Worthington Steel, Inc. (NYSE: WS) has released its financial results for the fiscal 2026 first quarter ended August 31, 2025. The company reported a 5% increase in net sales to $872.9 million compared to $834.0 million in the first quarter of fiscal 2025. Operating income rose to $48.3 million from $43.4 million, while net earnings attributable to Worthington Steel increased to $36.8 million from $28.4 million.
The company's adjusted EBIT reached $54.9 million, up from $39.4 million in the prior year period. Additionally, net earnings per diluted share attributable to Worthington Steel shareholders rose to $0.72 compared to $0.56, and adjusted net earnings per diluted share attributable to Worthington Steel shareholders increased to $0.77 from $0.56 in the first quarter of fiscal 2025.
In terms of volume, Worthington Steel sold 928,866 tons in the first quarter of fiscal 2026, down from 994,093 tons in the first quarter of fiscal 2025. The company declared a quarterly dividend of $0.16 per share payable on December 26, 2025.
The acquisition of 52% of the issued and outstanding capital stock of S.I.T.E.M. S.p.A. contributed to the company's performance. Geoff Gilmore, President and CEO of Worthington Steel, emphasized the company's strong start and highlighted the benefits of the acquisition, stating, "together, we are building on 70 years of industrial heritage while positioning ourselves for long-term growth."
Worthington Steel's gross margin increased by $14.8 million to $115.2 million, primarily driven by higher direct spreads and volumes. Operating income saw a $4.9 million increase to $48.3 million, with the company attributing this growth to higher gross margin and a gain within restructuring and other (income), net.
The company ended the first quarter of fiscal 2026 with cash and cash equivalents of $78.3 million, while its net debt position stood at $155.1 million. The company reported negative free cash flow of $34.4 million in the first quarter of fiscal 2026, compared to positive free cash flow of $33.1 million in the prior year quarter.
Worthington Steel's board of directors declared a quarterly dividend of $0.16 per common share, payable on December 26, 2025, to shareholders of record at the close of business on December 12, 2025.
Worthington Steel (NYSE: WS) is a metals processor operating 37 facilities in seven states and 10 countries. The company focuses on delivering highly technical and customized solutions in carbon flat-roll steel processing, electrical steel laminations, and tailor welded solutions.
The company's quarterly conference call to review fiscal 2026 first quarter results is scheduled for September 25, 2025, at 8:30 a.m. Eastern Time.
These results demonstrate Worthington Steel's strong performance in the first quarter of fiscal 2026, driven by higher net sales, operating income, and net earnings compared to the same period in fiscal 2025. As a result of these announcements, the company's shares have moved 0.86% on the market, and are now trading at a price of $30.46. If you want to know more, read the company's complete 8-K report here.
