John Tumazos

Martin Englert

Philip Gibbs

Samuel McKinney

- Worthington Steel reported **net sales of $872.9 million**, **adjusted EBITDA of $75.2 million**, and **earnings per share of $0.72** for Q1 fiscal year 2026.  **[1968487_2157350_1]** 
- The company completed the **acquisition of 52% of Sedum in June**, contributing to year-over-year volume growth and expanding its global EV market reach.  **[1968487_2157350_1]** **[1968487_2157350_2]** 
- **Automotive shipments increased by nearly 13%** year-over-year, driven by new programs and market share gains, while **ag volumes decreased by nearly 50%** and **heavy truck shipments were down 7%**.  **[1968487_2157350_1]** **[1968487_2157350_4]** 
- Worthington Steel anticipates **estimated pre-tax inventory holding losses of $5 million to $10 million** in Q2 fiscal year 2026, contrasting with gains in Q1 2026.  **[1968487_2157350_4]** 
- **Cash flow from operations was a $5 million outflow**, and **free cash flow was a $34 million outflow** in Q1 2026, primarily due to increases in working capital.  **[1968487_2157350_5]**

Worthington Steel Reports Q1 Fiscal Year 2026 Results and Sedum Acquisition Impact

- For the trailing twelve months (TTM) ended **August 31, 2025**, Worthington Steel reported **Net Sales of $3.1 billion**, **Adjusted EBITDA of $235 million** with a **7.5% margin**, and **Free Cash Flow of $32.4 million**.  **[1968487_2156214:10]** **[1968487_2156214:17]** **[1968487_2156214:21]** 
- The company is undertaking strategic capital investments, including **$85 million** for expanding xEV production capacity in Mexico and **$85 million** for increasing transformer core making capacity in Canada, with both projects targeting start of production in early **CY 2026**.  **[1968487_2156214:16]** 
- Worthington Steel acquired a **52% ownership** in Sitem, a European leader in electrical steel laminations, which is expected to accelerate its entry into the European xEV traction motor market.  **[1968487_2156214:17]** 
- The company aims to achieve a **10%+ Adjusted EBITDA margin target**.  **[1968487_2156214:18]** 
- As of the trailing twelve months ended August 31, 2025, Worthington Steel maintained a strong balance sheet with **Net Debt of $155 million**, **Total Liquidity of $355 million**, and a **Net Leverage of 0.66x**.  **[1968487_2156214:19]**

Worthington Steel (WS)