Worthington Industries (WOR) Q1 2027 Earnings Report
MX:WOR Q1 2027 EPS Results
- Actual EPS
- MXN 14.89
- Consensus EPS
- MXN 13.64
- Beat/Miss
- Beat by +MXN 1.25
- One Year Ago EPS
- MXN 13.44
MX:WOR Q1 2027 Revenue Results
- Actual Revenue
- MXN 6.25B
- Expected Revenue
- MXN 6.02B
- Beat/Miss
- Beat by +MXN 229.34M
- YoY Revenue Growth
- +13.23%
Earnings Announcement Details
- Quarter
- Q1 2027
- Date
- 09/22/2026
- Time
- After Close
- Conference Call
- Tuesday, September 22, 2026
Worthington Industries's next earnings date is estimated for December 22, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
The call conveyed a positive outlook, supported by double-digit sales and adjusted EBITDA growth, record trailing-twelve-month free cash flow, strong Trade and Specialty Solutions performance, record WAVE results, acquisition progress and rapidly growing data center opportunities. The company also reported meaningful headwinds from A2L-related comparisons, muted housing demand, steel constraints, lower gross margin and soft portions of commercial construction. Management characterized several of these issues as timing, comparison or temporary market effects and remained confident in the strategy and longer-term growth opportunities.
Management said ASME tank revenues will continue to grow sequentially quarter-over-quarter through the balance of this fiscal year, with growth in Q2, Q3 and Q4 more weighted on the back half of the year; the liquid cooling and thermal management market for data centers could be 10x what the legacy market was in the next few years, with opportunities sometimes 18 to 24 months removed from an announcement. WAVE is expected to see some sequential moderation in Q2 due to normal seasonality, Q2 will remain a difficult A2L comparison, and normalization is expected in Q3 and Q4, which are seasonally stronger in this market. Steel availability is expected to be in better shape through the end of the calendar year, though beyond that there is limited visibility. Working-capital measures are viewed as sustainable, supporting continued free cash flow generation, with some normal cyclicality or seasonality and an extra tax payment in Q2.
- Strong Fiscal 2027 StartQ1 sales grew 13% year-over-year, including 7% organic growth. Adjusted EBITDA increased 10% to $74 million, free cash flow reached $54 million, nearly double the prior-year quarter, and adjusted EPS rose to $0.82 from $0.78.
- Record Trailing-Twelve-Month Cash FlowTrailing-twelve-month free cash flow reached a record $196 million, representing a 116% conversion rate relative to adjusted net earnings. Operating cash flow increased to $67 million from $41 million, while quarterly free cash flow increased to $54 million from $28 million.
- Working Capital ImprovementsManagement said working-capital initiatives are sustainable and have reduced the cash conversion cycle by about 8 or 9 days over the last year. Net working capital as a percentage of sales declined by almost 3% over the last couple of years.
- Broad Consolidated Sales GrowthConsolidated sales increased 13% to $344 million, with recent acquisitions contributing $19 million of net sales in Q1. Gross profit increased by nearly 11%.
- Building Performance Solutions Sales GrowthBuilding Performance Solutions net sales increased 16% year-over-year to $215 million from $185 million. Acquisitions contributed $19 million, while organic sales increased 6%, primarily driven by strength in the Water and European businesses.
- Strong Trade and Specialty Solutions PerformanceTrade and Specialty Solutions sales increased 8% to $129 million from $119 million, driven by higher overall volumes and average selling prices. Adjusted EBITDA increased to $24 million from $16 million, and adjusted EBITDA margin expanded to 18.6% from 13.6%.
- Trade and Specialty Volume and Pricing MomentumThe segment saw broad-based growth across most of the portfolio, particularly in portable propane and tools, supported by higher volumes, expanded distribution and pricing actions. Underlying profitability improved even excluding the tariff benefit.
- Record WAVE Results and Joint Venture ContributionsWAVE delivered another record quarter, with equity income increasing approximately $3 million year-over-year to $35 million. Joint ventures provided $36 million of dividends during the quarter, representing 88% of equity income.
- ClarkDietrich and LSI ProgressClarkDietrich equity income increased more than $1 million year-over-year to $7 million. Management said LSI is performing well, has attractive margins and a strong position in a specialized niche, while integration efforts continue to focus on expanding its scale, profitability and diversification.
- Data Center ASME Tank GrowthWorthington generated $13 million of ASME tank revenue for data centers in Q1 fiscal 2027, matching the approximately $13 million shipped during all of fiscal 2026. Management expects ASME tank revenues to grow sequentially in Q2, Q3 and Q4, with more growth weighted toward the back half of the fiscal year.
- Large Liquid Cooling OpportunityManagement said the legacy engineered ASME tank market has been approximately $200 million annually, while industry sources suggest the liquid cooling and thermal management ASME tank market for data centers alone could be more than 10x the legacy market in the next few years. The company is investing in equipment, engineering talent and production capacity.
- Broader Data Center ExposureManagement said data centers are an important growth area across WAVE, ClarkDietrich, Elgen and LSI in addition to ASME tanks. The company is increasingly collaborating across value streams and making referrals or introductions among its businesses.
- Disciplined Strategy and Transformation InitiativesWorthington is using the Worthington Business System, 80/20 optimization, disciplined M&A, innovation, automation and AI-enabled tools to improve its businesses, working capital, productivity and resource allocation. The company is extending 80/20 beyond Water into portable fuel and torch.
- Healthy M&A Pipeline and IntegrationManagement reported a healthy M&A pipeline with a slight recent uptick in activity. Elgen integration has made good progress after more than a year, and recent acquisitions contributed approximately $19 million of Q1 sales. The company said both Elgen and LSI are strong cultural fits.
- Capital Allocation and Balance Sheet FlexibilityThe company repurchased 335,000 shares for $18 million, paid $9 million in dividends and declared a quarterly dividend of $0.20 per share payable in December 2026. The quarter ended with trailing-twelve-month adjusted EBITDA of $303 million and net debt of $250 million, which management described as providing significant financial flexibility.
- Resilient Repair and Remodel DemandManagement said it has not seen material weakness among Trade and Specialty Solutions customers, point-of-sale activity is holding up, unemployment remains relatively low and repair and remodel demand continues. WAVE also benefits from repair and remodel exposure, which management said is more resilient than new commercial construction.
- External Recognition for Innovation and Community EngagementWorthington was named one of America's most innovative businesses for 2027 by Business Insider and was recognized by USA TODAY and Points of Light as one of America's most charitable companies.
MX:WOR Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Dec 22, 2026 | 2027 (Q2) | 12.90- | 11.81 | ― | ― |
| Sep 22, 2026 | 2027 (Q1) | 13.6414.89 | 13.44 | 10.81% (+1.45) | |
| Jun 23, 2026 | 2026 (Q4) | 19.2517.62 | 19.25 | -8.49% (-1.63) | |
| Mar 24, 2026 | 2026 (Q3) | 17.4717.80 | 16.53 | 7.69% (+1.27) | |
| Dec 16, 2025 | 2026 (Q2) | 12.7911.81 | 10.9 | 8.33% (+0.91) | |
| Sep 23, 2025 | 2026 (Q1) | 12.7713.44 | 9.08 | 48.00% (+4.36) | |
| Jun 24, 2025 | 2025 (Q4) | 15.3119.25 | 13.44 | 43.24% (+5.81) | |
| Mar 25, 2025 | 2025 (Q3) | 12.8016.53 | 14.53 | 13.75% (+2.00) | |
| Dec 17, 2024 | 2025 (Q2) | 9.3510.90 | 14.17 | -23.08% (-3.27) | |
| Sep 24, 2024 | 2025 (Q1) | 13.119.08 | 23.07 | -60.63% (-13.98) |
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.