NYSE$WOR

Worthington Enterprises Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported record second quarter results driven by strong performance in Steel Processing and Building Products segments.

Worthington Industries reported net sales of $1.2 billion and net earnings of $110.3 million, or $2.15 per diluted share, for its fiscal 2022 second quarter. The results were driven by strong performance in the Steel Processing and Building Products segments.

  • Net sales increased by 69% to $1.2 billion compared to the prior year quarter, primarily driven by higher average direct selling prices in Steel Processing.
  • Gross margin increased to $184.6 million, primarily due to improved direct spreads in Steel Processing and higher overall volume.
  • Equity income from unconsolidated joint ventures increased to $60.2 million, driven by higher contributions from ClarkDietrich, WAVE and Serviacero.
  • The company closed on the acquisition of Tempel Steel, positioning it as a global leader in the electrical steel market.

Headline financials

Total Revenue

$1.23B

Previous: $731M+68.6%
EPS (adj)

$2.12

Previous: $0.95+123.2%
Capital Expenditures

-$24.2M

Previous: -$16.1M-50.8%
Free Cash Flow

$86.1M

Previous: -$90.1M+195.5%
Net Income

$110M

Previous: -$74M+249.0%
Operating Income

$90.5M

Previous: $37.4M+142.1%
Gross Profit

$185M

Previous: $135M+36.3%
Cash & Equivalents

$225M

Previous: $713M-68.4%
Total Assets

$3.52B

Previous: $3.03B+16.2%

Revenue & EPS history

Worthington · Revenue · Quarterly

$1.23B

Q2 2022+68.6%vs Q2 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Worthington · $262M total across 2 segments · Q2 2022

  • Consumer Products
    $141M
  • Building Products
    $121M

Forward guidance

The company anticipates healthy demand across its key end markets and is excited about the acquisition of Tempel Steel.

Tailwinds

  • Anticipates continued healthy demand across key end markets.
  • The acquisition of Tempel Steel makes the company a global leader in the electrical steel market.
  • Tempel Steel acquisition complements existing sustainable mobility offerings in lightweighting and hydrogen.
  • The company is positioned to more widely serve rapidly growing global markets for electric vehicles and electricity infrastructure.
  • Steel Processing continued to benefit from inventory holding gains

Headwinds

  • Consumer Products continued to feel the impact of higher input costs.
  • Volume and mix in Sustainable Energy Solutions were negatively impacted by the ongoing semi-conductor chip shortage.
  • Higher SG&A expense, up $14.0 million, on higher profit sharing and bonus expense.
  • Cash decreased by $415.1 million from year-end primarily due to an increase in working capital associated with higher steel prices and the acquisition of the Shiloh Industries U.S. BlankLight® business.
  • Volume in Sustainable Energy Solutions was also negatively impacted by the May 31, 2021, divestiture of the Liquified Petroleum Gas business in Poland.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.8%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+23.8%

Q3 2025

Best reaction

-22.3%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-5.6%+1.8%
Q2 2026-2.3%-6.2%-5.1%
Q1 2026-11.8%-9.2%-2.9%
Q4 2025+0.0%+2.6%+0.1%
Q3 2025+23.8%+20.3%+19.5%
Q2 2025+8.9%+5.4%+8.1%
Q1 2025-4.0%-8.3%-13.3%
Q4 2024-5.5%-7.7%-2.3%
Q3 2024+6.5%-0.9%-8.8%
Q2 2024-0.7%-0.1%-5.7%
Q1 2024-10.0%-9.6%-11.1%
Q4 2023+10.5%+11.3%+18.6%
Q3 2023+18.0%+18.5%+15.3%
Q2 2023-3.5%-3.7%+3.9%
Q1 2023-22.3%-8.1%-4.6%
Q4 2022+14.8%+13.8%+10.1%
Q3 2022-13.6%-17.7%-13.3%
Q2 2022+1.1%-0.5%+14.0%
Q1 2022-5.4%-0.8%-2.5%
Q4 2021+3.3%+2.6%+5.8%
Q3 2021+2.9%+3.4%+3.8%
Q2 2021-6.5%-6.4%+7.0%
Q1 2021+1.6%+8.6%+34.7%
Q4 2020-2.1%+6.7%+7.3%
Q3 2020+6.3%+15.9%+4.0%
Q2 2020+10.0%+8.1%+3.2%
Q1 2020-4.8%-2.3%-2.3%
Q4 2019+4.6%+8.3%+9.7%
Q3 2019+2.4%-6.3%+8.6%
Q2 2019-5.7%-5.1%+2.3%
Q1 2019-8.9%-5.4%-13.6%
Q4 2018-9.3%-6.8%+0.6%
Q3 2018-2.4%-0.6%+11.9%
Q2 2018+2.4%+1.7%+9.9%
Q1 2018-9.3%-7.4%-7.5%
Q4 2017+5.3%+3.8%+6.9%
Q3 2017-8.5%-11.9%-13.4%
Q2 2017-6.8%-11.0%-15.0%
Q1 2017+6.7%+8.9%+5.0%
Q4 2016+14.5%+13.7%+19.9%
Q3 2016-3.2%
Q2 2016+9.2%
Q1 2016+15.3%
Q4 2015+6.3%
Q3 2015-9.3%
Q2 2015-15.1%
Q1 2015-3.7%
Q4 2014+1.4%
Q3 2014-7.0%
Q2 2014-2.9%
Q1 2014+1.4%
Q4 2013-2.0%
Q3 2013+1.5%
Q2 2013+0.9%
Q1 2013-1.9%
Q4 2012+16.1%
Q3 2012+4.5%
Q2 2012+3.5%
Q1 2012-6.7%
Q4 2011-3.0%
Q4 2009-3.0%
Q3 2011-2.7%
Q3 2010-2.7%
Q2 2011+1.1%
Q2 2010+1.1%
Q1 2011-0.4%
Q1 2010-0.4%
Q4 2010-0.4%

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