Recommended Free Tools
Worthington Steel reported $2.73 billion in fiscal first-quarter 2027 sales, up 212% year over year, but recorded a $7.0 million loss from continuing operations attributable to controlling interest. The quarter ended August 31, 2026, and was the first to include results from Klöckner & Co SE (Kloeckner), acquired in June. Excluding Kloeckner, sales rose 9%.
What were Worthington Steel’s Q1 2027 earnings?
Worthington Steel announced results on October 6, 2026. The table compares fiscal Q1 2027 with the company’s recast fiscal Q1 2026 figures; unless noted, the comparisons are for continuing operations. Amounts are in U.S. dollars.
![[Brandon Turner]-The Book on Rental Property Investing- How to Create Wealth and Passive Income Through Intelligent Buy & Hold Real Estate Investing! (SoftCover)](https://m.media-amazon.com/images/I/51mMR6cQZCL._SL160_.jpg)
| Measure | Fiscal Q1 2027 | Fiscal Q1 2026 |
|---|---|---|
| Net sales | $2,726.6 million | $872.9 million |
| Operating income | $56.0 million | $48.3 million |
| Net earnings (loss) attributable to controlling interest | $(7.0) million | $36.8 million |
| Diluted earnings (loss) per share | $(0.14) | $0.73 |
| Adjusted EBIT (non-GAAP) | $78.5 million | $55.5 million |
| Adjusted diluted EPS (non-GAAP) | $0.57 | $0.77 |
| Adjusted EBITDA (non-GAAP, including noncontrolling interests) | $111.0 million | $78.8 million |
Adjusted net earnings from continuing operations attributable to controlling interest were $29.1 million, down from $38.8 million a year earlier. Adjusted measures are non-GAAP figures and are not interchangeable with the GAAP loss or diluted loss per share.
Why did Worthington Steel report a loss despite higher sales?
The 212% increase in consolidated sales is not an apples-to-apples measure of growth in the pre-acquisition business. Kloeckner contributed $1,772.7 million of the quarter’s sales after the acquisition closed on June 3, 2026. Worthington Steel reported that sales excluding Kloeckner rose $81.0 million, or 9%.
Free tools Windows power users keep installed
One-click scans. No signup required.
#1 Best Overall
- Used Book in Good Condition
In that business, direct tons sold increased 3% and average direct selling prices rose 6%. Toll-processing volumes fell 8%, while toll selling prices increased 6%. The company attributed the ex-Kloeckner sales increase primarily to higher direct volumes and, to a lesser extent, higher average direct selling prices.
Kloeckner added $24.2 million to reported operating income. Excluding that contribution, Worthington Steel’s operating income declined $16.5 million from the prior-year quarter. Selling, general and administrative expense rose $17.6 million, including an $18.6 million increase in professional fees primarily related to the acquisition.
Gross margin increased $146.0 million to $261.2 million; Kloeckner contributed $144.0 million of the increase. That contribution included an approximately $43 million net inventory fair-value step-up recognized in connection with the acquisition. Excluding Kloeckner, gross margin increased $2.0 million: higher direct spreads were partly offset by higher manufacturing expense and lower toll spreads.
Operating income does not account for the full set of expenses between operations and net income. Net interest expense was $38.8 million, compared with $2.9 million in the prior-year quarter, and miscellaneous expense was $10.5 million, versus $0.2 million of miscellaneous income. Those items help explain how operating income could rise while the result attributable to controlling interest moved from profit to loss.
What’s actually slowing this PC down?
Pick the symptom - the matching free tool is one click away.
What do the adjusted figures say?
Adjusted EBIT increased to $78.5 million from $55.5 million, while adjusted diluted EPS from continuing operations fell to $0.57 from $0.77. The measures point in different directions: adjusted operating earnings were higher, but adjusted per-share earnings were lower. Both are non-GAAP measures, so they should be read separately from the GAAP continuing-operations loss and EPS.
How much cash and debt did the company report?
At August 31, 2026, Worthington Steel reported $248.2 million in cash and cash equivalents and $2,196.4 million in total debt, equivalent to net debt of $1,948.2 million. It used $6.0 million of cash in operating activities during the quarter and invested $63.0 million in property, plant and equipment. The company-defined free cash flow measure was negative $69.0 million.
Rank #4
What dividend did Worthington Steel declare?
The board declared a quarterly dividend of $0.16 per common share. It is payable December 28, 2026, to shareholders of record at the close of business on December 14, 2026.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What changed after the Kloeckner acquisition?
Worthington Steel’s consolidated results include Kloeckner from the June 3, 2026 closing date. The company held approximately 62.11% of Kloeckner after settlement of its public delisting tender offer. Some Kloeckner business units met held-for-sale criteria at acquisition and are reported as discontinued operations for fiscal 2027 and onward; the company’s operating-results discussion generally concerns continuing operations.
Worthington Steel entered into a Domination and Profit and Loss Transfer Agreement with Kloeckner on September 8, after the quarter ended. As of the October 6 earnings announcement, it remained subject to required shareholder approvals and registration, and could not become effective before January 1, 2027.
What to keep in mind when comparing the quarter
- Consolidated sales include Kloeckner and therefore do not represent organic growth; the company separately reported sales excluding Kloeckner.
- The GAAP continuing-operations loss and loss per share differ from adjusted non-GAAP earnings and per-share measures.
- Sales and operating income do not by themselves show the effect of interest, other expenses, or cash generation.
Worthington Steel scheduled its Q1 2027 earnings call for October 7, 2026, at 8:30 a.m. Eastern Time. The scheduled call is not a substitute for the reported results above.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
