Revenue reached $929.2 million in 2026Q4, yet gross margins have faced persistent pressure, declining from 15.2% in 2025Q4 to 12.7% in 2026Q4.
| Sales/Revenue | 3.44B | 3.09B | 3.43B | 3.61B | 4.07B | 2.13B |
| Revenue Growth % | 11.33% | -9.83% | -4.91% | -11.33% | 91.26% | - |
| Cost of Goods Sold | 3.04B | 2.7B | 2.99B | 3.27B | 3.67B | 1.76B |
| COGS % of Revenue | 88.31% | 87.44% | 87.18% | 90.67% | 90.28% | 82.57% |
| Gross Profit | 402.6M | 388.6M | 439.8M | 336.5M | 395.5M | 370.84M |
| Gross Margin % | 11.69% | 12.56% | 12.82% | 9.33% | 9.72% | 17.43% |
| Gross Profit Growth % | 3.6% | -11.64% | 30.7% | -14.92% | 6.65% | - |
| Operating Expenses | 297.5M | 241.6M | 245.3M | 216.2M | 168.9M | 149.32M |
| OpEx % of Revenue | 8.64% | 7.81% | 7.15% | 5.99% | 4.15% | 7.02% |
| Selling, General & Admin | 297.5M | 231.6M | 224.4M | 200.8M | 180.3M | 147.44M |
| SG&A % of Revenue | 8.64% | 7.49% | 6.54% | 5.57% | 4.43% | 6.93% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 10M | 20.9M | 15.4M | -11.4M | 1.88M |
| Operating Income | 105.1M | 147M | 194.5M | 120.3M | 226.6M | 221.52M |
| Operating Margin % | 3.05% | 4.75% | 5.67% | 3.33% | 5.57% | 10.41% |
| Operating Income Growth % | -28.5% | -24.42% | 61.68% | -46.91% | 2.29% | - |
| EBITDA | 189.9M | 213M | 259.8M | 189.9M | 286.1M | 266.47M |
| EBITDA Margin % | 5.51% | 6.89% | 7.57% | 5.26% | 7.03% | 12.53% |
| EBITDA Growth % | -10.85% | -18.01% | 36.81% | -33.62% | 7.37% | - |
| D&A (Non-Cash Add-back) | 84.8M | 66M | 65.3M | 69.6M | 59.5M | 44.95M |
| EBIT | 105.1M | 155.2M | 222.2M | 131.7M | 257.3M | 223.41M |
| Net Interest Income | -26.9M | -7.1M | -6M | -3M | -3M | 12K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 12K |
| Interest Expense | 26.9M | 7.1M | 6M | 3M | 3M | 0 |
| Other Income/Expense | -79.6M | 1.1M | 21.7M | 8.4M | 27.7M | 15.63M |
| Pretax Income | 25.5M | 148.1M | 216.2M | 128.7M | 254.3M | 237.15M |
| Pretax Margin % | 0.74% | 4.79% | 6.3% | 3.57% | 6.25% | 11.15% |
| Income Tax | 22.6M | 28.8M | 46.1M | 29M | 54M | 48.48M |
| Effective Tax Rate % | 88.63% | 19.45% | 21.32% | 22.53% | 21.23% | 20.44% |
| Net Income | 17.3M | 110.7M | 154.7M | 87.1M | 180.4M | 171.01M |
| Net Margin % | 0.5% | 3.58% | 4.51% | 2.41% | 4.43% | 8.04% |
| Net Income Growth % | -84.37% | -28.44% | 77.61% | -51.72% | 5.49% | - |
| Net Income (Continuing) | 2.9M | 119.3M | 170.1M | 99.7M | 200.3M | 188.67M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 72.4M | 123.8M | 132.2M | 125.6M | 133.21M | 153.5M |
| EPS (Diluted) | 0.35 | 2.19 | 3.11 | 1.77 | 3.66 | 3.42 |
| EPS Growth % | -84.02% | -29.58% | 75.71% | -51.64% | 7.02% | - |
| EPS (Basic) | 0.35 | 2.24 | 3.14 | 1.77 | 3.66 | 3.42 |
| Diluted Shares Outstanding | 49.8M | 49.5M | 49.8M | 50.03M | 50.03M | 50.03M |
| Basic Shares Outstanding | 49.8M | 49.5M | 49.3M | 50.03M | 50.03M | 50.03M |
| Dividend Payout Ratio | 188.44% | 28.82% | 5.11% | - | - | - |
Operating margin volatility
According to the provided quarterly income statements, Worthington Steel experienced a notable revenue fluctuation, peaking at $929.2 million in 2026Q4, yet the underlying growth trajectory remains inconsistent, oscillating between double-digit gains and significant contractions as the company navigates the post-spin-off environment and shifting automotive demand.
The recent revenue acceleration to 11.6% in 2026Q4 appears to be disconnected from the company's ability to convert top-line gains into operating profit. Investors should monitor whether this growth is driven by volume expansion in high-value electrical steel or merely reflects pass-through pricing of volatile raw material inputs.
As reported in financial statements, Worthington Steel's gross margin has faced persistent pressure, declining from a high of 15.2% in 2025Q4 to 12.7% in 2026Q4, suggesting that the company's spread-based business model is highly susceptible to raw material cost fluctuations and competitive pricing dynamics.
The inability to maintain double-digit gross margins consistently indicates a lack of significant pricing power in its core carbon flat-rolled segment. This margin profile warrants further investigation into whether the company can successfully pivot toward higher-margin electrical steel laminations to offset the inherent cyclicality of its automotive-heavy business.
Based on the reported figures, Worthington Steel's operating leverage appears fundamentally impaired, as evidenced by the 2026Q4 operating loss of $53.7 million despite generating nearly $930 million in revenue, highlighting a disconnect between scale and the company's ability to manage its fixed cost base.
The sharp deterioration in operating income suggests that SG&A expenses are not scaling efficiently with revenue growth, potentially reflecting the burden of standalone corporate overhead post-spin-off. The company appears to lack the operational flexibility to protect its bottom line during periods of rising input costs or volume shifts.
Data from the most recent quarterly filings suggests that Worthington Steel's earnings quality is currently compromised, with the company swinging to a net loss of $49.2 million in 2026Q4, a development that raises serious questions regarding the viability of its current cost structure.
Short-sellers may focus on the rapid erosion of profitability as a sign that the company's competitive moat in tailor welded blanks is insufficient to protect against broader industry headwinds. The reliance on non-operating items or potential inventory valuation adjustments may be masking deeper operational inefficiencies that require management to implement more aggressive cost-rationalization measures.
Quick answers to the most common questions about buying WS stock.
For fiscal year 2026, Worthington Steel, Inc. (WS) reported total revenue of $3.44B. This represents a 61.9% increase compared to $2.13B in 2021.
Worthington Steel, Inc. (WS) is profitable, generating $17.3M in net income for the fiscal year ending 2026 with a net profit margin of 0.5%.
Worthington Steel, Inc. (WS) reported an operating income of $105.1M, resulting in an operating profit margin of 3.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Worthington Steel, Inc. (WS) generated $402.6M in gross profit for the year, representing a gross profit margin of 11.7%. This demonstrates the company's core pricing power and production efficiency.