Worthington Steel (NYSE:WS), a value-added metals processor, today reported financial results for its fiscal 2026 third quarter ended February 28, 2026.
The highlight of the period was the announcement of a definitive Business Combination Agreement with Germany-based metals processor Kloeckner & Co SE, marking a transformative step in Worthington’s international expansion strategy.
Under the terms of the agreement, Worthington Steel has launched a voluntary public tender offer for all outstanding shares of Kloeckner at €11 per share.
The acquisition, which is expected to close in the second half of calendar year 2026, aims to create a premier global metals processing powerhouse with significant operations across both North America and Europe.
The deal remains subject to a minimum acceptance threshold and customary regulatory approvals.
Financially, Worthington reported net sales of $769.8 million for the third quarter, a 12% increase compared to $687.4 million in the prior-year period.
However, the top-line growth did not translate to higher bottom-line results, as operating income fell to $3.1 million from $18.3 million a year ago.
Net earnings attributable to controlling interest were $10.4 million, or $0.20 per diluted share, compared to $13.8 million, or $0.27 per diluted share, in the third quarter of fiscal 2025.
On an adjusted basis, EBIT reached $20 million, down from $25.3 million in the same quarter last year.
Adjusted net earnings per diluted share were $0.27, compared to $0.35 previously.
The margin compression reflects ongoing volatility in steel prices and shifting inventory values, common headwinds in the metals processing sector.
Despite the earnings dip, the company maintained its commitment to shareholder returns.
The Board of Directors declared a quarterly dividend of $0.16 per share, payable on June 26, 2026, to shareholders of record as of June 12, 2026.