Worthington 2026 Q1 Earnings Surpasses Expectations with 45% Net Income Growth

Worthington Enterprises (WOR) reported first quarter fiscal 2026 results that exceeded expectations, with robust double-digit growth in both revenue and net income. The company maintained consistent guidance in line with prior projections, signaling strong operational execution and a confident outlook for the remainder of the year.

Revenue
Worthington's revenue surged by 18.0% year-over-year to $303.71 million in Q1 2026, driven by strong demand across its product lines. The Building Products segment outperformed expectations, contributing $184.77 million to total revenue, reflecting a 32.2% increase compared to the prior year. Meanwhile, the Consumer Products segment added $118.94 million, rounding out the company's diversified portfolio and showcasing broad-based strength.

Earnings/Net Income
The company’s earnings performance was equally impressive, with net income rising by 45.0% to $34.82 million in Q1 2026 from $24.01 million in the same period a year ago. This translated to an EPS increase of 44.9% to $0.71, up from $0.49 in the prior year. The earnings momentum highlights Worthington’s ability to deliver strong profitability amid evolving market conditions.

Price Action
Following the earnings release, Worthington’s stock price edged up by 1.02% on the latest trading day and gained 2.39% during the most recent full trading week. However, the stock has experienced a 12.85% decline month-to-date, indicating mixed investor sentiment despite the positive quarterly performance.

Post-Earnings Price Action Review
Worthington’s CEO highlighted the company’s solid Q1 performance and emphasized the role of operational execution and resilient demand in driving growth. He noted that while the business has benefited from favorable pricing and improved customer demand, ongoing challenges such as supply chain volatility and input costs remain. Looking ahead, the CEO expressed cautious optimism, stressing the company’s focus on optimizing manufacturing capacity, advancing product innovation, and pursuing high-margin industrial opportunities.

CEO Commentary
The CEO reiterated Worthington’s strategic priorities, which include disciplined cost management, capital allocation, and expansion in key markets. He emphasized the company’s well-positioned balance sheet and ability to navigate macroeconomic uncertainties, reinforcing confidence in its long-term sustainability and growth trajectory.

Guidance
The company reaffirmed its full-year 2026 guidance, projecting continued double-digit EPS growth and maintaining capital expenditures at levels consistent with 2025. This reflects Worthington’s commitment to balancing reinvestment with shareholder returns and operational efficiency.

Additional News
In recent weeks, Worthington has remained active in strategic initiatives and shareholder returns. The company acquired Elgen Manufacturing for $91.2 million in late September 2025, a move that significantly bolstered its commercial HVAC capabilities. This acquisition, which added $114.9 million in trailing 12-month revenues and 250 employees, is expected to enhance Worthington’s market presence and operational scale.

In addition to M&A activity, the company raised its quarterly dividend by 12% to $0.19 per share in June 2025, continuing its long-standing commitment to returning value to shareholders. The increased dividend, payable on December 29, 2025, complements a $6.3 million share repurchase program executed in September 2025, further underscoring Worthington’s balanced approach to capital allocation.

Another notable development was the divestiture of the Sustainable Energy Solutions (SES) alternative fuels business to Hexagon Composites in July 2025. This strategic decision followed Hexagon’s prior 49% stake acquisition in SES and is expected to enhance Hexagon’s market position in European alternative fuel systems. The move aligns with Worthington’s focus on core industrial manufacturing segments while allowing Hexagon to capitalize on synergies in the sector.