Worthington Enterprises jumps about 16% after hours on a beat; $4 million of tariff refunds helped
The Bernzomatic and Coleman propane maker posted adjusted EPS of $0.82 and 13% sales growth. The release also shows how much of the quarter came from refunded tariffs and from joint ventures rather than its own operations.
Shares of Worthington Enterprises (WOR) rose about 16% in after-hours trading on Tuesday, to around $68.50, after the Columbus, Ohio, building-products and tools maker reported first-quarter results above expectations. The stock had closed the regular session at $58.86, up 1.2%, according to Nasdaq data.
For the quarter ended August 31, net sales rose 13% to $343.9 million and adjusted earnings came to $0.82 a share, up from $0.78, according to the company's earnings release filed with the SEC. Investing.com reported that EPS beat estimates by 7 cents and revenue came in above forecasts. GAAP earnings were $0.87 a share, versus $0.70. Free cash flow nearly doubled to $54.0 million.
The number behind the beat: tariff refunds
One line in the release connects directly to a story running through corporate America this quarter. Worthington said the quarter "benefited from $4.0 million in net tariff refunds" tied to the International Emergency Economic Powers Act, the law behind the tariffs the Supreme Court struck down.
That money is small next to sales, about 1.2% of the quarter's revenue by our arithmetic, and a bit below the 1.7% average that firms expecting refunds reported in the Atlanta Fed's latest survey. It is large next to operating profit. Adjusted operating income was $13.7 million, down from $13.9 million a year ago, and the release lists the refunds among the things that helped it. Take $4.0 million out and, on our math, adjusted operating income would have been about $9.7 million, roughly 30% lower than a year ago. Refunds are not part of the ongoing business, so that is the figure to keep in mind when reading the next few quarters.
Where the profit really comes from
Most of Worthington's earnings come from businesses it does not fully own. Equity income from unconsolidated affiliates, mainly WAVE (the Worthington Armstrong Venture) and ClarkDietrich, rose to $40.6 million. Pre-tax earnings for the whole company were $55.6 million, so the joint ventures supplied about 73% of it. GAAP net income also included a $4.0 million gain from an earnout on an oil and gas business sold in 2021.
| Q1 fiscal 2027 | Sales | Change | Adj. EBITDA |
|---|---|---|---|
| Building Performance Solutions | $215.1M | +16.4% (6.0% organic) | $59.8M, about flat |
| Trade & Specialty Solutions | $128.8M | +8.3% | $24.0M, up $7.9M |
The split between the segments matters. The building side, which sells engineered products for homes and commercial buildings, mainly to manufacturers and distributors, grew mostly through acquisitions, and its profit was flat because of lower overall volume and a weaker product mix. The trade and consumer side, with tools and propane cylinders, grew on both volume and price. That fits the day's other housing news: homebuilder KB Home reported deliveries down 19% and rising cancellations. The Worthington release does not say how much of the volume decline came from new residential construction.
Balance sheet and what's next
Worthington had no borrowings on its $500 million credit line, $305.6 million of long-term debt and $55.1 million in cash. It bought back 335,000 shares for $18.2 million and declared a $0.20 quarterly dividend, payable December 29. The earnings call is Wednesday at 8:30 a.m. Eastern. After-hours prices can move sharply on thin volume and may change by the open.
Sources: Worthington Enterprises Q1 fiscal 2027 earnings and dividend releases (SEC Form 8-K); Nasdaq; Investing.com. Refund-adjusted and share-of-profit figures are our calculations. This is market information, not investment advice.
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