financial flexibility to support growth and shareholder returns.