Worthington Q2 2025 Earnings Report
Key Takeaways
Worthington Enterprises reported a solid second quarter with adjusted earnings per share of $0.60 compared to $0.57 in the prior year. Net sales were $274 million, down 8.1% year-over-year, while gross profit increased to $74 million. Adjusted EBITDA was $56 million, up slightly from $55 million in the prior year. The company is focused on optimizing margins and pursuing strategic acquisitions.
Adjusted earnings per share increased to $0.60 from $0.57 year-over-year.
Net sales decreased to $274 million, primarily due to the deconsolidation of the Sustainable Energy Solutions segment.
Gross profit increased to $74 million, with gross margin rising to 27%.
Adjusted EBITDA increased slightly to $56 million, with a TTM adjusted EBITDA margin of 20.1%.
Worthington
Worthington
Worthington Revenue by Segment
Forward Guidance
Worthington Enterprises anticipates continued growth through strategic initiatives, acquisitions, and market share gains, with a focus on optimizing margins and driving free cash flow.
Positive Outlook
- Facility modernization projects are expected to enhance free cash flow generation.
- The company is well-positioned to benefit from infrastructure-oriented spending and stimulus projects.
- Strategic acquisitions, such as Ragasco, are contributing to revenue growth and margin expansion.
- Strong retail partnerships and a commitment to innovation are expected to drive growth in consumer products.
- The company's value proposition and ability to take market share are expected to continue to drive growth in various markets.
Challenges Ahead
- Macroeconomic headwinds are expected to persist, potentially impacting demand in certain markets.
- Deflationary pressures, particularly in steel, could impact pricing and margins.
- Uncertainty around trade policies and potential tariffs could create challenges for the business.
- The repair and remodel markets are expected to remain steady but slow, limiting organic growth opportunities.
- The sustainable energy now JV is expected to remain flattish, providing limited contribution to overall earnings.