Worthington Enterprises (WOR) Canaccord Genuity's 46th Annual Growth Conference summary

Strategic transformation and performance

• Separation from the steel business created two focused public companies, enabling margin expansion and strategic clarity.

• EBITDA margins in wholly owned businesses expanded by 500 basis points over two years, with continued strong organic growth strategies.

• Fiscal year ended May saw 20% top-line growth, reaching $1.4 billion in revenue and $296 million in adjusted EBITDA, despite a decline in ClarkDietrich results.

• Free cash flow reached $170 million, with significant investments in facility modernization and acquisitions.

• SG&A as a percent of sales declined by 190 basis points, reflecting operational efficiency.

Business segments and growth drivers

• Building products is the largest and fastest-growing segment, driven by non-residential construction, repair, and remodel activity.

• Key brands include Worthington, Amtrol, Elgen, LSI, and joint ventures WAVE and ClarkDietrich, serving HVAC, roofing, plumbing, and building envelope markets.

• WAVE, a 50% JV, is a market leader in ceiling grids with $500M+ revenue and 49% EBITDA margin, benefiting from product innovation for installers.

• ClarkDietrich, focused on light gauge steel framing, has faced margin compression due to steel price volatility and weak new construction demand but is expected to recover.

• Data center growth is a major opportunity, with new liquid cooling solutions driving rapid revenue expansion in FY 2027.

Consumer products and innovation

• Consumer products generate $500 million in revenue, led by Bernzomatic, Coleman-branded camping gas, and Balloon Time, all category leaders.

• Organic growth in consumer products was 4% last year, with high EBITDA margins and ongoing product innovation.

• Emerging brands like LEVEL5 and General Tools & Instruments offer new retail placement and category expansion opportunities.

• Long-term growth target is 6%-8%, split evenly between organic and inorganic growth, with innovation and market leadership as key drivers.