Q1 2027 Results

Worthington Enterprises reported EPS of $0.82 versus $0.75 estimates and revenue of $343.9 million versus $331.3 million estimates.

“Worthington Enterprises delivered a double beat in Q1 2027, surpassing earnings estimates with $0.82 per share and revenue expectations with $343.9 million.”

Revenue Growth

Revenue grew 13.2% year-over-year, with 6.9% organic growth and 7% from acquisitions.

Segment Performance

Building Performance Solutions grew 16.4% to $215.1 million, while Trade & Specialty Solutions grew 8.3% to $128.8 million.

“In the first quarter of fiscal 27, we generated an additional $13 million of revenue from that value stream, essentially matching what we did in the entire prior fiscal year term.”

Earnings Quality

Net margin improved to 13.9% from 12.8% a year ago, but gross margin remained stable at 26.4%.

“we estimate that a year-over-year impact to adjusted EBITDA this quarter was approximately $7 million, which is more than we anticipated a quarter ago.”

Cash Flow

Free cash flow nearly doubled year-over-year to $54 million, with operating cash flow of $66.7 million.

“In Q1, we grew sales by 13% year over year, including 7% organically adjusted EBITDA increased by 10% to $74 million, and we generated $54 million of free cash flow, nearly double the prior year.”

Investor Reaction

Stock rose 1.4% to $58.94, but investors remain cautious about sustainable growth and cost pressures.