From Alphastreet - Earnings Decoded. Market Intelligence Delivered · AlphaStreet Newsdesk · · 1m
Worthington Steel Q1 2027 Earnings Miss
Worthington Steel's Q1 2027 earnings miss reveals acquisition-driven revenue surge masking profitability decline.
In brief
Worthington Steel's Q1 2027 earnings miss reveals acquisition-driven revenue surge masking profitability decline. 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. Originally reported by Alphastreet - Earnings…
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.
The key point
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.
