Worthington Enterprises, Inc. (NYSE: WOR) shares are experiencing a decline in premarket trading on Wednesday following the release of disappointing first-quarter financial results.
On Tuesday, the company reported a year-over-year net sales drop of 17.5%, totaling $257.3 million, which fell short of the consensus estimate of $300.26 million. This decline was mainly due to the deconsolidation of the former Sustainable Energy Solutions (SES) segment in the fourth quarter of FY24 and reduced volumes in the Building Products segment.
Adjusted EBITDA from continuing operations decreased to $48.4 million, down from $65.9 million in the same quarter last year. Additionally, the adjusted earnings per share (EPS) of $0.50 was below the expected $0.74.
Breaking it down by segment, the Consumer Products division generated net sales of $117.6 million, with adjusted EBITDA at $17.8 million. In contrast, Building Products reported net sales of $139.7 million, reflecting a 15.8% year-over-year decline.
As of May 31, 2024, the company’s debt stood at $300 million, while cash reserves were at $178.5 million.
In dividend news, the Board of Directors declared a quarterly dividend of $0.17 per common share, scheduled to be paid on December 27, 2024, to shareholders on record as of December 13, 2024.
During the quarter, Worthington Enterprises repurchased 150,000 common shares for $6.8 million, averaging $45.35 per share.
CEO Andy Rose commented, “Consumer Products had a solid quarter, delivering year-over-year earnings growth despite flat volumes. Building Products earnings were down due to weak volumes in our heating and cooking business, along with lower contributions from ClarkDietrich, which is facing some margin compression.”
He added, “We maintain a positive long-term outlook, especially following the recent adjustments to interest rates. Our leading products and brands are well-positioned to capitalize on long-term trends and should benefit when near-term challenges ease and demand stabilizes.”
As of the last check on Wednesday, WOR shares are down 5.03%, trading at $43.01 in premarket activity.