Worthington Steel Reports Strong First Quarter 2027 Results Amidst Challenging Steel Supply Environment
In a recent conference call transcript reported on October 7th, Worthington Steel shared its Q1 2027 results amidst a challenging steel supply environment. The company's President and CEO, Geoff G. Gilmore, highlighted the significant milestone of reporting Kloeckner financials as part of their results for the first time.
Worthington Steel has taken several important steps over the last few months to achieve this integration. The company closed the transaction on June 3rd, with Kloeckner's shares delisted from the Frankfurt Stock Exchange on August 12th and a Domination and Profit and Loss Transfer Agreement (DPLTA) signed on September 8th.
The DPLTA remains subject to shareholder approval in October. If approved and effective, it would provide a clear framework for operating control as well as formal integration and synergy capture beginning in the first quarter of calendar year 2027. Planning for this phase is already underway, with teams from Worthington Steel and Kloeckner working together to learn each other's business, processes, and cultures.
The company reported net sales of $2.7 billion, adjusted EBITDA of $111 million, and an adjusted earnings per share of $0.57 in the first quarter of 2027. The results were achieved despite a challenging steel supply environment, characterized by tight supply, long lead times, shifting production schedules, and difficulties in securing material for customers.
Geoff G. Gilmore emphasized that the integration with Kloeckner changes the size, shape, and reach of their company, expanding product and processing capabilities, broadening markets served, and extending geographic footprint. This high-quality scale gives Worthington Steel more ways to serve customers, balance across cycles, and create long-term value.
From a macro standpoint, demand was uneven across end markets, and customers continued to be cautious with inventories and commitments. Steel supply remained tight in the U.S., with imports down and lead times extended in many parts of the market.
The company's execution in this environment has made a real difference, as their teams worked constructively with customers and supply partners, adjusted plans, and helped customers secure material they needed. This is one way Worthington Steel earns trust from its customers, providing communication, problem-solving, and engagement when conditions are difficult.
