Brian McNamara's questions to WORTHINGTON ENTERPRISES (WOR) leadership • Q1 2026
Question
Brian McNamara inquired about the breakdown of price versus volume growth for both segments in the quarter. He also asked if tariff impacts were translating into pricing changes or wider price gaps from internationally sourced competitors at the shelf. Finally, he sought insights into the outlook for gross margins in coming quarters, considering the 30% medium-term target and any influencing factors.
Answer
Joe Hayek (President and CEO) stated that building products saw higher volumes with stable prices, while consumer volumes were down but offset by a favorable mix shift towards celebrations. Colin Souza (CFO) noted that while tariffs directly impacted Worthington's consumer business, shelf pricing from competitors was mixed, as many companies are still assessing the situation. Colin Souza explained that Q1 gross margin was 27.1%, up year-over-year despite purchase accounting, driven by building product volumes and initiatives. He reiterated the annual goal of driving gross margins north of 30%, acknowledging Q1 and Q2 are seasonally weaker.