Worthington Enterprises Inc. is a designer and manufacturer of innovative products serving customers in the building products and consumer products sectors. It operates primarily through two business segments: Building Products, which includes solutions for cooking, heating, cooling, and water; and Consumer Products, which covers tools and outdoor living items.

In the third quarter of fiscal 2025, Worthington demonstrated a stable condition despite a slight decline in some sales figures. Net sales were approximately $304.5 million, representing a decrease of 4% from the prior year quarter of $316.8 million. This decline was attributed to the deconsolidation of the former Sustainable Energy Solutions (SES) segment, which contributed $35 million in the previous year. Excluding SES, sales increased over 8%, driven by higher volumes and contributions from the recently acquired Ragasco business.

The company reported earnings from continuing operations of $39.7 million, equating to $0.79 per share, compared to $22.0 million or $0.44 per share the previous year, marking an increase of 80%. Adjusted earnings per share for the quarter were $0.91, up from $0.80 a year earlier, reflecting a 14% increase. Earnings before income taxes also rose 30% to $52.6 million from $40.5 million in the same period last year.

Gross profit improved to $89.2 million, compared to $73.1 million in the prior year’s quarter, leading to an increase in gross margin from 23.1% to 29.3%, a gain of 620 basis points year-over-year. Adjusted EBITDA for the quarter stood at $73.8 million, a 10% increase from adjusted EBITDA of $66.9 million in the previous year. The adjusted EBITDA margin for the quarter was 24.2%, compared to 21.1% in the prior year quarter.

Operating cash flow grew by 14% to $57.1 million, and free cash flow increased by 11% to $44.4 million. Worthington continued its commitment to return capital to shareholders, paying $8 million in dividends and repurchasing 150,000 shares for $6.2 million during the quarter. The company’s balance sheet remains robust, with $294 million in long-term funded debt and $223 million in cash. The net debt-to-adjusted EBITDA ratio is approximately 0.25, indicating low leverage levels.

Segment-wise, Consumer Products reported net sales of $139.7 million, up 4.9% from $133.2 million in the previous year, driven by higher volumes. The adjusted EBITDA for this segment increased from $25.6 million to $28.6 million, translating to a 20.5% margin, up from 19.3% last year. The Building Products segment achieved net sales of $164.8 million, an 11.2% increase driven by the Ragasco acquisition and favorable product mix. However, the adjusted EBITDA of $53.2 million reflects minimal change compared to the previous year, with an adjusted EBITDA margin of 32.3%, down from 35.8%.

Overall, Worthington Enterprises continues to showcase growth in adjusted profitability measures and cash flow generation while adapting to the challenges presented by the market environment.