Worthington Steel, Inc. (WS) Q1 2027 Earnings Report
MX:WS Q1 2027 EPS Results
- Actual EPS
- MXN 10.71
- Consensus EPS
- MXN 17.28
- Beat/Miss
- Missed by -MXN 6.58
- One Year Ago EPS
- MXN 14.47
MX:WS Q1 2027 Revenue Results
- Actual Revenue
- MXN 51.22B
- Expected Revenue
- MXN 58.93B
- Beat/Miss
- Missed by -MXN 7.71B
- YoY Revenue Growth
- +212.36%
Earnings Announcement Details
- Quarter
- Q1 2027
- Date
- 10/06/2026
- Time
- After Close
- Conference Call
- Tuesday, October 6, 2026
Worthington Steel, Inc.'s next earnings date is estimated for December 23, 2026, based on past reporting schedules.
Q1 2027 Earnings Call Audio
Q1 2027 Earnings Slide Deck
Q1 2027 Earnings Call Summary
The call was mixed but cautiously constructive. Management highlighted the transformational Kloeckner acquisition, revenue and adjusted EBIT growth, strong agriculture and transportation performance, automotive resilience, operational improvements, and identified synergy opportunities. These positives were offset by a reported net loss, lower adjusted EPS, substantially higher interest expense, acquisition and purchase-accounting charges, negative free cash flow, increased net debt, tight supply constraints, and declines in energy, construction, and total legacy shipments. The company remains optimistic about its strategic position but is operating with significant near-term financial and market headwinds.
Management expects North American automotive production to be essentially flat compared to calendar year 2025 and to continue through year end, with automotive remaining solid through the end of calendar year 2026; it currently estimates pre-tax inventory holding gains in the legacy Worthington Steel business of $10 million to $15 million in the second quarter of fiscal 2027, expects only a limited residual impact from purchase accounting in the second quarter, and expects combined capital expenditures of $160 million to $180 million for fiscal 2027, with spending to moderate as the year progresses, though the first quarter pace should not be viewed as representative of the full year. If the DPLTA is approved and effective, formal integration and synergy capture would begin in the first quarter of calendar year 2027; previously communicated synergy and deleveraging targets remain unchanged, $150 million of working capital synergies has been identified, and Kloeckner is expected to use the majority of the net proceeds from the sale of Becker Stahl for debt reduction.
- Kloeckner Acquisition Added to Reported ResultsWorthington Steel reported Kloeckner Metals as part of its results for the first time following the June 3 closing. Kloeckner's shares were delisted on August 12, and the Domination and Profit and Loss Transfer Agreement was signed on September 8. If approved and effective, the agreement would provide operating control and enable formal integration and synergy capture beginning in the first quarter of calendar year 2027.
- Larger and More Diversified CompanyManagement said Kloeckner expands Worthington Steel's product and processing capabilities, broadens the markets served, and extends the company's geographic footprint. The combined company is described as larger, broader, and more diversified than it was a year ago.
- Quarterly Sales and Adjusted EBITDANet sales were $2.7 billion, adjusted EBITDA was $111 million, and adjusted earnings per share was $0.57. Net sales increased approximately $1.9 billion from the prior-year quarter, primarily due to the addition of Kloeckner.
- Legacy Revenue GrowthLegacy Worthington Steel net sales were $954 million, up $81 million or 9% from the prior-year quarter, reflecting higher direct volumes and selling prices.
- Adjusted EBIT IncreasedAdjusted EBIT was $78.5 million, up $23 million from the prior-year quarter.
- Automotive Resilience and New Business WinsNorth American automotive production remained resilient, and management expects it to remain essentially flat compared with calendar year 2025 through year end. Legacy direct shipments to automotive increased 4% year over year, while commercial and technical teams continued to win business. TWB, the company's joint venture, received two supplier awards from Subaru.
- Agriculture Shipments Increased 40%Agriculture was a bright spot, with shipments increasing 40% year over year, mostly driven by the OEM and grain bin markets.
- Other Transportation Shipments Increased 39%Shipments to other transportation, which now includes heavy truck, increased 39%, primarily due to share gains and new business wins. Management said heavy truck and trailer activity showed signs of stabilizing, although the market was not fully recovered.
- Legacy Direct Volume and Spread BenefitsLegacy direct volumes increased 3% year over year. Higher direct volumes increased legacy direct spreads by $7.6 million, and a favorable change in inventory holding gains added $6.5 million. Estimated pre-tax inventory holding gains were $12.1 million compared with $5.6 million a year ago.
- Galvanized Spreads Expected to Remain SustainableManagement said galvanized spreads averaged over $200 in the fiscal first quarter and expressed strong confidence in their sustainability because the market remains tight and imports are limited. Management expects the new contract season beginning January 1 to better reflect spread expansion in the company's results.
- AI-Enabled Inventory ManagementWorthington Steel applied AI to improve inventory decisions across its maintenance, repair, and operations network. The tool evaluates demand patterns, identifies duplicate purchasing opportunities, recommends transfers between facilities, and supports inventory-level decisions, while buyers and maintenance teams confirm recommendations before decisions are made. Management said the value has been identified and validated and that the work is being converted into financial results through operating reviews and better inventory management.
- Significant Cost Avoidance from Purchasing ImprovementsSimplified indirect-purchasing workflows and reduced manual effort gave buyers more time for supplier negotiations, sourcing strategy, and commodity management. Management said this led to significant cost avoidance across the company.
- Capacity Increased Without Additional Capital InvestmentAt the Monroe, Ohio facility, disciplined problem solving and better use of existing assets allowed work to move from a bottleneck press to an underutilized asset. The team increased production using in-house capabilities and supported customer demand without additional capital investment.
- Complementary Domestic Sourcing FootprintManagement said approximately 99% of Kloeckner's purchases would have come from domestic mills. The companies have similar strategies of buying where they produce and sourcing steel regionally, while their geographic footprints are complementary across the Midwest, Southeast, and Southwest.
- Working Capital and Synergy OpportunitiesManagement cited $150 million of working capital synergies, with a significant portion related to inventory management. The company also said its previously communicated synergy and deleveraging targets remain unchanged, with debt reduction expected to progress alongside synergy capture and working capital improvement.
- Dividend DeclaredThe Board declared a quarterly dividend of $0.16 per share, payable on December 28, 2026.
MX:WS Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Dec 23, 2026 | 2027 (Q2) | 15.78- | 7.14 | ― | ― |
| Oct 06, 2026 | 2027 (Q1) | 17.2810.71 | 14.47 | -25.97% (-3.76) | |
| Jun 24, 2026 | 2026 (Q4) | 14.0913.90 | 19.73 | -29.52% (-5.82) | |
| Mar 25, 2026 | 2026 (Q3) | 8.685.07 | 6.58 | -22.86% (-1.50) | |
| Dec 17, 2025 | 2026 (Q2) | 7.337.14 | 3.57 | 100.00% (+3.57) | |
| Sep 24, 2025 | 2026 (Q1) | 13.9014.47 | 10.52 | 37.50% (+3.95) | |
| Jun 25, 2025 | 2025 (Q4) | 15.5019.73 | 19.91 | -0.94% (-0.19) | |
| Mar 19, 2025 | 2025 (Q3) | 9.026.58 | 18.6 | -64.65% (-12.02) | |
| Dec 18, 2024 | 2025 (Q2) | 11.873.57 | 2.07 | 72.73% (+1.50) | |
| Sep 25, 2024 | 2025 (Q1) | 10.2410.52 | 22.17 | -52.54% (-11.65) |
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.
