Worthington Steel, Inc. (NYSE: WS) has reported its financial results for the first quarter of fiscal 2025, which ended on August 31, 2024. The company's net sales for the quarter were $834.0 million, marking a decrease of 8% compared to the same quarter in fiscal 2024, when net sales were $905.8 million.
Operating income for the first quarter of fiscal 2025 was $43.4 million, down from $69.7 million in the first quarter of fiscal 2024. Net earnings attributable to controlling interest were $28.4 million, a significant decrease from $58.5 million in the prior year quarter.
The company's adjusted EBIT (non-GAAP) for the first quarter of fiscal 2025 was $39.4 million, down from $80.5 million in the first quarter of fiscal 2024. Additionally, the net earnings per diluted share attributable to controlling interest were $0.56, compared to $1.19 in the first quarter of fiscal 2024. The adjusted net earnings per diluted share attributable to controlling interest (non-GAAP) for the first quarter of fiscal 2025 were $0.56, compared to $1.26 in the prior year quarter.
Worthington Steel also declared a quarterly dividend of $0.16 per share, payable on December 27, 2024, to shareholders of record on December 13, 2024.
In terms of volume, the company reported 994,093 tons for the first quarter of fiscal 2025, down from 1,023,545 tons in the first quarter of fiscal 2024.
The company's gross margin decreased to $100.4 million in the first quarter of fiscal 2025, a decline of $28.1 million compared to the prior year quarter. Operating income decreased primarily due to the decline in gross margin and an increase in selling, general, and administrative expenses.
As of August 31, 2024, Worthington Steel had cash and cash equivalents of $36.0 million. The company generated cash flow from operations of $54.6 million during the first quarter of fiscal 2025, compared to cash used in operations of $20.7 million in the prior year period.
Capital expenditures for the first quarter of fiscal 2025 equaled $21.5 million, up from $17.3 million in the prior year quarter. The company generated positive free cash flow of $33.1 million in the first quarter of fiscal 2025, compared to a negative free cash flow of $38.0 million in the prior year quarter.
Worthington Steel ended the first quarter of fiscal 2025 with a net debt position of $86.2 million.
The company will conduct a conference call on September 26, 2024, to review its first quarter results.
Worthington Steel operates 32 facilities in seven states and six countries and employs approximately 5,000 individuals.
Following these announcements, the company's shares moved 2.8%, and are now trading at a price of $34.01. For the full picture, make sure to review Worthington Steel's 8-K report.
