NYSE:WOR
WORTHINGTON ENTERPRISES, INC.
A resilient industrial player balancing cyclical commodity exposure with high-margin engineering solutions in the North American market.
Key Metrics
Investment Thesis
Bull Case
WOR offers an attractive turnaround profile as cyclical demand normalizes, backed by a fortress balance sheet with $250.1M in cash and minimal debt service pressure relative to EBITDA, while share repurchases of $30.9M signal management confidence in long-term value creation.
Bear Case
The dramatic revenue drop from 2023 to 2025 suggests a potential secular decline in key market segments or a one-time loss of major contracts, and the large retained earnings deficit of $624.5M indicates historical burn that could limit flexibility if commodity prices remain elevated.
About WORTHINGTON ENTERPRISES, INC.
Worthington Enterprises Inc. (WOR) is a diversified industrial manufacturer specializing in structural metals, energy equipment, and automotive components for the global transportation and construction sectors.
Analysis
Management Discussion
Despite a significant year-over-year revenue contraction from $4.92B in 2023 to $1.15B in 2025, the company maintained profitability with net income stabilizing at $95.0M, supported by strong operating cash flow of $209.7M and strategic capital discipline evident in balanced investing and financing activities.
Industry Overview
The industrial manufacturing sector is highly cyclical and dependent on global infrastructure spending rates and energy transition investments, requiring companies like WOR to navigate volatile input costs while continuously innovating to capture share in decarbonization projects.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $4.92B | $1.25B | $1.15B |
| Cost of Revenue | $4.25B | $960.7M | $834.7M |
| Gross Profit | $663.3M | $285.0M | $319.0M |
| Operating Expenses | $450.9M | $358.5M | $329.8M |
| Operating Income | $212.4M | $-73.5M | $-10.7M |
| G&A | $428.9M | $283.5M | $268.4M |
| Stock-Based Comp | $19.2M | $16.7M | $16.2M |
| D&A | $112.8M | $80.7M | $48.3M |
| Depreciation | $94.0M | $36.8M | $34.5M |
| Amortization | $18.2M | $11.8M | $13.7M |
| Other OpEx | $22.1M | $75.0M | $61.3M |
| Non-Operating Income | $133.0M | $147.5M | $139.5M |
| Interest Expense | $26.8M | $1.6M | $2.1M |
| Pre-Tax Income | $345.4M | $74.0M | $128.8M |
| Income Tax | $76.2M | $39.0M | $33.8M |
| Continuing Ops | $269.2M | $35.0M | $95.0M |
| Discontinued Ops | $0 | $82.8M | $0 |
| Net Income | $269.2M | $117.8M | $95.0M |
| Minority Interest | $12.6M | $7.2M | $-1.1M |
| Net to Common | $256.5M | $110.6M | $96.1M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $1.87B | $673.9M | $685.4M |
| Cash & Equivalents | $454.9M | $244.2M | $250.1M |
| Accounts Receivable | $692.9M | $199.8M | $215.8M |
| Inventory | $608.0M | $164.6M | $169.4M |
| Prepaid Expenses | $105.0M | $47.9M | $37.4M |
| Other Current Assets | $7.6M | $17.3M | $12.7M |
| Long-Term Assets | $1.78B | $964.7M | $1.01B |
| PP&E (Net) | $675.7M | $227.2M | $270.2M |
| Intangibles | $314.2M | $221.1M | $190.4M |
| Goodwill | $414.8M | $331.6M | $376.5M |
| Operating Leases | $100.0M | $18.7M | $22.7M |
| Other LT Assets | $25.3M | $21.3M | $20.7M |
| Total Assets | $3.65B | $1.64B | $1.70B |
| Current Liabilities | $717.6M | $178.4M | $196.8M |
| Accounts Payable | $528.9M | $91.6M | $103.2M |
| Current Debt | $264.0K | — | — |
| Current Leases | $12.6M | $6.2M | $6.0M |
| Taxes Payable | $7.5M | $470.0K | $109.0K |
| Other Current Liab | $150.0M | $71.0M | $78.3M |
| Long-Term Liabilities | $1.11B | $569.2M | $560.1M |
| Long-Term Debt | $689.7M | $298.1M | $302.9M |
| LT Operating Leases | $90.0M | $12.8M | $17.2M |
| Other LT Liab | $332.0M | $258.3M | $240.0M |
| Total Liabilities | $1.83B | $747.6M | $756.9M |
| Shareholders' Equity | $1.82B | $891.0M | $938.2M |
| Retained Earnings | $1.43B | $589.4M | $624.5M |
| AOCI | $-23.2M | $454.0K | $4.0M |
| Total L&E | $3.65B | $1.64B | $1.70B |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $269.2M | $117.8M | $95.0M |
| Non-Cash Adjustments | $848.8M | $292.7M | $110.7M |
| Working Capital Changes | $-492.6M | $-120.5M | $4.1M |
| Cash from Operations | $625.4M | $290.0M | $209.7M |
| Capital Expenditures | $86.4M | $83.5M | $50.6M |
| Cash from Investing | $-71.8M | $-140.8M | $-135.1M |
| Debt Repayments | $6.7M | $393.9M | — |
| Share Buybacks | — | — | $30.9M |
| Dividends Paid | $59.2M | $56.8M | $33.9M |
| Cash from Financing | $-133.1M | $-359.9M | $-68.8M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $420.5M | $-210.7M | $5.8M |
| Beginning Cash | $34.5M | $454.9M | $244.2M |
| Ending Cash | $454.9M | $244.2M | $250.1M |
Frequently Asked Questions
How does WORTHINGTON ENTERPRISES, INC. make money?
The company generates revenue through three primary streams: structural metal products serving the transportation infrastructure and building markets, heavy-duty equipment for the energy sector including oil and gas applications, and specialized automotive components supporting vehicle manufacturing needs.
What are the main risks for WOR?
Investors should monitor sensitivity to global economic slowdowns affecting transportation demand, exposure to fluctuating steel and aluminum input prices impacting gross margins, and potential supply chain disruptions affecting the delivery of critical automotive and energy components.
What is WOR's competitive advantage?
Worthington leverages a vertically integrated manufacturing footprint to control costs amid raw material volatility, maintains a robust backlog of long-term contracts in energy services, and possesses proprietary metallurgical expertise that differentiates its high-specification products from commodity competitors.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.