Worthington Enterprises Inc. reported fiscal 2026 second‑quarter results for the period ended November 30, 2025, with net sales of $327.5 million—a 19.5% year‑over‑year increase that reflects strong demand in its Building Products line and the integration of the recently acquired Elgen Manufacturing. Operating income rose to $12.3 million, up $8.7 million from the same quarter a year earlier, while free cash flow climbed to $39.1 million, supporting the company’s dividend and share‑repurchase program.
The Building Products segment drove the bulk of the revenue growth, generating $207.5 million in sales and $53.0 million in adjusted EBITDA. Consumer Products contributed $119.9 million in sales, up 2.7% YoY, but its margin pressure was offset by the higher‑margin Building Products performance. The company also announced an agreement to acquire LSI Group for approximately $205 million, with an expected closing in January 2026, adding a new high‑margin niche to its portfolio.
Adjusted earnings per share were $0.65, missing analyst estimates of $0.70–$0.71 by $0.05–$0.06. The miss was driven by higher operating costs associated with the Elgen integration and modest margin compression in the Consumer Products segment, which limited the upside from the revenue growth. The company’s operating margin improved to 3.7% from 1.3% a year earlier, indicating that while revenue expanded, cost pressures partially offset the margin gains.
Management did not provide new forward guidance for the next quarter or the full year, leaving investors to interpret the results in the context of the company’s ongoing acquisition strategy and the anticipated impact of the LSI Group deal. The lack of updated guidance underscores the company’s cautious outlook amid a cautious consumer environment and the need to manage integration costs.
Investors reacted to the earnings miss, with the stock falling 7.2%–8.0% in early trading. The decline was largely attributed to the adjusted EPS shortfall, which outweighed the revenue beat and the positive sentiment around the LSI acquisition. The market’s focus on profitability metrics highlights the importance of margin sustainability in the company’s growth strategy.
"We delivered solid financial results for the quarter, achieving year‑over‑year growth in net sales, adjusted EPS and EBITDA, and free cash flow," said President and CEO Joe Hayek. "Strong growth in Building Products drove higher sales and earnings, while our Consumer Products team delivered steady results in a cautious consumer environment. The addition of Elgen aligns closely with our strategy to build and acquire businesses with leadership positions in niche markets."
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