0001968487-26-000008
SEC filingWorthington Steel delivered strong revenue growth and solid operating cash flow in Q3 FY2026, but profitability metrics declined sharply year-over-year due to non-recurring acquisition-related costs and facility exit impacts.
Revenue for Q3 FY2026 totaled $769.8 million, an increase of 12.0% compared to $687.4 million in Q3 FY2025. This growth was driven by improved demand across several end markets, including agriculture — where volume gains were primarily attributable to stronger OEM equipment demand. The revenue expansion occurred despite a shift in business mix, as toll volumes declined following the May 2025 closure of the Cleveland-area WSCP facility and softer demand from mill customers.
The closure of the WSCP Cleveland toll processing facility in May 2025 contributed meaningfully to the reduction in toll volumes and reshaped the company’s service mix toward direct sales. Management has emphasized that this transition supports long-term strategic objectives, including greater control over customer relationships and pricing. However, near-term financial results reflect the transitional costs associated with such structural changes. As noted in management commentary, disclosure of Redeemable NCI is necessary for investors to understand its effect on financial condition, results of operations, and liquidity — underscoring the importance of monitoring capital structure implications as integration efforts continue.