Worthington Steel posts Q4 net loss on impairment, acquisition costs

Worthington Steel

24/06/2026 21:29

Overview
Quarterly net loss driven by impairment charges and acquisition-related expenses
U.S. metals processor's fiscal Q4 net sales grew 12% yr/yr, adjusted EPS rose
Company completed acquisition of majority stake in Kloeckner after quarter-end

Outlook
Worthington Steel did not provide specific financial guidance for the upcoming quarter or full year

Result Drivers
HIGHER DIRECT VOLUMES AND PRICES - Revenue growth was driven by increased direct volumes, including the addition of Sitem Group, and higher average direct selling prices
IMPAIRMENT CHARGES - Operating loss was primarily due to $94.5 mln in goodwill and long-lived asset impairments in the Electrical Steel unit, reflecting weakened demand and increased foreign competition
HIGHER ACQUISITION-RELATED EXPENSES - SG&A expenses rose, mainly due to $15.5 mln in professional fees related to the Kloeckner acquisition

Company press release: ID:nBw7WSrnda

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$929.20 mln
$992 mln (1 Analyst)
Q4 Adjusted EPS
Beat
$0.74
$0.73 (1 Analyst)
Q4 Net Income
 
-$48.70 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the iron & steel peer group is "buy"
Wall Street's median 12-month price target for Worthington Steel Inc is $46.00, about 15.7% above its June 23 closing price of $39.76
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)