WS Worthington Steel, Inc.

Overview and Growth

In fiscal 2026, Worthington Steel, Inc. recorded $3.44B of revenue, net income of $8.50M, and an operating cash inflow of $201.20M. At $3.44B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 11.3% above fiscal 2025 revenue of $3.09B, marking a year-over-year increase. The company reported diluted EPS of $0.17, adding a shareholder-level measure to the absolute income figures considered below. Diluted EPS decreased by 92.2% from $2.19 in fiscal 2025, showing how the earnings change reached shareholders on a per-share basis. Revenue equaled 1.53x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

Gross profit was $403.30M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 11.7% of revenue, showing how much of the top line remained after direct costs. Operations produced a $1.40M operating loss before non-operating and tax effects. Relative to revenue, the operating deficit measured 0.0%, showing the shortfall after operating costs. After all reported below-operating-line items, the company recorded net income of $8.50M for the fiscal year. Net margin was 0.2%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $7.10M of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 0.2%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $20.00M, the amount recognized between pretax income and the final net-income result. The income-tax provision equaled 281.7% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

At period end, the $2.25B asset base was financed through $989.50M of liabilities and $1.20B of equity. At period end, current assets of $1.13B compared with current liabilities of $775.80M, defining the company’s short-term resource position. The current ratio was 1.46x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $84.60M in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 10.9%, excluding receivables and other current assets. The company carried $256.80M of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 0.21x, placing the company’s financial leverage in clear balance-sheet terms. Debt represented 11.4% of total assets, placing borrowing in the context of the company’s full resource base. Relative to total assets, liabilities measured 43.9%, complementing the separate equity-based view of the company’s capital structure. The cash-to-assets relationship was 3.8%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $201.20M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Against net income, operating cash flow measured 23.67x, showing the relationship between accrual earnings and operating cash. The cash-flow statement records $121.20M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 60.2% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $80.00M of positive free cash flow for the period. Free cash flow represented 2.3% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 3.6%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending May 31, 2026. Analysis generated Sep 24, 2026.