Worthington Steel Net Income Drops 25% to $10.4M in Q3 FY2026

Worthington Steel, Inc., a steel processing and manufacturing company, reported net income of $10.4 million for the third quarter of fiscal 2026 ended February 28, down 25% from $13.8 million in the same quarter a year earlier. Diluted earnings per share fell to $0.20 from $0.27. Read more earnings reports.

Revenue climbed 12% to $769.8 million from $687.4 million in the year-ago quarter. For the nine months ended February 28, total revenue reached $2.51 billion, up 11% from $2.26 billion in the prior-year period.

Gross profit for the quarter declined to $76.1 million from $81.2 million a year earlier, despite the higher revenue. Operating income fell sharply to $3.1 million from $18.3 million in the prior-year quarter, a decline of 83%.

Selling, general and administrative expenses surged to $77.5 million from $54.6 million in the year-ago quarter, a 42% increase. Cost of revenue rose to $693.7 million from $606.2 million.

For the nine-month period, net income totaled $66 million, up 20% from $55 million in the prior-year period. Operating income for the nine months was $73.1 million, down from $80.6 million a year earlier.

The company ended the quarter with $90 million in cash and cash equivalents, up from $38 million as of May 31, 2025. Total assets grew to $2.32 billion from $1.96 billion at the end of fiscal 2025.

Cash from operations for the nine months totaled $156.3 million, down from $176.4 million in the prior-year period. Cash used in investing activities increased to $170.1 million from $83.8 million, driven by capital expenditures and acquisitions.

Goodwill rose to $103.3 million from $79.6 million at the end of fiscal 2025, and intangible assets increased to $87 million from $67.9 million, reflecting recent acquisitions. Property, plant and equipment climbed to $677.9 million from $548.2 million.

Total debt increased to $58.7 million from $4.6 million at the end of fiscal 2025. Stockholders' equity stood at $1.12 billion as of February 28, up from $1.07 billion as of May 31, 2025.