# WOR earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/WOR) · [Earnings tab](https://www.lopjlb.com/stock/WOR?tab=earnings) Updated: 2026-09-23T06:59:17 Quarters analyzed: 8 ## Cross-quarter narrative Across 8 calls for WOR, management tone moved from +0.60 (2025 Q1) to +0.60 (2026 Q4). Latest guidance stance: vague. Latest desk line: WOR FY26: 20% sales growth (9% organic), 12% adj EBITDA growth, $170M FCF; acquired Elgen & LSI; ASME data center tanks $13M shipped FY26, at least $13M Q1 FY27; building products wholly owned margin +220bps to 11.7%; consumer resilient; modernization capex $16M remaining, done mid-FY27. ## Latest CallCard · Q4 WOR FY26: 20% sales growth (9% organic), 12% adj EBITDA growth, $170M FCF; acquired Elgen & LSI; ASME data center tanks $13M shipped FY26, at least $13M Q1 FY27; building products wholly owned margin +220bps to 11.7%; consumer resilient; modernization capex $16M remaining, done mid-FY27. **Guidance:** vague — No formal FY27 guidance provided. Management expects to ship at least $13M ASME tanks in Q1 FY27, complete modernization by mid-FY27, and sees low-teens EBITDA margin target achievable over coming years. **Tone:** mgmt 0.6 · Q&A pressure 0.5 · divergence 0.2 Management highlights strong FY26 results, successful acquisitions, growing data center opportunity, margin expansion in wholly owned businesses, and robust FCF generation, while acknowledging headwinds from ClarkDietrich and A2L comparison. ### Demand visibility Resilient consumer demand, growing data center liquid cooling opportunity, A2L transition long-term positive, ClarkDietrich at trough with upside, but macro uncertainty persists. Consumer products demand resilient due to contractor/pro exposure and low-cost experience products; ASME water tanks for data center liquid cooling shipped $13M FY26 with at least $13M expected Q1 FY27; A2L refrigerant transition creates multi-year service/repair opportunity; ClarkDietrich equity earnings down $19M YoY but seen as trough; building products wholly owned volumes up 5% organic in Q4. ### Margins / costs Wholly owned building products margin expanded 220bps to 11.7% (target low-teens); consumer products margin expanded 100bps to 17.5%; pricing actions offsetting inflation in steel, aluminum, brass, freight; steel market tight creating procurement advantage. Gross margin 27.4% vs 29.3% prior year due to mix, LSI inventory step-up, inflation. Building products wholly owned EBITDA +62% to $100M, margin 11.7% (+220bps). Consumer products EBITDA margin 17.5% (+100bps). Pricing actions include broad announcements, contract adjustments, new business repricing. Steel lead times extended, prices up — procurement capability a competitive advantage. ### Capital allocation $170M FCF (102% conversion), $25M elevated modernization capex, $30M less JV dividends, $9M dividends, $18M share repurchase, net debt $278M (<1x EBITDA), $500M undrawn revolver, dividend raised 5% to $0.20/share. Q4 capex $16M ($7M modernization). FY26 modernization spend $25M, $16M remaining, completion mid-FY27. JVs provided $35M dividends (90% of equity income). Net debt/adj EBITDA <1x. Board declared $0.20/share quarterly dividend (+5%). Significant flexibility for organic and acquisition growth. ### Milestones - **ASME water tanks for data center liquid cooling** [on_track]: Shipped ~$13M FY26; expect at least $13M in Q1 FY27; emerging multi-year growth opportunity with low capital intensity via manufacturing partner model. - **Elgen integration** [on_track]: Integration on track, strengthens building envelope position. - **LSI integration** [on_track]: Integration on track, strengthens building envelope position. - **Facility modernization project (consumer products)** [on_track]: $16M remaining spend; expected completion mid-FY27; then capex normalizes. - **Balloon Time Mini Walmart placement** [delivered]: Secured new placement in majority of Walmart stores; driving consumer adoption. - **80/20 initiative in camping gas and torch business** [new]: Launched similar to successful water business initiative. - **New product pipeline launches** [on_track]: Scheduled for later in FY27; teams building NPD expertise. - **A2L refrigerant transition** [on_track]: Nearly all new residential equipment now A2L; growing installed base supports future service/repair opportunity. ### Fears / risks - **ClarkDietrich earnings decline**: Equity earnings down $19M YoY to $22M; data center volumes lower profitability; trough assumed but recovery timing uncertain. - **A2L transition normalization headwinds**: Prior year quarter benefited from elevated inventory build; $5M EBITDA impact in Q4; effects may continue next couple quarters though moderating by Q2. - **Tariff and supply chain uncertainty**: Tariffs in place all year; supply chain challenges noted; consumer products navigated but risk persists. - **Inflationary cost pressures**: Commodities (steel, aluminum, brass), freight, diesel costs rising; pricing actions implemented but margin whip risk remains. - **Macro economic uncertainty**: Continued uncertainty around health of U.S. economy; could impact end markets. - **Data center revenue lag**: Up to two years between data center announcement and liquid cooling installation; revenue timing uncertain. - **Consumer discretionary spending risk**: Traditional consumer categories could weaken if macro deteriorates, though management sees resilience. - **Acquisition integration risk**: Elgen and LSI integrations ongoing; execution risk despite on-track status. ### Key quotes > “We delivered 20% sales growth — 9% of that was organic — and 12% adjusted EBITDA growth. We generated $170 million of free cash flow while successfully reducing SG&A as a percentage of sales by 200 basis points.” — Joe Hayek > “We shipped approximately $13 million of ASME tanks for data centers during fiscal 2026, and we currently expect to ship at least that much in the first quarter of fiscal 2027.” > “We have approximately $16 million of modernization spend remaining and expect to complete the project by the middle of fiscal 2027, after which capital expenditures should return to more normalized levels.” > “We still feel good about our targets of operating consistently in a low-teens EBITDA margin range. We think we've got a good chance to get there over the coming years and stay there, and we'll evaluate going higher from there.” ## Quarter one-liners - **2026 Q4:** WOR FY26: 20% sales growth (9% organic), 12% adj EBITDA growth, $170M FCF; acquired Elgen & LSI; ASME data center tanks $13M shipped FY26, at least $13M Q1 FY27; building products wholly owned margin +220bps to 11.7%; consumer resilient; modernization capex $16M remaining, done mid-FY27. - **2026 Q3:** — - **2026 Q2:** WOR delivered strong Q2 with 19% revenue growth and 8% adj. EBITDA growth, announced $205M LSI acquisition, navigated cautious consumer and construction markets, and maintained low leverage while returning capital. - **2026 Q1:** WOR Q1 FY26: sales +18% YoY, adj. EBITDA +34%, gross margin +280bps; Building Products strong on volume and Elgen, Consumer flat with mix shift; WAVE robust, ClarkDietrich pressured; modernization capex winding down, FCF conversion 94%; M&A pipeline solid, leverage 0.5x. - **2025 Q4:** Worthington Enterprises posted strong Q4 FY25 results with 14% revenue growth ex-SES, gross margin expansion to 29.3%, adjusted EBITDA margin 26.8%, announced Elgen acquisition, raised dividend 12%, but flagged tariff and economic uncertainty limiting visibility. - **2025 Q3:** Worthington Enterprises posted a strong Q3 with record production, 24% adjusted EBITDA margin and 29.3% gross margin, while noting macro uncertainty, tariff impacts and ongoing modernization projects. - **2025 Q2:** WOR Q2 FY25: Adj EPS $0.60 (+5% YoY), gross margin 27% (+580bps), Adj EBITDA $56M; Ragasco integration complete, 27% gross margin sustainable, targeting SG&A reduction, M&A focused on value-add tools. - **2025 Q1:** Worthington Enterprises posted Q1 FY2025 adjusted EBITDA of $48 M, down YoY, citing weak ClarkDietrich and building products, but highlighted a new Wisconsin modernization plant, awards and a continued focus on M&A. ## Theme arcs - **Management tone** (stable): Δ mgmt=+0.00 ## Fear persistence - **macroeconomic** [resolved]: 2025 Q1 - **steel price volatility** [recurring]: 2025 Q1, 2025 Q3, 2025 Q4 - **de‑stocking in heating/cooking** [resolved]: 2025 Q1 - **inventory uncertainty** [resolved]: 2025 Q1 - **m&a execution risk** [resolved]: 2025 Q1 - **liquidity reliance** [resolved]: 2025 Q1 - **macro headwinds** [resolved]: 2025 Q2 - **flat end markets** [resolved]: 2025 Q2 - **tariff/trade policy uncertainty** [resolved]: 2025 Q2 - **bad debt exposure** [resolved]: 2025 Q2 ## Guidance path 2025 Q1:vague → 2025 Q2:vague → 2025 Q3:maintained → 2025 Q4:vague → 2026 Q1:vague → 2026 Q2:vague → 2026 Q3:vague → 2026 Q4:vague --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/WOR`