Worthington Enterprises (WOR) investor relations material

Executive summary

• Net sales for Q3 FY2026 rose 24% year-over-year to $379 million, driven by higher volumes, innovation, and strategic acquisitions, notably LSI Group.

• Adjusted EBITDA increased 15% to $85 million, with adjusted EPS marking its sixth consecutive quarter of year-over-year growth, reaching $0.98, up from $0.91.

• Growth was supported by transformation initiatives, workforce development, and productivity improvements.

• Free cash flow for Q3 was $48 million, with capital expenditures of $14 million, including $4 million for facility modernization.

• 100,000 shares repurchased for $5.4 million and a quarterly dividend of $0.19 per share declared.

Financial highlights

• Q3 consolidated net sales were $379 million, up 24% from $305 million in the prior year quarter.

• Adjusted EBITDA for Q3 was $85 million (22.3% margin), up from $74 million (24.2% margin) a year ago.

• Gross profit increased to $109.5 million from $89 million, with gross margin at 28.9% versus 29.3% last year.

• Operating cash flow was $62 million; free cash flow was $48 million for the quarter.

• Trailing 12-month adjusted EBITDA reached $297 million, up $54 million year-over-year.

Outlook and guidance

• Expect continued organic growth and acquisition-driven expansion, with a focus on innovation, operational efficiency, and facility modernization.

• Data center-related products and diversified channels are expected to drive multi-year growth.

• Management anticipates macroeconomic pressures and uneven demand but remains focused on portfolio diversification and disciplined execution.

• No specific quantitative guidance provided for Q4 or beyond, but trends in organic growth are expected to persist.