Worthington Steel, Inc. (WS) Earnings Call Transcripts

Worthington Steel, Inc.'s Latest Earnings Call - Q3 FY2026

In the third quarter of fiscal year 2026, Worthington Steel, Inc. reported net sales of $769.8 million and adjusted earnings per share (EPS) of $0.27, which was a decline from $0.35 in the prior year. The company is in the process of acquiring Kloeckner, which is expected to close in the second half of the calendar year, and management expressed confidence in achieving the necessary share threshold. Despite macroeconomic challenges, including compressed spreads and a volatile market, management signaled cautious optimism for the automotive and agricultural sectors, indicating potential recovery in the second half of 2026.

Reported metrics

Guidance from management

Management maintained a cautiously optimistic outlook for the second half of 2026, expecting improvements in automotive and agricultural markets, while also indicating potential upward pressure on working capital due to inventory holding gains.

What management said

Yes. Sam, this is Tim. So we had the ability through antitrust or we had to look at the regulations of antitrust as far as how much we could buy. And we did buy in the open market, 10%. And we used that opportunity when the tender offer was announced to buy in the open market. So we increased our ABL by $126 million, and we used $101 million of it to buy shares in the open market. As long as the price stays below the...

Yes. I think there, I mean, we are definitely going to see some upward pressure on working capital. I think you can kind of look at the percentage price increase and kind of translate that into how much working capital should go up. But you will absolutely see some upward pressure on working capital in Q4 for sure.

What analysts pressed on

Analysts expressed concerns regarding the impact of European economic conditions on operations and the potential for increased working capital requirements in the upcoming quarter. There were also questions about the implications of the Kloeckner acquisition on the company's capital structure and debt levels.

Main topics on the call

• Kloeckner Acquisition Progress — Management confirmed that the acquisition of Kloeckner is progressing well, with regulatory approvals being received and a confident outlook for closing in the second half of the calendar year. CEO Geoff Gilmore stated, ...
• Automotive Market Performance — Direct shipments to the automotive sector increased by approximately 13%, significantly outpacing the 3% growth in production reported by the Detroit 3. Gilmore noted, "We’ve continued to win market share with those cust...
• Challenges in European Operations — Management acknowledged ongoing challenges in Europe, particularly in the electrical steel and automotive markets, where demand remains weak. CFO Tim Adams mentioned, "We are actively addressing these headwinds through c...
• Free Cash Flow Generation — The company generated $33 million in free cash flow during the quarter, benefiting from a reduction in working capital. This reflects a disciplined approach to capital allocation despite challenging market conditions.

Read the full Worthington Steel, Inc. transcript (Q3 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 12 Worthington Steel, Inc. earnings call transcripts on record, spanning December 22, 2023 to June 25, 2026. Based on this history, Worthington Steel, Inc. reports quarterly. The most recent call on file is dated June 25, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

WS

Exchange

NYSE

Country

US

Sector

Materials

Industry

Metals and Mining

Calls on record

12

First call

December 22, 2023

Most recent

June 25, 2026

Reporting cadence

quarterly