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May 31, 2021

Worthington Q4 2021 Earnings Report

Worthington's Q4 2021 earnings were reported, marking a record quarter driven by increased volumes, higher steel prices, and strategic actions.

Key Takeaways

Worthington Industries reported a record fourth quarter, with earnings per share of $2.15, or $2.33 excluding net pretax charges. Net sales reached $978 million, up significantly from the prior year, driven by increased volumes and higher steel prices. Adjusted EBITDA was a record $186 million for the quarter and $483 million for the fiscal year.

Q4 earnings per share were $2.15, or $2.33 excluding charges related to divestitures.

Net sales increased to $978 million, driven by higher volumes and steel prices.

Gross profit increased to $226 million, with a gross margin of 23.1%.

Adjusted EBITDA reached a record $186 million for the quarter.

Total Revenue
$978M
Previous year: $612M
+60.0%
EPS
$2.33
Previous year: $0.49
+375.5%
Gross Profit
$226M
Previous year: $90M
+151.1%
Cash and Equivalents
$640M
Previous year: $147M
+335.4%
Free Cash Flow
$23M
Previous year: $57.1M
-59.8%
Total Assets
$710M
Previous year: $2.33B
-69.5%

Worthington

Worthington

Worthington Revenue by Segment

Forward Guidance

The company is well-positioned to continue creating value for shareholders in fiscal '22 and beyond, with a focus on innovation, M&A, and leveraging the transformation playbook to achieve above-market growth rates and increase return on capital. Supply chains continue to be constrained, but overall demand levels and backlogs are quite good across almost all major markets.

Positive Outlook

  • Demand levels and backlogs are quite good across almost all major markets.
  • Proactively raising prices in downstream manufacturing businesses to offset increased raw material costs.
  • Focus shifted to accelerating innovation and M&A growth initiatives across the portfolio.
  • Strong balance sheet recently supplemented by the exceptional return generated on investment in Nikola Corporation.
  • Well positioned to continue creating value for shareholders in fiscal '22 and beyond.

Challenges Ahead

  • Steel supply shortages.
  • Semiconductor slowdowns.
  • Labor availability.
  • Supply chains continue to be constrained.
  • U.S. steel market remains tight, and teams and customers continue to face unprecedented market conditions.