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Worthington Industries, Inc. (WOR)
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Worthington Industries (WOR) AI Stock Analysis

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WOR

Worthington Industries

(NYSE:WOR)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
$57.00
▲(6.96% Upside)
Worthington Industries shows strong financial performance and positive earnings call highlights, indicating growth and strategic success. However, technical analysis reveals bearish momentum, and valuation metrics suggest the stock might be overvalued. These mixed signals result in a moderate overall stock score.
Positive Factors
Strategic Acquisitions
The acquisition of Elgen Manufacturing enhances Worthington's revenue base and operational capabilities, supporting long-term growth and market expansion.
Strong Cash Generation
Strong cash generation relative to earnings indicates robust liquidity and financial flexibility, enabling strategic investments and shareholder returns.
Revenue and Margin Growth
Significant revenue and margin growth reflect effective cost management and market demand, enhancing the company's competitive position.
Negative Factors
Revenue Decline
Declining revenue growth suggests challenges in market expansion and demand, potentially impacting long-term profitability and market share.
Economic Uncertainty
Economic and tariff uncertainties pose risks to pricing and supply chain management, potentially affecting operational stability and cost structures.
Impairments and Charges
Significant impairment and restructuring charges indicate financial strain in certain segments, affecting overall profitability and resource allocation.

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:Sep 23, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Dec 23, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong start to the fiscal year with significant growth in revenue and EBITDA, supported by successful product launches and strategic acquisitions. However, the company faced headwinds from tariffs, high interest rates, and challenges in the Consumer Products segment.
Q1-2026 Updates
Positive Updates
Strong Revenue and Growth in Q1
Sales in Q1 were up 18% year-over-year, with a gross margin improvement to 27.1% from 24.3% last year, despite a $2.2 million purchase accounting charge from Elgen.
Adjusted EBITDA Growth
Year-over-year adjusted EBITDA increased by 34%, with an adjusted EBITDA margin of 21.4% compared to 18.8% in Q1 last year.
Building Products Segment Performance
Q1 sales grew 32% year-over-year to $185 million, driven by higher volumes and contributions from Elgen. Adjusted EBITDA margin improved to 31.3% from 28.4% last year.
Successful New Product Launches
New products like Balloon Time Mini, A2L refrigerant cylinders, and Halo Griddles have enabled market share growth and entry into new markets.
Sustainability and Safety Achievements
Worthington Enterprises reported a total incident case rate 40% lower than industry peers and continued outperforming industry benchmarks in safety.
Strong Free Cash Flow
Free cash flow for the quarter was $28 million, with a trailing 12-month free cash flow totaling $156 million, representing a 94% conversion rate relative to adjusted net earnings.
Negative Updates
Tariff and Interest Rate Headwinds
The company faced challenges due to tariff costs and high interest rates impacting residential and commercial construction activities.
Consumer Products Segment Challenges
Sales in the Consumer Products segment were flat, with adjusted EBITDA margin declining to 13.6% from 15.1% last year due to tariff charges and lower volumes.
ClarkDietrich Performance Decline
In a challenging environment, ClarkDietrich contributed $6 million in equity earnings, down from $9 million last year, due to lower construction spending.
Company Guidance
During the Worthington Enterprises First Quarter Fiscal 2026 Earnings Conference Call, the company reported significant growth metrics, including an 18% year-over-year increase in sales, reaching $304 million, and a gross margin improvement from 24.3% last year to 27.1% this quarter. Noteworthy is the adjusted EBITDA margin, which rose to 21.4% from 18.8% a year ago, reflecting a 34% year-over-year growth in adjusted EBITDA. The company emphasized its strategy of innovation, transformation, and acquisitions, including the successful integration of Elgen, contributing $21 million to sales. SG&A expenses remained flat, excluding Elgen, despite organic growth. Consumer Products sales grew by 1%, while Building Products saw a 32% increase, driven by volume growth and new acquisitions. The company also highlighted a total incident case rate 40% lower than industry peers, underscoring its commitment to safety and sustainable practices. Worthington maintained a robust balance sheet, with $167 million in cash and a low net debt to trailing adjusted EBITDA ratio of approximately 0.5 turn, supported by a $500 million undrawn credit facility.

Worthington Industries Financial Statement Overview

Summary
Worthington Industries shows stable financial performance with strong margins and low leverage. Despite challenges in revenue growth and free cash flow sustainability, the company maintains a solid foundation with improvements in EBIT and stable gross profit.
Income Statement
75
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
70
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
80
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 Revenue1.20B1.15B1.25B4.92B5.24B3.17B
Gross Profit338.82M319.04M285.02M663.31M714.82M639.08M
EBITDA194.93M179.16M156.49M149.27M643.81M375.59M
Net Income106.62M96.05M110.62M256.53M379.39M723.79M
Balance Sheet
Total Assets1.74B1.70B1.64B3.65B3.64B3.37B
Cash, Cash Equivalents and Short-Term Investments167.12M250.07M244.22M454.95M34.48M640.31M
Total Debt346.26M326.06M317.18M795.38M844.41M747.81M
Total Liabilities778.31M756.91M747.63M1.83B2.03B1.82B
Stockholders Equity959.83M937.19M888.88M1.70B1.48B1.40B
Cash Flow
Free Cash Flow168.71M159.16M206.45M539.00M-24.49M192.20M
Operating Cash Flow209.66M209.74M289.98M625.36M70.11M274.38M
Investing Cash Flow-151.78M-135.10M-140.81M-71.78M-438.19M468.51M
Financing Cash Flow-69.30M-68.79M-359.89M-133.13M-237.75M-249.78M

Worthington Industries Technical Analysis

Technical Analysis Sentiment
Negative
Last Price53.29
Price Trends
50DMA
63.30
Negative
100DMA
61.69
Negative
200DMA
52.25
Positive
Market Momentum
MACD
-1.52
Positive
RSI
23.69
Positive
STOCH
10.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOR, the sentiment is Negative. The current price of 53.29 is below the 20-day moving average (MA) of 63.17, below the 50-day MA of 63.30, and above the 200-day MA of 52.25, indicating a neutral trend. The MACD of -1.52 indicates Positive momentum. The RSI at 23.69 is Positive, neither overbought nor oversold. The STOCH value of 10.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
3.35B13.1421.42%0.64%1.70%684.20%
75
Outperform
749.61M24.375.50%2.90%9.44%53.83%
72
Outperform
502.34M15.678.80%5.83%33.50%
65
Neutral
276.73M16.097.24%-16.95%66.04%
64
Neutral
$2.65B28.2311.50%1.31%-39.38%175.22%
63
Neutral
742.51M-50.82-1.80%3.25%-7.98%-124.63%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WOR
Worthington Industries
53.29
13.79
34.91%
AZZ
AZZ
111.47
30.10
36.99%
IIIN
Insteel Industries
38.62
9.36
31.99%
NWPX
Northwest Pipe Company
52.04
8.99
20.88%
RYI
Ryerson Holdings
23.06
4.29
22.86%
MEC
Mayville Engineering Company
13.62
-6.62
-32.71%

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.

The most recent analyst rating on (WOR) stock is a Sell with a $43.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.

Business Operations and StrategyM&A Transactions
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.

The most recent analyst rating on (WOR) stock is a Sell with a $43.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.

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.

The most recent analyst rating on (WOR) stock is a Sell with a $43.00 price target. To see the full list of analyst forecasts on Worthington Industries stock, see the WOR Stock Forecast page.

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: Sep 25, 2025