Worthington Steel, Inc. (WS)
NYSE:WS
Earnings Data
Report Date
Jul 01, 2026After Close (Confirmed)
Period Ending
2026 (Q4)Consensus EPS Forecast
0.74Last Year’s EPS
1.05Same Quarter Last Year
Moderate Buy
Based on 1 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call conveyed a balanced picture: tangible strategic progress (Kloeckner acquisition advancing, clear automotive share gains, meaningful transformation and free cash flow generation) and several operational positives (direct sales mix shift, electrical steel progress). Offsetting these were near-term operational and regional headwinds (7% shipment decline, 22% toll-processing drop, Europe/CEDIM underperformance), acquisition-related expenses, OEM timing delays, and working-capital pressure from volatile steel prices. Management’s tone was cautiously optimistic about market recovery in the back half of the year but pragmatic about current softness.Company Guidance
Kloeckner acquisition progressing
Proposed acquisition of Kloeckner proceeding via voluntary tender offer; initial acceptance period closing with confidence in meeting 57.5% threshold, regulatory approvals beginning to arrive, transaction expected to close in H2 calendar 2026. Management reporting strong cultural fit and positive external response from customers, suppliers and investors.
Quarterly top-line and adjusted profitability
Q3 net sales of $769.8 million, adjusted EBITDA of $41.6 million and adjusted EPS of $0.27. Management emphasized disciplined execution and maintained adjusted measures for comparability.
Strong free cash flow and disciplined balance sheet management
Q3 cash flow from operations of $63.0 million and free cash flow of $33.0 million; trailing twelve-month free cash flow of $81.0 million. Ended quarter with $90.0 million of cash and net debt of $161.0 million after strategic purchases of Kloeckner shares.
Automotive market share gains
Direct shipments to automotive showed meaningful growth: direct automotive shipments increased ~10% year over year (Detroit Three shipments up approximately 13%, significantly outpacing the Detroit Three production increase of ~3%), reflecting new program wins and share gains.
Shift to higher-margin direct sales mix
Direct sales made up 63% of mix in the quarter versus 57% in the prior-year quarter; direct volume increased 4% year over year, reflecting stronger direct commercial execution.
Progress on electrical steel and capacity expansion
Canada electrical steel facility transition underway with over 60% of the increased capacity already sold; Mexico traction motor lamination expansion on track to begin shipping this quarter (timing of full production shifted due to OEM program delays).
Transformation and productivity wins
Worthington Business System and AI/automation initiatives delivered measurable results: Delta, OH lean flow reduced coils in WIP by ~60% and lowered inventory by six days over 26 months; automation/AI projects expected to save roughly 30 analyst hours/month in cash posting and ~150 hours/month in accounts payable interventions, plus accelerated order-to-cash reconciliations.
Actionable inventory holding outlook
Quarter included estimated pretax inventory holding gains of $2.1 million (vs prior quarter -$1.2 million). Management expects 2026 pretax inventory holding gains to be in the $15 million to $20 million range, reflecting anticipated price moves and lagging-index contracts.
Return of capital
Board declared a quarterly dividend of $0.16 per share payable June 26, 2026, signaling confidence in cash generation and capital allocation discipline.
WS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
WS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 25, 2026 | $35.01 | $29.79 | -14.91% |
Dec 17, 2025 | $35.75 | $35.85 | +0.28% |
Sep 24, 2025 | $33.66 | $28.86 | -14.25% |
Jun 25, 2025 | $25.89 | $31.20 | +20.49% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Worthington Steel, Inc. (WS) report earnings?
Worthington Steel, Inc. (WS) is schdueled to report earning on Jul 01, 2026, After Close (Confirmed).
What is Worthington Steel, Inc. (WS) earnings time?
Worthington Steel, Inc. (WS) earnings time is at Jul 01, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
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What is WS EPS forecast?
WS EPS forecast for the fiscal quarter 2026 (Q4) is 0.74.