Q2 2026 Worthington Steel Inc Earnings Call Transcript
Key Points
- Worthington Steel Inc (WS) reported strong financial performance with net sales of $871.9 million and adjusted EBITDA of $48.3 million.
- The company gained market share in the automotive sector, with all-time high shipments to a key D3 automotive customer and new business with a large Japanese OEM.
- Expansion projects in electrical steel are on track, with initial production in Mexico expected in early 2026 and a new facility in Canada set to begin production.
- Integration of Sitem is progressing well, enhancing capabilities in stamping electrical steel laminations and extending European reach.
- Worthington Steel Inc (WS) is leveraging artificial intelligence to improve processes, resulting in significant time savings and enhanced financial discipline.
- The market environment remains mixed with compressed galvanized spreads, impacting profitability.
- The heavy truck and trailer market continues to be slow, with expectations of a rebound only in late 2026.
- SG&A expenses increased due to higher compensation, benefits, and professional fees related to strategic projects.
- Toll processing volumes declined year-over-year, primarily due to the closure of a facility and softer market conditions.
- Steel pricing volatility continues to pose challenges, with potential inventory holding gains and losses in the upcoming quarters.
Good morning, and welcome to Worthington Steel's second quarter fiscal year 2026 earnings call. (Operator Instructions). I will now turn the call over to Melissa Dykstra, Vice President of Corporate Communications and Investor Relations. Please go ahead.
Thank you, operator. Good morning and welcome to Worthington Steel's second quarter fiscal year 2026 earnings call. On our call today, we have Geoff Gilmore, Worthington Steel's President and Chief Executive Officer; and Tim Adams, Vice President and Chief Financial Officer.
Before we begin, I'd like to remind everyone that certain statements made today are forward-looking within the meaning of the 1995 Private Securities Litigation Reform Act. These statements are subject to risks and uncertainties that could cause actual results to differ from those suggested. We issued our earnings release yesterday after the market closed. Please refer to it for more detail on the factors that could cause
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