Worthington Steel Inc. Faces Challenges And Opportunities In Q3 2025
$WOR
Worthington Steel Inc. (NYSE:WS) reported a mixed third quarter in fiscal 2025, reflecting the combined impact of economic headwinds and industry-specific shifts. The company posted earnings of $13.8 million, or $0.27 per share—a notable drop from $0.98 in the same period last year. Lower shipment volumes and declining selling prices across core markets contributed to the decrease, underscoring broader pressures in the steel processing sector.
Quarterly revenue fell to $687 million, down 15% year-over-year, with total shipments reaching approximately 881,000 tons—an 11% decline. Automotive shipments were down by 3%, while volumes in the construction sector dropped 20%, largely due to economic uncertainty and a tough comparison against strong performance the previous year.
SG&A expenses, which increased by $1.8 million, alongside restructuring and impairment charges totaling $7.4 million. These included a $6.1 million facility consolidation cost and a $1.3 million R&D asset write-off. Nonetheless, the company generated $54 million in operating cash flow and $25 million in free cash flow, ending the quarter with net debt of $49 million—a level that supports continued investment and strategic execution.
Strengthening its position, Worthington acquired a 52% stake in Sitem, a European leader in electrical steel lamination. This move not only expands its global footprint but also enhances capabilities in a critical growth segment. The company’s recognition as Mahle’s Best Supplier of the Year for the third consecutive year highlights its continued commitment to quality and reliability.
Worthington Steel remains focused on the North American automotive market. Expansion into electrical steel is a key part of its strategy, with new production facilities set to come online in Canada and Mexico between late 2025 and early 2026.
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