The following is a summary of the Worthington Enterprises, Inc. (WOR) Q2 2025 Earnings Call Transcript:

Financial Performance:

• GAAP earnings from continuing operations were reported at $0.56 per share, up from $0.36 in the prior year quarter.

• Consolidated net sales decreased by 8.1% to $274 million, largely due to the deconsolidation of the sustainable energy solution segment.

• Gross profit increased to $74 million from $63 million in the prior year quarter, with a gross margin increase of approximately 580 basis points to 27%.

• Adjusted EBITDA rose slightly to $56 million from $55 million year-over-year, and TTM adjusted EBITDA was $235 million with a margin of 20.1%.

• Free cash flow for the quarter was $34 million, supported by strong dividends from JVs and careful management of capital expenditures.

Business Progress:

• Continued focus on innovation with the launch of products like the HALO Versa pizza oven and the partnership with 3M on PowerCore cylinders.

• Completion of the integration of recently acquired Ragasco, enhancing LPG solutions in Europe.

• Introduction of sustainable propane cylinders in Portugal with a lower carbon footprint steel, advancing towards sustainability goals.

• Investments in facility modernization projects to enhance production efficiency and capacity.

Opportunities:

• Strong balance sheet and liquidity position Worthington well for inorganic growth through strategic acquisitions and market-leading business additions.

• Corporate strategy initiated, including new product launches planned for 2025, potentially enhancing market position and revenue streams.

• Commitment to sustainability positioned as both an ethical obligation and a strategic business advantage.

Risks:

• Current economic environment and persistent macro headwinds could impact consumer demand and market dynamics, influencing business performance.

• Uncertainties in regulatory environments and potential changes in trade policies could affect operational strategies and competitive positioning.

More details: Worthington Enterprises IR

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