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Nov 30, 2023
Worthington Q2 2024 Earnings Report
Worthington Enterprises reported consolidated earnings, focusing on building products, consumer products, and sustainable energy solutions, with notable impacts from separation expenses and a consumer business recall.
Key Takeaways
Worthington Enterprises reported Q2 earnings of $0.49 per share, which included unique items such as separation expenses and a gain from a divestiture. Excluding these items, earnings were $0.78 per share. Net sales were $1.1 billion, a decrease of 7.5% year-over-year, while gross profit increased to $124 million. The company is now focused on maximizing the growth potential of its consumer products, building products, and sustainable energy businesses.
Reported consolidated earnings of $0.49 per share, or $0.78 per share excluding unique items.
Net sales decreased by 7.5% to $1.1 billion due to lower average selling prices in steel processing and a shift in product mix.
Gross profit increased to $124 million, with gross margin rising to 11.4%.
Focusing on growth through transformation, acquisitions, and innovation, with a balanced approach to ESG performance.
Worthington
Worthington
Worthington Revenue by Segment
Revenue by Segment
Consumer Products Revenue
CapyFin.comBuilding Products Revenue
CapyFin.com Forward Guidance
Worthington Enterprises is focused on maximizing the long-term growth potential of its consumer products, building products, and sustainable energy businesses, with strategic priorities centered on growth, transformation, acquisitions, and innovation.
Positive Outlook
- Market share gains expected to add to growth in calendar 2024 in the consumer business.
- Volumes and margins expected to gradually improve in the Outdoor Living business.
- Return to more seasonally normal patterns across the portfolio in the coming quarters.
- Optimism in the construction markets with interest rates possibly at a peak.
- High quoting activity and interest in Sustainable Energy Solutions.
Challenges Ahead
- Economy in Europe remains challenged, impacting growth in Sustainable Energy Solutions.
- Destocking in heating and cooling construction end markets, particularly in the large format propane business.
- Consumer caution affecting spending on outdoor living focused brands.
- Unfavorable product mix impacting sales in Building Products.
- Lower volumes impacting Sustainable Energy Solutions' ability to absorb fixed costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income