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Feb 28, 2025
Worthington Q3 2025 Earnings Report
Worthington Enterprises reported solid Q3 2025 results with increased profitability despite a slight decline in revenue.
Key Takeaways
In Q3 2025, Worthington Enterprises delivered higher net income and adjusted EPS, driven by stronger volumes and favorable product mix, despite a 4% decline in net sales due to the deconsolidation of SES. Operating cash flow and free cash flow both showed healthy growth.
Net sales decreased 4% to $304.5 million due to the deconsolidation of SES.
Net income rose to $39.66 million, an 80% increase compared to Q3 2024.
Adjusted EPS from continuing operations increased 14% to $0.91.
Free cash flow grew 11% to $44.4 million, with $222.8 million in cash on hand.
Revenue by Segment
Forward Guidance
The company expressed confidence in long-term growth potential, backed by a strong balance sheet and strategic capital allocation, while acknowledging uncertainties due to tariffs and macroeconomic conditions.
Positive Outlook
- Strong balance sheet with $222.8 million in cash.
- Continued free cash flow growth supporting investments and shareholder returns.
- Favorable product mix improvements driving margins.
- Ongoing facility modernization projects enhancing operational efficiency.
- Positive contributions from Ragasco acquisition.
Challenges Ahead
- Revenue decline partially due to SES deconsolidation.
- Lower equity income contributions from ClarkDietrich.
- Restructuring costs impacting operating income.
- Tariff uncertainties creating market pressure.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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