Worthington Industries, Inc. (WOR)
NYSE:WOR
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Worthington Industries
(NYSE:WOR)
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Rating:70Outperform
Price Target:
$62.00
▲(12.42% Upside)
Action:Reiterated
Date:03/26/26
The score is driven primarily by strong free-cash-flow generation and a manageable balance sheet, reinforced by a constructive earnings call highlighting organic growth and improving EBITDA. Offsetting factors are weaker technical trends (below key longer-term moving averages with negative MACD) and a valuation that looks only modestly supported by the dividend given the company’s historical cyclicality.
Positive Factors
Free Cash Flow Strength
Consistent, high FCF and near‑1x conversion to net income signal durable earnings quality and cash generation. This funds dividends, buybacks, M&A and capex without excessive reliance on new debt, improving long‑term strategic optionality and resilience through cycles.
Negative Factors
Cyclical Margin Volatility
Margins have contracted from prior peaks and revenue/profitability show multi‑year swings. Structural cyclicality in construction and industrial end markets can compress margins and cash flow predictability, complicating medium‑term planning and raising earnings downside in slower periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Consistent, high FCF and near‑1x conversion to net income signal durable earnings quality and cash generation. This funds dividends, buybacks, M&A and capex without excessive reliance on new debt, improving long‑term strategic optionality and resilience through cycles.
Read all positive factors
Worthington Industries Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Shows segment-level operating profitability after adjusting for nonrecurring items, revealing which businesses generate the most cash and which are margin-constrained. Useful for assessing real cash flow strength, the impact of commodity and input-cost swings, and which segments justify higher valuation or need operational fixes.
Shows segment-level operating profitability after adjusting for nonrecurring items, revealing which businesses generate the most cash and which are margin-constrained. Useful for assessing real cash flow strength, the impact of commodity and input-cost swings, and which segments justify higher valuation or need operational fixes.
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The Fly
The FlyWorthington Industries (WOR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.77B
Dividend Yield1.27%
Average Volume (3M)158.79K
Price to Earnings (P/E)25.0
Beta (1Y)0.76
Revenue Growth14.99%
EPS Growth86.18%
CountryUS
Employees6,000
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)2.28
Shares Outstanding49,252,995
10 Day Avg. Volume148,852
30 Day Avg. Volume158,788
Financial Highlights & Ratios
PEG Ratio-2.20
Price to Book (P/B)3.10
Price to Sales (P/S)2.52
P/FCF Ratio18.28
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue2.37
Enterprise Value/Gross Profit8.53
Enterprise Value/Ebitda17.54
Forecast
1Y Price Target
$60.33Price Target Upside9.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.46
Revenue Forecast (FY)$1.40B
Worthington Industries Business Overview & Revenue Model
Company Description
Worthington 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 Processi...
How the Company Makes Money
null...
Worthington Industries Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jun 23, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial performance with substantial top-line growth (24% YoY) and solid profitability improvement (adjusted EBITDA up 15% QoQ; TTM EBITDA up 22%). Organic growth (14% ex-acquisitions) across both Building and Consumer segments, margin expansion in Consumer, disciplined capital returns, conservative leverage (~1x net debt/EBITDA) and a clear multi-year opportunity in data center-related products were emphasized. Offsetting items were modest: a small gross margin contraction mainly from acquisition accounting, weaker JV contributions (notably ClarkDietrich), weather-related production disruptions, and near-term elevated modernization capex and geopolitical/tariff uncertainties. Overall, the positives materially outweigh the concerns, with management signaling continued execution and confidence in growth levers (innovation, transformation, M&A).Positive Updates
Revenue Growth
Consolidated net sales for Q3 were $379 million, up 24% year-over-year from $305 million; excluding the impact of recent acquisitions, organic net sales increased $42 million or 14% year-over-year.
Negative Updates
Modest Gross Margin Contraction
Gross margin was 28.9% in Q3 versus 29.3% a year ago, a modest contraction primarily attributed to purchase-accounting impacts (inventory step-up) related to the LSI acquisition.
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
Consolidated net sales for Q3 were $379 million, up 24% year-over-year from $305 million; excluding the impact of recent acquisitions, organic net sales increased $42 million or 14% year-over-year.
Read all positive updates
Company Guidance
Management declined to give specific Q4 revenue guidance but provided directional milestones and financial targets: they expect the facility modernization (TTM CapEx ≈ $27M) to be completed by mid‑FY2027 with roughly $25M remaining (Q3 CapEx was $14M, $4M of that for consumer projects), after which CapEx should normalize and support continued healthy free cash flow (Q3 FCF $48M; operating cash flow $62M; TTM FCF $164M, a 95% conversion versus adjusted net earnings). They reiterated conservative leverage and liquidity (net debt $306M; net debt/TTM adjusted EBITDA ≈ 1x; TTM adjusted EBITDA $297M, up $54M YoY; revolver availability ~$495M), affirmed capital returns (Q3 dividends $9M; share repurchases 100k shares; Board declared $0.19/share quarterly dividend), signaled continued organic growth (Q3 organic revenue +14% overall; building +16%, consumer +11%) while refusing to quantify Q4, and highlighted strategic goals — data‑center ASME tank business should roughly triple this year with further growth next year, a push toward ~30% gross margin and SG&A below 20% of sales, and an expectation that ClarkDietrich will be roughly flattish in Q4.Worthington Industries Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.33B | 1.15B | 1.25B | 1.42B | 5.24B | 3.17B |
| Gross Profit | 368.35M | 318.26M | 285.92M | 339.37M | 602.01M | 579.84M |
| EBITDA | 179.06M | 179.37M | 156.49M | 291.36M | 643.81M | 1.03B |
| Net Income | 111.82M | 96.05M | 110.62M | 256.53M | 379.39M | 723.79M |
Balance Sheet | ||||||
| Total Assets | 1.82B | 1.70B | 1.64B | 3.65B | 3.64B | 3.37B |
| Cash, Cash Equivalents and Short-Term Investments | 5.98M | 250.07M | 244.22M | 454.95M | 34.48M | 640.31M |
| Total Debt | 357.68M | 326.06M | 317.18M | 795.38M | 844.41M | 747.81M |
| Total Liabilities | 820.98M | 756.91M | 747.63M | 1.83B | 2.03B | 1.82B |
| Stockholders Equity | 1.00B | 937.19M | 888.88M | 1.70B | 1.48B | 1.40B |
Cash Flow | ||||||
| Free Cash Flow | 203.85M | 159.16M | 206.45M | 539.00M | -24.49M | 192.20M |
| Operating Cash Flow | 216.93M | 209.74M | 289.98M | 625.36M | 70.11M | 274.38M |
| Investing Cash Flow | -363.96M | -135.10M | -140.81M | -71.78M | -438.19M | 468.51M |
| Financing Cash Flow | -69.83M | -68.79M | -359.89M | -133.13M | -237.75M | -249.78M |
Worthington Industries Technical Analysis
Positive
55.15
Price Trends
53.76
Positive
53.87
Positive
55.60
Positive
Market Momentum
0.54
Negative
60.83
Neutral
83.99
Negative
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 55.15 is above the 20-day moving average (MA) of 54.87, above the 50-day MA of 53.76, and below the 200-day MA of 55.60, indicating a bullish trend. The MACD of 0.54 indicates Negative momentum. The RSI at 60.83 is Neutral, neither overbought nor oversold. The STOCH value of 83.99 is Negative, 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.16B | 26.91 | 10.73% | ― | 10.67% | 30.61% | |
76 Outperform | $4.21B | 12.76 | 24.53% | 0.67% | 4.58% | 556.92% | |
70 Outperform | $2.77B | 24.96 | 11.58% | 1.27% | 14.99% | 86.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | $535.97M | 12.60 | 11.72% | 3.49% | 20.94% | 88.74% | |
61 Neutral | $535.10M | -33.67 | -6.76% | ― | -0.04% | -172.38% |
* Industrials Sector Average
WOR
Worthington Industries
56.77
-1.37
-2.36%
AZZ
AZZ
135.51
45.46
50.48%
IIIN
Insteel Industries
27.49
-6.30
-18.65%
NWPX
Northwest Pipe Company
117.96
79.32
205.28%
MEC
Mayville Engineering Company
26.85
11.09
70.37%
Worthington Industries Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Worthington Industries Posts Strong Fiscal Q3 2026 Results
Positive
Mar 24, 2026
On March 24, 2026, Worthington Enterprises reported fiscal third-quarter 2026 results for the period ended February 28, 2026, highlighting a 24% year-over-year increase in net sales to $378.7 million and a 15% rise in net earnings to $45.1 million...
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.