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Nov 30, 2024
Worthington Q2 2025 Earnings Report
Worthington Enterprises' Q2 2025 earnings reflected a solid financial performance amidst macro headwinds, with year-over-year growth in adjusted EBITDA and EPS and strategic initiatives aimed at optimizing margins and driving shareholder returns.
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
Revenue by Segment
Consumer Products Revenue
CapyFin.comBuilding Products Revenue
CapyFin.com 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income