Executive Summary
Worthington Industries reported a solid first quarter for QQ1 2026, underpinned by a resilient top line and a notably favorable pre-tax contribution from non-operating income. Revenue totaled $303.7 million, down 4.7% year over year, while net income reached $35.15 million with a diluted EPS of $0.71. The gross margin stood at 27.09% and the operating margin was 3.04%, reflecting ongoing cost discipline but a relatively modest operating earnings base. A material driver of overall pretax profitability was “totalOtherIncomeExpensesNet” of $36.44 million, which more than offset the modest operating income of $9.24 million. This composition suggests that one-time or non-core items contributed meaningfully to current period profitability, warranting close scrutiny of sustainability going forward.
Key Performance Indicators
QoQ: -55.71% | YoY:89.02%
QoQ: -11.38% | YoY:210.58%
QoQ: -11.25% | YoY:210.94%
Key Insights
Revenue: $303.707 million in Q1 2026, down 4.73% YoY and -0.27% QoQ. Gross Profit: $82.284 million, up 5.36% YoY but down 7.80% QoQ; Gross Margin: 27.09% (0.2709). Operating Income: $9.243 million, up 89.02% YoY but down 55.71% QoQ, margin 3.04% (0.0304). Net Income: $35.148 million, up 210.58% YoY and -11.38% QoQ; Net Margin: 11.57%. EBITDA: $9.243 million. EPS: $0.71 (diluted). Weighted average shares: 49.264 million. Pretax income benefited from Total Other Income/Expenses of $36.438 million;...
Financial Highlights
Revenue: $303.707 million in Q1 2026, down 4.73% YoY and -0.27% QoQ. Gross Profit: $82.284 million, up 5.36% YoY but down 7.80% QoQ; Gross Margin: 27.09% (0.2709). Operating Income: $9.243 million, up 89.02% YoY but down 55.71% QoQ, margin 3.04% (0.0304). Net Income: $35.148 million, up 210.58% YoY and -11.38% QoQ; Net Margin: 11.57%. EBITDA: $9.243 million. EPS: $0.71 (diluted). Weighted average shares: 49.264 million. Pretax income benefited from Total Other Income/Expenses of $36.438 million; Income Before Tax: $45.681 million; Tax expense: $10.86 million; Effective tax rate on reported period: ~23.8% (from the data).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
303.71M |
-4.73% |
-0.27% |
| Gross Profit |
82.28M |
5.36% |
-7.80% |
| Operating Income |
9.24M |
89.02% |
-55.71% |
| Net Income |
35.15M |
210.58% |
-11.38% |
| EPS |
0.71 |
210.94% |
-11.25% |
Management Commentary
No earnings call transcript data were provided in the supplied material. As a result, there are no management quotes or themes to extract for transcriptHighlights. If you provide the transcript, I will generate them by themes (strategy, operations, market conditions) with context and significance.
Forward Guidance
The dataset does not include explicit management guidance for QQ1 2026 or forward-year targets. Given the cyclicality inherent to metal fabrication and steel processing, investors should monitor: (1) volume trends in Steel Processing and Sustainable Energy Solutions, (2) price realization and raw material cost trajectory, (3) contribution and stability of non-operating income components, and (4) capacity utilization and productivity improvements. Market indicators to watch include automotive and appliance production rates, construction demand, and gas containment/storage activity, all of which influence Worthington’s end-market exposure and margin progression. In the absence of stated guidance, the achievability of mid-term targets hinges on sustaining operating discipline, expanding high-margin product mix, and neutralizing volatility in non-operating items.