Worthington Steel (WS) Investor presentation summary

Business model and operating resilience

• Value-added flat-rolled steel processor focused on earning processing spreads; ~90% of direct-sale shipments pass through at least two value-added processes.

• ~100% of contracts are mirrored where possible; firm-priced contracts and inventory discipline aim to limit steel holding gains and losses.

• Flat-roll inventory days based on tons declined from 73 in FY08–10 to 54 in FY26; inventory was also down on a tons basis.

• FY2024–FY2026 adjusted EBITDA was $306M, $228M and $251M, respectively; TTM to Aug. 31, 2026 was $283M with a 5.3% margin.

• Cumulative operating cash flow was $625M from FY2024 through Q1 FY2027; working capital has historically released cash when steel prices fall.

Repeatable operating playbook

• Continuous-improvement examples: Delta, Ohio, cut WIP coils 60% and cycle times 25%; Bowling Green, Kentucky, reduced inventory 37% and achieved 100% on-time delivery.

• Customer kaizen reduced customer working capital 61%; 500+ lightweighting parts have launched since 2000.

• Prior acquisitions added electrical steel, lightweighting, part consolidation and global reach; Kloeckner is positioned as the next platform for applying the playbook.

Kloeckner acquisition and synergies

• Kloeckner broadens North American scale and downstream reach, adding aluminum, stainless, long products, plate and fabrication; 86% of 2025 revenue came from higher value-added and service-center businesses.

• Kloeckner reported $7.3B LTM revenue and $204M LTM EBITDA before material special effects as of Mar. 31, 2026; figures include Becker Group.

• Targeted annual synergies are $150M by Year 2: ~$55M procurement, ~$40M commercial process, ~$30M operational efficiency and ~$25M overhead reduction.

• ~50% of run-rate synergies targeted in the first full year after DPLTA effectiveness, with full run-rate by end of Year 2; ~$50M of one-time integration costs expected in the first 12 months.

• Additional targeted working-capital reductions total $150M, including opportunities in safety stock, inventory norms and payment terms.