Worthington Enterprises Stumbles: Investors Eye Soft Cash Flow & Disappointing Outlook

Worthington Enterprises (NYSE:WOR) experienced a notable decline in its share price today, as investors carefully digested the company's latest fiscal fourth-quarter results and, more critically, its cautious outlook for the upcoming fiscal year. The industrial manufacturer saw its stock drop significantly, reflecting market concerns over softer operating cash flow and lower-than-anticipated guidance.

For its fiscal fourth quarter, Worthington Enterprises reported adjusted earnings per share (EPS) of $1.52.

This figure managed to surpass the average analyst estimate of $1.41, a positive signal. However, the company's revenue told a different story, coming in at $301.8 million, which fell short of the consensus estimate of $306.94 million. While a beat on the bottom line is often cheered, the miss on the top line raised initial questions about underlying demand.

The more significant drag on investor sentiment, however, emerged from the company's full-year fiscal 2025 EPS guidance.

Worthington Enterprises projected earnings in the range of $5.50 to $6.00 per share. This forecast landed below the Street's consensus estimate of $6.02, signaling a potential slowdown or increased headwinds that analysts had not fully priced in. Such guidance often acts as a forward-looking indicator, and a cautious outlook can quickly dampen enthusiasm, even in the wake of an earnings beat.

Perhaps the most concerning aspect of the report for many analysts and investors was the substantial drop in operating cash flow.

For the fourth quarter, Worthington Enterprises reported operating cash flow of just $36 million. This represents a significant decrease when compared to the robust $166 million generated in the prior-year period. A strong cash flow is vital for funding operations, investments, and shareholder returns, and such a sharp decline can raise red flags about the company's financial health and operational efficiency.

These results mark the first full quarter of operations for the new Worthington Enterprises, following the completion of the Worthington Steel (NYSE:WS) spinoff in December.

The market appears to be in a period of re-evaluation for the streamlined entity, and these initial results, particularly the cash flow and guidance, are shaping early perceptions. As the company navigates its new structure, investors will be closely watching for signs of stabilization and growth, especially concerning its cash-generating capabilities and its ability to meet or exceed future guidance.