Worthington Steel, Inc. · NYSE:WS
Worthington Steel — Q3 2026 Earnings Presentation
40 slides from Worthington Steel's earnings presentation, Mar 26, 2026
Slide 1: Worthington Steel Investor Presentation | March 2026
Worthington Steel Investor Presentation | March 2026
Slide 2: Safe Harbor Statement
Safe Harbor Statement Selected statements contained in this release constitute “forward-looking statements,” as that term is used in the Private Securities Litigation Reform Act of 1995 (the “Act”). The Company wishes to take advantage of the safe harbor provisions included in the Act. Forward- look
Slide 3: Investment Highlights
Investment Highlights 1. Well-positioned to capitalize on opportunities from expected growth in electricity usage to support data center growth and vehicle electrification combined with the modernization and expansion of the electric grid 2. Long-standing customer relationships focused on value crea
Slide 4: Building A Differentiated Steel Processing Company
Building A Differentiated Steel Processing Company Established market leading joint ventures 1971 Worthington Steel to bring additional value to our customers changed its name to Worthington Industries Worthington Steel to reflect new areas of Introduction of Worthington Steel founded in 1955 with b
Slide 5: Value-added Metals Processing Company
Value-added Metals Processing Company Net Sales by End-Market2,3 10% 2% TTM Financial Metrics2 1955 3% Founded Volume Delivered (tons) 3.6M 3% Direct / Toll (tons) 2.3M / 1.3M 3% Columbus, OH Headquarters 4% Net Sales $3.3B 37 Adjusted EBITDA / Margin $257M / 7.7% 55% 10% Locations1 Free Cash Flow $
Slide 6: We Occupy a Unique Position in the Steel Supply Chain
We Occupy a Unique Position in the Steel Supply Chain WORTHINGTON STEEL Mills OPERATIONS Service Centers Customized value-added services Hot Roll Specialty Dimensional Conversion Processing Processing Melt Warehouse/ Pickling / scale removal Specialty cold rolling, Slitting to Width Hot Roll Coil te
Slide 7: Building on Market Leadership Position
Building on Market Leadership Position #1 #1 #1 #1 #2 #3 Independent Producer Producer of Tailor Trader of Steel Futures Network of Independent Independent Flat Global Manufacturer of of Hot Dipped Welded Blanks in by Volume Among Picklers in Rolled Service Electrical Steel Galvanized Steel in North
Slide 8: Network and Services to Deliver Added Value to Customers
Network and Services to Deliver Added Value to Customers 37 Manufacturing Facilities Primarily Located in North America1 Key Operations Strategically Located Proximate to Suppliers and Customers Expertise in Optimizing Supply Chains and Minimizing Total Landed Cost 90% of Sales in North America; 10%
Slide 9: Joint Ventures Expand Our Processing Capabilities and Reach
Joint Ventures Expand Our Processing Capabilities and Reach Spartan Steel Coating TWB WSCP1 Serviacero Worthington (52%) (55%) (63%) (50%) • Partner: Cleveland-Cliffs • Partner: BaoSteel • Partner: Samuel, Son & Co. • Partner: Serviacero • A cold-rolled, hot-dipped coating • Tailor welded products f
Slide 10: Near term outlook for key markets served by Worthington Steel
Near term outlook for key markets served by Worthington Steel Automotive Construction Agriculture Truck / Trailer Energy • Traction motors for BEVs • Metal buildings • Combines • Wheel rims • Transformer cores for /hybrids including trucks • Garage doors & rail • Grain bins • Frames power distributi
Slide 11: Critical Supplier to Blue-Chip Companies Across End Markets
Critical Supplier to Blue-Chip Companies Across End Markets Diversified Customer Base, Many With Decades-Long Relationships 10% 2% 3% 3% 3% 4% 55% 10% 10% Automotive Construction Machinery & Equipment Heavy Truck Sustainable Energy Agriculture Containers Service Centers Other Note: Sales based on TT
Slide 12: Our Strategy and Operating Model
Our Strategy and Operating Model
Slide 13: Proven Worthington Business System embedded in growth plans
Proven Worthington Business System embedded in growth plans Executing on our investments in the rapidly growing electrical steel market Strategically expanding our capacity for highly technical electrical steel products to meet demand for infrastructure improvements and electric vehicles (including
Slide 14: Worthington Business System is the Foundation for Driving Improved Profitability
Worthington Business System is the Foundation for Driving Improved Profitability TRANSFORMATION Leveraging Lean Practices and Technology • Systematic approach to business improvement • Optimizing working capital • Maximizing capacity and reducing waste • Predictive analytics and automation enhance e
Slide 15: Our Differentiated Business Model Drives Worthington Steel Forward
Our Differentiated Business Model Drives Worthington Steel Forward Beginning with Material Worthington Steel Offers a Wide Range of Value-Added Serving Customers Across from our Mill Partners Processing Capabilities and Services Attractive End Markets Customized Strategic End-to-End Operating Supply
Slide 16: Innovation: Product Improvements for Lightweighting
Innovation: Product Improvements That Meet Changing Customer Needs for Lightweighting Results “Voice of Customer” Approach to New Product Development Driving Market Share Gains and Improved Customer Intimacy Continued Enhancements to Core Offerings At the Forefront of EV Battery Box Design Hot Stamp
Slide 17: Case Study: Our Transformation Strengthens Customer Relationships
Case Study: Our Transformation Strengthens Customer Relationships Goal: Reduce Excess Working Capital While Maintaining Inventory for High-Growth Products • Our customer faced high capital costs and limited floor space tied up in slow-turn inventory • Growth was constrained by lack of space for high
Slide 18: Well Positioned to Capitalize on Key End Market Trends
Well Positioned to Capitalize on Key End Market Trends Decarbonization of Energy Growth Infrastructure Transportation Electrical Steel Tailored Electrical Steel Electrical Steel Galvanized Laminations Blanks Laminations Laminations Steel Worthington Steel Product Offering EV Traction Automotive Tran
Slide 19: 80% of Steel Sold to Automotive Supports Powertrain-Agnostic Parts
80% of Steel Sold by Worthington to Automotive Market Supports Powertrain-Agnostic Parts BODY INNER CLOSURES STRUCTURE ACCESSORY CHASSIS/ MOTORS UNDERBODY INTERNAL COMBUSTION ENGINE HYBRID EV We are also a critical Clutch plate Clutch plate and electrical steel Electrical steel supplier for powertra
Slide 20: Focused Strategic Investments in Electrical Steel
Focused Strategic Investments in Electrical Steel Mexico: Increase Motor Lamination Capacity to Meet Growing xEV Demand • Expanding existing xEV production capacity • Total expected capex = $85M (~65% spent through 02/28/26) ‒ Building expansion complete ‒ Initial five presses installed; five more e
Slide 21: M&A Is a Key Part of Our Strategy
M&A Is a Key Part of Our Strategy Investment Criteria Select Acquisitions ▪ Well-run, successful companies with strong management teams Strip Steel Assets ▪ Culture aligns with Our Philosophy ▪ Accretive to earnings per share in a short period of time and increases overall EBITDA margin BlankLight®
Slide 22: Pending Acquisition of Kloeckner
Pending Acquisition of Kloeckner
Slide 23: Acquisition of Kloeckner & Co
Accelerates Worthington Steel’s growth strategy ► Creates the second largest Service Center in North America ► Expands and diversifies geographic footprint, product offering Acquisition of and end markets served • Enhances ability to serve Southern US Kloeckner & Co • Adds long products, plate, alum
Slide 24: Significant synergy opportunity in North America
Significant synergy opportunity in North America • Sourcing optimization • Expanded cross-selling in • Direct and indirect electrical steel, aluminum, Commercial Procurement spend stainless and fabrication Process Synergies ~$55M • Optimization of scrap • Streamlining of product management portfolio
Slide 25: Overview of Transaction Process
Overview of Transaction Process 100% cash tender offer in Germany Transaction Execution • Acquisition to be executed via a tender offer in accordance with the German Takeover Rules Tender • Minimum offer acceptance threshold of 57.5% Offer • Kloeckner shareholder representing ~42% of its share capit
Slide 26: Key Financial Metrics
Key Financial Metrics w= WORTHINGTON le. STEEL
Slide 27: Resilient Financial Performance Despite Commodity Volatility
Resilient Financial Performance Despite Commodity Volatility Net Sales ($M) & Volumes (M Tons) Adjusted EBITDA ($M) & Margin (%) $3,608 $290 $257 $3,431 $3,347 $206 $215 $3,093 8.4% 7.7% 7.0% 5.7% 4.0 4.0 3.8 3.6 FY2023 FY2024 FY2025 TTM FY2023 FY2024 FY2025 TTM Estimated Holding G/(L)1 ($49) ($3) (
Slide 28: How Worthington Steel Mitigates Volatility in Steel Pricing
How Worthington Steel Mitigates Volatility in Steel Pricing We Minimize Steel Holding Gains and Losses Worthington Business System Helps Drive Down Inventory Baseline Transformation Advanced Lean Flow + AI • Worthington Business System to manage inventory Launch Analytics Predictive Lead Times 73 70
Slide 29: Lean Flow: Converting Inventory into Structural Cash Advantage
Lean Flow: Converting Inventory into Structural Cash Advantage From Inventory Congestion to Demand-Driven Flow Delta, Ohio Case Study • Lean Flow Designs align material release, production and • At our Delta facility, this approach has translated into: purchasing directly to true customer demand — r
Slide 30: Pathway to Margin Expansion
Pathway to Margin Expansion Strategy to Achieve 10%+ Adj. EBITDA Margin Target 10%+ 10%+ 7% FY22-25 Average Worthington Product New Acquisitions Long-Term Target Business System Mix Products LEVERS TO Drive Focus on Introduce higher Acquire high margin new margin IMPROVE out waste and reduce margin
Slide 31: Strong Cash Flow Supports Growth Initiatives
Strong Cash Flow Supports Growth Initiatives Operating Cash Flow ($M) Operating Working Capital1 ($M) 30.0% $315 $498 $495 $230 25.0% $200 $210 $481 20.0% $458 15.0% 14.5% 14.8% 14.8% 13.3% FY2023 FY2024 FY2025 TTM 10.0% FY2023 FY2024 FY2025 TTM Capex Steel Price ($M) $45 $103 $130 $129 ($/ton) $890
Slide 32: Capital Investments to Strengthen and Grow Market Position
Capital Investments to Strengthen and Grow Market Position Strategic Capital Investments Capital Expenditures ($M) Increasing Lightweighting Capabilities/Capacity Expect FY 2026 capital expenditures of • Laser Welding: support lightweighting targets for approximately $110 Million new Battery EV mode
Slide 33: Capital Structure Supports Growth Initiatives
Capital Structure Supports Growth Initiatives • Accomplished initial goal for a strong balance sheet at Spin Date Balance Sheet Summary ($M) Total Debt $251 • Expect to maintain a flexible capital structure with modest leverage and ample liquidity (-) Cash $90 • Current credit facility consists of:
Slide 34: How We Drive Shareholder Value
How We Drive Shareholder Value
Slide 35: Disciplined Framework Designed to Drive Shareholder Value
Disciplined Framework Designed to Drive Shareholder Value Organic Growth Strategic M&A Shareholder Return • Maintain operations in • Target acquisition • Focus on maximizing market ready condition opportunities that are shareholder return expected to be • Grow capacity to meet • Expect to pay a mode
Slide 36: Experienced Management Team to Drive Strategy
Experienced Management Team to Drive Strategy More than 200 Combined Years of Experience Managing Through Steel Price Cycles and Shifting Macroeconomic Climates with Proven Ability to Execute M&A GEOFF GILMORE JEFF KLINGLER TIM ADAMS JOE HEUER MELISSA DYKSTRA President & Chief Executive VP & VP & Ch
Slide 37: Investment Highlights
Investment Highlights 1. Well-positioned to capitalize on opportunities from expected growth in electricity usage to support data center growth and vehicle electrification combined with the modernization and expansion of the electric grid 2. Long-standing customer relationships focused on value crea
Slide 38: Appendix
Appendix ws: WORTHINGTON Mp. STEEL
Slide 39: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures These materials present certain financial measures that are not calculated in accordance with U.S. generally accepted • Gain on land sale - sale of unused land on the campus of the Tempel subsidiary in China, which resulted in a pre- accounting principle
Slide 40: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 39