Worthington Steel 2026 Q1 Earnings Strong Performance as Net Income Surges 19.9%

Worthington Steel (WS) reported its fiscal 2026 Q1 earnings on Oct 10, 2025. The company delivered robust results, with net income rising 19.9% year-over-year. While no formal guidance was provided, the report highlighted disciplined execution and strategic progress, including the successful integration of SITEM.

Revenue
Worthington Steel's total revenue for the quarter rose 4.7% to $872.90 million, driven by solid performance across its business segments. The direct segment accounted for the lion’s share of revenue, generating $839.50 million, while the toll segment contributed an additional $33.40 million. Together, these segments underscored the company’s strong operational execution in a challenging market environment.

Earnings/Net Income
The company’s profitability continued to strengthen, with EPS rising 28.1% to $0.73 and net income increasing to $38.60 million, a 19.9% year-over-year jump. This marks sustained earnings growth for three consecutive years, reflecting disciplined cost management and operational efficiency. The performance indicates a healthy trajectory in earnings per share.

Price Action
Worthington Steel’s stock experienced a decline, with a 4.82% drop during the latest trading day, a 7.59% decrease for the week, and an 8.72% pullback month-to-date.

Post-Earnings Price Action Review
Despite the strong earnings, investor sentiment appears cautious, as reflected in the stock’s downward trend. The drop in share price contrasts with the company’s positive operational performance. Analysts may be factoring in broader market conditions or waiting for further clarity on long-term strategic direction and guidance.

CEO Commentary
CEO Geoff Gilmore expressed confidence in the company’s performance, citing disciplined execution in a soft market and successful integration of SITEM. He emphasized the strength of the core business and the long-term value of the company’s transformation mindset.

Guidance
Worthington Steel did not issue specific forward-looking guidance, though the report underscored continued strategic focus on operational efficiency and leveraging growth opportunities through acquisitions.

Additional News
Worthington Steel recently finalized the acquisition of 52% of S.I.T.E.M. S.p.A., marking a strategic step to expand its industrial footprint. The company also announced a quarterly dividend of $0.16 per share, reflecting its commitment to returning value to shareholders. The integration of SITEM has been highlighted as a key milestone, with the CEO expressing satisfaction with the team's adaptability and the combined entity’s long-term positioning.