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Aug 31, 2024

Worthington Q1 2025 Earnings Report

Reported net sales of $257.3 million and net earnings from continuing operations of $24.3 million.

Key Takeaways

Worthington Enterprises reported a respectable quarter with net sales of $257.3 million and net earnings from continuing operations of $24.3 million, or $0.48 per diluted share. The results were impacted by persistent higher interest rates and macroeconomic uncertainty which continued to impact demand.

Consumer Products had a solid quarter with year-over-year earnings growth despite flat volumes.

Building Products earnings were down due to weak volumes in the heating and cooking business and lower contributions from ClarkDietrich.

Net sales decreased by 17.5% from the prior year quarter, driven by the deconsolidation of the former Sustainable Energy Solutions (SES) segment and lower volume in the Building Products segment.

The company acquired Hexagon Ragasco, a leading global manufacturer of composite propane cylinders.

Total Revenue
$257M
Previous year: $1.19B
-78.4%
EPS
$0.5
Previous year: $2.06
-75.7%
Gross Profit
$62.5M
Previous year: $197M
-68.4%
Cash and Equivalents
$179M
Previous year: $201M
-11.2%
Free Cash Flow
$31.5M
Previous year: $30.4M
+3.7%
Total Assets
$1.65B
Previous year: $448M
+266.9%

Worthington

Worthington

Worthington Revenue by Segment

Forward Guidance

Worthington Enterprises has a positive long-term outlook, especially with the recent recalibration of interest rates. The company's market-leading products and brands are well-positioned to take advantage of long-term secular trends and should benefit when near-term headwinds subside and demand normalizes.

Positive Outlook

  • Market-leading products and brands are well-positioned.
  • Ability to drive long-term growth and reward shareholders.
  • Leveraging the Worthington Business System of transformation.
  • Focus on innovation and M&A.
  • Strong balance sheet

Challenges Ahead

  • Persistent higher interest rates.
  • Macroeconomic uncertainty continued to impact demand.
  • Weak volumes in the heating and cooking business.
  • Lower contributions from ClarkDietrich.
  • Near-term headwinds

Revenue & Expenses

Visualization of income flow from segment revenue to net income