# Worthington Steel Q1 2027 Earnings Miss

> Worthington Steel's Q1 2027 earnings miss reveals acquisition-driven revenue surge masking profitability decline.
- Title: Worthington Steel Q1 2027 Earnings Miss | Shortify
- Summary: Worthington Steel's Q1 2027 earnings miss reveals acquisition-driven revenue surge masking profitability decline. Worthington Steel reported $0.57 EPS for Q1…
- Keywords: worthington steel, kloeckner acquisition, eps miss, q1 2027, net loss, revenue surge, Worthington, Steel, 2027, Earnings, Miss, Alphastreet - Earnings Decoded. Market Intelligence Delivered
- Source: Alphastreet - Earnings Decoded. Market Intelligence Delivered — https://news.alphastreet.com/worthington-steel-q1-2027-deep-dive-whats-behind-the-26-0-miss
- Author: AlphaStreet Newsdesk
- Published: 2026-10-08T14:34:33+00:00
- Read time: 1 min
- Topics: worthington steel, kloeckner acquisition, eps miss, q1 2027, net loss, revenue surge
## Worthington Steel Q1 2027 Earnings
Worthington Steel reported adjusted earnings of $0.57 per share for Q1 2027, missing analyst estimates of $0.77.
## Revenue Surge from Kloeckner
Revenue surged to $2.73B, up 212.0% year-over-year, primarily from Kloeckner acquisition.
## Profitability Deterioration
Company reported net loss of $10.0M for Q1, compared to $36.8M profit a year ago.
## Margin Compression
Gross margin stood at 9.6% on gross profit of $261.2M, operating margin at 2.1% on operating income of $56.0M.
## Integration Challenges
Management noted $43 million headwind from inventory accounting adjustments, suggesting integration complexity may extend across multiple quarters.

> as that inventory was sold, the step-up reduced first quarter gross margin and adjusted EBITDA by an estimated $43 million
## Stock Reaction
Stock fell 2.4% to $38.19, indicating investor caution on near-term margin recovery.
## Key takeaway

Worthington Steel reported $0.57 EPS for Q1 2027, missing estimates by 26.0%, with net loss of $10.0M despite revenue tripling from Kloeckner acquisition.