Worthington Q3 Net Sales Rise 24% to $378.7M, Earnings Up 15%
Worthington Enterprises reported fiscal Q3 net sales up 24% to $378.7 million, beating estimates and boosting gross profit to $109.5 million. Net earnings climbed 15% to $45.1 million (adjusted $48.5 million), while Building Products sales surged 35.8% to $223.9 million and free cash flow rose 8% to $48.1 million.
1. Q3 Financial Results
Worthington Enterprises posted net sales of $378.7 million in fiscal Q3, a 24% increase over last year, surpassing the $349.4 million consensus. Gross profit reached $109.5 million and operating income was $33.7 million, while net earnings rose 15% to $45.1 million (adjusted $48.5 million) despite EPS of $0.92 slightly missing the $0.96 forecast.
2. Segment Performance
The Building Products segment drove growth with net sales up 35.8% to $223.9 million, reflecting higher volumes and the integration of the LSI Group acquisition. This segment’s performance underscores strong market demand and strategic expansion.
3. Cash Flow and Capital Deployment
Operating cash flow improved 8% to $61.9 million and free cash flow increased 8% to $48.1 million. Management repurchased 100,000 shares for $5.4 million and declared a quarterly dividend of $0.19 per share, payable March 27, 2026.
4. Outlook and Guidance
President and CEO Joe Hayek affirmed confidence in fiscal 2027 positioning, citing disciplined capital deployment and innovation to sustain growth. The company will discuss Q3 results during a March 25 conference call and remains focused on enhancing shareholder value.