Worthington Enterprises reports 24% revenue growth, completes LSI acquisition

The company held an earnings conference call to discuss Q3 FY2026 results for the quarter ended February 28, 2026. The call addressed financial results and outlook for the company and its markets.

Q3 FY2026 net earnings were $45.1 million, up from $27.0 million in Q2 FY2026 and $39.3 million in Q3 FY2025. The trailing twelve months net earnings margin was 8.3%.

Trailing twelve months adjusted EBITDA reached $297.4 million with a 22.4% margin, up from $243.1 million and 21.1% margin in the prior year period. This non-GAAP measure excludes restructuring charges, inventory step-up amortization, impairments, and other one-time items.

Net debt stood at $301.3 million as of February 28, 2026, resulting in a net debt-to-adjusted EBITDA ratio of 1.0x. This indicates moderate leverage with total debt of $312.0 million offset by $6.0 million in cash.

Worthington Enterprises delivered strong Q3 fiscal 2026 results with revenue up 24% year-over-year to $379 million, adjusted EBITDA up 15% to $85 million, and adjusted earnings per share of $0.98 (up from $0.91 prior year). Trailing twelve-month adjusted EBITDA reached $297 million, up $54 million or 22% from the prior year period. The company achieved this growth while improving operating leverage, with SG&A declining 70 basis points as a percentage of sales.

Worthington completed the acquisition of LSI in mid-January 2026, adding a leading manufacturer of standing seam metal roofing clips and components to its Building Products segment. LSI contributed $32 million in net sales during the approximately $ 45,120 six weeks it was owned in Q3. The acquisition expands Worthington's position in the building envelope with products that have high switching costs due to OEM certification requirements. Management stated integration efforts are on track and they are excited about growth prospects.

Worthington disclosed significant and growing exposure to data center construction across multiple business lines including WAVE, ClarkDietrich, Elgen, LSI, and Amtrol. The company's ASME cooling tanks for liquid-cooled data centers are experiencing particularly strong growth, with management stating that business will likely triple in fiscal 2026 and continue growing for several years. Data center demand is currently less than 10% of each affected business line but represents the fastest-growing segment in each. The company is making targeted investments in people, processes, and equipment to capture this multi-year opportunity.

Building Products delivered strong Q3 results with net sales up 36% to $224 million, including 16% organic growth driven by higher volumes in water, cooling, and construction businesses. Adjusted EBITDA increased to $59 million from $53 million prior year, with a 26.3% margin. The LSI acquisition contributed $32 million in sales during the six weeks owned. WAVE joint venture contributed $27 million in equity earnings (up year-over-year), while ClarkDietrich contributed $6 million (down from $9 million prior year) due to challenging nonresidential construction conditions, though ClarkDietrich improved modestly sequentially from Q2.

Consumer Products achieved 11% organic sales growth in Q3 to $155 million, driven by volume increases and higher average selling prices. Adjusted EBITDA grew to $35 million from $29 million, with margins expanding 240 basis points to 22.9%. Balloon Time drove growth through expanded retail placement (now in 55,000 stores, up 64% year-over-year) and new product innovations. The outdoor business also saw volume increases, while tools businesses remained stable. Management noted no signs of retailer overstocking and expects continued momentum from the innovation pipeline.