Q2 2026 Worthington Enterprises Inc Earnings Call Transcript
Key Points
- Worthington Enterprises Inc (WOR) reported a strong Q2 with a 19% year-over-year increase in revenue, excluding the recent acquisition of Elgen, which contributed to a 10% organic growth.
- The company's adjusted EBITDA grew by 8% year-over-year, with a trailing 12-month adjusted EBITDA of $284 million, up $49 million from the previous year.
- The acquisition of LSI, a market leader in metal roofing components, is expected to enhance Worthington's position in engineered building systems and be accretive to adjusted EBITDA margins, EPS, and free cash flows.
- Worthington's innovation in large ASME water tanks for data centers and refurbishment of large-format propane tanks is driving new growth opportunities.
- The company has been recognized as one of the Best Places to Work in IT and one of America's Most Responsible Companies, highlighting its strong corporate culture and employee satisfaction.
- Despite strong revenue growth, Worthington's gross margin declined by 120 basis points year-over-year, primarily due to the integration challenges with the Elgen acquisition.
- The sluggish housing market and muted construction activity present challenging market conditions that could impact future growth.
- ClarkDietrich, a joint venture, reported lower equity earnings due to a challenging market environment, contributing only $4 million compared to $10 million last year.
- The Consumer Products segment faced modestly lower volumes, impacting adjusted EBITDA margins, which were slightly down from the previous year.
- The company experienced a $15 million negative swing in equity earnings from ClarkDietrich over the past year, affecting overall profitability.
Good morning, and welcome to the Worthington Enterprises second quarter fiscal 2026 earnings conference call. (Operator Instructions) This conference is being recorded at the request of Worthington Enterprises.
If anyone objects, you may disconnect at this time. I'd now like to introduce Marcus Rogier, Treasurer and Investor Relations Officer. Mr. Rogier, you may begin.
Thank you, Regina. Good morning, everyone, and thank you for joining us for Worthington Enterprises second quarter fiscal 2026 earnings call. On the call today are Joe Hayek, our President and Chief Executive Officer; and Colin Souza, our Chief Financial Officer.
Before we begin, I'd like to remind everyone that certain statements made during today's call are forward-looking in nature and subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied.
For more information on these risks and uncertainties, please refer to our
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