Worthington Steel Q4 FY2026 Results
Worthington Steel, Inc. (NYSE: WS) announced its fourth‑quarter fiscal 2026 financials, reporting adjusted earnings per share of $0.74, which fell short of the consensus estimate of $0.77. The earnings miss triggered a 4% decline in the company’s share price.
Net sales for the quarter ended May 31, 2026 reached $929.2 million, representing a 12% increase over the $832.9 million recorded in the comparable quarter of fiscal 2025. The revenue uplift was attributed primarily to higher direct volumes and a $47.6 million contribution from the recent acquisition of the Sitem Group, as well as higher average direct selling prices.
On a GAAP basis, the company posted a net loss attributable to controlling interest of $48.7 million, or a loss of $0.98 per diluted share, contrasting with net earnings of $55.7 million, or $1.10 per diluted share, in the fourth quarter of fiscal 2025. The GAAP loss was driven by $94.5 million of non‑cash impairments related to goodwill and long‑lived assets within the Electrical Steel reporting unit, together with $15.5 million of professional fees incurred in connection with the Kloeckner acquisition.
Gross margin declined by $8.9 million to $118.1 million compared with the prior‑year quarter, reflecting lower direct spreads and toll spreads. The company also experienced an unfavorable shift in inventory holding gains, moving from an estimated $20.8 million gain in the prior year quarter to an estimated $14.7 million gain in the current quarter.
Geoff Gilmore, president and chief executive officer, commented that the fourth‑quarter results demonstrated solid execution in a mixed market, noting that tighter year‑over‑year value‑added spreads were beginning to normalize. He highlighted that the completion of the Kloeckner transaction shortly after year‑end represented the largest acquisition in the company’s history and a defining step toward building a stronger, more diversified metals processing platform.
The board declared a quarterly dividend of $0.16 per share, scheduled for payment on September 29, 2026.