Cash generation remains highly unstable, as evidenced by the FCF margin collapsing from 15.3% in 2026Q3 to -4.2% in 2026Q4 alongside a $76.1 million working capital outflow.
| Cash from Operations | 201.2M | 230.3M | 199.5M | 315.01M | 39.49M | 152.55M |
| Operating CF Margin % | 5.84% | 7.45% | 5.82% | 8.73% | 0.97% | 7.17% |
| Operating CF Growth % | -12.64% | 15.44% | -36.67% | 697.68% | -74.11% | - |
| Net Income | 17.3M | 119.3M | 154.7M | 99.7M | 200.25M | 188.67M |
| Depreciation & Amortization | 84.8M | 66M | 65.3M | 69.58M | 59.5M | 44.95M |
| Stock-Based Compensation | 13.9M | 11M | 10.3M | 10.35M | 8.67M | 10.14M |
| Deferred Taxes | -8.1M | -3.1M | 1.1M | -9.72M | 13.64M | -5.19M |
| Other Non-Cash Items | 93.3M | 16.9M | -1.5M | 5.16M | -38.59M | -13.27M |
| Working Capital Changes | 0 | 20.2M | -30.4M | 139.93M | -203.98M | -72.75M |
| Change in Receivables | -16.3M | 34.1M | -1.4M | 107.19M | -121.98M | -220.59M |
| Change in Inventory | 47.2M | -16.7M | 16.4M | 154.53M | -50.67M | -178.38M |
| Change in Payables | -19M | 15.8M | -26.7M | -124.34M | -14.95M | 293.08M |
| Cash from Investing | -213.4M | -129.1M | -132M | -22.15M | -395.35M | -27.69M |
| Capital Expenditures | 0 | -130.4M | -103.4M | -45.47M | -36.44M | -28.8M |
| CapEx % of Revenue | - | 4.22% | 3.01% | 1.26% | 0.9% | 1.35% |
| Acquisitions | -2.9M | 0 | -28.6M | 0 | -383.52M | 925K |
| Investments | - | - | - | - | - | - |
| Other Investing | -104.3M | 1.3M | 0 | 23.32M | 24.62M | 186K |
| Cash from Financing | 3M | -48.5M | -60M | -280.23M | 358.45M | -116.68M |
| Debt Issued (Net) | 0 | 3.5M | 145.2M | -60.2M | 76.7M | 0 |
| Equity Issued (Net) | 0 | -3.1M | 300K | 0 | 0 | -105.99M |
| Dividends Paid | -32.6M | -31.9M | -7.9M | 0 | 0 | 0 |
| Share Repurchases | 0 | -3.1M | 0 | 0 | 0 | 0 |
| Other Financing | 35.6M | -17M | -197.6M | -220.03M | 281.75M | -10.69M |
| Net Change in Cash | -8.3M | 52.7M | 7.5M | 12.63M | 2.59M | 8.18M |
| Free Cash Flow | 201.2M | 99.9M | 96.1M | 269.54M | 3.05M | 123.75M |
| FCF Margin % | 5.84% | 3.23% | 2.8% | 7.47% | 0.07% | 5.82% |
| FCF Growth % | 101.4% | 3.95% | -64.35% | 8740.31% | -97.54% | - |
| FCF per Share | 4.04 | 2.02 | 1.93 | 5.39 | 0.06 | 2.47 |
| FCF Conversion (FCF/Net Income) | 11.63x | 2.08x | 1.29x | 3.62x | 0.22x | 0.89x |
| Interest Paid | 0 | 0 | 4.5M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 37.6M | 0 | 0 | 0 |
Volatile working capital requirements
As reported in recent quarterly filings, Worthington Steel's OCF/NI ratio has exhibited extreme volatility, swinging from a high of 6.09 in 2026Q3 to a negative 0.91 in 2026Q4, which suggests that reported net income is a poor proxy for the company's actual cash-generating capacity.
The wide variance between net income and operating cash flow indicates that non-cash items and working capital swings are heavily distorting the bottom line. Investors should monitor whether this disconnect is a structural feature of the company's inventory-heavy business model or a temporary byproduct of post-spin-off accounting adjustments.
Based on the provided cash flow data, Worthington Steel's FCF margin has fluctuated significantly, reaching a peak of 15.3% in 2026Q3 before collapsing to -4.2% in 2026Q4, highlighting the company's difficulty in maintaining consistent cash generation amidst shifting automotive and industrial demand cycles.
The inability to sustain positive free cash flow suggests that the company's capital intensity may be outpacing its operational efficiency. This trajectory warrants further investigation into whether the recent negative FCF is a result of strategic growth investments or an inability to manage costs during periods of revenue contraction.
According to historical financial statements, Worthington Steel's CapEx/Revenue ratio has trended upward, reaching 9.0% in 2026Q4, which indicates a rising capital burden that may be necessary to maintain its specialized electrical steel and tailor welded blank processing capabilities.
The elevated capital spending relative to revenue suggests that the company is in a phase of heavy reinvestment, likely to support its niche manufacturing footprint. Analysts should assess whether these expenditures are primarily for maintenance or if they represent a strategic push to capture market share in the EV motor lamination space.
Data from the company's cash flow statements reveals that working capital changes have been a major source of cash flow instability, with a significant $76.1 million outflow in 2026Q4 alone, suggesting that inventory and receivables management remains a critical challenge for the standalone entity.
The erratic nature of these working capital swings implies that the company may be struggling to align its procurement of raw steel with the timing of customer payments. This volatility appears to be a primary driver of the company's inconsistent cash flow profile and warrants close scrutiny of its inventory turnover metrics.
Quick answers to the most common questions about buying WS stock.
Worthington Steel, Inc. (WS) generated $201.2M in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
Worthington Steel, Inc. (WS) generated $201.2M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Worthington Steel, Inc. (WS) spent $0.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, Worthington Steel, Inc. (WS) returned $32.6M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.