Worthington Enterprises, Inc. reported its financial results for the first quarter of fiscal 2025, ending August 31, 2024, revealing a decline in revenue and profitability compared to the same period in the previous fiscal year. Net sales for the quarter were $257.3 million, a decrease of $54.6 million (17.5%) from $311.9 million in Q1 fiscal 2024. This decline was primarily attributed to a significant drop in the Building Products segment, which saw net sales decrease by $26.2 million (15.8%) due to lower volume and an unfavorable product mix. In contrast, the Consumer Products segment experienced a slight increase in sales, totaling $117.6 million.
Gross profit for the quarter was $62.5 million, down 10.2% from $69.6 million in the prior year, reflecting the reduced sales in the Building Products segment. The company reported an operating loss of $4.7 million, an improvement from the loss of $7.3 million in Q1 fiscal 2024. Net earnings from continuing operations were $24.3 million, a decrease of $2.5 million from $26.8 million in the same quarter last year. Diluted earnings per share from continuing operations were $0.48, down from $0.54.
Adjusted EBITDA from continuing operations also saw a significant decline, totaling $48.4 million, down $17.5 million (26.6%) from $65.9 million in Q1 fiscal 2024. The decrease was driven by lower contributions from the Building Products segment, which incurred additional expenses related to the recent acquisition of Ragasco, a manufacturer of composite propane cylinders, for approximately $102.2 million.
The company completed a spin-off of its former steel processing business into Worthington Steel on December 1, 2023, with results now reported as discontinued operations. Additionally, Worthington entered into a long-term Steel Supply Agreement with Worthington Steel, which included purchases totaling $28.4 million in Q1 fiscal 2025.
Cash and cash equivalents at the end of the quarter were $178.5 million, down from $201.0 million a year earlier. The company declared a quarterly dividend of $0.17 per common share, a reduction from $0.32 in the previous year, reflecting its ongoing assessment of financial conditions and capital requirements.
Overall, Worthington Enterprises is navigating a challenging market environment, with significant impacts from lower sales volumes and strategic adjustments following its recent acquisitions and spin-offs.
About WORTHINGTON ENTERPRISES, INC.
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