Worthington Enterprises (WOR) Investor Day 2026 summary

Strategy and growth model

• Since the October 2023 separation, performance improved despite challenged end markets; WBS combines innovation, transformation and disciplined acquisitions, with 80%+ of adjusted EBITDA from market-leading businesses in FY27 Q1 TTM.

• Demand is supported by contractors, non-residential activity and repair and replacement; Building Performance Solutions also benefits from pro distribution and an installed base of critical assets.

• Growth opportunities include repair and replacement, regulatory complexity, labor-saving solutions, data-center infrastructure and thermal management, and reshoring supported by a predominantly U.S. manufacturing footprint.

• WBS priorities include 80/20, automation and practical AI; AI applications freed an estimated 25,000 hours in FY26, while SG&A as a share of sales fell nearly 200 bps.

• Acquisition focus is niche market leaders, high-margin/high-growth brands and asset-light models; outsourced manufacturing can speed launches and reduce initial capital needs, with production brought in-house when strategically and economically appropriate.

Financial performance and targets

• FY24 to FY27 Q1 TTM: sales rose from $1.2B to $1.4B; adjusted EBITDA increased from $251M to $303M, and consolidated adjusted EBITDA margin advanced 115 bps to 21%.

• TTM free cash flow was $196M, or 116% of adjusted net earnings; free cash flow conversion rose from 104% in FY25 Q2 TTM, while the cash conversion cycle improved 8 days over the past year.

• Wholly owned adjusted EBITDA margin rose from 25.6% to 26.8% over FY24 to FY27 Q1 TTM; adjusted ROA was 26.8% in the most recent quarter TTM.

• Long-term sales growth target remains 6%–8% annually, with ~half expected organically and ~half from disciplined acquisitions; adjusted EBITDA margin target increased from 24% to 25%.

• Updated long-term goals: free cash flow conversion of 100%+, adjusted ROA of 30%, gross margin of 30%, SG&A at 20%, capex at 3% of sales, and adjusted EBITDA margins of 15% for wholly owned BPS and 21% for TSS.

Building Performance Solutions

• Since FY24, BPS net sales grew 44%; wholly owned adjusted EBITDA more than doubled from $46M to $96M, with margin rising from 7.4% to 10.8% against a 15% long-term target. FY27 Q1 TTM segment sales were $892M, adjusted EBITDA $240M and margin 27%.

• Amtrol water transformation since 2023 lifted sales per employee 20%, gross margin on material 700 bps and adjusted EBITDA margin 1,100 bps, while SG&A declined 200 bps; quote pipeline doubled from April to October 2026, with 47% repeat customers and 20+ new quote requesters.

• Data-center ASME tank sales were ~$13M in FY26 and another $13M in Q1 FY27; sequential growth is expected through the rest of FY27, and quote pipeline value more than doubled over six months.

• Liquid cooling could expand the legacy ~$200M annual ASME tank market by more than 10x over several years; strategy aims for repeatable integrated designs using Amtrol and qualified manufacturing partners.

• Elgen and Logan extend HVAC, framing and metal roofing capabilities; Elgen improved output and bookings after acquisition, while Logan’s active quote pipeline tripled.