Worthington (WOR) Q3 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Tue, June 2, 2026 astatine 11:44 AM CDT 34 min read

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Date

March 25, 2026 astatine 8:30 a.m. ET

Call participants

• President & CEO — Joseph Hayek

• Chief Financial Officer — Colin Souza

Full Conference Call Transcript

Joseph Hayek: Thank you, Marcus. Good morning, everybody. Welcome to Worthington Enterprises Fiscal 2026 Third Quarter Earnings Call. We performed precise good successful Q3 and generated beardown net growth, which is simply a reflection of the tremendous effort that our squad exhibits each day. Our colleagues each implicit the satellite proceed putting our customers archetypal and our solutions and attack are resonating, helping america to grow. In Q3, successful marketplace conditions that proceed to beryllium mixed, we delivered beardown year-over-year maturation successful revenue, adjusted EBITDA and net per share. Revenue successful Q3 was up implicit 24% from past year, portion our SG&A expenditures declined by 70 ground points arsenic a percent of sales. Our adjusted EBITDA grew by 15% year-over-year.

And successful the past 12 months, our adjusted EBITDA is present $297 million, up $54 cardinal from a twelvemonth ago, and adjusted EBITDA borderline was 22.4%. This maturation is driven by our teams arsenic they optimize and turn our concern by processing and launching caller products, expanding accumulation capableness successful cardinal worth streams, providing fantabulous lawsuit work and done strategical acquisitions. We judge we are precise good positioned to capitalize connected our strengths and proceed to turn our marketplace stock arsenic extremity markets improve. Q3 is simply a large illustration of however we leverage the Worthington Business System and however it shows up successful our fiscal performance.

As we turn our apical enactment and profitability, we're leveraging the WBS and its 3 maturation drivers: innovation, translation and M&A to maximize some our near- and semipermanent success. Innovation is simply a large portion of our maturation strategy. Our ASME h2o tanks utilized for liquid cooling and information centers are a large example, and our pipeline is rapidly increasing arsenic information centers progressively utilize liquid cooling solutions. In addition, innovation and caller products person led to caller store placements for Balloon Time, driving maturation successful our user business. Transformation has been a cornerstone of our operating strategy for immoderate time.

As caller technologies look and we conceptualize and instrumentality caller tools that assistance alteration our business, we're ever focused not connected however we did things yesterday, but connected however we tin bash them amended oregon much efficiently tomorrow. Our 80/20 inaugural is simply a bully illustration of that thinking, and we're precise blessed with our advancement to day and excited astir however we tin proceed to leverage that discipline. AI is present embedded crossed galore of our applications, and our absorption is shifting from experimentation to operational impact, deploying AI successful circumstantial workflows wherever it tin thrust measurable efficiencies, not conscionable idiosyncratic productivity gains. We besides proceed investing successful automation arsenic we summation efficiencies and make elevated opportunities for our colleagues.