Worthington Steel, Inc. AI Stock Analysis
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Worthington Steel, Inc. (WS) AI Stock Analysis
Worthington Steel, Inc.
(NYSE:WS)
The score is held back primarily by pressured profitability (TTM net loss), elevated leverage/capital-cushion risk in the TTM balance-sheet snapshot, and mixed earnings-call takeaways that include higher interest burden and negative quarterly free cash flow. These are partly offset by strong TTM revenue growth, positive TTM free cash flow, and a constructive technical uptrend with favorable momentum.
Worthington Steel, Inc. Key Performance Indicators (KPIs)
Net Sales by End MarketBreaks revenue down by customer sectors—such as construction, energy, automotive, and manufacturing—to show where demand is coming from and where exposure lies. A diversified mix reduces reliance on any single cyclical market; heavy concentration in one end market raises risk if that sector slows or faces pricing pressure.
Worthington Steel’s end-market mix is becoming more concentrated in Automotive and Machine & Equipment, while the previously larger Other category is steadily losing share. Automotive’s recovery since 2025 provides a solid base, but modest construction improvement and persistently weak agriculture and heavy trucks limit broader industrial diversification. The mix shift favors relatively resilient demand, yet increases sensitivity to automotive production cycles and OEM inventory decisions.
The FlyWorthington Steel, Inc. (WS) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $2.02B
- Dividend Yield
- 1.62%
- Average Volume (3M)
- 371.30K
- Price to Earnings (P/E)
- -68.0
- Beta (1Y)
- 1.58
- Revenue Growth
- 69.13%
- EPS Growth
- -132.01%
- Country
- US
- Employees
- 5,400
- Sector
- Basic Materials
- Sector Strength
- 61
- Industry
- Steel
Worthington Steel, Inc. Business Overview & Revenue Model
Company Description
Worthington Steel, Inc. functions as a specialized steel processing enterprise serving the North American market. The company supplies a variety of steel products, notably flat-rolled carbon steel, custom-welded blanks (both steel and aluminum variet...
Worthington Steel, Inc. 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.
Q1-2027 Updates
Positive Updates
Negative Updates
Company Guidance
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.
Worthington Steel, Inc. Financial Statement Overview
Summary
Revenue growth is strong (TTM sales up ~53.8% to ~$5.30B) and cash generation is supportive (TTM OCF ~$201.5M; FCF ~$147.4M). However, profitability has weakened into a TTM net loss (-$24.5M) with thin operating margins (EBIT ~4.0%), and the balance sheet is the main risk given the TTM snapshot of very high total debt (~$2.58B) against a much smaller equity base (~$63.8M), implying limited cushion if weakness persists.
Income Statement
44NeutralBalance Sheet
28NegativeCash Flow
62Positive| Breakdown | TTM | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.30B | 3.44B | 3.09B | 3.43B | 3.61B | 4.07B |
| Gross Profit | 548.60M | 402.60M | 388.60M | 439.80M | 336.50M | 395.50M |
| EBITDA | 224.80M | 189.90M | 221.20M | 287.50M | 201.30M | 316.80M |
| Net Income | -29.50M | 17.30M | 110.70M | 154.70M | 87.10M | 180.40M |
Balance Sheet | ||||||
| Total Assets | 6.02B | 2.27B | 1.96B | 1.87B | 1.76B | 2.08B |
| Cash, Cash Equivalents and Short-Term Investments | 248.20M | 84.60M | 38.00M | 40.20M | 32.70M | 20.05M |
| Total Debt | 2.58B | 354.40M | 227.90M | 223.90M | 80.40M | 153.90M |
| Total Liabilities | 4.32B | 990.20M | 763.90M | 748.90M | 609.80M | 817.66M |
| Stockholders Equity | 1.03B | 1.07B | 1.07B | 985.30M | 1.03B | 1.13B |
Cash Flow | ||||||
| Free Cash Flow | 62.20M | 80.00M | 99.90M | 96.10M | 269.54M | 3.05M |
| Operating Cash Flow | 217.00M | 201.20M | 230.30M | 199.50M | 315.01M | 39.49M |
| Investing Cash Flow | -797.10M | -219.40M | -129.10M | -132.00M | -22.15M | -395.35M |
| Financing Cash Flow | 750.00M | 9.00M | -48.50M | -60.00M | -280.23M | 358.45M |
Worthington Steel, Inc. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WS, the sentiment is Positive. The current price of 39.46 is below the 20-day moving average (MA) of 40.35, above the 50-day MA of 37.44, and above the 200-day MA of 37.39, indicating a neutral trend. The MACD of 0.28 indicates Positive momentum. The RSI at 51.21 is Neutral, neither overbought nor oversold. The STOCH value of 44.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WS.
Worthington Steel, Inc. Peers Comparison
Overall Rating
RS77Outperform
NUE74Outperform
STLD74Outperform
FRD61Neutral
CLF58Neutral- WS56Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| RS | 77Outperform | $21.76B | 19.91 | 15.07% | 1.15% | 24.75% | 56.89% |
| NUE | 74Outperform | $58.19B | 16.62 | 16.47% | 0.86% | 21.79% | 120.78% |
| STLD | 74Outperform | $33.58B | 17.56 | 20.97% | 0.87% | 26.00% | 79.81% |
| Sector * | 61Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
| FRD | 61Neutral | $283.32M | 6.65 | 25.30% | 0.42% | 73.68% | 248.86% |
| CLF | 58Neutral | $7.34B | -14.76 | -8.14% | ― | 8.10% | 75.20% |
| WS | 56Neutral | $2.02B | -68.03 | -2.72% | 1.62% | 69.13% | -132.01% |
* Basic Materials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WS | Worthington Steel, Inc. | 39.46 | 8.26 | 26.45% | |
| CLF | Cleveland-Cliffs | 13.14 | 2.63 | 25.02% | |
| FRD | Friedman Industries, Incorporated | 38.31 | 16.08 | 72.31% | |
| NUE | Nucor | 261.39 | 117.27 | 81.37% | |
| RS | Reliance Steel & Aluminum | 429.88 | 160.48 | 59.57% | |
| STLD | Steel Dynamics | 238.99 | 86.04 | 56.26% |
Worthington Steel, Inc. Corporate Events
Worthington Steel Updates on Failed Kloeckner Agreement
NegativeOn October 23, 2026, Worthington Steel confirmed that the proposed domination and profit and loss transfer agreement between Kloeckner & Co SE and Worthington Steel GmbH failed to secure the necessary shareholder approval at Kloeckner’s extraordinary...
Worthington Steel Addresses Klöckner Shareholder Vote Plans
NeutralOn October 21, 2026, Worthington Steel issued a statement ahead of Klöckner & Co SE’s extraordinary general meeting in Düsseldorf, scheduled for October 23, 2026, where shareholders are set to vote on implementing a Domination and Profit and Loss Tra...
Worthington Steel advances control with Klöckner agreement
NeutralFor the first quarter of fiscal 2027 ended August 31, 2026, Worthington Steel reported net sales of $2.73 billion, up 212% year on year, and operating income of $56 million, but a net loss attributable to controlling interest of $7 million, reflectin...
Worthington Steel shareholders back board, pay and auditor
PositiveOn September 23, 2026, Worthington Steel, Inc. held its 2026 Annual Meeting of Shareholders, with 46,424,421 common shares represented by proxy, constituting a quorum from 50,946,619 shares entitled to vote. Shareholders elected John B. Blystone, Joh...
Worthington Steel Signs Domination and Profit Transfer Deal
NeutralOn September 8, 2026, Worthington Steel GmbH, an indirect wholly owned subsidiary of Worthington Steel, Inc., signed a Domination and Profit and Loss Transfer Agreement with Kloeckner & Co SE, following Worthington Steel’s voluntary takeover offer co...
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.
Date of analysis: Oct 23, 2026