The stock price of Worthington Enterprises, Inc. (NYSE: WOR) saw a sharp increase when the company’s fiscal third-quarter results were announced. WOR shares were trading at $51.27 as of the most recent market check, representing a remarkable 23.11% rise.
Strong Financials
According to the company’s most recent earnings report, sales, adjusted EBITDA, and adjusted profits per share (EPS) all increased both sequentially and year over year, indicating strong financial success.
Worthington Enterprises reported net sales of $304.5 million for the third quarter of fiscal 2025, which is a 3.9% fall from the same period the previous year, or a $12.2 million reduction.
The deconsolidation of the Sustainable Energy Solutions (SES) sector in the fourth quarter of fiscal 2024 was the main cause of this reduction. Nonetheless, Ragasco’s contributions and higher overall volumes helped to somewhat offset the drop in income.
Growing Profits and Returns to Shareholders
Notwithstanding the little decline in sales, the business showed strong profitability. Adjusted EBITDA from continuing operations increased 10% to $73.8 million, while earnings before income taxes increased 30% to $52.6 million.
In keeping with its shareholder-focused approach, Worthington Enterprises also paid $6.2 million to repurchase 150,000 shares of common stock, which left 5,565,000 shares remaining under the company’s repurchase authorization. Additionally, the business announced that shareholders of record as of June 13, 2025, will receive a quarterly dividend of $0.17 per share on June 27, 2025.
Financial Stability and Operational Power
Gains in market share, an improved product mix, and higher gross margins across all of its wholly owned companies propelled Worthington Enterprises’ expansion. In contrast to last year’s strong performance, the ClarkDietrich division showed a reduction in results, while joint ventures were steady.
These outcomes highlight the business’s capacity to increase operational effectiveness, control expenses, and provide customers with value-added solutions despite macroeconomic uncertainty.
Moreover, Worthington Enterprises maintained a solid financial position, announcing free cash flow of $44.4 million, up from $40.1 million in the quarter before to this year. With no borrowings under its revolving credit facility and just long-term liabilities, its total debt as of February 28, 2025, was $293.9 million, leaving $500.0 million available for future usage.