Worthington Steel (NYSE:WS) Shares Gap Down Following Weak Earnings

Worthington Steel, Inc. (NYSE:WS)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $35.01, but opened at $29.80. Worthington Steel shares last traded at $30.6340, with a volume of 143,603 shares changing hands.

The company reported $0.27 EPS for the quarter, missing the consensus estimate of $0.47 by ($0.20). The business had revenue of $769.80 million for the quarter, compared to the consensus estimate of $882.95 million. Worthington Steel had a return on equity of 10.12% and a net margin of 3.64%.The company’s revenue was up 12.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.35 EPS.

Worthington Steel Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 26th. Stockholders of record on Friday, June 12th will be given a $0.16 dividend. This represents a $0.64 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date of this dividend is Friday, June 12th. Worthington Steel’s payout ratio is currently 35.96%.

Key Headlines Impacting Worthington Steel

Here are the key news stories impacting Worthington Steel this week:

• Positive Sentiment: Company declared a quarterly cash dividend of $0.16/share (annualized yield ~2.1%), which supports shareholder income and signals management’s confidence in cash flow. MarketBeat WS page
• Positive Sentiment: Worthington is pursuing a strategic acquisition of Kloeckner with a target close in H2 2026; management highlighted automotive share gains and AI-driven transformation as growth levers — a potential long-term revenue/margin booster if integration goes well. Acquisition article
• Neutral Sentiment: Broker coverage initiated by KeyCorp (initiation can increase visibility and trading liquidity); check the initiation note for rating/price-target details once available. KeyCorp initiation
• Neutral Sentiment: Earnings call transcript, slide deck and presentations are available for details on segment performance, margin drivers and management commentary — useful for judging forward guidance and integration plans. Earnings transcript Press release / slide deck
• Negative Sentiment: Q3 results missed materially: GAAP EPS $0.27 vs. consensus ~$0.47 and revenue $769.8M vs. ~$883M — the earnings and revenue shortfall is the primary catalyst for the stock weakness as it raises concerns about near-term margins and demand timing. Zacks earnings coverage
• Negative Sentiment: Market commentary and pre-market stories flagged the downbeat results and put the stock under selling pressure; some retail/idea pieces call out a double-digit intraday decline, amplifying negative sentiment and volume. MSN market reaction AAII note

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the company. KeyCorp began coverage on Worthington Steel in a research note on Wednesday. They set an “overweight” rating and a $46.00 price objective for the company. Wall Street Zen downgraded Worthington Steel from a “strong-buy” rating to a “buy” rating in a report on Saturday. Zacks Research raised Worthington Steel from a “strong sell” rating to a “hold” rating in a research report on Monday, February 16th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Worthington Steel in a research note on Wednesday, January 21st. One research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $46.00.

Insider Activity at Worthington Steel

In other Worthington Steel news, Director Jon J. Bowsher bought 2,500 shares of Worthington Steel stock in a transaction on Friday, January 30th. The stock was acquired at an average price of $40.15 per share, with a total value of $100,375.00. Following the acquisition, the director owned 17,893 shares in the company, valued at approximately $718,403.95. This trade represents a 16.24% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Scott J. Kelly purchased 7,000 shares of the firm’s stock in a transaction dated Tuesday, January 27th. The stock was acquired at an average price of $39.11 per share, with a total value of $273,770.00. Following the purchase, the director directly owned 16,157 shares of the company’s stock, valued at approximately $631,900.27. The trade was a 76.44% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 2.60% of the company’s stock.

Institutional Investors Weigh In On Worthington Steel

Several institutional investors have recently modified their holdings of WS. Royal Bank of Canada lifted its stake in Worthington Steel by 14.8% during the 1st quarter. Royal Bank of Canada now owns 15,771 shares of the company’s stock valued at $399,000 after acquiring an additional 2,038 shares during the period. AQR Capital Management LLC grew its stake in shares of Worthington Steel by 89.4% in the first quarter. AQR Capital Management LLC now owns 50,634 shares of the company’s stock worth $1,269,000 after acquiring an additional 23,899 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Worthington Steel by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 19,346 shares of the company’s stock worth $490,000 after acquiring an additional 841 shares during the period. Geode Capital Management LLC raised its holdings in shares of Worthington Steel by 0.9% during the second quarter. Geode Capital Management LLC now owns 802,320 shares of the company’s stock valued at $23,936,000 after purchasing an additional 7,060 shares during the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its holdings in shares of Worthington Steel by 7.3% during the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 8,989 shares of the company’s stock valued at $268,000 after purchasing an additional 608 shares during the last quarter. 45.41% of the stock is owned by hedge funds and other institutional investors.

Worthington Steel Trading Down 5.8%

The company has a debt-to-equity ratio of 0.03, a current ratio of 1.48 and a quick ratio of 1.09. The stock’s 50-day moving average is $39.77 and its two-hundred day moving average is $35.55. The company has a market cap of $1.43 billion, a P/E ratio of 15.76 and a beta of 1.62.

About Worthington Steel

Worthington Steel (NYSE: WS) is a leading North American steel processor specializing in the production of flat-rolled, coated and painted sheet and coil products. Operating as a wholly owned subsidiary of Worthington Industries, the company serves a broad range of industries, including construction, automotive, appliance, energy and agricultural equipment. Its core business activities encompass the processing, finishing and distribution of carbon and advanced high-strength steels, aluminum and stainless products to manufacturers across the continent.

The company’s product portfolio includes hot-dip galvanizing, galvannealed, aluminized and pre-painted steel products, as well as cold-rolled and hot-rolled coil.