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Worthington Industries
(NYSE:WOR)
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Rating:76Outperform
Price Target:
$70.00
▲(22.12% Upside)
Action:Reiterated
Date:09/28/26
WOR scores well primarily on strong financial performance, especially high-quality recent free cash flow generation and manageable leverage, supported by a positive price trend with constructive momentum. The score is moderated by only average valuation support (modest dividend yield) and earnings-call risks tied to near-term comparison headwinds, input availability constraints, and timing uncertainty around data center-driven growth.
Positive Factors
Strong cash generation and conversion
Strong free cash flow and close alignment with net income indicate that reported earnings are converting into usable cash. This supports internally funded investment, dividends, buybacks and debt management, while sustainable working-capital improvements should reinforce cash generation over the next several quarters.
Negative Factors
Cyclical and volatile earnings profile
Historical swings in revenue, margins and cash flow indicate that earnings power remains sensitive to industrial cycles, end-market demand and product mix. This variability can make results less predictable and may constrain investment or shareholder returns during weaker operating periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and conversion
Strong free cash flow and close alignment with net income indicate that reported earnings are converting into usable cash. This supports internally funded investment, dividends, buybacks and debt management, while sustainable working-capital improvements should reinforce cash generation over the next several quarters.
Read all positive factors
Worthington Industries Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Shows segment-level operating profitability after adjusting for nonrecurring items, revealing which businesses generate the most cash and which are margin-constrained. Useful for assessing real cash flow strength, the impact of commodity and input-cost swings, and which segments justify higher valuation or need operational fixes.
Shows segment-level operating profitability after adjusting for nonrecurring items, revealing which businesses generate the most cash and which are margin-constrained. Useful for assessing real cash flow strength, the impact of commodity and input-cost swings, and which segments justify higher valuation or need operational fixes.
Data provided by:
The Fly
The FlyWorthington Industries (WOR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.93B
Dividend Yield1.29%
Average Volume (3M)409.93K
Price to Earnings (P/E)17.7
Beta (1Y)0.78
Revenue Growth18.44%
EPS Growth54.40%
CountryUS
Employees3,800
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)3.36
Shares Outstanding48,926,785
10 Day Avg. Volume665,091
30 Day Avg. Volume409,928
Financial Highlights & Ratios
PEG Ratio0.28
Price to Book (P/B)2.72
Price to Sales (P/S)2.02
P/FCF Ratio16.43
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$66.67Price Target Upside16.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)3.69
Revenue Forecast (FY)$1.47B
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, ...
How the Company Makes Money
Worthington Industries primarily makes money by manufacturing and selling value-added steel products and pressure cylinders.
1) Steel Processing revenue (value-added steel services and products)
- What it sells: Processed flat-rolled steel produc...
Worthington Industries Earnings Call Summary
Earnings Call Date:Sep 22, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 22, 2026
Earnings Call Sentiment Positive
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.
Read all updates
Q1-2027 Updates
Positive
Negative
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.
Read all positive updates
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 Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.42B | 1.38B | 1.15B | 1.25B | 1.42B | 5.24B |
| Gross Profit | 386.89M | 378.27M | 318.26M | 285.92M | 339.37M | 602.01M |
| EBITDA | 240.66M | 140.58M | 179.37M | 156.49M | 291.36M | 643.81M |
| Net Income | 163.51M | 156.09M | 96.05M | 110.62M | 256.53M | 379.39M |
Balance Sheet | ||||||
| Total Assets | 1.84B | 1.85B | 1.70B | 1.64B | 3.65B | 3.64B |
| Cash, Cash Equivalents and Short-Term Investments | 55.07M | 27.73M | 250.07M | 244.22M | 454.95M | 34.48M |
| Total Debt | 347.55M | 349.76M | 326.06M | 317.18M | 795.38M | 844.41M |
| Total Liabilities | 793.56M | 821.02M | 756.91M | 747.63M | 1.83B | 2.03B |
| Stockholders Equity | 1.05B | 1.03B | 937.19M | 888.88M | 1.70B | 1.48B |
Cash Flow | ||||||
| Free Cash Flow | 235.74M | 170.21M | 159.16M | 206.45M | 539.00M | -24.49M |
| Operating Cash Flow | 251.79M | 226.12M | 209.74M | 289.98M | 625.36M | 70.11M |
| Investing Cash Flow | -268.75M | -360.07M | -135.10M | -140.81M | -71.78M | -438.19M |
| Financing Cash Flow | -95.09M | -88.40M | -68.79M | -359.89M | -133.13M | -237.75M |
Worthington Industries Technical Analysis
Positive
57.32
Price Trends
57.81
Positive
56.79
Positive
55.03
Positive
Market Momentum
0.73
Negative
52.53
Neutral
33.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WOR, the sentiment is Positive. The current price of 57.32 is below the 20-day moving average (MA) of 59.19, below the 50-day MA of 57.81, and above the 200-day MA of 55.03, indicating a bullish trend. The MACD of 0.73 indicates Negative momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 33.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WOR.
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.93B | 17.72 | 16.19% | 1.29% | 18.44% | 54.40% | |
75 Outperform | $25.73B | 54.27 | 26.59% | 1.81% | 4.58% | 15.71% | |
64 Neutral | $563.13M | 15.58 | 9.92% | 3.84% | 17.06% | 16.89% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
52 Neutral | $1.19B | -136.55 | -0.96% | ― | 14.47% | -220.54% | |
50 Neutral | $1.23B | -19.15 | -3.18% | 3.19% | 31.54% | -171.56% | |
49 Neutral | $416.17M | -18.07 | -6.63% | ― | 11.77% | -196.68% |
* Industrials Sector Average
WOR
Worthington Industries
59.54
5.12
9.40%
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Worthington Industries Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Worthington Industries Grants CEO Special Retention Share Award
Positive
Sep 25, 2026
On September 21, 2026, Worthington’s board compensation committee approved a special leadership retention performance share award for President and CEO Joseph B. Hayek, granting 150,000 shares that vest only if the stock sustains an average ...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Worthington Industries Posts Strong Fiscal 2027 Q1 Results
Positive
Sep 22, 2026
On September 22, 2026, Worthington Enterprises reported solid first quarter fiscal 2027 results for the period ended August 31, 2026, with net sales rising 13% year over year to $343.9 million, supported by 6% growth from acquisitions and 7% organ...
Business Operations and StrategyFinancial Disclosures
Worthington Industries Announces Upcoming Investor and Analyst Day
Positive
Sep 15, 2026
On September 15, 2026, Worthington Enterprises announced it will host an Investor and Analyst Day on November 10, 2026, its first such event since an October 2023 session held prior to the separation of its Steel Processing business. Management pl...
Business Operations and StrategyPrivate Placements and Financing
Worthington Industries Amends and Extends $500 Million Credit Facility
Positive
Aug 31, 2026
On August 31, 2026, Worthington Enterprises, Inc. amended and restated its existing five-year unsecured revolving credit facility, keeping aggregate commitments at $500 million while extending the final maturity from September 27, 2028 to August 3...
Business Operations and StrategyFinancial Disclosures
Worthington Industries Highlights Record Results and Post-Split Growth
Positive
Aug 14, 2026
On August 12, 2026, Worthington Enterprises’ management discussed the company’s post-separation performance at the Canaccord Genuity 46th Annual Growth Conference, highlighting the benefits of its split from Worthington Steel nearly th...
Business Operations and Strategy
Worthington Industries Highlights Long-Term Growth Strategy to Investors
Positive
Aug 7, 2026
On August 5, 2026, Worthington Enterprises announced that Chief Financial Officer Colin Souza would participate in a fireside chat at the 46th Canaccord Genuity Annual Growth Conference on August 12, 2026. The session, moderated by Canaccord Genui...
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.