Worthington Enterprises Presents Solid Results for the First Quarter of Fiscal Year 2025 Despite Challenges

Worthington Enterprises has announced the results for the first quarter of fiscal year 2025. Despite a challenging environment characterized by high interest rates and macroeconomic uncertainty, the company achieved an adjusted EBITDA of 48 million USD, although this represents a decline compared to 66 million USD in the previous year. The adjusted earnings per share decreased to 0.50 USD from 0.75 USD in the same quarter last year. Two significant drivers of the decline were the 8 million USD loss in the ClarkDietrich business segment and the losses in the heating and cooking business as well as in the construction products segment. Marcus Rogier, Treasurer and Investor Relations Officer, emphasized that there are indications that the construction products industry has reached the end of its post-COVID destocking cycle. Despite these challenges, the long-term outlook remains positive, as some market segments are showing improvement over the course of the year. The integration of the acquisition of Hexagon Ragasco and the launch of the joint venture "Sustainable Energy Solutions" with Hexagon Composites went well. Overall, the company appears well-positioned to benefit from long-term positive economic trends. Key events this quarter include the initiation of a modernization project in Chilton, Wisconsin, as well as recognition by Newsweek as one of the most trustworthy companies in the world and one of the greatest workplaces in America. The recently released report on corporate responsibility and sustainability also shows significant progress. Worthington recorded GAAP earnings from continuing operations of 0.48 USD per share for the quarter, compared to 0.54 USD in the previous year. Restructuring costs and other one-time items influenced the results. Consolidated net sales decreased by 17.5% to 257 million USD, primarily due to the deconsolidation of the former "Sustainable Energy Solutions" segment. In the consumer products segment, revenue remained nearly unchanged at 118 million USD, while adjusted EBITDA rose to 18 million USD. The construction products business saw a revenue decline of 16% to 140 million USD, attributable to lower volumes and an unfavorable product mix. Despite the challenges, Worthington’s executives remain optimistic about the future. The focus is on improving the M&A pipeline and innovation capabilities to bring sustainable technologies to market more quickly and to fully exploit growth potential.