The EPS miss and Building Products margin compression (~910bp drop) may pressure the stock near-term, but strong organic revenue growth (3%), robust FCF ($55M), and a 5% dividend hike suggest underlying health. Monitor tomorrow's conference call (June 24 at 8:30 AM ET) for clarity on ClarkDietrich trends, acquisition integration (Elgen/LSI), and FY2027 organic growth trajectory. The board refresh with a former building-products CEO signals strategic continuity.
Price Chart
Executive Summary
Worthington Enterprises reported fiscal Q4 2026 results with diluted EPS of $0.97, missing the $1.06 consensus estimate by -8.5%. Net sales grew 17% YoY to $371.5M, driven by $44.1M from acquisitions and 3% organic growth, but GAAP operating income swung to $23.2M from a -$30.4M loss a year ago (which included a $50.8M impairment). Adjusted EBITDA fell slightly to $83.5M from $85.1M, and the Building Products segment saw a 27.9% adjusted EBITDA margin decline from 37.0% in the prior year due to lower ClarkDietrich equity contributions. The company also appointed former LP Building Solutions CEO Brad Southern to the board, signaled three director retirements, and raised the quarterly dividend 5% to $0.20/share.
Key Financial Metrics
Key Facts
- Q4 GAAP diluted EPS of $0.97 missed consensus of $1.06 by -8.5%
- Q4 net sales of $371.5M (+17% YoY) included $44.1M from acquisitions and 3% organic growth
- Adjusted EBITDA of $83.5M vs $85.1M a year ago, down -1.9%
- Building Products adjusted EBITDA margin fell to 27.9% from 37.0% YoY, driven by $6.8M lower ClarkDietrich equity income
- Full-year adjusted EBITDA grew 12% to $295.8M on 20% sales growth
- Operating cash flow rose to $71.6M (+$9.2M YoY); free cash flow of $55.1M
- Quarterly dividend increased 5% to $0.20 per share
- Appointed W. Bradley Southern (ex-CEO of LP Building Solutions) to the board; three directors to retire at 2026 annual meeting
- Repurchased 350,000 shares for $18.2M; $500M undrawn revolver provides liquidity
- Net debt to TTM adjusted EBITDA leverage of 1.0x as of Feb 28, 2026
Financial Impact
EPS miss of -8.5% vs consensus ($0.97 actual vs $1.06 est); revenue beat of +3% organic vs flat expectations; adjusted EBITDA margin compression in Building Products (27.9% vs 37.0%) signals structural mix headwinds
Risk Factors
- ClarkDietrich equity income declined sharply ($6.1M vs $12.8M in Q4), signaling potential weakness in the steel framing joint venture
- Building Products adjusted EBITDA margin compressed from 37.0% to 27.9% due to mix headwinds and lower JV contributions
- Cash declined $222M vs prior year-end due to M&A spend, though $500M revolver remains undrawn
- Acquisition integration risk for Elgen and LSI (contributing $44M to Q4 revenue but with integration costs still ongoing)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-279469 |
| Document: wor-20260623.htm | 0001193125-26-279469 |
| Document: wor-ex99_2.htm | 0001193125-26-279469 |
| Document: 0001193125-26-279469-index-headers.html | 0001193125-26-279469 |
| Document: 0001193125-26-279469-index.html | 0001193125-26-279469 |
| Document: 0001193125-26-279469.txt | 0001193125-26-279469 |
| 8-K Data (Synthetic) | 0001193125-26-279469 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | 8-K | $63.65 | awaiting T+20 | — | $63.40 (−0.39%) |
Oct 7, 2026 20d ago | 144 | $61.22 | awaiting T+20 | — | $63.40 (+3.56%) |
Oct 6, 2026 21d ago | 144 | $60.45 | awaiting T+20 | — | $63.40 (+4.88%) |
Sep 25, 2026 4w ago | 8-K | $60.87 $64.55 | ▲ +6.05% | ▲ +6.08% | $63.40 (+4.16%) |
Sep 22, 2026 5w ago | Press Release | $59.70 $65.10 | ▲ +9.05% | ▲ +8.36% | $63.40 (+6.20%) |
Sep 22, 2026 5w ago | Press Release | $58.94 $63.90 | ▲ +8.42% | ▲ +8.98% | $63.40 (+7.57%) |
Sep 17, 2026 5w ago | Press Release | $59.94 $63.84 | ▲ +6.51% | ▲ +5.30% | $63.40 (+5.77%) |
Aug 31, 2026 8w ago | 8-K | $56.74 $59.54 | ▲ +4.93% | ▲ +4.62% | $63.40 (+11.74%) |
Aug 14, 2026 10w ago | 8-K | $58.66 $55.25 | ▼ −5.81% | ▼ −3.82% | $63.40 (+8.08%) |
Aug 13, 2026 10w ago | DEFA14A | $58.16 $56.93 | ▼ −2.11% | ▼ −0.37% | $63.40 (+9.01%) |
US Market Status
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