Worthington Enterprises Delivers Strong Performance in Q4 Fiscal 2025, Achieving Year-Over-Year and Sequential Growth in Key Metrics
The company's strong performance in the fourth quarter of fiscal 2025 has set a positive tone for its future growth prospects. During its recent earnings conference call, Worthington Enterprises' management team highlighted several key achievements that demonstrate the company's commitment to innovation, transformation, and strategic acquisitions.
In terms of revenue, the company reported an increase of 14% in Q4 compared to the same period last year, excluding the deconsolidation of SES. Excluding both SES and Ragasco revenues, growth was up 8%. This performance is particularly noteworthy given the challenges posed by the ongoing economic environment.
Adjusted EBITDA margin also showed significant improvement, rising to 26.8% in Q4 from 19.8% in the same period last year. Gross margin increased to 29.3%, up from 24.8% in Q4 2024. These results reflect the company's continued focus on optimizing its current businesses and leveraging its business system, which includes innovation, transformation, and M&A as key growth drivers.
One area where the company has made notable progress is in innovation. The success of its new Balloon Time Mini product has created opportunities for expansion into new channels, with a recent partnership with CBS being a prime example. Additionally, Payload Riddles have received accolades from various publications, including Men's Journal and CNET.
The company's PowerCore cylinder was also featured in the 3M fast bond water-based adhesives, which were recognized as one of the top innovations by the Adhesives and Sealants Council in 2025. These achievements demonstrate the company's ability to drive growth through innovation and its commitment to delivering high-quality products to customers.
Another key highlight from the conference call was the company's focus on transformation, which has led to significant productivity improvements across its network. The use of automation and technology has contributed to these gains, with the water business team making good progress in embracing a new way of thinking through the 80/20 principle.
Strategic M&A has also been identified as a vital leg of the company's growth strategy, with the recent acquisition of Elgen Manufacturing being a prime example. This deal brings together two companies with complementary businesses and expertise, creating opportunities for synergies and growth.
The acquisition of Elgen Manufacturing highlights Worthington Enterprises' commitment to identifying and acquiring companies that align with its core capabilities and values. With over $115 million in LTM revenue and $13 million in adjusted EBITDA, the company is confident that it can help accelerate growth for this new addition.
Finally, the company's dedication to its people was also highlighted during the conference call. Being named a top workplace in Central Ohio for the 13th consecutive year is a testament to its commitment to fostering a positive and inclusive work culture. This achievement aligns with the company's core values and serves as a reminder of the importance of people in driving business success.
