On this page of StockholderLetter.com we present the latest annual shareholder letter from Worthington Steel, Inc. — ticker symbol WS. Reading current and past WS letters to shareholders can bring important insights into the investment thesis.

 •  8/15/2025 Letter Continued (Full PDF)
 •  8/16/2024 WS Stockholder Letter
 •  More "Metals Fabrication & Products" Category Stockholder Letters
 •  WS Benford's Law Stock Score = 97

WS Shareholder/Stockholder Letter Transcript:

Strong.
For Good.
WORTHINGTON STEEL / 2025 ANNUAL REPORT

Financial Highlights
MAY 31,
FISCAL YEARS ENDED (In millions, except per share amounts)
Net sales 1
Net earnings attributable to controlling interest
2025
2024
2023
$ 3,093.3
110.7
$ 3,430.6
154.7
$ 3,607.7
87.1

Earnings per share (diluted) 4
2.19

3.11

0.01
0.30


1.77
Selected items included in Net earnings attributable to
controlling interest (pre-tax except per share amounts): 2
Impairment of assets
Restructuring and other (income) expense, net
Separation costs
Pension settlement gain
Gain on land sale
Gain on Sitem Group purchase derivative

4.6 $ 0.07
1.5
0.02
(2.7)
(0.04)
(1.5)
(0.02)
(4.0)
(0.06)

Adjusted earnings per share (diluted) 3, 4

2.16

1.9 $ 0.03
(2.4)
(0.03)
17.5
0.26

$ 3.42
Net earnings attributable to controlling interest
Interest expense, net
Income tax expense
Tax indemnification adjustment
Selected items (pre-tax) 2

110.7
7.1
28.8
4.6
(2.1)

Adjusted earnings before interest and taxes (Adjusted EBIT) 3
Depreciation and amortization

149.1
66.0

Adjusted earnings before interest, taxes, depreciation and
amortization (Adjusted EBITDA) 3

215.1

Net earnings attributable to controlling interest as a percent
of net sales
Adjusted EBIT as a percent of net sales 3
Adjusted EBITDA as a percent of net sales 3
0.9
19.5

154.7
6.0
46.1
(2.8)
20.4
$ 2.03

87.1
3.0
29.0
17.1
224.4
65.3

136.1
69.6
289.7

205.7
3.6%
4.5%
2.4%
4.8%
7.0%
6.5%
8.4%
3.8%
5.7%
Net cash provided by operating activities
Less: capital expenditures

230.3
Free cash flow

99.9
Cash dividends declared
Per share

32.6

(130.4)
199.5

315.0
(103.4)

(45.5)
96.1

269.5
16.1
$ 0.64
n/a
$ 0.32

1
Excludes net sales from unconsolidated affiliates in accordance with accounting principles generally accepted in the United States.
Net sales from unconsolidated affiliates were as follows:
507.6
604.1
2
We use net earnings attributable to controlling interest, excluding selected items (impairment, restructuring and separation costs), as a measure of our normal
operating performance, which is factored into evaluations and planning compensation payments.
3
Adjusted earnings per share, Adjusted EBIT and Adjusted EBITDA are non-GAAP financial measures and are used by management to evaluate the Company   s
performance, engage in financial and operational planning and determine incentive compensation; management believes that these measures provide useful
information to investors because they provide additional perspective of the Company   s ongoing operations. These measures exclude the impact
of the noncontrolling interest, as well as the special items noted above.
4
Prior to the third quarter of fiscal 2024, reported weighted average common shares outstanding (Diluted) reflects the basic shares at the Separation.
This share amount is being utilized for the calculation of diluted earnings per share for periods presented prior to the Separation.

564.6
MAY 31,
AT FISCAL YEAR END (In millions, except per share amounts)
Net working capital
Net fixed assets
Total assets
Total debt 5
Shareholders    equity     controlling interest
Per share
Shares outstanding 4
Total debt to total capital 6, 7
2025

417.0
548.2
1,961.8
130.4
1,074.1
2024

383.4
474.8
1,866.4
82.4
985.3
2023

502.5
414.4
1,764.4
45.5
1,029.0
49.5
49.3
49.3
10.8%
7.7%
4.2%
5
Total debt includes short-term borrowings and current maturities of and long-term debt with the Former Parent.
6
These measures exclude noncontrolling interest.
7
Total capital is defined as total debt plus shareholders    equity attributable to controlling interest.


Dear Fellow
Shareholders,
On behalf of the Worthington Steel leadership team and our approximately
6,000 employees, I   m proud to share highlights from our first full year as a
standalone public company and our 70th year in operation. Fiscal 2025
was a year of steady performance, disciplined execution and meaningful
investment. It reaffirmed the values we stand for and the culture that
drives our results.
Worthington Steel is a value-added steel processor that serves critical
markets including automotive, energy, construction and agriculture. With
a broad range of technical capabilities, we help customers solve complex
manufacturing challenges and deliver high-performance steel solutions.
70 YEARS STRONG
To celebrate our 70th year in operation, we introduced Strong for Good,
a message developed to mark this milestone and reflect both the staying
power of our business and our commitment to delivering meaningful
impact. Over the past year, we invested in our business, improved
our operations and supported the people and customers who
drive our success. At the heart of it all is Our Philosophy, written
by our founder, John H. McConnell, and rooted in the Golden
Rule: We treat others as we would like to be treated.

Executing our Strategy.
Investing for Growth.
Our strategy is grounded in three focus areas:
    Executing on our investments in the rapidly
growing electrical steel market   
    Growing through strategic capital investments,
new products and acquisitions   
    Optimizing our business utilizing
proven transformation processes   
In June, just after the end of fiscal year 2025,
we acquired a controlling interest in Sitem
Group, a European electrical steel lamination
and motor die casting manufacturer. With facilities
in Italy, Switzerland, Slovakia and France, Sitem
expands our global footprint and brings automation
and tool-making capabilities that align with our
long-term growth plan. Their culture is a strong
fit with our own.
We also continued to advance electrical steel
expansion projects in Mexico and Canada.
These investments support sustained growth
in electrification, driven by demand for hybrid
and electric vehicles, next-generation power infrastructure and a pressing need
to replace aging transformers. Worthington Steel is well-positioned to support this
transition and growth. Production at both sites is expected to begin during fiscal 2026.
Our base business continues to evolve through Transformation, our lean-based
continuous improvement model. Teams are improving cross-functional
processes, reducing equipment downtime through predictive
maintenance and exploring artificial intelligence tools to enhance
productivity and support better-informed decision-making.

Our TWB Company joint venture made progress with its licensed ablation technology
for hot-formed tailored blanks. The new line has been installed and successfully
tested, with early customer interest as demand for advanced lightweighting solutions
continues to increase.
FINANCIAL STRENGTH, OPERATIONAL DISCIPLINE
We ended the year with $38 million in cash and net debt of
$114 million, giving us the flexibility to act decisively when
opportunities arise. Capital expenditures totaled
$130 million, including the expansions in Mexico
and Canada, as well as facility upgrades and key
equipment modernization and maintenance.
In June, our board declared a quarterly dividend
of $0.16 per share, underscoring our commitment
to long-term value creation.
AWARD-WINNING PARTNERSHIPS
AND PERFORMANCE
This year, Worthington Steel was named a 2024
Supplier of the Year by General Motors, our fourth
recognition in five years. We were also honored as
Fiscal
2025 Results
NET SALES

OPERATING INCOME

a Partner-level Supplier by John Deere for the 13th
consecutive year and received the Best Supplier
of the Year Award from MAHLE. These awards reflect
the strength of our quality and service, factors that
continue to enable our commercial team to grow

automotive market.
Award from Columbus Business First and to be ranked
the No. 1 large organization in Columbus CEO   s Top
Workplaces 2025, a reflection of the values, leadership
147M
ADJUSTED EBITDA
share and deepen relationships, particularly in the
We were proud to receive a Corporate Citizenship
3.09B
215.1 M
NET EARNINGS
ATTRIBUTABLE TO
CONTROLLING INTEREST

and strong culture that continue to define our team.
110.7M
NET EARNINGS PER
DILUTED SHARE

2.19

8/15/2025 Letter Continued (Full PDF)

 

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.