Worthington Industries, Inc. Q3 FY2026 earnings call

Innovation is a big part of growth strategy, e.g., ASME water tanks for data centers, new products for Balloon Time. Transformation includes 80-20 initiative, AI embedded in applications, investment in automation. Acquisition of LSI in January, enhancing engineered building systems. Company launched large career accelerator program, named one of America's greatest workplaces for culture, etc.

Building products: Q3 net sales grew 36% year over year to $224 million, up from $165 million in the prior year quarter. Excluding acquisitions, net sales increased 16% year-over-year. Adjusted EBITDA for the quarter was $59 million compared to $53 million in the prior year quarter, with an adjusted EBITDA margin of 26.3%. Consumer products: Net sales in Q3 were $155 million, up 11% over the prior year quarter. Adjusted EBITDA increased to $35 million from $29 million in Q3 a year ago, with margins expanding 22.9% from 20.5%.

Believe trends seen will continue, will drive organic growth and consider acquisitions. No specific numerical guidance provided.

Middle East situation could impact global shipping, energy costs increase, some products manufactured overseas face tariff impacts.

Q: Good morning. This is Will on for Dan. Up 14% organic revenue growth in the quarter, very strong. Can you talk about volume versus price?

A: Yeah, good question, Will. So we're very pleased on the organic growth rate overall, 14%...

Q: Hi, good morning. This is Stephen Ramsey on for Brian. The comments on the tank business in the data center is certainly an interesting topic...

A: Steven, it's still a great question. You know, for a lot of our value streams, Data centers are an important and a growing end market...

Q: Hi, thanks. Good morning. Great quarter, guys. I wanted to ask about, I wanted to do some follow-ons to the data center question that was just asked...

A: Well, so as Joe mentioned, we play in a number of different verticals, different businesses to support the growth there...

Q: Thank you. Good morning, everyone. Hey, good morning, Susan. Good morning. Can you hear me okay?

A: Sure. So say the consumer generally, for us consumer, for our consumer business, we're not broadly correlated with overall consumer trends that a lot of people focus on...

Q: Hi, this is Will, and again, just one more follow-up that I don't think was asked yet. Can you provide maybe more color and update on the LSI acquisition?

A: Yeah, Will, thanks for the follow-up. So really excited about LSI. You know, we closed it midway through the quarter...

Q: Hey, good morning, guys. Thanks for taking the question. You know I'm going to ask about tariffs and tariff advantages...

A: Sure. Brian, good morning. You know, a lot has changed, but there has not been a lot of resolution around tariffs in the last couple months...