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• Adjusted EBITDA: $41.9 million, down from $82.8 million in the prior year quarter.

• Earnings Per Share (EPS): $0.27, compared to $0.98 in the same period last year.

• Net Sales: $687 million, a decrease of 15% from the prior year quarter.

• Shipments: Approximately 881,000 tons, down 11% compared to the prior year quarter.

• Automotive Shipments: Down 3% in the third quarter.

• Construction Market Volumes: Decreased 20% year-over-year.

• Adjusted EBIT: $25.3 million, down from $66.9 million in the prior year quarter.

• SG&A Expenses: Increased by $1.8 million over the prior year third quarter.

• Cash Flow from Operations: $54 million.

• Free Cash Flow: $25 million.

• Capital Expenditures: $28.6 million during the quarter.

• Net Debt: $49 million at the end of the quarter.

• Warning! GuruFocus has detected 2 Warning Sign with WS.

Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Worthington Steel Inc (NYSE:WS) saw signs of improvement in demand during the last month of the quarter, indicating potential recovery in key markets.

• The company is optimistic about the North American auto market, with forecasts showing potential upside due to lower interest rates and inflation.

• Worthington Steel Inc (NYSE:WS) is expanding its electrical steel capabilities in Canada and Mexico, with production expected to begin in late 2025 and early 2026, respectively.

• The company has made progress in acquiring a 52% ownership stake in Sitem, a leading European electrical steel lamination manufacturer, which will strengthen its market position.

• Worthington Steel Inc (NYSE:WS) received the Best Supplier of the Year award from Mahle for the third consecutive year, highlighting its exceptional performance in quality and delivery.

Negative Points

• Worthington Steel Inc (NYSE:WS) reported a significant decrease in adjusted EBITDA, down from $82.8 million in the prior year quarter to $41.9 million.

• Earnings per share dropped to $0.27 from $0.98 in the same period last year, impacted by lower volumes and selling prices.

• Shipments to the automotive market were down 3% in the third quarter, with ongoing production cuts at a major OEM customer affecting results.

• The construction market saw a 20% decrease in volumes year-over-year, attributed to economic uncertainty and tough comparisons from the previous year.

• The company faced asset impairment charges and restructuring expenses, including a $6.1 million impairment from consolidating facilities and a $1.3 million write-off related to R&D.