Worthington Enterprises, Inc. CG 46th Annual Growth Conference

Absolutely. The separation largely accomplished what we intended to do there. It was to create two distinct public companies, Worthington Steel, being a leader in steel processing. They're off and running as a standalone company. Worthington Enterprises is the higher margin, lower capital intensity business that has market-leading brands and attractive niches. These are really high-quality niches, and that's the journey we've been on. Our operations is really truly a differentiator there to our end markets that we serve. I'd say, since the separation, it's been almost three years. The pace of improvement has been really good for the company, especially within our wholly owned businesses. We've expanded EBITDA margins in our wholly owned businesses about 500 basis points over the last two years. We're really pleased with that. We've got great organic strategies.

We're growing quickly with innovative solutions, which I'm sure we'll get into details on. Then we've been able to layer on acquisitions. Really pleased with the performance since the separation. Like you said, it's been almost 3 years. I think one of the things that is maybe underappreciated is just the power of the portfolio. We come to events like this, we talk with investors regularly just to make sure that's as well understood as possible, but I think we have some more work to do there just to achieve that, and a few more data points on our performance and our results will obviously help as well.

Yeah. It was a fantastic fiscal year. We ended at the end of May, reported in June, as you said. The best year we've had as Worthington Enterprises. We were able to grow our top line 20%. We reached $1.4 billion in revenue. That included 9% organic growth rate. We ended the year at $296 million in adjusted EBITDA. That's up about 12% from the prior year, or $31 million year over year, and that is despite a $19 million decline in ClarkDietrich results. We had really good improvement again this year within the margins in our wholly owned business, up about 150 basis points. Then our SG&A as a percent of sales continues to decline about 190 basis points from the prior year.

Really good free cash flow for the year, $170 million, despite $25 million of that of our CapEx being spent on facility modernization, 102% cash flow conversion. We have been executing against our strategies throughout the year. We added a couple acquisitions. We spent about $300 million on acquisitions, which I am sure we will get into the details there, and we have got some pretty good emerging growth opportunities as well, which I am sure we will talk about. We finished the year in great shape. We are off and running in fiscal year 2027. Our first quarter will end at the end of August. We will be reporting out on that in September. But it has been a great start to fiscal year 2027 overall.

Yeah. Building products, great business. It is our largest business from a revenue standpoint. These are highly engineered products that are serving critical building solutions at the end of the day. The key brands there, we have the Worthington brand obviously, but the Amtrol brand in water, Elgen, LSI, and then our joint ventures with WAVE and ClarkDietrich. These businesses serve the HVAC market, the roofing space, the plumbing space, and then in the building envelope with ceilings and walls. Attractive spaces to be in. Majority of our products are metals-based products where we have got a lot of good manufacturing capabilities. Then when we sell those products, they typically end up in the hands of contractors and installers. That drives a lot of our business.

The majority of our building products earnings, they are driven by non-res construction, but a lot of that is more repair and remodel activity as well. That has been driving some of the growth. Overall, our largest business unit has been growing the fastest. Part of that is organic through innovative areas and emerging opportunity in data centers, as an example. Part of that is inorganic, where we have added acquisitions like LSI and Elgen over this past fiscal year.

Yeah, absolutely. Both fantastic businesses, and they create value in different ways. I will start with first WAVE, as you mentioned, the crown jewel. WAVE is an unbelievable, steady, consistent contributor to our earnings and growing earnings over time. They are a leader in ceiling grid, first and foremost. This is a 50% joint venture. The other 50% is owned by Armstrong. Leader in the ceiling grid space. These are primarily steel ceiling grids. When you say crown jewel, it is a fantastic business because of the size and the margin that they earn. North of $500 million in revenue and about 49% EBITDA margin. Fantastic value being delivered there. What WAVE has figured out over the years, this joint venture has been in place for over 30 years, stood the test of time. Their products end up in the hands of contractors and installers for buildings.