COLUMBUS, Ohio - Worthington Steel, Inc. (NYSE:WS) reported second quarter fiscal 2025 results that beat earnings expectations but missed on revenue, sending shares down 7.25% in after-hours trading Wednesday.
The steel processing company posted adjusted earnings per share of $0.19, surpassing analyst estimates of $0.15. However, revenue came in at $739 million, falling short of the $750.6 million consensus forecast and declining 9% year-over-year.
"Worthington Steel delivered a solid quarter despite headwinds across a number of end markets," said Geoff Gilmore, president and CEO.
The company reported net sales decreased 9% compared to the prior year quarter, driven primarily by lower volumes and direct selling prices. Direct tons sold decreased 5% while toll tons sold decreased 1% compared to Q2 fiscal 2024.
Gross margin increased by $19.8 million over the prior year to $80 million, helped by higher direct spreads which were partially offset by lower volume.
For the quarter, Worthington Steel generated adjusted EBITDA of $30.6 million and free cash flow of $33.2 million.
The company declared a quarterly dividend of $0.16 per share, payable on March 28, 2025.
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