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15 min ago 2 min read
Worthington Enterprises has shared its first quarter (Q1) 2027 financial results, reporting net sales of $343.9m and net earnings of $42.6m, or $0.87 per diluted share.
Net sales increased $40.2m, or 13.2%, from Q1 2026, with the company attributing $21m (7%) to organic growth and $19.2m (6%) to recent acquisitions.
Q1 operating income increased $3.8m over the prior-year quarter to $13m.
Joe Hayek, President and CEO of Worthington, said, “[In Q1] we generated 7% organic growth, grew adjusted EBITDA by 10% and nearly doubled free cash flow…These results reflect the progress we are making as we continue to optimise and grow.”
On 15 September, the company renamed two business segments, Building Performance Solutions and Trade and Specialty Solutions, to better reflect the markets the respective units serve.
Building Performance Solutions
Recent acquisitions contributed $19.2m to sales growth in the Building Performance Solutions business segment. Excluding the impact of acquisitions, net sales increased $11.1m, or 6%, from the prior-year quarter.
In total, it generated net sales of $215.1m, an increase of $30.3m, or 16.4%, compared to Q1 2026.
Adjusted EBITDA was relatively flat at $59.8m, as higher contributions from the company’s Wave and ClarkDietrich joint ventures and recent acquisitions were offset by lower overall volume and unfavourable product mix.
Trade and Specialty Solutions
The Trade and Specialty Solutions business segment generated net sales of $128.8m in Q1 2027, up $9.9m, or 8.3%, from the prior year quarter.
Worthington said this increase was driven by higher volume and higher average selling prices.
Adjusted EBITDA increased from $7.9m to $24m, reflecting higher net sales and the net sales as well as the benefit of refunds linked to tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
Outlook
Hayek said Worthington is encouraged by the Q1 results and future business opportunities, with the company pointing to growing demand for its engineered ASME tanks used in liquid cooling systems for data centres.
“With growing free cash flow generation and a healthy balance sheet, we have the flexibility to invest in and pursue additional growth opportunities that fit our strategy,” he added.
