Worthington Steel Posts Q3 Results, Pursues Kloeckner Acquisition
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Worthington Steel, Inc. ( (WS) ) has issued an announcement.
On March 25, 2026, Worthington Steel reported fiscal third‑quarter 2026 results for the period ended February 28, 2026, showing net sales up 12% year over year to $769.8 million, driven by higher direct volumes and selling prices, but operating income fell sharply to $3.1 million amid lower toll volumes and a $22.9 million increase in SG&A. Net earnings attributable to controlling interest declined to $10.4 million, or $0.20 per diluted share, while adjusted EPS was $0.27, and the company highlighted challenging macroeconomic conditions and an unfavorable contribution from the recently acquired Sitem Group.
During the quarter, Worthington Steel entered into a business combination agreement with German metals processor Kloeckner & Co SE and launched a public tender offer for all outstanding Kloeckner shares at €11 per share, positioning the deal as transformational for its long‑term growth and value creation. The board also declared a quarterly cash dividend of $0.16 per share on March 25, 2026, payable June 26, 2026, underscoring an ongoing commitment to shareholder returns despite margin pressure from weaker toll processing demand and the closure of its Cleveland‑area WSCP facility in May 2025.
The most recent analyst rating on (WS) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on Worthington Steel, Inc. stock, see the WS Stock Forecast page.
Spark’s Take on WS Stock
According to Spark, TipRanks’ AI Analyst, WS is a Neutral.
The score is anchored by solid financial fundamentals (low leverage and strong cash conversion) and a constructive earnings update with market-share gains. These are meaningfully offset by weak technicals (bearish momentum and price below key moving averages) and a valuation that is not especially discounted for cyclicality, with M&A adding upside but also integration/financing risk.
To see Spark’s full report on WS stock, click here.
More about Worthington Steel, Inc.
Worthington Steel, Inc., based in Columbus, Ohio, is a market‑leading, value‑added metals processing company focused on direct and toll steel processing for customers in North America and Europe. The business sells processed steel products with an emphasis on direct volumes and spreads, and it has been expanding its footprint through acquisitions such as Sitem Group and a proposed combination with Germany’s Kloeckner & Co SE.
Average Trading Volume: 293,708
Technical Sentiment Signal: Sell
Current Market Cap: $1.78B
Find detailed analytics on WS stock on TipRanks’ Stock Analysis page.
