Worthington Industries (WOR) AI Stock Analysis

Worthington Industries

(BMV:WOR)

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Positive Factors

Cash GenerationStrong free cash flow and conversion indicate that reported earnings are translating into usable cash. This supports reinvestment, acquisitions, dividends, and debt management while giving the company greater resilience through normal industrial-cycle fluctuations.

Negative Factors

Earnings CyclicalityHistorical swings in revenue, margins, and cash flow show that earnings power is sensitive to end-market demand, product mix, and industrial conditions. This variability can make results less predictable and may constrain consistent reinvestment during weaker cycles.

Worthington Industries Business Overview & Revenue Model

Company Description

Worthington Industries, Inc. is an industrial manufacturing firm operating internationally, with a strong foothold in North America. The company's primary focus areas include value-added steel processing, the production of various consumer goods, bui...

Worthington Industries Earnings Call Summary

Earnings Call Date:Sep 21, 2026(Q1-2027)|Next Earnings Date:Dec 21, 2026

Earnings Call SentimentPositive

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.

Positive Updates

Strong Fiscal 2027 Start

Q1 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.

Negative Updates

A2L Refrigerant Comparison Headwinds

Building Performance Solutions' Cooling and Construction business faced lower demand for newly mandated A2L refrigerant cylinders as channel inventories were rightsized and new home sales remained muted. The prior-year period benefited from unusually strong inventory-building demand ahead of the regulated transition.

Company Guidance

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.

Worthington Industries Risk Analysis

Worthington Industries disclosed 28 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

MX:WOR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATI	70Outperform	$22.49B	40.59	29.80%	―	9.39%	28.51%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
IIIN	61Neutral	$550.61M	18.72	8.02%	3.94%	14.17%	-27.88%
ROCK	53Neutral	$1.19B	-138.28	-0.96%	―	14.47%	-220.54%
RYZ	52Neutral	$1.61B	-207.67	1.22%	2.41%	53.23%	78.16%
MEC	51Neutral	$383.01M	-18.10	-6.63%	―	11.77%	-196.68%

* Industrials Sector Average

Performance Comparison

MX:WOR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
ATI	ATI Inc.	165.59	66.98	67.92%
ROCK	Gibraltar Industries, Inc.	40.10	-21.38	-34.78%
IIIN	Insteel Industries, Inc.	28.45	-1.64	-5.47%
RYZ	Ryerson Holding Corporation	31.15	10.80	53.04%
MEC	Mayville Engineering Company	15.02	-2.64	-14.95%

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.

Worthington Industries AI Stock Analysis