Worthington Enterprises (WOR) Q1 2027 Financial Results Summary
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Worthington Enterprises (WOR) Q1 2027: Strong Growth in Sales and Earnings — Positive Outlook
Worthington Enterprises Inc. (NYSE: WOR) reported its first quarter fiscal 2027 results, showcasing a robust performance compared to the prior year. The company achieved net sales of $343.9 million, an increase of $40.2 million, or 13% year-over-year (YoY). This growth was driven by 6% from recent acquisitions and 7% from organic growth.
Overall, this quarter represents a strong performance for shareholders, as the company not only increased its revenue but also saw significant improvements in net earnings and cash flow metrics.
Key Financial Metrics
- Net Sales: $343.9 million, up $40.2 million or +13% YoY
- Net Earnings: $42.6 million, up $7.8 million or +22% YoY
- Adjusted Net Earnings: $40.1 million, up $1.2 million or +3% YoY
- Adjusted EBITDA: $74.0 million, up $6.8 million or +10% YoY
- Earnings Per Share (EPS - diluted): $0.87, up from $0.70
- Adjusted EPS - diluted: $0.82, up from $0.78
- Operating Cash Flow: $66.7 million, up $25.7 million
- Free Cash Flow: $54.0 million, up $26.1 million
- Share Repurchases: 335,000 shares for $18.2 million
- Dividend Declared: $0.20 per share, payable on December 29, 2026
Analysis
The results indicate a strong start to fiscal 2027 for Worthington Enterprises. The 22% increase in net earnings to $42.6 million reflects effective cost management and operational efficiency. The growth in adjusted EBITDA by 10% to $74.0 million further underscores the company's ability to enhance profitability amidst a competitive landscape.
The increase in operating cash flow to $66.7 million and free cash flow to $54.0 million demonstrates the company's strong cash generation capabilities, providing flexibility for future investments and shareholder returns. The repurchase of 335,000 shares for $18.2 million indicates management's confidence in the company's valuation and commitment to returning capital to shareholders.
Dividend and Share Buyback
Worthington Enterprises declared a quarterly dividend of $0.20 per share, payable on December 29, 2026, to shareholders of record as of December 15, 2026. This marks an increase from the previous dividend of $0.19 per share, reflecting the company's commitment to returning value to its shareholders.
Forward-Looking Catalysts
Looking ahead, investors should monitor the company's performance in the upcoming quarters, particularly in light of the growing demand for engineered ASME tanks used in liquid cooling systems for data centers. The company is also set to host an Investor and Analyst Day on November 10, 2026, where it will provide insights into its strategy and long-term growth opportunities. This event could offer valuable information regarding the company's future direction and potential market expansions.
In conclusion, Worthington Enterprises' first quarter results for fiscal 2027 demonstrate strong growth across key financial metrics, positioning the company favorably for continued success. Shareholders can be optimistic about the company's trajectory, supported by solid cash flow generation and a commitment to returning capital through dividends and share repurchases.
Here are the extracted tables from the press release:
WORTHINGTON ENTERPRISES, INC. CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except per common share amounts)
Note: All amounts are in thousands.
| Three Months Ended | August 31, 2026 | 2025 |
|---|---|---|
| Net sales | $343,886 | $303,707 |
| Cost of goods sold | 252,988 | 221,423 |
| Gross profit | 90,898 | 82,284 |
| Selling, general and administrative expense | 77,158 | 70,565 |
| Restructuring and other expense, net | 717 | 2,476 |
| Operating income | 13,023 | 9,243 |
| Other income (expense): Miscellaneous income (expense), net | 4,081 | (156) |
| Interest expense, net | (2,097) | (63) |
| Equity in net income of unconsolidated affiliates | 40,594 | 36,657 |
| Earnings before income taxes | 55,601 | 45,681 |
| Income tax expense | 13,029 | 10,860 |
| Net earnings | 42,572 | 34,821 |
| Net loss attributable to noncontrolling interest | - | (327) |
| Net earnings attributable to controlling interest | $42,572 | $35,148 |
| Basic Weighted average common shares outstanding | 48,568 | 49,264 |
| Earnings per share attributable to controlling interest | $0.88 | $0.71 |
| Diluted Weighted average common shares outstanding | 49,165 | 50,026 |
| Earnings per share attributable to controlling interest | $0.87 | $0.70 |
| Cash dividends declared per common share | $0.20 | $0.19 |
WORTHINGTON ENTERPRISES, INC. CONSOLIDATED BALANCE SHEETS (In thousands)
Note: All amounts are in thousands.
| Assets | August 31, 2026 | May 31, 2026 |
|---|---|---|
| Current assets: Cash and cash equivalents | $55,067 | $27,725 |
| Receivables, less allowances of $1,290 and $1,310, respectively | 185,659 | 228,168 |
| Inventories: Raw materials | 119,778 | 110,536 |
| Work in process | 11,292 | 9,490 |
| Finished products | 91,515 | 87,270 |
| Total inventories | 222,585 | 207,296 |
| Income taxes receivable | 10,342 | 20,016 |
| Prepaid expenses and other current assets | 49,054 | 41,269 |
| Total current assets | 522,707 | 524,474 |
| Investments in unconsolidated affiliates | 119,639 | 118,048 |
| Operating lease assets | 40,979 | 42,888 |
| Goodwill | 499,116 | 500,784 |
| Other intangible assets, net of accumulated amortization of $112,044 and $106,944, respectively | 317,172 | 322,761 |
| Other assets | 28,009 | 28,215 |
| Property, plant and equipment: Land | 8,728 | 8,732 |
| Buildings and improvements | 136,370 | 136,441 |
| Machinery and equipment | 406,857 | 411,030 |
| Construction in progress | 75,275 | 66,509 |
| Total property, plant and equipment | 627,230 | 622,712 |
| Less: accumulated depreciation | 314,102 | 311,818 |
| Total property, plant and equipment, net | 313,128 | 310,894 |
| Total assets | $1,840,750 | $1,848,064 |
| Liabilities and equity: Current liabilities: Accounts payable | $105,525 | $115,203 |
| Accrued compensation, contributions to employee benefit plans and related taxes | 36,635 | 41,728 |
| Dividends payable | 10,194 | 9,814 |
| Other accrued items | 34,572 | 45,832 |
| Current operating lease liabilities | 7,970 | 7,982 |
| Income taxes payable | 1,151 | 867 |
| Total current liabilities | 196,047 | 221,426 |
| Other liabilities | 56,834 | 56,657 |
| Distributions in excess of investment in unconsolidated affiliate | 102,293 | 105,349 |
| Long-term debt | 305,552 | 305,896 |
| Noncurrent operating lease liabilities | 34,028 | 35,883 |
| Deferred income taxes, net | 98,804 | 95,813 |
| Total liabilities | 793,558 | 821,024 |
| Shareholders’ equity | 1,047,192 | 1,027,040 |
| Total liabilities and equity | $1,840,750 | $1,848,064 |
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