Zinger Key Points
- Worthington Q2 revenue declined 8% Y/Y to $274M, beating estimates; adjusted EPS rose to $0.60, exceeding $0.52 consensus.
- CEO cites optimism for long-term shareholder value through innovation and M&A.
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Worthington Enterprises, Inc. WOR shares traded higher premarket on Wednesday after the company reported second-quarter financial results.
On Tuesday, the company reported a net sales decline of 8% year over year to $274.0 million, beating the consensus of $273.77 million. The decline was attributed to the deconsolidation of the former Sustainable Energy Solutions segment.
Adjusted EBITDA increased 2% to $56.2 million. Adjusted EPS of $0.60 exceeded the consensus of $0.52.
By segment, Consumer Products’ net sales fell 2.2% to $116.7 million in the quarter, with adjusted EBITDA coming in at $15.5 million, up $2.8 million over the prior year quarter. Meanwhile, Building Products generated net sales of $157.3 million, up 4.0% year-over-year.
Total debt at quarter end consisted entirely of long-term debt and was relatively unchanged from May 31, 2024, at $295.7 million and cash stood at $193.8 million.
The Board of Directors declared a quarterly dividend of $0.17 per common share, payable on March 28, 2025, to shareholders of record as of March 14, 2025.
In the quarter, the company repurchased 200,000 common shares for $8.1 million, with 5.715 million shares remaining under the share repurchase authorization.
Worthington Enterprises President and CEO Joe Hayek said, “Consumer Products’ earnings growth was driven by increased volumes and improved gross margins. Building Products generated higher earnings driven by the inclusion of Ragasco and stronger contributions from WAVE.”
“We have improved our value propositions in multiple product lines over the last year, and we are very well positioned as growth returns to our end markets. Led by our people-first, performance-based culture, leveraging a solid balance sheet and a commitment to transformation, innovation and M&A, we are confident in our ability to optimize our business, drive sustainable growth and deliver long-term value to our shareholders.”
Price Action: WOR shares are up 12.6% at $43.00 premarket at the last check Wednesday.
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