WOR - Worthington Enterprises, Inc.

Worthington Enterprises manufactures steel processing and pressure cylinders products including hand torches, propane cylinders, refrigerant cylinders, and custom-engineered pressure vessels sold under the Bernzomatic and Coleman brands. The business model is B2B and B2C hybrid, supplying retail channels like Home Depot and Lowe's as well as industrial and automotive OEM customers. Annual revenue is approximately $1.2B, with operations primarily in North America and select European markets. The company spun off its steel processing segment as Worthington Steel in late 2023, refocusing on consumer and industrial gas cylinder products.

Past Year Trends

• Adjusted EBITDA from continuing operations surged 35% to $85.1 million in Q4 FY2025 (ended May 31, 2025), with the adjusted EBITDA margin reaching 26.8%, a 700-basis-point expansion year-over-year, driven by the deconsolidation of the lower-margin Sustainable Energy Solutions segment and pricing discipline within Building Products; full-year FY2025 adjusted EBITDA was $263 million at a 22.8% margin. (Bullish)
• Worthington Enterprises completed two acquisitions in the trailing 12 months: Elgen Manufacturing for $91.2 million (June 2025), adding commercial HVAC ductwork and structural framing; and LSI Group for $205 million (January 2026), adding the Roof Hugger metal roof retrofit clip line, materially expanding its commercial building envelope portfolio. (Bullish)
• Single-family housing starts declined 5.5% year-over-year in Q1 FY2026 (quarter ended August 31, 2025), compressing volumes in the residential-facing portion of WOR's Building Products segment, a headwind management explicitly cited alongside softening consumer repair-and-remodel spending on the Q1 FY2026 earnings call. (Bearish)

Next Year Trends

• The $205 million LSI Group acquisition (closed January 2026) has yet to contribute a full fiscal year of revenue; Zacks consensus projects 21% revenue growth and 11.7% EPS growth for WOR in FY2026, with the Roof Hugger retrofit metal roofing product line expanding WOR's addressable commercial re-roofing market as a primary driver. (Bullish)
• Steel tariff exposure is a specifically identified FY2026 cost headwind: WOR's building products carry significant steel content, and management named tariff-driven input cost inflation as a material risk in Q2 FY2026 commentary, with limited ability to fully pass through increases if residential construction demand remains suppressed by elevated mortgage rates. (Bearish)
• Elevated hyperscaler data center construction activity creates a volume tailwind for Elgen's commercial HVAC ductwork and structural framing products, with Zacks analysts specifically citing WOR's increasing participation in data center infrastructure as a forward catalyst underpinning above-market commercial segment growth expectations. (Bullish)

Red Flags

No severe red flags identified as of August 2025.