[10-Q] WORTHINGTON ENTERPRISES, INC. Quarterly Earnings Report

Rhea-AI Filing Summary

Worthington Enterprises, Inc. reported mixed operating results for the quarter ending August 31, 2025. Consolidated net sales were driven by a strong Building Products quarter of $184.8M, up 32.2% ($45.1M) year-over-year, while Consumer Products net sales were $118.9M, up 1.1 ($1.3M) mainly from product mix despite lower volumes. Building Products delivered an Adjusted EBITDA of $57.8M, a 45.6% rise, though results were reduced by $2.2M of nonrecurring Elgen acquisition items related to inventory step-up. Consumer Products' Adjusted EBITDA fell by $1.7M, pressured by lower volumes and higher SG&A. Corporate expense was down 8.9 due to lower profit-sharing and higher cost recovery under a Transition Services Agreement. The company also notes available share repurchase capacity of 5,265,000 shares under its authorization.

Positive

• Building Products net sales increased $45.1M (32.2%) year-over-year
• Building Products Adjusted EBITDA rose to $57.8M (up 45.6%)
• Corporate SG&A decreased 8.9%, driven by lower profit sharing and higher TSA cost recoveries
• Share repurchase capacity remains with 5,265,000 shares available under authorization

Negative

• Consumer Products Adjusted EBITDA declined by $1.7M, pressured by lower volumes
• Elgen acquisition caused $2.2M of nonrecurring costs and an inventory step-up reducing near-term EBITDA
• Other segment earnings decreased due to lower equity earnings from Workhorse
• Acquisition integration effects and purchase accounting reduced the immediate contribution from acquired business

Insights

Segment Financial Analyst

Building Products drove the quarter with volume-led revenue and margin gains.

Building Products sales increased to $184.8M, a 32.2% uplift driven by higher volume and $20.9M from Elgen contributions. Adjusted EBITDA rose to $57.8M, a 45.6% increase, signaling stronger operating leverage in that segment despite a $2.2M one-time hit tied to purchase accounting.

Risks include the transient nature of the Elgen contribution and the ? (unknown) longer-term margin impact from integration costs; monitor quarterly segment EBITDA and the elimination of nonrecurring inventory step-ups over the next two to four quarters.

Corporate Liquidity & Capital Allocation Specialist

Corporate costs declined modestly and repurchase capacity remains available, supporting shareholder-return optionality.

Unallocated SG&A fell 8.9 driven by lower profit sharing and increased cost recoveries under a Transition Services Agreement, which improved reported corporate expense. The board’s repurchase program has 5,265,000 shares available to buy, providing flexibility for capital deployment.

Watch cash flow and working capital trends, since acquisition-related inventory step-ups and integration can temporarily depress operating cash; review free cash flow and repurchase activity in upcoming reports over the next several quarters.

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 31, 2025

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File Number 001-08399

WORTHINGTON ENTERPRISES, INC.

(Exact name of registrant as specified in its charter)

Ohio		31-1189815
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
200 West Old Wilson Bridge Road, Columbus, Ohio		43085
(Address of principal executive offices)		(Zip Code)

(614) 438-3210

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, Without Par Value	WOR	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒		Accelerated filer	☐
Non-accelerated filer	☐		Smaller reporting company	☐
			Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

APPLICABLE ONLY TO CORPORATE ISSUERS:

On October 1, 2025, the number of common shares, without par value, of the registrant issued and outstanding was 49,665,056.

Table of Contents

TABLE OF CONTENTS

Commonly Used or Defined Terms				ii
Cautionary Note Regarding Forward-Looking Statements				iii
Use of Non-GAAP Financial Measures and Definitions				1
Part I. Financial Information
	Item 1.	Financial Statements
		Consolidated Balance Sheets – August 31, 2025 and May 31, 2025		3
		Consolidated Statements of Earnings – Three Months Ended August 31, 2025 and 2024		4
		Consolidated Statements of Comprehensive Income – Three Months Ended August 31, 2025 and 2024		5
		Consolidated Statements of Cash Flows – Three Months Ended August 31, 2025 and 2024		6
		Condensed Notes to Consolidated Financial Statements (Unaudited)		7
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		20
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk		27
	Item 4.	Controls and Procedures		28
Part II. Other Information
	Item 1.	Legal Proceedings		29
	Item 1A.	Risk Factors		29
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		29
	Item 3.	Defaults Upon Senior Securities		30
	Item 4.	Mine Safety Disclosures		30
	Item 5.	Other Information		30
	Item 6.	Exhibits		30
Signatures				31

i

Table of Contents

COMMONLY USED OR DEFINED TERMS

References in this Form 10-Q to “we,” “our,” “us” or the “Company” are collectively to Worthington Enterprises and its consolidated subsidiaries. In addition, the following terms, when used in this Form 10-Q, have the meanings set forth below:

Term		Definition
ABI		Architecture Billings Index
ATSR		Annualized absolute total shareholder return
AOCI		Accumulated other comprehensive income (loss)
ASU		Accounting Standards Update
Board		Board of Directors of Worthington Enterprises, Inc.
CARES Act		Coronavirus Aid, Relief and Economic Security Act
CEO		Chief Executive Officer
ClarkDietrich		Clarkwestern Dietrich Building Systems LLC
CODM		Chief Operating Decision Maker
common shares		The common shares, no par value, of Worthington Enterprises
COVID-19		The novel coronavirus disease first known to originate in December 2019
CPI		U.S. Core Consumer Price Index
Credit Facility		Our $500,000,000 unsecured revolving credit facility with a group of lenders
current year quarter		The three months ended August 31, 2025
DIY		Do-it-yourself
DMI		Dodge Momentum Index
EBIT		Earnings before interest and taxes
EBITDA		Earnings before interest, taxes, depreciation, and amortization
Elgen		Elgen Manufacturing Company, Inc.
EPS		Earnings per common share
equity income		Equity in net income of unconsolidated affiliates
ETR		Effective income tax rate
Exchange Act		Securities Exchange Act of 1934, as amended
FASB		Financial Accounting Standards Board
first quarter of fiscal 2026		Our fiscal quarter ended August 31, 2025
fiscal 2024		Our fiscal year ended May 31, 2024
fiscal 2025		Our fiscal year ended May 31, 2025
fiscal 2026		Our fiscal year ended May 31, 2026
Form 10-Q		This Quarterly Report on Form 10-Q for the quarterly period ended August 31, 2025
GAAP		U.S. generally accepted accounting principles
GDP		U.S. gross domestic product
Halo		WH Products, LLC
HMI		National Association of Home Builders/Wells Fargo Housing Market Index
HVAC		Heating, ventilation, and air conditioning
LIRA		Leading Indicator of Remodeling Activity
MD&A		Management’s Discussion and Analysis of Financial Condition and Results of Operations
N.M.		Not meaningful
OCI		Other comprehensive income (loss)
prior year quarter		The three months ended August 31, 2024
PSLRA		Private Securities Litigation Reform Act of 1995, as amended
Ragasco		Ragasco AS
SEC		Securities and Exchange Commission
Separation		The separation of our former steel processing business, effective December 1, 2023
SG&A		Selling, general and administrative expenses
simple SOFR		Simple Secured Overnight Financing Rate
U.S.		United States of America
WAVE		Worthington Armstrong Venture
Workhorse		Taxi Workhorse Holdings, LLC
Worthington Enterprises		Worthington Enterprises, Inc. (formerly known as Worthington Industries, Inc.)
Worthington Steel		Worthington Steel, Inc.
2025 Form 10-K		Our Annual Report on Form 10-K for fiscal 2025 as filed with the SEC on July 30, 2025
2026 Form 10-K		Our Annual Report on Form 10-K for fiscal 2026

ii

Table of Contents

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Selected statements contained in this Form 10-Q, including, without limitation, in MD&A and in “Note D – Contingent Liabilities and Commitments,” constitute “forward-looking statements,” as that term is used in the PSLRA. We wish to take advantage of the safe harbor provisions included in the PSLRA. Forward-looking statements reflect our current expectations, estimates or projections concerning future results or events. These statements are often identified by the use of forward-looking words or phrases such as “believe,” “expect,” “anticipate,” “may,” “could,” “should,” “would,” “intend,” “plan,” “will,” “likely,” “estimate,” “project,” “position,” “strategy,” “target,” “aim,” “seek,” “foresee,” and similar words or phrases. These forward-looking statements include, without limitation, statements relating to:

•future or expected cash positions, liquidity and ability to access financial markets and capital;

•outlook, strategy or business plans;

•anticipated benefits of the Separation;

•expected financial and operational performance, and future opportunities;

•performance on a pro forma basis to illustrate the estimated effects of the Separation on historical periods;

•the tax treatment of the Separation transaction;

•future or expected growth, growth potential, forward momentum, performance, competitive position, sales, volumes, cash flows, earnings, margins, balance sheet strengths, debt, financial condition or other financial measures;

•pricing trends for raw materials and finished goods and the impact of pricing changes;

•the ability to improve or maintain margins;

•expected demand or demand trends;

•additions to product lines and opportunities to participate in new markets;

•expected benefits from transformation and innovation efforts;

•the ability to improve performance and competitive position;

•anticipated working capital needs, capital expenditures and asset sales;

•anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof;

•projected profitability potential;

•the ability to make acquisitions, form joint ventures and consolidate operations, and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations;

•projected capacity and the alignment of operations with demand;

•the ability to operate profitably and generate cash in down markets;

•the ability to capture and maintain market share and to develop or take advantage of future opportunities, customer initiatives, new businesses, new products and new markets;

•expectations for inventories, jobs and orders;

•expectations for the economy and markets or improvements therein;

•expectations for generating improving and sustainable earnings, earnings potential, margins or shareholder value;

•effects of judicial rulings, laws and regulations;

•anticipated improvements in our business and efficiencies to be gained from the use of AI and other technologies;

•effects of cybersecurity breaches and other disruptions to information technology infrastructure;

•the impact of the outbreak of a national emergency, public health crisis or global pandemic, such as COVID-19, on economies and markets, and on our customers, counterparties, employees and third-party service providers; and

•other non-historical matters.

Because they are based on beliefs, estimates and assumptions, forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Any number of factors could affect actual results, including, without limitation, those that follow:

•the ability to successfully realize the anticipated benefits of the Separation;

•the effect of conditions in national and worldwide financial markets, including inflation, increases in interest rates and economic recession, and with respect to the ability of financial institutions to provide capital;

•the impact of tariffs, the adoption of trade restrictions affecting our products or suppliers, a U.S. withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships;

•changing prices and/or supply of steel, natural gas, oil, copper, zinc, and other raw materials;

•product demand and pricing;

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•changes in product mix, product substitution and market acceptance of our products;

•volatility or fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities, energy, labor and other items required by operations;

•effects of sourcing and supply chain constraints, including interruptions in deliveries of raw materials and supplies or the loss of key supplier relationships;

•increases in freight and energy costs;

•the outcome of adverse claims experience with respect to workers’ compensation, product recalls or product liability, casualty events or other matters;

•effects of facility closures and the consolidation of operations;

•the effect of financial difficulties, consolidation and other changes within construction and other industries in which we participate;

•failure to maintain appropriate levels of inventories;

•financial difficulties (including bankruptcy filings) of end-users and customers, suppliers, joint venture partners and others with whom we do business;

•the ability to realize targeted expense reductions from headcount reductions, facility closures and other cost reduction efforts;

•the ability to realize cost savings and operational, sales and sourcing improvements and efficiencies, and other expected benefits from transformation initiatives, on a timely basis;

•the overall success of, and the ability to integrate, newly-acquired businesses and joint ventures, maintain and develop their customers, and achieve synergies and other expected benefits and cost savings therefrom;

•capacity levels and efficiencies, within facilities, within major product markets and within the industries in which we participate;

•the effect of disruption in the business of suppliers, customers, facilities and shipping operations due to adverse weather, casualty events, equipment breakdowns, labor shortages, interruption in utility services, civil unrest, international conflicts, terrorist activities, or other causes;

•changes in customer demand, inventories, spending patterns, product choices, and supplier choices;

•risks associated with doing business internationally, including economic, political and social instability, foreign currency exchange rate exposure and the acceptance of our products in global markets;

•the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment;

•the operational, data privacy, security, regulatory, and legal risks associated with our reliance on AI technologies as well as our inability to stay abreast of technological advancements and our dependence on third parties who rely on AI technologies;

•the effect of inflation, interest rate increases and economic recession, which may negatively impact our operations and financial results;

•deviation of actual results from estimates and/or assumptions used by us in the application of our significant accounting policies;

•the level of imports and import prices in our markets;

•the effect of national, regional and global economic conditions generally and within major product markets;

•the impact of environmental laws and regulations or the actions of the U.S. Environmental Protection Agency or similar regulators which increase costs or limit our ability to use or sell certain products;

•the impact of increasing environmental, greenhouse gas emission and sustainability regulations and considerations;

•the impact of judicial rulings and governmental regulations, both in the U.S. and abroad, including those adopted by the SEC and other governmental agencies as contemplated by the CARES Act, the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010;

•the effect of healthcare laws in the U.S and potential changes for such laws which may increase our healthcare and other costs and negatively impact our operations and financial results;

•the effects of tax laws in the U.S and potential changes for such laws, which may increase our costs and negatively impact our operations and financial results;

•cyber security risks;

•the effects of privacy and information security laws and standards;

•the seasonality of our operations;

•the effects of competition and price pressures from competitors; and

•other risks described from time to time in our filings with the SEC, including those described in “Part I – Item 1A. – Risk Factors” of the 2025 Form 10-K.

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We note these risk factors for investors as contemplated by the PSLRA. Forward-looking statements should be construed in the light of such risks. It is impossible to predict or identify all potential risk factors. Consequently, readers should not consider the foregoing list to be a complete set of all potential risks and uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. We do not undertake, and hereby disclaim, any obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

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USE OF NON-GAAP FINANCIAL MEASURES AND DEFINITIONS

(In thousands, except per common share amounts)

NON-GAAP FINANCIAL MEASURES. This Form 10-Q includes certain financial measures that are not calculated and presented in accordance with GAAP. Non-GAAP financial measures typically exclude items that management believes are not reflective of, and thus should not be included when evaluating the performance of our ongoing operations. Management uses these non-GAAP financial measures to evaluate ongoing performance, engage in financial and operational planning, and determine incentive compensation. Management believes these non-GAAP financial measures provide useful supplemental information regarding the performance of our ongoing operations and should not be considered as an alternative to the comparable GAAP financial measure. Additionally, management believes these non-GAAP financial measures allow for meaningful comparisons and analysis of trends in our business and enables investors to evaluate our operations and future prospects in the same manner as management.

The following provides an explanation of each non-GAAP financial measure presented in this Form 10-Q:

Adjusted operating income (loss) is defined as operating income (loss) excluding the items listed below, to the extent naturally included in operating income (loss).

Adjusted net earnings is defined as net earnings attributable to controlling interest excluding the after-tax effect of the excluded items outlined below.

Adjusted EPS - diluted is defined as adjusted net earnings divided by diluted weighted-average common shares outstanding for the applicable period.

Adjusted EBITDA is the measure by which management evaluates segment performance and overall profitability. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA excludes additional items including, but not limited to, those listed below, as well as other items that management believes are not reflective of, and thus should not be included when evaluating the performance of ongoing operations. Adjusted EBITDA also excludes stock-based compensation due to its non-cash nature, which is consistent with how management assesses operating performance and determines incentive compensation. At the segment level, adjusted EBITDA includes expense allocations for centralized corporate back-office functions that exist to support the day-to-day business operations. Public company and other governance costs are held at the corporate level within the unallocated corporate and other category.

EXCLUSIONS FROM NON-GAAP FINANCIAL MEASURES

Management believes it is useful to exclude the following items from its non-GAAP financial measures for its own and investors’ assessment of the business for the reasons identified below. Additionally, management may exclude other items from non-GAAP financial measures that do not occur in the ordinary course of our ongoing business operations and note them in the reconciliation from net earnings to the non-GAAP financial measure adjusted EBITDA.

•Impairment charges are excluded because they do not occur in the ordinary course of our ongoing business operations, are inherently unpredictable in timing and amount, and are non-cash, which management believes facilitates the comparison of historical, current and forecasted financial results.

•Restructuring activities consists of established programs that are intended to fundamentally change our operations, and as such are excluded from its non-GAAP financial measures. Our restructuring programs may include closing or consolidating production facilities or moving manufacturing of a product to another location, realignment of the management structure of a business unit in response to changing market conditions or general rationalization of headcount. Our restructuring activities generally give rise to employee-related costs, such as severance pay, and facility-related costs, such as exit costs and gains or losses on asset disposals but may include other incremental costs associated with our restructuring activities. Restructuring and other expense, net, may also include other nonrecurring items included in operating income but incremental to our normal business activities. These items are excluded because they are not part of the ongoing operations of the our underlying business.

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Consolidated Results – Selected Non-GAAP Adjusted Results

	Three Months Ended August 31, 2025
					Earnings
					Before				Income
	Operating				Income				Tax				Net				Diluted
	Income				Taxes				Expense				Earnings (1)				EPS (1)
GAAP	$	9,243			$	45,681			$	10,860			$	35,148			$	0.70
Restructuring and other expense, net		2,476				2,476				(377	)			2,099				0.04
Non-GAAP	$	11,719			$	48,157			$	11,237			$	37,247			$	0.74

	Three Months Ended August 31, 2024
					Earnings
					Before				Income
	Operating				Income				Tax				Net				Diluted
	Loss				Taxes				Expense				Earnings (1)				EPS (1)
GAAP	$	(4,699	)		$	30,790			$	6,782			$	24,253			$	0.48
Restructuring and other expense, net		1,158				1,158				(290	)			868				0.02
Non-GAAP	$	(3,541	)		$	31,948			$	7,072			$	25,121			$	0.50

(1)Excludes the impact of noncontrolling interest.

Consolidated Results - Adjusted EBITDA

		Three Months Ended
		August 31,
		2025				2024
Net earnings (GAAP)		$	34,821			$	24,008
Plus: Net loss attributable to noncontrolling interest			327				245
Net earnings attributable to controlling interest			35,148				24,253
Interest expense, net			63				489
Income tax expense			10,860				6,782
EBIT (1)			46,071				31,524
Restructuring and other expense, net			2,476				1,158
Adjusted EBIT (1)			48,547				32,682
Depreciation and amortization			13,086				11,830
Stock-based compensation			3,427				3,925
Adjusted EBITDA (non-GAAP)		$	65,060			$	48,437

(1)EBIT and adjusted EBIT are non-GAAP financial measures. However, these measures are not used by management to evaluate the Company's performance, engage in financial and operational planning, or to determine incentive compensation. Instead, they are included as subtotals in the reconciliation of net earnings to adjusted EBITDA, which is a non-GAAP financial measure used by management.

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Item 1. – Financial Statements

WORTHINGTON ENTERPRISES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

		(Unaudited)
		August 31,				May 31,
		2025				2025
Assets
Current assets:
Cash and cash equivalents			167,122			$	250,075
Receivables, less allowances of $906 and $907, respectively			214,078				215,824
Inventories:
Raw materials			103,069				80,522
Work in process			9,660				9,408
Finished products			88,831				79,463
Total inventories			201,560				169,393
Income taxes receivable			4,579				12,720
Prepaid expenses and other current assets			38,701				37,358
Total current assets			626,040				685,370
Investments in unconsolidated affiliates			129,678				129,262
Operating lease assets			39,603				22,699
Goodwill			412,304				376,480
Other intangible assets, net of accumulated amortization of $92,988 and $88,887, respectively			222,889				190,398
Other assets			20,880				20,717
Property, plant and equipment:
Land			8,735				8,703
Buildings and improvements			134,797				132,742
Machinery and equipment			384,904				372,798
Construction in progress			45,688				33,326
Total property, plant and equipment			574,124				547,569
Less: accumulated depreciation			287,381				277,343
Total property, plant and equipment, net			286,743				270,226
Total assets		$	1,738,137			$	1,695,152
Liabilities and equity
Current liabilities:
Accounts payable		$	102,841			$	103,205
Accrued compensation, contributions to employee benefit plans and related taxes			33,479				43,864
Dividends payable			9,999				9,172
Other accrued items			35,842				34,478
Current operating lease liabilities			7,556				6,014
Income taxes payable			71				109
Total current liabilities			189,788				196,842
Other liabilities			57,465				53,364
Distributions in excess of investment in unconsolidated affiliate			103,166				103,767
Long-term debt			306,010				302,868
Noncurrent operating lease liabilities			32,694				17,173
Deferred income taxes, net			89,183				82,901
Total liabilities			778,306				756,915
Shareholders’ equity - controlling interest			959,108				937,187
Noncontrolling interest			723				1,050
Total equity			959,831				938,237
Total liabilities and equity		$	1,738,137			$	1,695,152

See condensed notes to consolidated financial statements.

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WORTHINGTON ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except per common share amounts)

(Unaudited)

	Three Months Ended
	August 31,
	2025				2024
Net sales	$	303,707			$	257,308
Cost of goods sold		221,423				194,813
Gross profit		82,284				62,495
Selling, general and administrative expense		70,565				66,036
Restructuring and other expense, net		2,476				1,158
Operating income (loss)		9,243				(4,699	)
Other income (expense):
Miscellaneous income (expense), net		(156	)			486
Interest expense, net		(63	)			(489	)
Equity in net income of unconsolidated affiliates		36,657				35,492
Earnings before income taxes		45,681				30,790
Income tax expense		10,860				6,782
Net earnings		34,821				24,008
Net loss attributable to noncontrolling interest		(327	)			(245	)
Net earnings attributable to controlling interest	$	35,148			$	24,253
Basic
Weighted average common shares outstanding		49,264				49,487
Earnings per share attributable to controlling interest	$	0.71			$	0.49
Diluted
Weighted average common shares outstanding		50,026				50,365
Earnings per share attributable to controlling interest		0.70				0.48
Cash dividends declared per common share	$	0.19			$	0.17

See condensed notes to consolidated financial statements.

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WORTHINGTON ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended
	August 31,
	2025				2024
Net earnings	$	34,821			$	24,008
Other comprehensive income (loss), net of tax
Foreign currency translation		1,407				541
Pension liability adjustment		(11	)			(7	)
Cash flow hedges		(313	)			(50	)
Other comprehensive income, net of tax		1,083				484
Comprehensive income		35,904				24,492
Comprehensive loss attributable to noncontrolling interest		(327	)			(245	)
Comprehensive income attributable to controlling interest	$	36,231			$	24,737

See condensed notes to consolidated financial statements.

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WORTHINGTON ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Three Months Ended
	August 31,
	2025				2024
Operating activities:
Net earnings	$	34,821			$	24,008
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		13,086				11,830
Provision for (benefit from) deferred income taxes		2,957				(5,537	)
Bad debt income		(21	)			(8	)
Equity in net income of unconsolidated affiliates, net of distributions		(181	)			3,453
Net gain on sale of assets		-				(18	)
Stock-based compensation		3,427				3,925
Changes in assets and liabilities, net of impact of acquisitions:
Receivables		14,107				28,166
Inventories		(15,816	)			(6,406	)
Accounts payable		(11,946	)			(13,093	)
Accrued compensation and employee benefits		(10,399	)			(11,445	)
Other operating items, net		11,026				6,271
Net cash provided by operating activities		41,061				41,146
Investing activities:
Investment in property, plant and equipment		(13,195	)			(9,629	)
Acquisitions, net of cash acquired		(92,235	)			(88,887	)
Proceeds from sale of assets, net of selling costs		-				11,769
Investment in non-marketable equity securities		-				(2,000	)
Net cash used by investing activities		(105,430	)			(88,747	)
Financing activities:
Dividends paid		(8,576	)			(8,116	)
Repurchase of common shares		(6,259	)			(6,803	)
Proceeds from issuance of common shares, net of tax withholdings		(3,552	)			(3,158	)
Principal payments on long-term obligations		(197	)
Net cash used by financing activities		(18,584	)			(18,077	)
Decrease in cash and cash equivalents		(82,953	)			(65,678	)
Cash and cash equivalents at beginning of period		250,075				244,225
Cash and cash equivalents at end of period	$	167,122			$	178,547

See condensed notes to consolidated financial statements.

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WORTHINGTON ENTERPRISES, INC.

CONDENSED Notes to Consolidated Financial Statements (UNAUDITED)

(In thousands, except common share and per common share amounts)

Note A – Basis of Presentation

Basis of Presentation

These interim unaudited consolidated financial statements include the accounts of Worthington Enterprises and its consolidated subsidiaries. Significant intercompany accounts and transactions have been eliminated.

We own an 80% controlling interest in Halo, which was acquired on February 1, 2024. Halo is consolidated with the equity owned by the other joint venture members shown as “noncontrolling interests” in our consolidated balance sheets, and the other joint venture members’ portions of net earnings and OCI are shown as net earnings or comprehensive income attributable to noncontrolling interests in our consolidated statements of earnings and consolidated statements of comprehensive income, respectively.

Investments in unconsolidated affiliates that we do not control are accounted for using the equity method with our proportionate share of income or loss recognized within equity income in our consolidated statements of earnings. See further discussion of our unconsolidated affiliates in “Note B – Investments in Unconsolidated Affiliates.”

These interim unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments, which are of a normal and recurring nature except those which have been disclosed elsewhere in this Form 10-Q, necessary for a fair presentation of the consolidated financial statements for these interim periods, have been included. Operating results for the first quarter of fiscal 2026 are not necessarily indicative of the results that may be expected for the full fiscal year. For further information, refer to the consolidated financial statements and notes thereto included in the 2025 Form 10-K.

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

Relationship with Worthington Steel

We are party to several agreements with Worthington Steel that govern our ongoing relationship following the Separation, including a Trademark License Agreement, both a short and long-term Transition Services Agreement, and a Steel Supply and Services Agreement. Transactions governed by these agreements are considered related party transactions.

Pursuant to the Steel Supply and Services Agreement, Worthington Steel manufactures and supplies to us, at reasonable market rates, certain flat rolled steel products, and will provide us with certain related support services such as design, engineering/technical services, price risk management, scrap management, steel purchasing, supply chain optimization and product rework services, and other services at our request that are ancillary to the supply of the flat rolled steel products. Purchases from Worthington Steel under the Steel Supply and Services Agreement totaled $37,036 and $28,431 for the three months ended August 31, 2025 and August 31, 2024, respectively. Accounts payable related to these purchases were $10,598 and $9,099 as of August 31, 2025 and May 31, 2025, respectively.

Activity under all other agreements between Worthington Steel and us related to the Separation was immaterial for the periods presented.

Recently Issued Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This standard requires enhanced income tax disclosures, including more detailed information in the effective tax rate reconciliation and disaggregated disclosures of income taxes paid by jurisdiction. The standard is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. While adoption of this ASU is not expected to have a material effect on our consolidated financial condition, results of operations, or cash flows, it will result in expanded income tax disclosures beginning in our 2026 Form 10-K.

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In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures,” which expands disclosure of significant costs and expenses. This ASU requires expanded disclosures of significant costs and expenditures within cost of goods sold and SG&A, including amounts of inventory purchased, employee compensation, depreciation, amortization and selling expenses. This ASU also requires expanded qualitative disclosures, including a description of selling expenses and a description of non-disaggregated expenses. This standard is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. We expect this ASU to only impact our disclosures with no impact to our result of operations, cash flows and financial condition.

Note B – Investments in Unconsolidated Affiliates

Investments in joint ventures that we do not control, either through majority ownership or otherwise, are unconsolidated and accounted for using the equity method. At August 31, 2025, we held investments in the following unconsolidated joint ventures: ClarkDietrich (25%); Sustainable Energy Solutions (49%); WAVE (50%); and Workhorse (20%).

We received distributions from unconsolidated affiliates totaling $36,476 during the three months ended August 31, 2025. We have received cumulative distributions from WAVE in excess of our investment balance, which resulted in a negative asset balance of $103,166 and $103,767 at August 31, 2025 and May 31, 2025, respectively. In accordance with the applicable accounting guidance, we have reclassified the negative balances to distributions in excess of investment in unconsolidated affiliate within our consolidated balance sheets. We will continue to record our equity in the net income of WAVE as a debit to the investment account, and if it becomes positive, it will again be shown as an asset on our consolidated balance sheets. If it becomes probable that any excess distribution may not be returned (upon joint venture liquidation or otherwise), we will immediately recognize any balance classified as a liability as income.

We use the cumulative earnings approach to determine the cash flow presentation of distributions from our unconsolidated joint ventures. Distributions received are included in our consolidated statements of cash flows as operating activities unless the cumulative distributions exceed our share of the cumulative equity in the net earnings of the joint venture. In such cases, the excess distributions are considered returns of investment and are classified as investing activities in our consolidated statements of cash flows.

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WAVE and ClarkDietrich are included within the Building Products segment, while the Sustainable Energy Solutions and Workhorse joint ventures are reported within Other. The following tables present summarized financial information for our unconsolidated affiliates for three months ended August 31, 2025 and 2024:

	Three Months Ended
	August 31,
	2025				2024
WAVE
Net sales	$	134,717			$	125,905
Operating income		67,683				60,065
Depreciation and amortization		1,638				1,470
Interest expense, net		3,960				4,409
Income tax expense		134				64
Net earnings		63,597				56,209
ClarkDietrich
Net sales	$	289,991			$	301,855
Operating income		22,789				34,081
Depreciation and amortization		4,495				3,873
Interest expense (income), net		80				(142	)
Income tax expense		13				537
Net earnings		23,735				34,976
Other
Net sales	$	72,485			$	87,913
Operating income (loss)		(3,257	)			200
Depreciation and amortization		2,214				2,663
Interest expense, net		295				491
Income tax expense		59				44
Net earnings (loss)		(3,623	)			(503	)

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Note C – Restructuring and Other Expense, Net

Restructuring activities consist of established programs that are intended to fundamentally change our operations. Our restructuring programs may include closing or consolidating production facilities or moving manufacturing of a product to another location, realignment of the management structure of a business unit in response to changing market conditions or general rationalization of headcount. Our restructuring activities generally give rise to employee-related costs, such as severance pay, and facility-related costs, such as exit costs and gains or losses on asset disposals but may include other incremental operating items associated with our ongoing businesses that are nonrecurring in nature but incremental to our normal business activities.

A progression of the liabilities associated with our restructuring activities, combined with a reconciliation to the restructuring and other expense, net financial statement caption in our consolidated statement of earnings for the three months ended August 31, 2025, is summarized below:

	Balance at												Balance at
	May 31, 2025				Expense				Payments				August 31, 2025
Early retirement and severance	$	585			$	775			$	(365	)		$	995
Other restructuring charges		100				1,701				(1,801	)			-
	$	685				2,476			$	(2,166	)		$	995

The total liability associated with our restructuring activities as of August 31, 2025 is expected to be paid in the next 12 months.

Note D – Contingent Liabilities and Commitments

Legal Proceedings

We are defendants in certain legal actions. In the opinion of management, the outcome of these actions, which is not clearly determinable at the present time, would not significantly affect our consolidated financial position or future results of operations. We also believe that environmental issues will not have a material effect on our capital expenditures, consolidated financial position or future results of operations.

Note E – Guarantees

We do not have guarantees that we believe are reasonably likely to have a material current or future effect on our consolidated financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

At August 31, 2025, we also had in place $9,204 of outstanding stand-by letters of credit issued to third-party service providers. The fair value of these guaranteed instruments, based on premiums paid, was not material and no amounts were drawn against them at August 31, 2025.

Note F – Debt

Our multi-year revolving Credit Facility is scheduled to mature on September 27, 2028. Borrowings under the Credit Facility have maturities of up to one year. We have the option to borrow at rates equal to an applicable margin over the overnight bank funding rate, the prime rate of PNC Bank, National Association or the adjusted daily simple SOFR. The applicable margin is determined by our total leverage ratio. There were no borrowings outstanding under the Credit Facility at August 31, 2025 or May 31, 2025, leaving $500,000 available for use.

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Note G – Other Comprehensive Income (Loss)

The following table summarizes the tax effects on each component of OCI for the periods presented:

	Three Months Ended
	August 31,
	2025												2024
	Before-Tax				Tax				Net-of-Tax				Before-Tax				Tax				Net-of-Tax
Foreign currency translation	$	1,280			$	127			$	1,407			$	(12	)		$	553			$	541
Pension liability adjustment		(14	)			3				(11	)			(7	)			-				(7	)
Cash flow hedges		(439	)			126				(313	)			(65	)			15				(50	)
Other comprehensive income (loss)	$	827			$	256			$	1,083			$	(84	)		$	568			$	484

Note H – Changes in Equity

The following tables summarize the changes in equity by component and in total for the periods presented:

		Controlling Interest
		Additional
		Paid-in				AOCI,				Retained								Noncontrolling
		Capital				Net of Tax				Earnings				Subtotal				Interests				Total
Balance at May 31, 2025		$	308,608			$	4,050			$	624,529			$	937,187			$	1,050			$	938,237
Net earnings (loss)			-				-				35,148				35,148				(327	)			34,821
Other comprehensive income			-				1,083				-				1,083				-				1,083
Common shares issued, net of withholding tax			(3,552	)			-				-				(3,552	)			-				(3,552	)
Common shares in non-qualified plans			78				-				-				78				-				78
Stock-based compensation			4,856				-				-				4,856				-				4,856
Repurchases and retirement of common shares			(623	)			-				(5,636	)			(6,259	)			-				(6,259	)
Cash dividends declared			-				-				(9,433	)			(9,433	)			-				(9,433	)
Balance at August 31, 2025		$	309,367			$	5,133			$	644,608			$	959,108			$	723			$	959,831

		Controlling Interest
		Additional
		Paid-in				AOCI,				Retained								Noncontrolling
		Capital				Net of Tax				Earnings				Subtotal				Interests				Total
Balance at May 31, 2024		$	299,033			$	454			$	589,392			$	888,879			$	2,133			$	891,012
Net earnings			-				-				24,253				24,253				(245	)			24,008
Other comprehensive income			-				484				-				484				-				484
Common shares issued, net of withholding tax			(3,158	)			-				-				(3,158	)			-				(3,158	)
Common shares in non-qualified plans			32				-				-				32				-				32
Stock-based compensation			6,216				-				-				6,216				-				6,216
Repurchases and retirement of common shares			(884	)			-				(5,919	)			(6,803	)			-				(6,803	)
Cash dividends declared			-				-				(8,550	)			(8,550	)			-				(8,550	)
Balance at August 31, 2024		$	301,239			$	938			$	599,176			$	901,353			$	1,888			$	903,241

The following table summarizes the changes in AOCI for the periods presented:

		Foreign				Pension
		Currency				Liability				Cash Flow
		Translation				Adjustment				Hedges				AOCI
Balance at May 31, 2025		$	2,581			$	(365	)		$	1,834			$	4,050
OCI before reclassifications			1,280				(14	)			334				1,600
Reclassification adjustments to net earnings (1)			-				-				(773	)			(773	)
Income tax effect			127				3				126				256
Balance at August 31, 2025		$	3,988			$	(376	)		$	1,521			$	5,133

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		Foreign				Pension
		Currency				Liability				Cash Flow
		Translation				Adjustment				Hedges				AOCI
Balance at May 31, 2024		$	(669	)		$	(441	)		$	1,564			$	454
OCI before reclassifications			(12	)			(7	)			(398	)			(417	)
Reclassification adjustments to net earnings (1)			-				-				333				333
Income tax effect			553				-				15				568
Balance at August 31, 2024		$	(128	)		$	(448	)		$	1,514			$	938

——————————————————

(1)The statement of earnings classification of amounts reclassified to net income for cash flow hedges is disclosed in “Note N – Derivative Financial Instruments and Hedging Activities.”

On March 24, 2021, the Board authorized the repurchase of up to 5,618,464 common shares. During the three months ended August 31, 2025, we repurchased a total of 100,000 common shares under this authorization leaving 5,265,000 common shares available for repurchase at August 31, 2025.

Common shares may be repurchased from time to time, with consideration given to the market price of the common shares, the nature of other investment opportunities, cash flows from operations, general economic conditions and other relevant considerations. Repurchases may be made on the open market or through privately-negotiated transactions.

Note I – Stock-Based Compensation

Service-Based Restricted Common Shares

During the three months ended August 31, 2025, we granted an aggregate of 63,330 service-based restricted common shares under our stock-based compensation plans, which cliff vest three years from the grant date. The weighted average grant date fair value of these restricted common shares, based on the weighted average closing price of the underlying common shares on the grant date, was $63.05 per share, or $3,993 in total, and will be recognized on a straight-line basis over the three-year vesting period, net of any forfeitures.

Market-Based Restricted Common Shares

On June 30, 2025, we granted market-based restricted common shares covering an aggregate of 92,500 common shares (at target levels) to certain members of executive management. Vesting of the awards is contingent on the achievement of specified levels of ATSR over a three-year service period ending June 30, 2028, in which annualized ATSR must exceed a threshold level in order to be satisfied. The fair value of these market-based restricted common shares was estimated using a Monte-Carlo simulation model that incorporates key assumptions such as the risk-free interest rate, expected volatility and expected dividends. Compensation expense is recognized on a straight-line basis over the three-year vesting period, net of forfeitures, regardless of whether the market condition is satisfied. The estimated grant date fair value of these market-based restricted common shares was $45.39 per common share or $4,199 in total (at target levels).

The following assumptions were used to determine the grant date fair value for our market-based restricted common shares during the three months ended August 31, 2025.

Dividend yield			1.19	%
Expected volatility			38.00	%
Risk-free interest rate			3.68	%

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Performance Shares

Performance shares awarded under our stock-based compensation plans are earned based on the level of achievement with respect to a set of measurement criteria for corporate and business unit targets. The awards generally cover three-year performance periods ending May 31, 2026, 2027, and 2028.

These performance share awards will be paid, to the extent earned, in common shares in the fiscal quarter following the end of the applicable performance period. The fair values of our performance shares are determined by the closing market prices of the underlying common shares at the respective grant dates of the performance shares and the pre-tax stock-based compensation expense is based on our periodic assessment of the probability of the targets being achieved and our estimate of the number of common shares that will ultimately be issued. The ultimate pre-tax stock-based compensation expense to be recognized over the performance period on all tranches will vary based on our periodic assessment of the probability of the targets being achieved. During the three months ended August 31, 2025, we granted performance share awards covering an aggregate of 53,130 common shares (at target levels). The aggregate grant-date fair value at target for these performance shares is $3,395, which will be recognized over the performance period and adjusted based on our periodic assessment of the probability of achieving the performance targets. The ultimate pre-tax stock-based compensation expense to be recognized over the performance period on all tranches will vary based on our periodic assessment of the probability of the targets being achieved.

Note J – Income Taxes

Income tax expense for the three months ended August 31, 2025 and August 31, 2024 reflected estimated annual ETRs of 23.8% and 24.5%, respectively. Management is required to estimate the annual ETR based upon its forecast of annual pre-tax income for domestic and foreign operations. Our actual ETR for fiscal 2026 could be materially different from the forecasted rate as of August 31, 2025.

Note K – Earnings per Share

The following table sets forth the computation of basic and diluted EPS attributable to controlling interest for the periods presented:

	Three Months Ended
	August 31,				August 31,
	2025				2024
Numerator (basic & diluted):
Net earnings attributable to controlling interest	$	35,148			$	24,253
Denominator (shares in thousands):
Basic EPS – weighted average common shares		49,264				49,487
Effect of dilutive securities		762				878
Diluted EPS – weighted average common shares		50,026				50,365
Basic EPS	$	0.71			$	0.49
Diluted EPS	$	0.70			$	0.48

Stock options and restricted common shares covering an aggregate of 13,610 and 77,837 common shares for the three months ended August 31, 2025 and August 31, 2024, respectively have been excluded from the computation of diluted EPS because the effect would have been antidilutive for those periods.

Note L – Segment Operations

Our operating segments reflect the way in which internally-reported financial information is regularly reviewed by the CODM to analyze performance, make decisions and allocate resources. We have identified our CEO as our CODM. Our CODM evaluates segment performance on the basis of adjusted EBITDA, as described in the “Use of Non-GAAP Financial Measures and Definitions” section. Factors used to identify operating segments include the nature of the products provided by each business, the management reporting structure, similarity of economic characteristics and certain quantitative measures, as prescribed by GAAP. Our operations are organized under two operating segments: Consumer Products and Building Products. Unallocated Corporate and Other also includes certain assets and liabilities (e.g., cash and cash equivalents and public debt) held at the corporate level as well as general corporate expenses that are not directly attributable to our business operations and are administrative in nature, such as public company and other governance-related costs that benefit the organization as a whole. Activity outside of our two operating segments is presented within “Other” and “Unallocated Corporate” as described further below.

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Other includes our share of the equity earnings of two of our unconsolidated joint ventures, Sustainable Energy Solutions and Workhorse.

Unallocated Corporate includes certain assets and liabilities (e.g. public debt) held at the corporate level as well as general corporate expenses that are not directly attributable to our business operations and are administrative in nature, such as public company and other governance-related costs that benefit the organization as a whole, have not been allocated to our operating segments and are held at the corporate level.

The following tables present summarized financial information for our reportable operating segments and Unallocated Corporate and Other for the periods indicated. A reconciliation from the GAAP financial measure of earnings (loss) before income taxes to the non-GAAP financial measure of adjusted EBITDA is provided directly following the summarized information below.

	Three Months Ended August 31, 2025
									Total
	Consumer				Building				Reportable								Unallocated
									Operating
	Products				Products				Segments				Other				Corp				Consolidated
Net sales	$	118,938			$	184,769			$	303,707				-				-			$	303,707
Cost of goods sold		79,972				141,399				221,371				-				52				221,423
SG&A		27,710				33,636				61,346				-				9,219				70,565
Restructuring and other expense, net		13				296				309				-				2,167				2,476
Other segment items (1)		18				98				116				-				103				219
Equity in net income of unconsolidated affiliates		-				38,320				38,320				(1,663	)			-				36,657
Earnings (loss) before income taxes		11,225				47,660				58,885				(1,663	)			(11,541	)			45,681
Reconciling items to adjusted EBITDA
Depreciation and amortization		3,858				9,036				12,894				-				192				13,086
Interest expense (income)		(2	)			(18	)			(20	)			-				83				63
Stock-based compensation		727				819				1,546				-				1,881				3,427
Restructuring and other expense, net		13				296				309				-				2,167				2,476
Net loss attributable to noncontrolling interest		327				-				327				-				-				327
Adjusted EBITDA	$	16,148			$	57,793			$	73,941			$	(1,663	)		$	(7,218	)		$	65,060

	Three Months Ended August 31, 2024
									Total
	Consumer				Building				Reportable								Unallocated
									Operating
	Products				Products				Segments				Other				Corp				Consolidated
Net sales	$	117,596			$	139,712			$	257,308			$	-			$	-			$	257,308
Cost of goods sold		78,113				116,647				194,760				-				53				194,813
SG&A		26,861				28,050				54,911				-				11,125				66,036
Restructuring and other expense, net		-				289				289				-				869				1,158
Other segment items (1)		(15	)			(225	)			(240	)			-				243				3
Equity in net income of unconsolidated affiliates		-				36,645				36,645				(1,153	)			-				35,492
Earnings (loss) before income taxes		12,637				31,596				44,233				(1,153	)			(12,290	)			30,790
Reconciling items to adjusted EBITDA
Depreciation and amortization		4,336				7,294				11,630				-				200				11,830
Interest expense		-				17				17				-				472				489
Stock-based compensation		557				533				1,090				-				2,835				3,925
Restructuring and other expense, net		-				289				289				-				869				1,158
Net loss attributable to noncontrolling interest		245				-				245				-				-				245
Adjusted EBITDA	$	17,775			$	39,729			$	57,504			$	(1,153	)		$	(7,914	)		$	48,437

(1)Other segment items consist of non-operating activity included in adjusted EBITDA, which is our segment profit measure.

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Total assets for each of our reportable operating segments at the dates indicated were as follows:

									August 31,				May 31,
									2025				2025
Consumer Products									$	534,316			$	531,187
Building Products										928,012				795,837
Total reportable operating segments										1,462,328				1,327,024
Unallocated Corporate and Other										275,809				368,128
Total assets									$	1,738,137			$	1,695,152

The following table presents capital expenditures for each of our reportable operating segments for the three months ended August 31, 2025 and August 31, 2024

									Three Months Ended
									August 31,
									2025				2024
Consumer Products									$	9,041			$	4,943
Building Products										3,509				3,709
Total reportable operating segments										12,550				8,652
Unallocated Corporate										645				977
Total									$	13,195			$	9,629

Note M – Acquisitions

On June 18, 2025, we acquired Elgen, a leading provider of HVAC parts and components, ductwork, and structural framing used primarily in commercial building applications across North America. The purchase price was $91,185, net of cash acquired. Elgen operates as part of the Building Products operating segment and its results have been included in our consolidated statements of earnings since the date of acquisition. Pro forma results, including the acquired business since the beginning of fiscal 2024, would not be materially different from reported results.

The information included herein is based on the preliminary allocation of the purchase price using estimates of the fair value and useful lives of the assets acquired. The purchase price allocation is subject to further adjustment until all pertinent information regarding the assets acquired is fully evaluated by us, including but not limited to, the fair value accounting.

The assets acquired and liabilities assumed were recognized at their estimated acquisition-date fair values, with goodwill representing the excess of the purchase price over the fair value of the net identifiable assets acquired. The purchase price includes the fair values of other assets that were not identifiable, not separately recognizable under accounting rules (e.g., assembled workforce) or of immaterial value. The purchase price also includes strategic and synergistic benefits (i.e., investment value) specific to us, which resulted in a purchase price in excess of the fair value of the identifiable net assets. This additional investment value resulted in goodwill, which is not expected to be deductible for income tax purposes. During the three months ended August 31, 2025, we incurred approximately $1,700 of acquisition related expenses related to the transaction, which are recorded in restructuring and other expense, net in our consolidated statement of earnings.

In connection with the acquisition of Elgen, we identified and valued the following intangible assets:

										Useful Life
Category						Amount				(Years)
Customer relationships						$	17,800			15
Trade name							7,900			10
Technological know-how							7,000			10
Non-compete agreement							1,700			5
Total acquired identifiable intangible assets						$	34,400

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The following table summarizes the consideration paid and the final fair value assigned to the assets and liabilities assumed at the acquisition date.

								Preliminary
								Valuation
Cash and cash equivalents								$	1,093
Accounts receivable									12,751
Inventory									16,351
Other current assets									1,605
Property, plant and equipment									11,941
Operating lease assets									21,196
Intangible assets									34,400
Total identifiable assets									99,337
Accounts payable									(11,364	)
Current operating lease liability									(2,225	)
Accrued expenses									(4,465	)
Noncurrent operating lease liability									(19,041	)
Deferred income taxes									(3,582	)
Net identifiable assets									58,660
Goodwill									33,617
Total purchase price								$	92,277

Note N – Derivative Financial Instruments and Hedging Activities

We primarily utilize derivative financial instruments to manage exposure to certain risks related to our ongoing operations. The primary risks managed through the use of derivative financial instruments include interest rate risk, foreign currency exchange risk and commodity price risk. While certain of our derivative financial instruments are designated as hedging instruments, we also enter into derivative financial instruments that are designed to hedge a risk, but are not designated as hedging instruments and therefore do not qualify for hedge accounting. These derivative financial instruments are adjusted to current fair value through earnings at the end of each period.

Interest Rate Risk Management – We are exposed to the impact of interest rate changes. Our objective is to manage the impact of interest rate changes on cash flows and the market value of our borrowings. We utilize a mix of debt maturities along with both fixed-rate and variable-rate debt to manage changes in interest rates. In addition, we enter into interest rate swaps to further manage our exposure to interest rate variations related to our borrowings and to lower our overall borrowing costs.

Foreign Currency Exchange Rate Risk Management – We conduct business in several major international currencies and are, therefore, subject to risks associated with changing foreign currency exchange rates. We enter into various contracts that change in value as foreign currency exchange rates change to manage this exposure. Such contracts limit exposure to both favorable and unfavorable foreign currency exchange rate fluctuations. The translation of foreign currencies into U.S. dollars also subjects us to exposure related to fluctuating foreign currency exchange rates; however, derivative financial instruments are not used to manage this risk.

Commodity Price Risk Management – We are exposed to changes in the price of certain commodities, including steel, natural gas, copper, zinc, aluminum and other raw materials, and our utility requirements. Our objective is to reduce earnings and cash flow volatility associated with forecasted purchases and sales of these commodities to allow management to focus its attention on business operations. Accordingly, we enter into derivative financial instruments to manage the associated price risk.

We are exposed to counterparty credit risk on all of our derivative financial instruments. Accordingly, we have established and maintain strict counterparty credit guidelines. We have credit support agreements in place with certain counterparties to limit our credit exposure. These agreements require either party to post cash collateral if its cumulative market position exceeds a predefined liability threshold. Amounts posted to the margin accounts accrue interest at market rates and are required to be refunded in the period in which the cumulative market position falls below the required threshold. We do not have significant exposure to any one counterparty and management believes the risk of loss is remote and, in any event, would not be material.

Refer to “Note O – Fair Value Measurements” for additional information regarding the accounting treatment for our derivative financial instruments, as well as how fair value is determined. The following table summarizes the fair value of our derivative financial

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instruments and the respective lines in which they were recorded in the consolidated balance sheet at August 31, 2025 and May 31, 2025:

		Fair Value of Assets										Fair Value of Liabilities
		Balance										Balance
		Sheet		August 31,				May 31,				Sheet		August 31,				May 31,
		Location		2025				2025				Location		2025				2025
Derivatives designated as hedging instruments:
Commodity contracts		Receivables		$	441			$	478			Accounts payable		$	334			$	51
Commodity contracts		Other assets			-				-			Other liabilities			44				35
Foreign currency exchange contracts		Receivables			153				483			Accounts payable			-				-
Subtotal					594				961						378				86
Derivatives not designated as hedging instruments:
Commodity contracts		Receivables		$	36			$	81			Accounts payable		$	101			$	15
Foreign currency exchange contracts		Receivables			-				-			Accounts payable			7,541				7,360
Subtotal					36				81						7,642				7,375
Total derivative financial instruments				$	630			$	1,042					$	8,020			$	7,461

The amounts in the table above reflect the fair value of our derivative financial instruments on a net basis where allowed under master netting arrangements. Had these amounts been recognized on a gross basis, the impact would have been an increase in receivables with a corresponding increase in accounts payable of $548 and $356 at August 31, 2025 and May 31, 2025, respectively.

Cash Flow Hedges

We enter into derivative financial instruments to hedge our exposure to changes in cash flows attributable to interest rate and commodity price fluctuations associated with certain forecasted transactions. These derivative financial instruments are designated and qualify as cash flow hedges. Accordingly, the effective portion of the gain or loss on each of these derivative financial instruments is reported as a component of OCI and reclassified into earnings in the same line associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings.

The following table summarizes the net notional positions of our cash flow hedges at August 31, 2025:

		Notional
		Amount				Maturity Date(s)
Commodity contracts		$	9,423			September 2025 - December 2027
Foreign currency exchange contracts			6,895			September 2025 - April 2026

The following table summarizes the gain (loss) recognized in OCI and the gain (loss) reclassified from AOCI into net earnings for derivative financial instruments designated as cash flow hedges for the periods presented:

						Location of		Gain (Loss)
		Gain (Loss)				Gain (Loss)		Reclassified
		Recognized				Reclassified from AOCI		from AOCI
		in OCI				into Net Earnings		into Net Earnings
For the three months ended August 31, 2025:
Commodity contracts		$	77			Cost of goods sold		$	393
Interest rate contracts			-			Interest expense, net			52
Foreign currency exchange contracts			257			Miscellaneous expense, net			328
Total		$	334					$	773
For the three months ended August 31, 2024:
Commodity contracts		$	(398	)		Cost of goods sold		$	(385	)
Interest rate contracts			-			Interest expense, net			52
Total		$	(398	)				$	(333	)

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The estimated amount of net gains recognized in AOCI at August 31, 2025, expected to be reclassified into net earnings within the succeeding 12 months is $559 (net of tax of $151). This amount was computed using the fair value of the cash flow hedges at August 31, 2025, and will change before actual reclassification from OCI to net earnings during the fiscal years ending May 31, 2026 and May 31, 2027.

Net Investment Hedges

At August 31, 2025, we designated our Euro-denominated debt held in the U.S. with an initial notional amount of €91,700 ($99,479) as a non-derivative net investment hedge of our foreign operations in Portugal. The full principal amount is considered fully effective. We did not reclassify any gains or losses related to the net investment hedge from AOCI into earnings during any of the fiscal years presented. The foreign currency loss recognized in OCI for the non-derivative instruments designated as net investment hedges during the three months ended August 31, 2025 and 2024 was $3,100 and $1,835, respectively.

Economic (Non-designated) Hedges

We enter into foreign currency exchange contracts to manage our foreign currency exchange rate exposure related to inter-company and financing transactions that do not meet the requirements for hedge accounting treatment. We also enter into certain commodity contracts that do not qualify for hedge accounting treatment. Accordingly, these derivative financial instruments are adjusted to current market value at the end of each period through gain (loss) recognized in earnings.

The following table summarizes the net notional positions of our economic (non-designated) derivative financial instruments outstanding at August 31, 2025:

		Notional
		Amount				Maturity Date(s)
Commodity contracts		$	1,308			September 2025 - November 2026
Foreign currency exchange contracts			39,173			November 2025 - December 2025

The following table summarizes the gain (loss) recognized in earnings for economic (non-designated) derivative financial instruments for the periods presented:

				Gain (Loss)
				Recognized in Earnings for the
				Three Months Ended
		Location of Gain (Loss)		August 31,				August 31,
		Recognized in Earnings		2025				2024
Commodity contracts		Cost of goods sold		$	(47	)		$	87
Foreign currency exchange contracts		Miscellaneous income (expense), net			674				1,047
Total				$	627			$	1,134

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Note O – Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is an exit price concept that assumes an orderly transaction between willing market participants and is required to be based on assumptions that market participants would use in pricing an asset or a liability. Current accounting guidance establishes a three-tier fair value hierarchy as a basis for considering such assumptions and for classifying the inputs used in the valuation methodologies. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are as follows:

•Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

•Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

•Level 3 - Unobservable inputs for the asset or liability and that are significant to the fair value of the assets and liabilities (i.e., allowing for situations in which there is little or no market activity for the asset or liability at the measurement date).

Recurring Fair Value Measurements

At August 31, 2025, our assets and liabilities measured at fair value on a recurring basis were as follows:

		(Level 1)				(Level 2)				(Level 3)				Totals
Assets
Derivative financial instruments (1)		$	-			$	630			$	-			$	630
Total assets		$	-			$	630			$	-			$	630
Liabilities
Derivative financial instruments (1)		$	-			$	8,020			$	-			$	8,020
Total liabilities		$	-			$	8,020			$	-			$	8,020

At May 31, 2025, our assets and liabilities measured at fair value on a recurring basis were as follows:

		(Level 1)				(Level 2)				(Level 3)				Totals
Assets
Derivative financial instruments (1)		$	-			$	1,042			$	-			$	1,042
Total assets		$	-			$	1,042			$	-			$	1,042
Liabilities
Derivative financial instruments (1)		$	-			$	7,461			$	-			$	7,461
Total liabilities		$	-			$	7,461			$	-			$	7,461

——————————————————

(1)The fair value of our derivative financial instruments is based on the present value of the expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Market observable, Level 2 inputs are used to determine the present value of the expected future cash flows. Refer to “Note N – Derivative Financial Instruments and Hedging Activities” for additional information regarding our use of derivative financial instruments.

Non-Recurring Fair Value Measurements

At August 31, 2025, there were no assets measured at fair value on a non-recurring basis on our consolidated balance sheet. See “Note R – Fair Value Measurements” in the fiscal 2025 Form 10-K for information regarding non-recurring fair value measurements as of May 31, 2025.

The fair value of non-derivative financial instruments included in the carrying amounts of cash and cash equivalents, receivables, income taxes receivable, other assets, accounts payable, accrued compensation, contributions to employee benefit plans and related taxes, other accrued items, income taxes payable and other liabilities approximate carrying value due to their short-term nature. The fair value of long-term debt, including current maturities, based upon models utilizing market observable (Level 2) inputs and credit risk, was $276,990 and $263,547 at August 31, 2025 and May 31, 2025, respectively. The carrying amount of long-term debt was $306,010 and $302,868 at August 31, 2025 and May 31, 2025, respectively.

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Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of Operations

Unless otherwise indicated, all Note references contained in this MD&A refer to the Condensed Notes to Consolidated Financial Statements included in “Part I – Item 1. – Financial Statements” of this Form 10-Q. All amounts are presented in millions except common share and per common share amounts.

Introduction

The following discussion and analysis of market and industry trends, business developments, and the results of our operations and financial position should be read in conjunction with our consolidated financial statements and notes thereto included in “Part I – Item 1. – Financial Statements” of this Form 10-Q. The 2025 Form 10-K includes additional information about our business, operations and consolidated financial position and should be read in conjunction with this Form 10-Q. This MD&A is designed to provide a reader with material information relevant to an assessment of our financial condition and results of operations and to allow investors to view the Company from the perspective of management.

Business Overview

We are a market-leading designer and manufacturer of innovative products and services, including manufactured metal products, organized around attractive end markets under two separate and distinct reportable operating segments: Consumer Products and Building Products. Our primary goal is to create value for our shareholders. Built on the successful foundation of the Worthington Business System, we apply a disciplined approach to capital deployment and seek to grow earnings by optimizing our operations and supply chain, developing and commercializing new innovative products and applications, and pursuing strategic investments and acquisitions.

Our Consumer Products business has a diverse product offering in the tools, outdoor living and celebrations categories, including propane-filled cylinders for torches and related accessories, handheld torches, specialized hand tools and instruments, drywall tools, propane-filled camping cylinders, helium-filled balloon kits, and accessories and gas griddles and pizza ovens sold primarily to mass merchandisers, retailers and distributors. Sales to one customer in Consumer Products accounted for 11.2% of our consolidated net sales in the first quarter of fiscal 2026.

Our Building Products business is a market-leading provider of pressurized containment solutions, providing critical components in essential end markets, such as heating, cooking, cooling and water, and, through our unconsolidated joint ventures, WAVE and ClarkDietrich, ceiling suspension systems and light gauge metal framing products. Our pressurized containment solutions include refrigerant and LPG cylinders, well water and expansion tanks, and other specialty products which are generally sold to gas producers and distributors. Refrigerant gas cylinders are used to hold refrigerant gases for commercial, residential, and automotive air conditioning and refrigeration systems. LPG cylinders hold fuel for residential and light commercial heating systems, barbeque grills and recreational vehicle equipment, industrial forklifts and commercial/residential cooking (the latter, generally outside North America). Well water tanks and expansion tanks are used primarily in the residential market with certain products also sold to commercial markets. Specialty products include a variety of fire suppression tanks, chemical tanks, and foam and adhesive tanks. With the acquisition of Elgen on June 18, 2025, we expanded our portfolio to include HVAC parts and components, further strengthening our position across the end markets we serve.

Activity outside of our two reportable operating segments is presented within Other and Unallocated Corporate as described further below.

Other includes our share of the equity earnings of two of our unconsolidated joint ventures, Sustainable Energy Solutions and Workhorse and the related investments in these businesses.

Unallocated Corporate includes certain assets and liabilities (e.g., cash and cash equivalents and public debt) held at the corporate level as well as general corporate expenses that are not directly attributable to our business operations and are administrative in nature, such as public company and other governance-related costs that benefit the organization as a whole, have not been allocated to our operating segments and are held at the corporate level.

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Acquisitions and Divestitures

Fiscal 2026

On June 18, 2025, we acquired Elgen, a leading provider of HVAC parts and components. The purchase price was approximately $91.2 million, net of cash acquired. Elgen began operating as part of Building Products in the first quarter of fiscal 2026. Refer to “Note M – Acquisitions” for additional information.

Fiscal 2025

On June 3, 2024, we completed the acquisition of Ragasco, a leading global manufacturer of composite propane cylinders based in Norway. The purchase price consisted of cash consideration of $108.6 million, including an earnout that was settled in March 2025. Ragasco began operating as part of Building Products in the first quarter of fiscal 2025.

Demand Trends

General Economic Conditions

Demand for our products is closely tied to broader macroeconomic conditions and overall consumer and business sentiment. Shifts in inflation, interest rates, disposable income, and construction activity directly influence purchase behavior, capital investment, and distributor inventory management.

The macroeconomic environment during the first quarter of fiscal 2026 was mixed, as easing inflation was offset by elevated borrowing costs and continued policy uncertainty. U.S. GDP rebounded in June 2025 (the latest available release), increasing at a 3.3% annualized rate following a 0.5% decline in March 2025. Inflation remained near 3%, and the CPI increased 3.1% year-over-year in August 2025, while the Federal Reserve lowered the federal funds target range to 4.00%–4.25% at its September 2025 meeting. Mortgage costs eased late in the first quarter of fiscal 2026, but remained high by historical standards, with the average 30-year fixed rate at 6.56% at August 31, 2025.

We believe these dynamics, including tight credit conditions, softening industrial activity, and global uncertainty, continued to weigh on both consumer and business sentiment during the first quarter of fiscal 2026. Within Consumer Products, inflation-driven cost consciousness and elevated interest rates influenced discretionary purchases and contributed to cautious buying patterns. In Building Products, rising financing costs constrained new construction demand, while slowing industrial activity impacted certain commercial and infrastructure-related channels. We expect demand to remain uneven in the near term. Other key end market trends are described below in the “End Market Trends” section.

Inventory Demand Cycles

Demand for our products is influenced by the inventory management strategies of our retail and distribution partners. Periods of customer destocking, when our customers reduce their own inventories, can lead to lower order volumes, even when consumer sell-through remains steady. Conversely, customers’ restocking can temporarily elevate shipments above underlying end-user demand. As a result, shifts in customers’ inventory levels can meaningfully impact our reported revenue and margin performance, particularly in Consumer Products, where a large volume of products flow through big box retailers.

During the first quarter of fiscal 2026, inventory levels at most key retailer and distributor customers remained aligned with end-user demand, and replenishment activity generally mirrored point-of-sale trends, with no material build-up in our distribution or retail channels. Customers maintained a cautious approach in managing tariff-related cost pressures, selectively trimming orders for lower-volume items.

End Market Trends

We offer a wide range of products and services to a diverse, primarily domestic, customer base across several end markets, including U.S. residential and non-residential construction, repair/remodel, which collectively drive overall demand for Building Products. These end markets also drive demand for many of our consumer products sold in the tools and outdoor living categories. Demand for our remaining consumer products, including helium-filled balloon kits sold into the celebrations category, is generally driven by the general health of the consumer, including the macroeconomic and geopolitical conditions discussed above. We actively monitor the following publicly available economic data and selected key indicators for our major end markets:

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Key Indicator		Description
U.S. Residential Construction Spend		Represents total expenditures on residential construction projects, including new builds, renovations, and improvements.
U.S. Non-residential Construction Spend		Measures total spending on commercial, institutional, and industrial construction projects across the country.
Existing Home Sales		Reports the number of previously owned homes sold in a given period, reflecting demand in the housing market.
Authorized Housing Permits		Indicates the number of building permits issued for new housing construction, serving as a leading indicator for future housing starts.
U.S. Private Housing Starts		Measures the number of new residential construction projects that have begun, signaling housing market activity.
HMI		Measures homebuilder sentiment on current and future single-family home sales and buyer traffic.
ABI		A leading economic indicator for non-residential construction, based on monthly billings reported by architecture firms.
DMI		Tracks the value of non-residential building projects in planning stages, serving as a leading indicator for future construction activity.
LIRA		Projects short-term trends in U.S. home improvement and repair spending, serving as a forward-looking gauge of residential remodeling activity.

During the first quarter of fiscal 2026, conditions across our key end markets remained uneven. U.S residential and non-residential construction spending trended lower. Housing indicators suggested modest improvements in existing home sales and private housing starts, while authorized permits declined on a year-over-year basis, driven by weakness in multifamily activity. In August 2025, the HMI weakened further to 32, the lowest level since December 2022, reflecting a notably subdued new home pipeline. The non-residential end market was mixed, as the ABI remained in contraction, while the DMI rose 7.5% in August 2025 to a record of 301.4, signaling stronger project planning activity despite current spending softness. Within repair and remodel, the latest LIRA projects approximately 1.2% growth in homeowner improvement spending through the second quarter of calendar year 2026. We believe these conditions support stable near-term demand for tools and DIY products in Consumer Products, while Building Products remain exposed to mixed construction end markets where planning activity is improving but spending remains subdued, leading us to expect overall demand across our key end markets to remain uneven in the near term.

Factors Affecting Operating Costs

Raw Materials

Our largest raw material expenditures include cold-rolled and hot-rolled steel, propane, propylene, and aluminum. Fluctuations in the prices of these inputs have a direct impact on our cost of goods sold and overall financial performance. Our primary raw material and energy inputs are subject to significant price volatility driven by global supply-demand imbalances, tariffs, and other external factors. We manage this risk through a combination of supply contracts, forward purchasing, and selective hedging strategies designed to reduce near-term cost swings and support margin stability.

Steel: Steel raw material is the most significant direct cost across both the Consumer Products and Building Products segments. During the first quarter of fiscal 2026, prices for both hot-rolled and cold-rolled steel moderated from the peak levels reached in April 2025. This decline contributed to improved spread as we maintained consistent pricing discipline across our product portfolio. Our sourcing strategy, combining firm-price contracts for select inputs with index-based agreements for others, allowed us to manage volatility and capture cost advantages as prices declined.

Aluminum: During the first quarter of fiscal 2026, aluminum costs increased compared to the prior year quarter, reflecting both higher global benchmark prices and a June 2025 increase in U.S Section 232 tariffs to 50% which drove U.S Midwest aluminum premiums to elevated levels. These changes impacted components such as fuel cylinder valves and other aluminum-intensive assemblies. Where possible, we mitigated these increases through forward purchasing and supplier negotiations, but tariff-related cost pressure on aluminum is expected to persist into the second quarter of fiscal 2026.

Propane, propylene, and other gases: Propane and propylene costs were stable during the first quarter of fiscal 2026, consistent with broader commodity trends. A portion of our propane and propylene requirements are secured under fixed-price supply agreements, which limited our exposure to spot fluctuations. Costs for helium and other industrial gases declined from the prior year quarter, providing a margin benefit in select consumer-facing product lines, particularly within the Consumer Products segment.

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We continue to actively monitor commodity markets and maintain a diversified sourcing strategy to ensure continuity of supply and cost discipline. Our approach to material procurement supports margin stability and helps mitigate the impact of input price volatility on our results.

Seasonality

Historically, net sales tend to be stronger in our fiscal third and fourth quarters for Consumer Products when our facilities perform at seasonal peaks, matching consumer demand. Sales in Building Products are generally stronger in the first and fourth quarters of our fiscal year due to weather conditions, customer business cycles, and the timing of renovation and new construction projects.

Results of Operations

The following discussion provides an overview of results for the three months ended August 31, 2025 and August 31, 2024:

	Three Months Ended
	August 31,
	2025				2024				Change
GAAP Financial Measures
Net sales	$	303.7			$	257.3			$	46.4
Operating income (loss)		9.2				(4.7	)			13.9
Earnings before income taxes		45.7				30.8				14.9
Net earnings		34.8				24.0				10.8
Equity income		36.7				35.5				1.2
EPS - diluted		0.70				0.48				0.22
Non-GAAP Financial Measures (1)
Adjusted operating income (loss)	$	11.7			$	(3.5	)		$	15.2
Adjusted EBITDA		65.1				48.4				16.7
Adjusted EPS – diluted		0.74				0.50				0.24

——————————————————

(1)Reconciliations for each of these non-GAAP financial measures to their most comparable GAAP financial measure are provided in the “Use of Non-GAAP Financial Measures and Definitions” section.

Net Sales

The following table provides a breakdown of our consolidated net sales by operating segment for the periods indicated:

	Three Months Ended
	August 31,								Change
	2025				2024				$				%
Consumer Products	$	118.9			$	117.6			$	1.3				1.1	%
Building Products		184.8				139.7				45.1				32.3	%
Consolidated	$	303.7			$	257.3			$	46.4				18.0	%

•Consumer Products – Net sales totaled $118.9 million in the current year quarter, up $1.3 million, or 1.1% over the prior year quarter, driven by favorable product mix, substantially offset by lower overall volume.

•Building Products – Net sales totaled $184.8 million in the current year quarter, up $45.1 million, or 32.2%, over the prior year quarter, driven by higher overall volume and $20.9 million in contributions from Elgen.

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Gross Profit

	Three Months Ended
	August 31,								Change
	2025				2024				$				%
Gross profit	$	82.3			$	62.5			$	19.8				31.7	%
Gross margin		27.1	%			24.3	%

Gross profit for the current year quarter increased $19.8 million, or 31.7%, over the prior year quarter to $82.3 million driven primarily by the impact of higher overall volumes in the wholly owned businesses of Building Products.

SG&A

	Three Months Ended
	August 31,								Change
	2025				2024				$				%
SG&A	$	70.6			$	66.0			$	4.6				7.0	%
Net Sales %		23.2	%			25.7	%

SG&A increased $4.6 million, or 7.0%, from the prior year quarter, due primarily to the addition of Elgen. As a percentage of net sales, SG&A was down from 25.7% in the prior year quarter to 23.2% on slightly lower overall corporate overhead expenses.

Restructuring and Other Expense, Net

	Three Months Ended
	August 31,
	2025				2024				$ Change
Restructuring and other expense, net	$	2.5			$	1.2			$	1.3

Restructuring and other expense, net in both periods consisted primarily of employee severance and transaction costs related to acquisitions and divestitures.

Equity Income

	Three Months Ended
	August 31,								Change
	2025				2024				$				%
WAVE (1)	$	32.4			$	27.9			$	4.5				16.1	%
ClarkDietrich (1)		5.9				8.7				(2.8	)			(32.2	%)
Other (2)		(1.6	)			(1.1	)			(0.5	)			(45.5	%)
Equity income	$	36.7			$	35.5			$	1.2				3.4	%

——————————————————

(1)Equity income contributed by WAVE and ClarkDietrich is reported within our Building Products segment.

(2)Includes our share of the equity earnings of the Workhorse and the Sustainable Energy Solutions joint venture.

Equity income increased $1.2 million over the prior year quarter to $36.7 million, driven by higher contributions from WAVE, up $4.5 million over the prior year quarter, partially offset by a decline at ClarkDietrich, down $2.8 million, as pricing pressure led to lower gross profit.

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Income Tax Expense

	Three Months Ended
	August 31,
	2025				2024				$ Change
Income tax expense	$	10.9			$	6.8			$	4.1
Estimated Annual ETR		23.8	%			24.5	%

Income tax expense was $10.9 million in the current year quarter compared to $6.8 million in the prior year quarter. The increase was primarily driven by higher pre-tax earnings.

Adjusted EBITDA

The following table provides a summary of adjusted EBITDA, a non-GAAP financial measure, by reportable operating segment and on a consolidated basis, along with the respective percentage of net sales for each reportable operating segment and on a consolidated basis. See the “Use of Non-GAAP Financial Measures and Definitions” section preceding Part I, Item 1 of this Form 10-Q for additional information regarding our use of non-GAAP financial measures. A reconciliation from earnings before income taxes to adjusted EBITDA is provided in “Note L – Segment Operations.”

	Three Months Ended
	August 31,
					% of								% of				Change
	2025				Net Sales				2024				Net Sales				$				%
Consumer Products	$	16.1				13.5	%		$	17.8				15.1	%		$	(1.7	)			(9.6	%)
Building Products		57.8				31.3	%			39.7				28.4	%			18.1				45.6	%
Total reportable operating segments	$	73.9				24.3	%		$	57.5				22.3	%			16.4				28.5	%
Other		(1.7	)		N.M.					(1.2	)		N.M.					(0.5	)			41.7	%
Unallocated Corporate		(7.2	)			2.4	%			(7.9	)			3.1	%			0.7				8.9	%
Consolidated	$	65.0				21.4	%		$	48.4				18.8	%			16.6				34.3	%

•Consumer Products – Adjusted EBITDA decreased $1.7 million from the prior year quarter, driven by the impact of lower volume, and to a lesser extent higher SG&A.

•Building Products – Adjusted EBITDA was $57.8 million, an increase of $18.1 million, or 45.6% compared to the prior year quarter, primarily due to volume growth in the wholly owned businesses. The current quarter was negatively impacted by $2.2 million of nonrecurring items related to the Elgen acquisition, reflecting a purchase accounting step up in inventory to fair value, which resulted in a nominal Adjusted EBITDA contribution from Elgen.

•Other – Adjusted EBITDA decreased $0.5 million compared to the prior year quarter, driven by lower equity earnings from Workhorse.

•Unallocated Corporate – Unallocated SG&A decreased $0.7 million, or 8.9%, from the prior year quarter, primarily driven by lower profit sharing and bonus accruals in the current quarter as well as an increase in costs recovered through the Transition Services Agreement with Worthington Steel.

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Liquidity and Capital Resources

During the three months ended August 31, 2025, we generated $41.1 million of cash from operating activities, flat from the prior year quarter, invested $13.2 million in property, plant and equipment, and spent approximately $92.0 million to acquire 100% of the outstanding equity interests in Elgen. Additionally, we paid $6.3 million to repurchase 100,000 common shares and paid dividends of $8.6 million on the common shares during the three months ended August 31, 2025.

The following table summarizes our consolidated cash flows for the periods presented:

			Three Months Ended
			August 31,
			2025				2024
Net cash provided by operating activities			$	41.1			$	41.1
Net cash used by investing activities				(105.4	)			(88.7	)
Net cash used by financing activities				(18.6	)			(18.1	)
Decrease in cash and cash equivalents				(82.9	)			(65.7	)
Cash and cash equivalents at beginning of period				250.1				244.2
Cash and cash equivalents at end of period			$	167.2			$	178.5

We believe we have access to adequate resources to meet the needs of our existing businesses for normal operating costs, mandatory capital expenditures, debt redemptions, dividend payments, and working capital, to the extent not funded by cash provided by operating activities, for at least 12 months and for the foreseeable future thereafter. These resources include cash and cash equivalents and unused committed lines of credit under our Credit Facility, which had a total of $500.0 million of borrowing capacity available to be drawn as of August 31, 2025.

Although we do not currently anticipate a need, we believe that we could access the financial markets to sell long-term debt or equity securities. However, the continuation of uncertain economic conditions, including those caused by a high interest rate environment, could create volatility in the financial markets, which may impact our ability to access capital and the terms under which we can do so.

We routinely monitor current operational requirements, financial market conditions, and credit relationships and we may choose to seek additional capital by issuing new debt and/or equity securities to strengthen our liquidity or capital structure. Should we seek additional capital, there can be no assurance that we would be able to obtain such additional capital on terms acceptable to us, if at all, and such additional equity or debt financing could dilute the interests of our existing shareholders and/or increase our interest costs. We may also from time to time seek to retire or repurchase our outstanding debt through cash purchases, in open-market purchases, privately-negotiated transactions or otherwise. Such repurchases, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved in any such transaction may or may not be material.

Operating Activities

Our business is cyclical and cash flows from operating activities may fluctuate during the year and from year to year due to economic and industry conditions. We rely on cash and short-term borrowings to meet cyclical increases in working capital needs. These needs generally arise during periods of increased economic activity or increasing raw material prices, requiring higher levels of inventory and accounts receivable. During economic slowdowns or periods of decreasing raw material costs, working capital needs generally decrease as a result of the reduction of inventories and accounts receivable.

Net cash provided by operating activities was $41.1 million during the three months ended August 31, 2025, flat compared to the prior year quarter as higher net earnings in the current year quarter was offset by an increase in operating working capital requirements (accounts receivable, inventory, and accounts payable) and a $2.5 million decrease in dividends received from unconsolidated affiliates.

Investing Activities

Net cash used by investing activities was $105.4 million during the three months ended August 31, 2025 compared to $88.7 million from the prior year quarter. Net cash used by investing activities during the three months ended August 31, 2025 was driven primarily by cash paid to acquire the outstanding equity interests in Elgen and capital expenditures, including $8.6 million related to ongoing facility modernization projects.

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Investment activities are largely discretionary and future investment activities could be reduced significantly, or eliminated, as economic conditions warrant. We assess acquisition opportunities as they arise, and any such opportunities may require additional financing. However, there can be no assurance that any such opportunities will arise, that any such acquisition opportunities will be consummated, or that any additional financing will be available on satisfactory terms if required.

Financing Activities

Net cash used by financing activities was $18.6 million during the three months ended August 31, 2025, compared to $18.1 million in the prior year quarter. During the three months ended August 31, 2025, we paid $6.3 million to repurchase 100,000 common shares and paid dividends of $8.6 million on the common shares.

Common shares – On September 23, 2025, the Board declared a quarterly dividend of $0.19 per common share payable on December 29, 2025, to shareholders of record at the close of business on December 15, 2025.

On March 24, 2021, the Board authorized the repurchase of up to 5,618,464 common shares. As of August 31, 2025, 5,265,000 common shares remained available for repurchase under this authorization.

The common shares may be repurchased under these authorizations from time to time, with consideration given to the market price of the common shares, the nature of other investment opportunities, cash flows from operations, general economic conditions and other relevant considerations. Repurchases may be made on the open market or through privately negotiated transactions.

Long-term debt and short-term borrowings – As of August 31, 2025, we were in compliance with the financial covenants of our short-term and long-term debt agreements. Our debt agreements do not include credit rating triggers or material adverse change provisions. There were no outstanding borrowings drawn against the Credit Facility at August 31, 2025, leaving the full borrowing capacity of $500.0 million available for future use.

Dividend Policy

We currently have no material contractual or regulatory restrictions on the payment of dividends. Dividends are declared at the discretion of the Board. The Board reviews the dividend quarterly and establishes the dividend rate based upon our consolidated financial condition, results of operations, capital requirements, current and projected cash flows, business prospects, and other relevant factors. While we have paid a dividend every quarter since becoming a public company in 1968, there is no guarantee that payments of dividends will continue in the future.

Critical Accounting Estimates

The discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements and related disclosure, which have been prepared in accordance with GAAP. The preparation of these consolidated financial statements requires us to use judgment and make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. We continually evaluate our estimates, including those related to our valuation of receivables, inventories, intangible assets, accrued liabilities, income and other tax accruals, contingencies and litigation, and business combinations. We base our estimates on historical experience, current trends and other factors that we believe to be relevant and reasonable under the circumstances at the time the estimate was made. These results form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Critical accounting estimates are defined as those that reflect our significant judgments and uncertainties that could potentially result in materially different results under different assumptions and conditions. Although actual results historically have not deviated significantly from those determined using our estimates, our consolidated financial position or results of operations could be materially different if we were to report under different conditions or to use different assumptions in the application of accounting policies. We believe that our estimates, assumptions, and judgments are reasonable in that they were based on information available when the estimates, assumptions and judgments were made. However, because future events and their effects cannot be determined with certainty, actual results could differ materially from those implied by our assumptions and estimates. Our critical accounting estimates have not significantly changed from those discussed in “Part II – Item 7. – Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates” of the 2025 Form 10-K.

Item 3. – Quantitative and Qualitative Disclosures About Market Risk

Market risks have not materially changed from those disclosed in “Part II – Item 7A. – Quantitative and Qualitative Disclosures About Market Risk” of the 2025 Form 10-K.

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Item 4. – Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to provide reasonable assurance that information required to be disclosed in the reports that Worthington Enterprises files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including Worthington Enterprises’ principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Management, under the supervision of and with the participation of Worthington Enterprises’ principal executive officer and principal financial officer, performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this Form 10-Q. Based on that evaluation, Worthington Enterprises’ principal executive officer and principal financial officer have concluded that such disclosure controls and procedures were designed at the reasonable assurance level and were effective at a reasonable assurance level as of the end of the quarterly period covered by this Form 10-Q.

Changes in Internal Control Over Financial Reporting

There were no changes that occurred during the period covered by this Form 10-Q in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. – Legal Proceedings

We are involved in various judicial and administrative proceedings, as both plaintiff and defendant, arising in the ordinary course of business. We do not believe that any such proceedings, individually and in the aggregate, will have a material adverse effect on our business, financial position, results of operation or cash flows.

Item 1A. – Risk Factors

There are certain risks and uncertainties in our business that could cause our actual results to differ materially from those anticipated. In “PART I – Item 1A. – Risk Factors” of the 2025 Form 10-K, we included a detailed discussion of our risk factors. Our risk factors have not changed significantly from those disclosed in the 2025 Form 10-K. Those risk factors should be read carefully in connection with evaluating our business and investments in the common shares and in connection with the forward-looking statements and other information contained in this Form 10-Q. Any of the risks described in the 2025 Form 10-K could materially affect our business, consolidated financial condition or future results and the actual outcome of matters as to which forward-looking statements are made. The risk factors described in the 2025 Form 10-K are not the only risks we face. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, also may materially adversely affect our business, consolidated financial condition and/or future results.

Item 2. – Unregistered Sales of Equity Securities and Use of Proceeds

Unregistered Sales of Equity Securities

There were no equity securities of Worthington Enterprises sold by Worthington Enterprises during the three months ended August 31, 2025 that were not registered under the Securities Act of 1933, as amended.

Issuer Purchases of Equity Securities

Common shares withheld to cover tax withholding obligations in connection with the vesting of restricted common shares are treated as common share purchases for purposes of the following table. However, those withheld common shares are not considered common share repurchases under an authorized common share repurchase plan or program. The total number of common shares purchased, as indicated in the table below, include (1) common shares withheld from our employees to satisfy minimum statutory tax withholding obligations arising from the vesting of restricted common shares and (2) common shares repurchased as part of publicly announced plans or programs.

														Maximum Number of
										Total Number of Common				Common Shares that
		Total Number of				Average Price				Shares Purchased as Part				May Yet Be
		Common Shares				Paid per				of Publicly Announced				Purchased Under the
Period		Purchased				Common Share				Plans or Programs				Plans or Programs (1)
June 1-30, 2025			40,862			$	60.46				-				5,365,000
July 1-31, 2025			124,730				62.93				100,000				5,265,000
August 1-31, 2025			317				67.05				-				5,265,000
Total			165,909			$	62.33				100,000

——————————————————

(1)The number shown represents, as of the end of each period, the maximum number of common shares that could be purchased under the publicly announced repurchase authorizations then in effect. On March 24, 2021, the Board authorized the repurchase of up to 5,618,464 common shares. A total of 353,464 common shares have been repurchased since the latest authorization, leaving 5,265,000 common shares available for repurchase at August 31, 2025, and such authorization is not subject to a fixed expiration date. The common shares available for repurchase under the authorization currently in effect may be purchased from time to time, with consideration given to the market price of the common shares, the nature of other investment opportunities, cash flows from operations, general economic conditions and other relevant considerations. Repurchases may be made on the open market or through privately-negotiated transactions.

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Item 3. – Defaults Upon Senior Securities

Not applicable.

Item 4. – Mine Safety Disclosures

Not applicable.

Item 5. – Other Information

During the quarter ended August 31, 2025, no director or officer (as defined under Rule 16a-1 of the Exchange Act) adopted or terminated any Rule 10b5-1 trading arrangements or any non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K).

Item 6. – Exhibits

				Incorporated by Reference
Exhibit No.		Exhibit Description		Form		Exhibit		Filing Date
3.1		Amended Articles of Incorporation of Worthington Enterprises, Inc. [This document represents the articles of incorporation of Worthington Enterprises, Inc. in compiled form incorporating all amendments.]		10-Q		3.1		1/09/2024
3.2		Code of Regulations of Worthington Enterprises, Inc. [This document represents the code of regulations of Worthington Enterprises, Inc. in compiled form incorporating all amendments.]		10-Q		3(b)		10/16/2000
10.1		Worthington Enterprises, Inc. 2025 Equity Plan for Non-Employee Directors†		8-K		10.1		9/26/2025
31.1		Rule 13a - 14(a)/15d - 14(a) Certifications (Principal Executive Officer)*
31.2		Rule 13a - 14(a)/15d - 14(a) Certifications (Principal Financial Officer)*
32.1		Section 1350 Certification of Principal Executive Officer**
32.2		Section 1350 Certification of Principal Financial Officer**
101		Interactive Data Files Pursuant to Rule 405 of Regulation S-T, formatted in Inline XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets at August 31, 2025 and May 31, 2025; (ii) Consolidated Statements of Earnings for the three months ended August 31, 2025 and August 31, 2024; (iii) Consolidated Statements of Comprehensive Income for the three months ended August 31, 2025 and August 31, 2024; (iv) Consolidated Statements of Cash Flows for the three months ended August 31, 2025 and August 31, 2024 and (v) Condensed Notes to Consolidated Financial Statements.*
104		The cover page from this Quarterly Report on Form 10-Q for the quarter ended August 31, 2025, formatted in Inline XBRL and included in Exhibit 101.*

——————————————————

* Filed herewith.

** Furnished herewith.

† Indicates a management contract or compensatory plan or arrangement.

30

Table of Contents

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		WORTHINGTON ENTERPRISES, INC.
Date: October 8, 2025	By:	/s/ Colin J. Souza
		Colin J. Souza,
		Vice President and Chief Financial Officer
		(On behalf of the registrant as Duly Authorized Officer and as Principal Financial Officer)

31

FAQ

What were Worthington Enterprises (WOR) net sales by segment in the quarter?

Segment net sales were $118.9M for Consumer Products and $184.8M for Building Products.

How did Adjusted EBITDA perform for Worthington Enterprises this quarter?

Building Products Adjusted EBITDA was $57.8M (up 45.6%); Consumer Products Adjusted EBITDA fell by $1.7M versus the prior year quarter.

What was the financial impact of the Elgen acquisition reported by WOR?

Elgen contributed $20.9M to net sales but the quarter was negatively impacted by $2.2M of nonrecurring costs from an inventory step-up under purchase accounting.

Does Worthington Enterprises have share repurchase capacity?

Yes. As of the period end, 5,265,000 common shares remain available for repurchase under the existing board authorization.

Why did Unallocated Corporate SG&A decline for the quarter?

Unallocated SG&A decreased by 8.9, primarily from lower profit-sharing and bonus accruals and increased cost recovery via a Transition Services Agreement.

Did the company report any hedging or foreign currency effects?

A foreign currency loss recognized in OCI for net investment hedges was $3,100 for the three months ended August 31, 2025.