Worthington Steel Reports Q1 2027 Earnings with Strong Sales Growth Post-Kloeckner Acquisition
Worthington Steel (WS) reported its first quarterly results after acquiring Kloeckner & Co, which significantly boosted consolidated net sales to $2.7 billion—a 212% increase year-over-year. The growth was primarily driven by the inclusion of Kloeckner's operations since June 3, 2026. However, adjusted EBITDA came in at $111 million, negatively impacted by a $43 million inventory fair value step-up and higher interest expenses from the acquisition. The company saw strong performance across several sectors including agriculture shipments up 40%, automotive direct shipments rising 4%, and heavy truck and trailer shipments growing 39%. In contrast, energy and construction shipments declined due to customer shifts in sourcing and increased competition. Worthington also reported $63 million in capital expenditures for the quarter with full-year guidance between $160 million and $180 million. Management highlighted ongoing challenges such as tight steel supply, long lead times, and high interest rates affecting construction markets. Despite these headwinds, the company remains optimistic about its expanded scale and geographic reach post-acquisition.
Topics: adjusted EBITDA capital expenditures net sales shipments by sector