WS Q1 FY27 earnings call: key takeaways

• Worthington Steel's first quarter fiscal 2027 earnings were $0.57 per share, missing the $1.16 consensus estimate (3:59)

Results vs expectations

EPS basis: Adjusted EPS, provider (EODHD); matches the company press release

The stock moved -6.9% over the report window (S&P 500 ETF -0.2%). Earnings history

What changed since last quarter

• The company raised its guidance for the year, citing the successful integration of Klockner and improved operational performance. (3:59)
• The company's adjusted EBITDA was $111 million, but this figure was impacted by a $43 million inventory step-up from purchase accounting. (16:29)
• The company emphasized the importance of capturing synergies and improving working capital, with a focus on inventory management and cost reduction. (16:29)

What analysts pressed on

• How much of Klockner's business was sourced from domestic mills versus imports. (31:44)
• The sustainability of current spreads in the face of rising hot rolled pricing. (26:03)
• The impact of the DPLTA on minority shareholders and the timeline for their share retention. (27:58)

In their words

• This is one of the most challenging steel supply environments most of us have ever seen. Jeff Gilmore (1:59)
• We are not assuming a significant near-term inflection and builds, but we believe Worthington Steel is well positioned to grow... (5:37)
• The market's going to remain tight. You got very limited imports coming in. (26:03)
• We buy where we produce. So, you know, it's going to be 99% of their purchases would have come from domestic mills. (31:44)