Worthington 2025 Q4 Earnings Net Income Rebounds by 111%

Worthington (WOR) reported its fiscal 2025 Q4 earnings on Jul 30th, 2025. The company experienced a notable turnaround as it returned to profitability with a significant 111% increase in net income. The results surpassed expectations, largely due to strategic operational shifts and focused investments. The company maintained its guidance for the upcoming fiscal period, indicating confidence in continued progress. Worthington’s leadership remains optimistic about navigating market challenges while enhancing market positioning through strategic initiatives.

Revenue

Earnings/Net Income

Worthington returned to profitability with EPS of $0.08 in 2025 Q4, reversing from a loss of $0.64 per share in 2024 Q4, marking a 112.3% positive change. Meanwhile, the company achieved a remarkable turnaround with net income of $3.61 million in 2025 Q4, representing a 111.3% positive swing from the net loss of $-32.05 million in 2024 Q4. This EPS improvement is a positive indicator of the company’s financial recovery.

Price Action

Post-Earnings Price Action Review

The strategy of buying WOR when earnings beat and holding for 30 days delivered impressive results. Investors saw a 178.23% return, significantly outperforming the benchmark's 87.61% return, resulting in an excess return of 90.62%. This strategy achieved a compound annual growth rate (CAGR) of 22.87%, highlighting noteworthy capital appreciation. Notably, the strategy demonstrated excellent risk management with a maximum drawdown of 0.00% and a Sharpe ratio of 0.57, making it a strong choice for investors seeking both growth and stability. The robust performance indicates the potential of this strategy as a viable investment approach in the context of positive earnings surprises.

CEO Commentary

Michael M. McGarry, CEO of Worthington Enterprises, expressed optimism regarding the company’s performance despite challenges in the market. He highlighted that the strategic deconsolidation of the Sustainable Energy Solutions segment has allowed Worthington to sharpen its focus on core Consumer Products and Building Products. McGarry noted that the Building Products segment experienced a robust 5.7% net sales increase, driven by recent acquisitions like Ragasco and Elgen, which are expected to support future growth. He acknowledged the external pressures from the construction market but emphasized the company's operational resilience and commitment to disciplined capital allocation, positioning Worthington for long-term success.

Guidance

For the upcoming fiscal period, Worthington Enterprises anticipates revenue of approximately $1.14 billion and earnings per share (EPS) of $2.63. The company expects continued growth in its core segments, with strategic investments aimed at enhancing market positioning. Leadership is focused on navigating market challenges while maintaining operational efficiency and profitability, particularly in light of the increased tariff pressures impacting costs.

Additional News

Recently, Worthington Enterprises announced the acquisition of Elgen Manufacturing for $93 million, expanding its Building Products portfolio. Elgen, a leading manufacturer of HVAC components, brings synergies to Worthington’s existing operations. Furthermore, Worthington increased its quarterly dividend by 12% to $0.19 per share, reflecting a commitment to returning value to shareholders. The company also appointed Brant Standridge to its Board of Directors, enhancing its leadership team with his expertise in consumer trends and M&A. These strategic moves underscore Worthington’s focus on growth and strengthening its market position.