Company Summary: Worthington Steel, Inc.

Business Overview

• Type of Business:
  • A premier North American value-added metals processor.
  • Specializes in processing carbon flat-rolled steel, laser welded solutions, and electrical steel laminations.

Core Products and Services

• Carbon Flat-Rolled Steel Processing:
  • Processes steel coils through pickling, specialty re-rolling, hot dip galvanizing, blanking, slitting, and cutting-to-length.
• Electrical Steel Laminations:
  • Manufactures precision magnetic steel laminations for automotive (including electrified vehicle applications), industrial motors, generators, and transformers.
  • Offers additional services like stamping, heat-treating, core assembly, die casting, bonding, metallurgical analysis, engineering, prototyping, and product design.
• Tailor Welded Products:
  • Produces laser welded blanks and aluminum tailor welded blanks for automotive weight reduction, cost saving, and material efficiency.
• Toll Processing:
  • Processes steel for steel mills, end-users, and service centers where the customer retains title; earns fees for services without inventory costs.

Manufacturing Footprint

• Facilities:
  • Operates 28 manufacturing facilities:
    • US (19)
    • Canada (2)
    • China (1)
    • India (1)
    • Germany (1)
    • Mexico (4)
• Recent Acquisition:
  • Acquired a 52% controlling stake in Italy-based Sitem Group (additional locations in Italy, France, Slovakia, and Switzerland) on June 3, 2025.

Customers and Markets

• Customer Base:
  • Serviced approximately 1,200 customers during fiscal 2025.
  • Top three customers accounted for 33.0% of net sales.
• Major End Markets:
  • Automotive (largest end market, 52% of net sales in 2025)
  • Construction (11%)
  • Machinery & Equipment (9%)
  • Agriculture (3%)
  • Heavy trucks (5%)
  • Other markets including appliances, energy, industrial electric motors, transformers, HVAC, etc.
• Automotive Industry:
  • Major customer group, including the Detroit Three automakers.
  • In fiscal 2025, automotive sales: 52% of total.
  • U.S. vehicle production decreased 6% in fiscal 2025 compared to 2024.
  • Automakers’ production accounted for 33% of sales in fiscal 2025.

Employees

• Total Employees:
  • Approximately 4,800 employees as of May 31, 2025.
• Global Presence:
  • Additional ~500 employees through unconsolidated joint ventures.
  • About 22% are located outside the U.S., with collective bargaining units located outside of the U.S.

Revenue and Income

• Fiscal 2025 Revenue:
  • $3,093.3 million (down from $3,430.6 million in fiscal 2024)
• Net Earnings Attributable to Controlling Interest:
  • $110.7 million (decreased from $154.7 million in fiscal 2024)
• Earnings Per Diluted Share:
  • $2.19 in fiscal 2025 (down from $3.11 in fiscal 2024)

Financial Highlights

• Net sales declined by approximately $337.3 million year-over-year.
• Gross margin:
  • 12.6% of net sales in 2025, down from 12.8% in 2024.
• Operating Income:
  • $147.0 million in 2025, down from $194.5 million in 2024.
• Major Expenses and Items:
  • Recognized impairment of assets, restructuring costs, and separation costs.
• Cash Flows (Fiscal 2025):
  • Operating activities provided $230.3 million.
  • Investing activities used $129.1 million (mainly capital expenditures).
  • Financing activities used $48.5 million.
• Dividend Payments:
  • Declared $0.64 per share in fiscal 2025, paid quarterly.
  • Declared $0.32 per share in fiscal 2024 post-separation.

Management and Corporate Structure

• Management Team:
  • President & CEO: Geoffrey G. Gilmore
  • Other key officers include CFO, COO, President of Steel Processing, General Counsel, and Executive Chairman.
• Ownership & Stock:
  • 50 million shares outstanding as of July 25, 2025.
  • Principal shareholder: John P. McConnell, beneficial owner of ~34% of shares.
• Public Trading:
  • Shares traded on NYSE under ticker WS.
  • Approximately 5,797 registered shareholders.

Recent Business Developments

• Completed acquisition of Sitem Group on June 3, 2025.
• Declared quarterly dividend of $0.16 per share payable September 26, 2025.

Summary

• Worthington Steel is a leading North American steel processor focused on customized, value-added steel solutions for automotive, construction, and industrial markets, supported by a global manufacturing footprint and strategic acquisitions. It emphasizes technical expertise, operational efficiency, and customer service to maintain its market position.