Worthington Enterprises Inc. (NYSE: WOR) has reported its fiscal 2026 first-quarter results, showcasing significant growth across various financial metrics compared to the same period in the previous year.
The company's net sales for the first quarter of fiscal 2026 stood at $303.7 million, marking an impressive 18% increase from the first quarter of fiscal 2025, when net sales were $257.3 million. This growth was primarily driven by higher volumes in building products, including contributions from the recently acquired Elgen Manufacturing.
Net earnings also experienced a substantial uptick, reaching $34.8 million, a 45% increase from the prior year quarter's $24.0 million. Additionally, adjusted EBITDA surged by 34% to $65.1 million, compared to $48.4 million in the first quarter of fiscal 2025.
Earnings per share ("EPS") – diluted improved from $0.48 to $0.70 per share, while adjusted EPS – diluted increased from $0.50 to $0.74 per share, demonstrating notable growth in profitability.
Despite these positive developments, operating cash flow remained flat at $41.1 million compared to the prior year quarter. However, free cash flow decreased by 12% to $27.9 million, attributed to increased capital expenditures related to ongoing facility modernization projects.
The company also repurchased 100,000 common shares for $6.3 million, leaving 5,265,000 common shares remaining on the company’s repurchase authorization. Additionally, Worthington Enterprises declared a quarterly dividend of $0.19 per common share payable on December 29, 2025, to shareholders of record at the close of business on December 15, 2025.
Worthington Enterprises President and CEO Joe Hayek expressed satisfaction with the company's solid momentum and strong performance in the building products segment. He attributed the significant earnings improvement to volume growth in building products and increased contributions from Wave, despite a challenging macro environment.
In terms of balance sheet and cash flow, the company ended the first quarter with cash of $167.1 million, driven by the purchase of Elgen. Operating cash flow for the quarter was $41.1 million, with $13.2 million invested in capital expenditures, resulting in free cash flow of $27.9 million, down from $31.5 million in the prior year quarter.
The consumer products segment generated net sales of $118.9 million in the current year quarter, up $1.3 million from the prior year quarter, while the building products segment experienced a significant increase in net sales, reaching $184.8 million, up $45.1 million, or 32.2%, from the prior year quarter.
Worthington Enterprises remains optimistic about the future, with Hayek stating that the addition of Elgen strengthens the company's presence in commercial HVAC and broadens its reach within the building envelope. He emphasized the company's strong balance sheet, consistent free cash flow, and the Worthington business system of innovation, transformation, and acquisitions as key drivers for delivering long-term value for customers and shareholders.
The company will review its fiscal 2026 first-quarter results during its quarterly conference call on September 24, 2025, at 8:30 a.m. Eastern Time. The market has reacted to these announcements by moving the company's shares -1.26% to a price of $60.26. For the full picture, make sure to review WORTHINGTON ENTERPRISES, INC.'s 8-K report.
