At a glance
Worthington Steel, Inc. is worth $2.17B, about 249 times its fiscal 2026 earnings. Revenue grew 11.3% to $3.44B in fiscal 2026, with 0.2% kept as profit; over 4 years it has grown 4.1% a year. It pays a 1.51% dividend yield, and returned $72.4M to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned +35.3% over the past year with dividends reinvested, against +11.5% for the S&P 500.
The business in plain English
Worthington Steel is an Ohio-based metals processor. It buys flat-rolled steel coils, mostly from North American steel mills, and processes them to each customer's exact size, shape and surface needs. It says it holds market-leading positions in North American carbon flat-rolled steel processing and in tailor welded blanks (steel sheets of different thicknesses welded into one part, often for car bodies). It is also one of the world's largest makers of electrical steel laminations, which are used in motors and transformers.
It earns money in two ways. In direct sales, it buys steel, processes it and sells the finished product, so it is exposed to swings in steel prices. In toll processing, it charges a fee to process steel that customers own. In fiscal 2026 (the year ended May 31, 2026), direct tons sold rose 6% while toll volumes fell 21%.
Automotive was the biggest customer industry, at 55% of fiscal 2026 net sales of $3.44 billion. Construction and machinery and equipment followed at 10% each. The US accounted for 74.4% of revenue, Canada 11.4%, Mexico 6% and the rest of the world 8.2%. In June 2026 it bought control of German-listed Kloeckner, about 61.87% of its shares. Revenue for the quarter ended August 31, 2026, the first after that deal closed, was $2.73 billion, up 212% from a year earlier.
Price history
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WS +35.3% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By geography
| US | $2.56B | 74.4% |
| CA | $392.1M | 11.4% |
| Rest Of World | $282.9M | 8.2% |
| MX | $208.0M | 6% |
Latest results
- In Q1 FY2027 (ended Aug 31, 2026), revenue was $2.73B, up 212.4% from a year earlier, and net income was $-10.0M (-127.2%).
- For fiscal 2026, revenue was $3.44B (+11.3% year over year; -4.1% a year from FY2022 to FY2026) with a 0.2% net margin.
Financial health check
| Revenue growth a year (FY2022–FY2026) | -4.1% weak |
|---|---|
| Operating margin | 0% weak |
| Free cash flow margin | 2.3% watch |
| Return on equity (FY2026) | 0.8% weak |
| Return on assets (FY2026) | 0.4% weak |
| Net cash (cash minus debt) | $-1.98B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $4.07B | $180.4M | $3.1M |
| FY2023 | $3.61B | $87.1M | $269.5M |
| FY2024 | $3.43B | $154.7M | $96.1M |
| FY2025 | $3.09B | $110.7M | $99.9M |
| FY2026 | $3.44B | $8.5M | $80.0M |
Valuation snapshot
| Market value | $2.17B |
|---|---|
| P/E ratio | 249.1 |
| Dividend yield | 1.51% |
Rank among 1514 US companies
Market value at each year end
Worthington Steel’s market value went from $1.62B at the end of 2024 to $2.17B on Oct 28, 2026, up 34%; since the end of 2025 it is up 23%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.17B | +23.3% |
| 2025 | $1.76B | +8.9% |
| 2024 | $1.62B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| WS price data to Oct 28, 2026 | +24.0% | +35.3% | — | — | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +24.0% |
| 2025 | +11.2% |
| 2024 | +15.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 1 open-market purchases ($31K) and 5 sales ($1.1M), 5 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Oct 16, 2026 | Clifford Larivey President Flat Rolled Stl Proc | sell (plan) | $741K |
| Oct 19, 2026 | Clifford Larivey President Flat Rolled Stl Proc | sell (plan) | $276K |
| Oct 15, 2026 | Clifford Larivey President Flat Rolled Stl Proc | sell (plan) | $44K |
| Oct 15, 2026 | George John III Ganem CEO Americas Kloeckner Metals | buy | $31K |
| Oct 19, 2026 | Clifford Larivey President Flat Rolled Stl Proc | sell (plan) | $12K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 9.96% | Mar 31, 2026 |
| Dimensional Fund Advisors LP | 5.1% | Jun 30, 2026 |
ETFs with the most weight in WS
| SLX VanEck Steel ETF | 1.33% |
| IFRA iShares U.S. Infrastructure ETF | 0.53% |
| FYT First Trust Small Cap Value AlphaDEX Fund | 0.53% |
| SQLV Royce Quant Small‑Cap Quality Value ETF | 0.36% |
| BSVO EA Bridgeway Omni Small-Cap Value ETF | 0.34% |
| RWJ Invesco S&P SmallCap 600 Revenue ETF | 0.25% |
| HAPS Harbor Human Capital Factor US Small Cap ETF | 0.21% |
| JSMD Janus Henderson Small/Mid Cap Growth Alpha ETF | 0.16% |
What could go wrong
- Heavy reliance on the auto industry. Automotive customers made up about 55% of fiscal 2026 net sales. A slump in vehicle production, lost business with the Detroit Three automakers or a United Auto Workers strike against them could hurt results.
- Kloeckner deal may not go as planned. Worthington Steel held about 61.87% of Kloeckner as of June 15, 2026. Formal control over Kloeckner's management requires a German-law agreement backed by 75% of shares present at a Kloeckner meeting, which may never happen.
- Higher debt after the Kloeckner deal. As of August 31, 2026, total debt was $2.23 billion against $248 million in cash and investments. Its term loans and revolving credit line carry floating rates, so higher interest rates would raise borrowing costs.
- Steel price swings can cause inventory losses. In its direct sales business, Worthington Steel owns the steel it processes. When prices fall, it can be stuck using costlier steel on hand for lower-priced orders, or have to mark down inventory.
- Tariffs and trade policy shifts. The US has imposed tariffs, or import taxes, on some foreign steel products, which the company says may hurt its business. Trade policy shifts have fed steel price swings and made demand harder to predict.
- Emissions rules could shift carmakers from steel. Fuel efficiency or emissions rules could lead automakers to use other materials instead of steel. The company also lists the shift from gas engines to electric motors as a possible drag on demand.
Recent events
- Investor presentation or announcement
- Quarterly results released; Other company announcement
- Shareholder vote results
- Major agreement signed; Investor presentation or announcement
- Investor presentation or announcement
- Major agreement signed; Major agreement ended; New debt or financial obligation
- Quarterly results released; Executive or board change; Other company announcement
- Acquisition or sale of assets completed; Investor presentation or announcement
- Major agreement signed; New debt or financial obligation; Other company announcement
- Investor presentation or announcement
For income and retirement investors
Worthington Steel pays a quarterly dividend but has not raised it. Dividends per share were $0.32 in fiscal 2024, a partial year after the spin-off, then $0.64 in fiscal 2025 and 2026. The board declared a $0.16 payment on June 24, 2026, and the yield was 1.51% as of October 28, 2026. With fiscal 2026 earnings down to $0.17 per share, dividends came to about 384% of earnings, though about 41% of free cash flow (cash left after running the business and buying equipment). It bought back no shares through fiscal 2026, and its share count rose 1.9% from January 2024 to October 2026.
The company has traded publicly only since December 2023, so its shares have no record from the 2008 financial crisis, the 2020 COVID crash or the 2022 bear market. Through October 28, 2026, the share price's worst fall from a peak was 51%. Like any single stock, it carries more risk than a diversified fund.
Questions investors ask
How does Worthington Steel make money?
Worthington Steel makes money by processing flat-rolled steel for industrial customers. In direct sales, it buys steel coils, mainly from North American mills, cuts and shapes them to order, and sells the finished steel. In toll processing, it charges a fee to process steel its customers already own. In the fiscal year ended May 31, 2026, automotive customers made up 55% of net sales of $3.44 billion, and the US accounted for 74.4% of revenue.
Is Worthington Steel part of Worthington Enterprises?
No. Worthington Steel was the steel processing business of Worthington Enterprises until December 1, 2023. On that date the separation was completed and it became an independent, publicly traded company on the New York Stock Exchange under the ticker WS. Its results for earlier periods were prepared on a carve-out basis, meaning they were pulled out of Worthington Enterprises' books. As of October 28, 2026, the stock had less than three years of trading history.
Does Worthington Steel raise its dividend every year?
No. Worthington Steel has paid a dividend since its spin-off but has not raised it. Dividends per share were $0.64 in both fiscal 2025 and fiscal 2026, and on June 24, 2026, the board declared a quarterly dividend of $0.16 per share. The yield was 1.51% as of October 28, 2026. In fiscal 2026, dividends were nearly four times earnings per share of $0.17, but about 41% of free cash flow.
What is Worthington Steel's Kloeckner deal?
It is Worthington Steel's purchase of a controlling stake in German-listed Kloeckner for €11.00 per share in cash. The deal closed on June 3, 2026, and Worthington Steel held about 61.87% of Kloeckner's shares as of June 15, 2026. It paid about $668.3 million for the shares sold into its offer, using new bonds due 2033, seven-year term loans and cash on hand. Total debt was $2.23 billion as of August 31, 2026. On July 15, 2026, it offered to purchase the remaining shares and delist Kloeckner.
Why is Worthington Steel's P/E ratio so high?
Mainly because profits fell sharply. Worthington Steel's price-to-earnings (P/E) ratio, its share price divided by earnings per share, was about 249 as of October 28, 2026. That used earnings of $0.17 per share for the fiscal year ended May 31, 2026. In that year net income dropped 92.3% to $8.5 million, even as revenue rose 11.3% to $3.44 billion. It then posted a $10 million net loss for the quarter ended August 31, 2026. A P/E based on one weak year may not reflect longer-term earning power.