Worthington Industries, Inc. (WOR)
NYSE:WOR
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Worthington Industries
(NYSE:WOR)
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Rating:70Outperform
Price Target:
$57.00
▲(5.95% Upside)
Action:ReiteratedDate: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
Strong free cash flow generation
Consistent, high free cash flow and near‑par conversion to net income strengthen financial flexibility. Durable FCF funds dividends, buybacks, M&A and capex without excessive leverage, supporting resilience through cycles and enabling disciplined capital allocation over the next several quarters.
Negative Factors
Cyclical revenue and margin volatility
Historical swings in revenue and a notable step‑down from prior peak margins indicate cyclical end markets and variable pricing/power. That structural volatility reduces earnings predictability, complicates multi‑quarter planning and raises sensitivity of cash returns to downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent, high free cash flow and near‑par conversion to net income strengthen financial flexibility. Durable FCF funds dividends, buybacks, M&A and capex without excessive leverage, supporting resilience through cycles and enabling disciplined capital allocation over the next several quarters.
Read all positive factors
Worthington Industries (WOR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.65B
Dividend Yield1.27%
Average Volume (3M)246.48K
Price to Earnings (P/E)15.1
Beta (1Y)0.78
Revenue Growth7.43%
EPS Growth148.83%
CountryUS
Employees6,000
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)0.98
Shares Outstanding49,252,995
10 Day Avg. Volume173,670
30 Day Avg. Volume246,483
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 Cap1.14
Enterprise Value/Revenue2.27
Enterprise Value/Gross Profit8.19
Enterprise Value/Ebitda16.85
Forecast
1Y Price Target
$60.33Price Target Upside12.14% 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 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.
Data provided by:
The Fly
The FlyWorthington Industries Earnings Call Summary
Earnings Call Date:Mar 24, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 01, 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
Neutral
53.80
Price Trends
53.46
Positive
53.64
Positive
56.79
Negative
Market Momentum
0.83
Negative
55.22
Neutral
77.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOR, the sentiment is Neutral. The current price of 53.8 is above the 20-day moving average (MA) of 51.87, above the 50-day MA of 53.46, and below the 200-day MA of 56.79, indicating a neutral trend. The MACD of 0.83 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 77.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.00B | 19.10 | 26.34% | 0.67% | 1.55% | 701.41% | |
74 Outperform | $802.70M | 16.91 | 9.20% | ― | 7.61% | 25.35% | |
70 Outperform | $2.65B | 15.14 | 11.58% | 1.27% | 7.43% | 148.83% | |
68 Neutral | $709.91M | 20.81 | 13.31% | 3.49% | 22.39% | 112.75% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | $412.46M | -47.25 | -3.30% | ― | -12.38% | -0.71% |
* Industrials Sector Average
WOR
Worthington Industries
53.80
7.39
15.93%
AZZ
AZZ
134.00
52.62
64.65%
IIIN
Insteel Industries
36.60
10.82
41.95%
NWPX
Northwest Pipe Company
83.84
42.64
103.50%
MEC
Mayville Engineering Company
20.30
7.90
63.71%
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...
Business Operations and StrategyFinancial Disclosures
Worthington Industries Highlights Growth Outlook at Investor Conference
Positive
Jan 16, 2026
On January 14, 2026, Worthington Enterprises presented at the CJS Securities 26th Annual New Ideas for the New Year conference, directing investors to presentation materials and a transcript now available on its website. Alongside reiterating exte...
Business Operations and StrategyM&A Transactions
Worthington Industries Expands Via Acquisition of LSI Group
Positive
Jan 16, 2026
On January 16, 2026, Worthington Enterprises announced it had completed the acquisition of LSI Group, LLC, one of the largest U.S. manufacturers of standing-seam metal roof clips and retrofit components serving the commercial metal roof market. Th...
Business Operations and Strategy
Worthington Industries details growth strategy at investor conference
Positive
Jan 7, 2026
On January 7, 2026, Worthington Enterprises announced that President and CEO Joe Hayek and CFO Colin Souza will present at the virtual CJS Securities 26th Annual New Ideas for the New Year conference on January 14, 2026, at 8:45 a.m. ET, where the...
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.