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Worthington Industries (WOR)
NYSE:WOR
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Worthington Industries (WOR) AI Stock Analysis

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WOR

Worthington Industries

(NYSE:WOR)

Rating:74Outperform
Price Target:
$73.00
▲(12.19% Upside)
Worthington Industries demonstrates strong technical momentum and positive earnings call insights, driving the stock's favorable outlook. Financial stability and strategic corporate events further support the score, though valuation concerns slightly temper the overall assessment.
Positive Factors
Market Position
Management believes its leading position in niche areas drives organic growth.
Product Innovation
Innovative products like the Balloon Time Mini and Building Products’ SureSense drives incremental growth.
Negative Factors
Financial Performance
The JV took a $3.4m non-cash impairment charge, indicating financial challenges in the alternative fuels sector.
Market Adoption
Hydrogen and alternative fuels are still in their early stages and have not yet reached widespread adoption.

Worthington Industries (WOR) vs. SPDR S&P 500 ETF (SPY)

Worthington Industries Business Overview & Revenue Model

Company DescriptionWorthington Industries, Inc., an industrial manufacturing company, focuses on value-added steel processing, manufactured consumer, building, and sustainable mobility products in North America and internationally. It operates through Steel Processing, Consumer Products, Building Products, and Sustainable Energy Solutions segments. The Steel Processing segment processes flat-rolled steel for customers primarily in the automotive, aerospace, agricultural, appliance, construction, container, energy, hardware, heavy-truck, HVAC, lawn and garden, leisure and recreation, office furniture, and office equipment markets. It also toll processes steel for steel mills, large end-users, service centers, and other processors. The Consumer Products segment sells tools, outdoor living, and celebrations products under the Coleman, Bernzomatic, Balloon Time, Mag-Torch, General, Garden-Weasel, Pactool International, Hawkeye, Worthington Pro Grade, and Level5 brand names. The Building Products segment sells refrigerant and LPG cylinders, well water and expansion tanks, and other specialty products to gas producers and distributors. The Sustainable Energy Solutions segment offers on-board fueling systems and services, as well as gas containment solutions and services for the storage, transport, and distribution of industrial gases. The company was founded in 1955 and is headquartered in Columbus, Ohio.
How the Company Makes MoneyWorthington Industries generates revenue primarily through the sale of its manufactured steel and metal products across its various business segments. The Steel Processing segment contributes significantly by providing processed steel products to customers in industries such as automotive and construction. The Pressure Cylinders segment earns revenue from producing and selling propane cylinders and other pressure vessels, catering to both commercial and consumer markets. The Metal Framing segment offers framing systems for construction projects, which also drives revenue. Worthington's partnerships with key suppliers and customers enhance its market reach and operational efficiency. Additionally, the company focuses on innovation and cost management to maintain profitability, adapting to market demands and economic conditions.

Worthington Industries Earnings Call Summary

Earnings Call Date:Jun 24, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Sep 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Worthington Enterprises with significant revenue and margin growth, strategic acquisitions, and enhanced shareholder returns. However, the company faces challenges related to economic uncertainties and noncash impairments.
Q4-2025 Updates
Positive Updates
Strong Revenue and Margin Growth
Q4 revenue increased by 14% year-over-year, with gross margin improving from 24.8% to 29.3%. Adjusted EBITDA margin rose to 26.8% from 19.8%.
Strategic Acquisitions and Partnerships
Acquisition of Elgen Manufacturing, adding $115 million in revenue and $13 million in adjusted EBITDA. New partnership with CVS to distribute Balloon Time products nationwide.
Recognition and Awards
Named Top Workplace in central Ohio for the 13th consecutive year. HALO Griddles received accolades from Men's Journal and CNET, and PowerCore cylinder contributed to 3M's award-winning innovation.
Financial Health and Shareholder Returns
Reported strong free cash flow of $159 million for the fiscal year, a 103% conversion rate. Increased quarterly dividend by 12% and repurchased 200,000 shares.
Negative Updates
Impairments and Restructuring Charges
Negative impact from net pretax restructuring, impairment, and other one-time charges of $61 million, largely due to noncash impairments in the General Tools & Instruments business and Sustainable Energy Solutions joint venture.
Tariff and Economic Uncertainty
Ongoing tariff and economic uncertainties impacting long-term assumptions and causing challenges in price and supply chain management.
Softness in Consumer and Building Products Markets
Notable challenges in the broader consumer environment and mixed demand in the building products segment due to macroeconomic factors and competitive pressures.
Company Guidance
During the Worthington Enterprises Fourth Quarter Fiscal 2025 earnings call, the company reported significant financial improvements driven by strategic initiatives across various sectors. The revenue for Q4 increased by 14% year-over-year, excluding the deconsolidation of the Sustainable Energy Solutions (SES) segment, and gross margin improved to 29.3% from 24.8% the previous year. The adjusted EBITDA margin rose to 26.8%, up from 19.8% in the prior year. The company highlighted strong performance in both Consumer and Building Products divisions, with net sales of $318 million for the quarter. Consumer Products maintained flat sales at $126 million, while Building Products saw a 25% increase in net sales to $192 million. Additionally, the acquisition of Elgen Manufacturing was discussed, with Elgen contributing over $115 million in trailing 12-month revenue and $13 million in adjusted EBITDA. The company remains optimistic about long-term growth prospects, driven by innovation, transformation, and strategic M&A, while maintaining a strong balance sheet with $250 million in cash and a net debt to trailing adjusted EBITDA leverage ratio of less than 0.25 turn.

Worthington Industries Financial Statement Overview

Summary
Worthington Industries shows stable financial performance with strong margins and low leverage. However, challenges in revenue growth and declining free cash flow slightly dampen the outlook.
Income Statement
70
Positive
Worthington Industries has maintained a stable gross profit margin of around 27.6% in 2025, which shows good cost management despite modest revenue levels. The net profit margin of 8.3% indicates reasonable profitability, though it decreased from the previous year. The revenue growth rate is negative, reflecting a 7.4% decrease year-over-year, which may indicate challenges in market expansion or demand. However, the company has improved its EBIT margin to 8.2% in 2025, showing recovery from past periods of negative EBIT. This combination of stable profitability and recent EBIT recovery supports a healthy income statement score.
Balance Sheet
75
Positive
The balance sheet of Worthington Industries shows a strong equity position with a debt-to-equity ratio of 0.35, indicating low leverage. The return on equity (ROE) is 10.2%, which is reasonable but reflects a decline from previous years. The equity ratio is 55.3%, which is stable, highlighting a solid capital structure and financial stability. These metrics suggest a low-risk profile with room for leveraging if needed, contributing to a positive balance sheet score.
Cash Flow
65
Positive
The operating cash flow to net income ratio is 2.18 in 2025, indicating strong cash generation relative to reported earnings. Free cash flow has declined by 22.9% compared to the previous year, which could impact the company's ability to reinvest or return capital to shareholders. However, the free cash flow to net income ratio is 1.66, which remains healthy and demonstrates efficient capital management. Despite the recent decrease in free cash flow, the robust cash flow generation supports the company's liquidity and capital flexibility.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.15B1.15B1.25B4.92B5.24B3.17B
Gross Profit319.04M319.04M285.02M663.31M714.82M639.08M
EBITDA162.05M94.97M156.49M149.27M643.81M375.59M
Net Income96.05M96.05M110.62M256.53M379.39M723.79M
Balance Sheet
Total Assets1.70B1.70B1.64B3.65B3.64B3.37B
Cash, Cash Equivalents and Short-Term Investments250.07M250.07M244.22M454.95M34.48M640.31M
Total Debt326.06M326.06M317.18M795.38M844.41M747.81M
Total Liabilities756.91M756.91M747.63M1.83B2.03B1.82B
Stockholders Equity938.24M937.19M888.88M1.70B1.48B1.40B
Cash Flow
Free Cash Flow172.25M159.16M206.45M539.00M-24.49M192.20M
Operating Cash Flow209.74M209.74M289.98M625.36M70.11M274.38M
Investing Cash Flow-135.10M-135.10M-140.81M-71.78M-438.19M468.51M
Financing Cash Flow-68.79M-68.79M-359.89M-133.13M-237.75M-249.78M

Worthington Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price65.07
Price Trends
50DMA
63.92
Positive
100DMA
59.93
Positive
200DMA
50.83
Positive
Market Momentum
MACD
0.64
Positive
RSI
53.30
Neutral
STOCH
21.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOR, the sentiment is Positive. The current price of 65.07 is below the 20-day moving average (MA) of 65.24, above the 50-day MA of 63.92, and above the 200-day MA of 50.83, indicating a bullish trend. The MACD of 0.64 indicates Positive momentum. The RSI at 53.30 is Neutral, neither overbought nor oversold. The STOCH value of 21.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WOR.

Worthington Industries Risk Analysis

Worthington Industries disclosed 29 risk factors in its most recent earnings report. Worthington Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Worthington Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$3.50B13.0923.85%0.61%1.70%684.20%
75
Outperform
$738.74M23.898.87%2.96%9.44%53.83%
74
Outperform
$3.25B33.5810.52%1.04%-60.43%-14.19%
72
Outperform
$496.50M15.489.14%5.83%33.50%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
62
Neutral
$738.96M37.86-1.73%3.27%-7.98%-124.63%
61
Neutral
$290.34M16.897.37%-16.95%66.04%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WOR
Worthington Industries
65.07
22.75
53.76%
AZZ
AZZ
116.93
43.83
59.96%
IIIN
Insteel Industries
38.93
8.79
29.16%
NWPX
Northwest Pipe Company
52.16
11.28
27.59%
RYI
Ryerson Holdings
22.95
5.38
30.62%
MEC
Mayville Engineering Company
14.29
-4.08
-22.21%

Worthington Industries Corporate Events

Business Operations and Strategy
Worthington Industries Discusses Strategic Focus at Conference
Positive
Aug 15, 2025

On August 12, 2025, Worthington Enterprises participated in a fireside chat at the Canaccord Genuity 45th Annual Growth Conference, discussing its strategic separation from its steel business in December 2023. The separation allowed Worthington Enterprises to focus on its building and consumer products, optimizing operations and capital allocation. The company has seen stabilization in demand post-COVID-19 and continues to benefit from its joint ventures, WAVE and ClarkDietrich, which contribute significant cash flow and growth opportunities in areas like data centers and healthcare.

M&A TransactionsBusiness Operations and Strategy
Worthington Industries CEO to Speak at Growth Conference
Positive
Aug 5, 2025

On August 5, 2025, Worthington Enterprises announced that its President and CEO, Joseph B. Hayek, and CFO, Colin J. Souza, will participate in a fireside chat at the Canaccord Genuity Growth Conference on August 12, 2025. The discussion will focus on the company’s strategies for accelerating long-term growth and shareholder value through innovation, transformation, and mergers and acquisitions. This participation is part of Worthington’s efforts to highlight its business strategies and engage with stakeholders, potentially impacting its market positioning and investor relations.

Executive/Board Changes
Worthington Industries Approves Executive Retention Award
Neutral
Jun 30, 2025

On June 30, 2025, Worthington Enterprises’ Compensation Committee approved a special leadership retention performance share award for key executives, including the Vice President and Chief Financial Officer, Vice President – General Counsel & Secretary, President of the Consumer Products segment, and Senior Vice President & Chief of Corporate Affairs. This award, part of the 2024 Long-Term Incentive Plan, aims to align executive retention with shareholder interests by granting common shares upon meeting performance and retention conditions over a three-year period. The award is structured to incentivize executives by linking vesting to the company’s annualized total shareholder return and continuous employment, with the potential for accelerated vesting under specific circumstances.

M&A TransactionsDividendsBusiness Operations and StrategyFinancial Disclosures
Worthington Industries Reports Strong Q4 Earnings Growth
Positive
Jun 24, 2025

On June 24, 2025, Worthington Enterprises reported its fiscal 2025 fourth-quarter results, highlighting a 111% increase in net earnings from continuing operations to $3.6 million and a 35% rise in adjusted EBITDA to $85.1 million. The company declared a quarterly cash dividend of $0.19 per share, a 12% increase from the previous quarter, and announced the acquisition of Elgen Manufacturing for approximately $93 million. The acquisition aligns with Worthington’s growth strategy in niche markets, and the company expressed confidence in sustaining growth into fiscal 2026.

M&A TransactionsBusiness Operations and Strategy
Worthington Industries Acquires Elgen Manufacturing for $93M
Positive
Jun 20, 2025

On June 19, 2025, Worthington Enterprises announced its acquisition of Elgen Manufacturing, a leading provider of HVAC parts and components, for approximately $93 million. This strategic acquisition, funded from existing cash, is expected to create synergies and growth opportunities within Worthington’s Building Products segment, enhancing its market position in the HVAC infrastructure sector and providing operational efficiencies and value for Elgen’s customers.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 18, 2025