Investors interested in WS have an opportunity to gain insights as KeyBanc plans to host a virtual meeting on July 16. This event aims to offer valuable information and strategic guidance for those looking to enhance their investment approach.
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Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Worthington Steel Inc (WS, Financial) is $34.00 with a high estimate of $34.00 and a low estimate of $34.00. The average target implies an upside of 5.54% from the current price of $32.22. More detailed estimate data can be found on the Worthington Steel Inc (WS) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Worthington Steel Inc's (WS, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
WS Key Business Developments
Release Date: June 26, 2025
- Adjusted EBITDA: $87 million, compared to $86.5 million in the prior year quarter.
- Earnings Per Share (EPS): $1.10, up from $1.06 in the same period last year.
- Net Income: $55.7 million, compared to $53.2 million in the prior year quarter.
- Net Sales: $833 million, down 9% from the prior year quarter.
- Gross Margin: Decreased by $4 million year-over-year.
- SG&A Expenses: Decreased by $4.8 million over the prior year fourth quarter.
- Direct Sales Volume: Made up 60% of the mix, flat year-over-year.
- Automotive Shipments: Up 5% compared to the prior year quarter.
- Heavy Truck Market Volume: Increased due to market share gains.
- Agricultural Market Volume: Down 40% compared to the prior year quarter.
- Toll Processing Volumes: Down 11% year-over-year.
- Cash Flow from Operations: $54 million.
- Free Cash Flow: $8 million.
- Capital Expenditures: $46 million for the quarter, $130.4 million for fiscal 2025.
- Net Debt: $114 million as of May 31.
- Quarterly Dividend: $0.16 per share, payable on September 26, 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Worthington Steel Inc (WS, Financial) reported an increase in adjusted EBITDA to $87 million, up from $86.5 million in the prior year quarter.
- The company gained market share in the automotive sector, with shipments to the automotive market up 5% compared to the prior year quarter.
- WS successfully closed the acquisition of a 52% ownership stake in Sitem, enhancing its position in the European electric motor lamination market.
- The company was named a 2024 Supplier of the Year by General Motors and recognized as a Partner-level supplier in the John Deere Achieving Excellence Program.
- WS is making strategic progress in its long-term strategy, focusing on investments in the electrical steel market and expanding production capabilities in Mexico and Canada.
Negative Points
- The construction markets served by WS, including fencing, culvert, and metal buildings, experienced a slight year-over-year decline.
- The agricultural market continues to face pressure, with ag volumes down 40% compared to the prior year quarter.
- Toll processing volumes decreased by 11% year-over-year due to slowness in automotive tolling programs and the wind down of a facility.
- Gross margin was $4 million lower than the prior year quarter, primarily due to unfavorable tolling margins.
- Net sales in the quarter were down 9% from the prior year quarter, primarily due to lower direct selling prices and lower toll volumes.
