Worthington Enterprises Reports Fiscal Q1 2025 Financial Results
Intellectia.AI2024-09-25
Worthington Enterprises Reports Fiscal Q1 2025 Financial Results
COLUMBUS, Ohio, Sept. 24, 2024 — Worthington Enterprises, Inc. (NYSE:WOR) announced its financial results for the first quarter of fiscal 2025, ending on August 31, 2024.
Financial Overview:
| Financial Metric | Q1 Fiscal 2025 | Q1 Fiscal 2024 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $257.3 million | $311.9 million | -17.5% |
| Net Earnings | $24.3 million | $26.8 million | -9.3% |
| Earnings Per Share (EPS) | $0.48 | $0.54 | -11.1% |
| Adjusted Net Earnings | $25.1 million | $37.2 million | -32.5% |
| Adjusted EPS | $0.50 | $0.75 | -33.3% |
The decline in revenue and earnings per share reflects challenges including the deconsolidation of the former Sustainable Energy Solutions (SES) segment and reduced volume in the Building Products segment. Despite these challenges, Worthington maintained robust net earnings due to effective cost management and strategic adaptations.
Segment Revenue Performance:
| Segment | Q1 Fiscal 2025 Revenue | Q1 Fiscal 2024 Revenue | Change from Prior Year |
|---|---|---|---|
| Consumer Products | $117.6 million | $117.4 million | +0.2% |
| Building Products | $139.7 million | $165.9 million | -15.8% |
Consumer Products demonstrated resilience with marginally higher volume and improved gross margins, contributing to a solid performance relative to the prior year. Building Products, however, experienced a significant revenue decline, primarily due to lower sales volumes and an unfavorable product mix.
Key Developments and Operational Highlights:
- Acquisition of Hexagon Ragasco, a leading global manufacturer of composite propane cylinders, for $100.3 million on June 3, 2024.
- Repurchase of 150,000 shares of common stock, totaling $6.8 million.
- Declaration of a quarterly dividend of $0.17 per share, payable on December 27, 2024.
Executive Commentary:
President and CEO Andy Rose remarked, "Our positive performance is underpinned by strategic cost management and adapting to persistent market challenges, notably higher interest rates and economic uncertainties impacting demand. Consumer Products delivered growth despite stagnant volumes, while Building Products faced headwinds. We remain focused on providing value-added solutions and sustaining long-term growth."
Shareholder Returns and Guidance:
- Worthington Enterprises announced a $0.17 per share dividend and continued its share repurchase program, reflecting a commitment to returning capital to shareholders.
- The company expressed a positive long-term outlook, backed by a robust product portfolio and strategic market positioning. President Rose highlighted the potential benefits from recalibrated interest rates and the company's capacity for sustained growth and innovation.
Following the earnings announcement, Worthington's stock experienced a favorable market reaction, with a 1.75% increase, reflecting investor confidence in the company's strategic direction and financial stability.
In conclusion, Worthington Enterprises maintains a strong position despite external economic pressures, with a focus on leveraging its core strengths to drive future growth and deliver shareholder value.
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