Worthington Steel, Inc. (WS) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.
Worthington Steel, Inc. (WS) Q4 2026 Earnings Call Transcript
Worthington Steel is reaffirmed as a 'buy' following the completed $2.4B Kloeckner acquisition, which offers significant growth potential. WS's Q3 2026 showed 12% revenue growth driven by price increases, but profitability declined due to margin compression and lower toll volumes. The investment thesis hinges on realizing $150M in annual cost synergies by 2028; without these, higher interest expense makes the deal less attractive.
WS misses fiscal Q3 estimates as earnings and revenues fall short despite 12% sales growth, with margins pressured by lower toll volumes and higher costs.
Worthington Steel, Inc. (WS) Q3 2026 Earnings Call Transcript
Worthington Steel, Inc. (WS) came out with quarterly earnings of $0.27 per share, missing the Zacks Consensus Estimate of $0.47 per share. This compares to earnings of $0.35 per share a year ago.
Worthington Steel, Inc. has outperformed the S&P 500, returning 16% including dividends since my last Buy rating. WS delivered strong Q2 2026 results: revenue of $871.9M (+18% YoY), adjusted EBITDA of $48.3M, and adjusted EPS of $0.38. Direct sales now comprise 65% of WS's mix, with automotive shipments up 26% and energy up 50%, driving improved margins despite patchy demand.
Worthington Steel, Inc. ( WS ) Q2 2026 Earnings Call December 18, 2025 8:30 AM EST Company Participants Melissa Dykstra - Vice President of Corporate Communication & Investor Relations Geoffrey Gilmore - CEO, President & Director Timothy Adams - VP & CFO Conference Call Participants Philip Gibbs - KeyBanc Capital Markets Inc., Research Division John Tumazos - John Tumazos Very Independent Research, LLC Martin Englert - Seaport Research Partners Presentation Operator Good morning, and welcome to Worthington Steel's Second Quarter Fiscal Year 2026 Earnings Call. [Operator Instructions] I will now turn the call over to Melissa Dykstra, Vice President of Corporate Communications and Investor Relations.
Worthington Steel, Inc. (WS) came out with quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.48 per share. This compares to earnings of $0.19 per share a year ago.
Worthington Steel, Inc. WS will release earnings results for the first quarter, after the closing bell on Wednesday, Sept. 24.
Worthington Steel, Inc. delivered a strong Q4, beating analyst expectations on revenue and earnings, driving a 20% stock surge despite ongoing shipment volume declines. Management's strategic investments in electrical steel, Mexico and Canada expansions, and the Sitem acquisition position the company for long-term margin growth. While shares are no longer as cheap, valuation remains attractive versus peers, and the balance sheet is strong with low net debt and robust cash flow.
Worthington Steel, Inc. faces margin and demand pressure, especially in automotive, leading to pressured earnings and a significant share price decline. Despite recent weakness, current WS stock valuations appear attractive based on through-the-cycle margins, though sustainable value creation remains challenging due to industry cyclicality. The company maintains a solid balance sheet and continues to invest, including a recent acquisition in Italy, but free cash flow is hampered by high capex needs.