The headline beat is overshadowed by adjusted EBITDA decline and lack of guidance, explaining the negative price action. Watch for normalization of A2L headwinds and ClarkDietrich recovery over the next 1-2 quarters; strong free cash flow and balance sheet provide downside protection. The data center ASME tank ramp is a positive catalyst for FY2027.
Price Chart
Executive Summary
Worthington Enterprises reported Q4 fiscal 2026 results with a strong EPS beat ($0.97 vs $0.76 consensus, +27%) and revenue beat ($371.5M vs $326.6M, +14%), driven by 17% total sales growth including 3% organic. However, adjusted EBITDA declined 2% to $83.5M due to headwinds at ClarkDietrich and A2L refrigerant transition, and the company provided no specific numerical guidance for fiscal 2027. The stock traded down on the day, reflecting market focus on the EBITDA miss and uncertain near-term outlook despite the headline beat.
Key Financial Metrics
Key Facts
- Q4 GAAP diluted EPS $0.97 vs consensus $0.76 (beat 27.6%)
- Q4 net sales $371.5M vs consensus $326.6M (beat 13.8%), up 17% YoY including 3% organic growth
- Q4 adjusted EBITDA $83.5M vs $85.1M YoY, down 2%
- Full-year fiscal 2026 adjusted EBITDA $295.8M, up 12% YoY; free cash flow $170.2M (102% conversion)
- Net debt to trailing adjusted EBITDA 0.9x; $500M undrawn revolver
- Quarterly dividend increased 5% to $0.20/share
- Repurchased 350,000 shares for $18.2M in Q4
- Special performance share awards granted to four top executives (25,000 shares each) for retention through fiscal 2030
- ASME water tank shipments for data centers reached $13M in FY2026; expect at least that in Q1 FY2027
Financial Impact
EPS beat of $0.21 (27.6%) and revenue beat of $44.9M (13.8%) vs consensus; adjusted EBITDA declined $1.6M YoY
Risk Factors
- Continued weakness at ClarkDietrich joint venture (equity income down $19M for FY2026)
- A2L refrigerant transition headwinds may persist for another 1-2 quarters
- Inflationary cost pressures on steel, aluminum, and freight
- Tariff and trade policy uncertainty
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-285420 |
| Document: wor-ex99_1.htm | 0001193125-26-285420 |
| Document: wor-ex10_1.htm | 0001193125-26-285420 |
| Document: 0001193125-26-285420-index-headers.html | 0001193125-26-285420 |
| Document: 0001193125-26-285420-index.html | 0001193125-26-285420 |
| Document: 0001193125-26-285420.txt | 0001193125-26-285420 |
| 8-K Data (Synthetic) | 0001193125-26-285420 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $64.44 | awaiting T+5 | — | $64.29 (−0.24%) |
Oct 7, 2026 18d ago | 144 | $61.22 $63.84 | ▲ +4.28% | ▲ +4.56% | $64.29 (+5.01%) |
Oct 6, 2026 19d ago | 144 | $60.45 $62.73 | ▲ +3.77% | ▲ +4.75% | $64.29 (+6.34%) |
Sep 25, 2026 4w ago | 8-K | $60.87 $61.14 | ▲ +0.44% | ▼ −0.76% | $64.29 (+5.61%) |
Sep 22, 2026 4w ago | Press Release | $59.70 $59.54 | ▼ −0.27% | ▲ +0.41% | $64.29 (+7.68%) |
Sep 22, 2026 4w ago | Press Release | $58.94 $59.94 | ▲ +1.70% | ▲ +2.88% | $64.29 (+9.07%) |
Sep 17, 2026 5w ago | Press Release | $59.94 $60.33 | ▲ +0.65% | ▲ +0.05% | $64.29 (+7.25%) |
Aug 31, 2026 7w ago | 8-K | $56.74 $59.78 | ▲ +5.36% | ▲ +5.28% | $64.29 (+13.30%) |
Aug 14, 2026 10w ago | 8-K | $58.66 $56.86 | ▼ −3.07% | ▼ −1.70% | $64.29 (+9.59%) |
Aug 13, 2026 10w ago | DEFA14A | $58.16 $56.39 | ▼ −3.04% | ▼ −1.08% | $64.29 (+10.53%) |
US Market Status
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