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Worthington Steel Inc

Worthington Steel Inc

WS
$35.33USD↑+0.60%+0.21 today

MARKET CAP

1.8B

P/E (TTM)

16.4x

FWD P/E

11.8x

DAY RANGE

$34 – $36

52W RANGE

$27
$49

AI Summary

Stalk
Buy NowHigh

WS is in an early Stage 1 consolidation following a terminal decline, showing structural repair via a mid-July bullish pivot and rising short-term EMAs. Price is holding above the 9/21 EMA region within a base and approaching 50 DMA resistance. With oversold context and improving momentum, we recommend buying now on pullbacks into the rising EMA support zone.

  • ↑Direct automotive shipments rose 26% YoY, boosting segment revenue.
  • ↑Klockner acquisition adds scale and ~$150M in EBITDA synergies.
  • ↓Leverage jumped after Klockner deal, raising debt servicing risk.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Worthington Steel, Inc. (NYSE: WOR) is a leading steel processor in North America, specializing in carbon flat-rolled steel, tailor-welded blanks, and automotive, as well as electrical steel lamination stampings. Headquartered in Columbus, Ohio, Worthington Steel operates within multiple industries, including automotive and construction, positioning itself as a responsive entity to the rising trends towards electrification and energy efficiency.

Bull says

  • ↑Direct automotive shipments rose 26% YoY, boosting segment revenue.
  • ↑Klockner acquisition adds scale and ~$150M in EBITDA synergies.
  • ↑Electrical steel Canada expansion to start production in early 2026.
  • ↑Inventory cut 37% while maintaining 100% on-time delivery via AI.
  • ↑Disciplined CapEx of ~$110M balances growth with balance-sheet strength.
  • ↑High earnings yield, strong revisions, and low stock volatility underscore recovery potential.

Bear says

  • ↓Leverage jumped after Klockner deal, raising debt servicing risk.
  • ↓Q4 net loss of $48.7M reflects integration and macro headwinds.
  • ↓Toll processing volumes fell 22% YoY; agricultural demand remains weak.
  • ↓Hot-rolled coil at ~$900/ton tightens spreads and squeezes margins.
  • ↓Customers stay inventory-disciplined amid demand uncertainty, risking orders.
  • ↓Negative growth outlook and weak institutional support dampen confidence.

Investment themes with WS

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM
Steel↑ +2.09%

RIO · BHP · NUE

Earnings Call · Q4 2025 · Mgmt. Guidance

Updated 07-05-2026bullish

Transcript signals

Bull points

  • In the fourth quarter, we generated adjusted EBITDA of $87 million compared with $86.5 million in the prior year quarter. Earnings per share were $1.10, compared to $1.06 in the same period last year.
  • We continue to gain market share in the overall automotive market, and I commend our commercial teams and everyone involved for their commitment to fulfilling the needs of our automotive customers.
  • Electrified vehicle adoption continues to make gains globally, with current estimates projecting that hybrids and BEVs will make up more than two-thirds of global market share by 2030.

Bear points

  • agricultural market, however, continues to face pressure.
  • Net sales in the quarter were $833 million, down $78 million, or 9% from the prior year quarter, primarily due to lower direct selling prices and to a lesser extent, lower toll volumes and an unfavorable toll processing mix.
Read full transcript analysis ›