Worthington Enterprises Reports 24.4% Revenue Growth in Q3 Fiscal 2026

Worthington Enterprises, Inc. reported significant financial growth in its third quarter of fiscal 2026, with net sales reaching $378.7 million, a 24.4% increase from $304.5 million in the same quarter of the previous year. The company's operating income also rose to $31.5 million, up from $20.9 million, while net earnings attributable to controlling interest increased to $45.5 million, compared to $39.7 million in the prior year quarter. This growth was driven by higher sales volumes and contributions from recent acquisitions, particularly in the Building Products segment, which saw a 35.9% increase in net sales.

The company experienced notable changes compared to the previous fiscal period, particularly in its operational structure following the acquisition of LSI, a major player in the commercial roofing market, for $206.1 million in January 2026. Additionally, Worthington acquired Hydrostat’s propane distribution assets for approximately $9.6 million and Elgen, a provider of HVAC components, for $90.7 million. These acquisitions are expected to enhance Worthington's product offerings and market reach, particularly in the Building Products segment.

Operationally, Worthington's Building Products segment reported net sales of $223.9 million, a significant increase attributed to both higher volumes and the impact of acquisitions, which contributed $32.2 million to net sales in the current quarter. The Consumer Products segment also saw growth, with net sales of $154.8 million, reflecting a 10.8% increase driven by higher average selling prices. The company’s adjusted EBITDA for the quarter was $84.6 million, up from $73.8 million in the prior year, indicating improved operational efficiency.

The filing noted that the company’s gross profit increased to $109.5 million, a 22.8% rise from the previous year, although the gross margin slightly decreased due to amortization related to the inventory step-up from acquisitions. Worthington's equity income from unconsolidated affiliates was $30.7 million, down from $32.1 million, primarily due to lower contributions from ClarkDietrich amid pricing pressures in the non-residential construction market.

Looking ahead, Worthington Enterprises anticipates continued challenges in the macroeconomic environment, including moderating inflation and mixed housing activity, which may impact consumer spending and construction demand. The company remains focused on operational efficiency and strategic investments to navigate these challenges while positioning itself for long-term growth. The outlook suggests cautious optimism, with management emphasizing the importance of disciplined execution and portfolio diversification in the face of economic uncertainties.