Worthington Steel, Inc. · NYSE:WS
Worthington Steel — Q1 2027 Earnings Presentation
21 slides from Worthington Steel's earnings presentation, Oct 7, 2026
Slide 1: Worthington Steel
Worthington Steel Investor Presentation | October 2026
Slide 2: Safe Harbor Statement
Safe Harbor Statement Sele cted sta temen ts contained in this pre sen tation constitute "forward-looking sta temen ts," as that term is used in the Private Securities Litigation Reform Act of 199 5 (the "A ct"). The Company wish es to take advantage of the safe har bor pro visions included in the A
Slide 3: A Historically Resilient Spread Business With Broader Reach and Scale
A Historically Resilient Spread Business With Broader Reach and Scale A growth company at its core 1 A leading value-added processor of flat-rolled carbon steel in North America, with growing capabilities in other metals and capabilities Performance built on a proven playbook 2 We primarily earn a p
Slide 4: Performance Built on a Proven Playbook
Performance Built on a Proven Playbook
Slide 5: We Are a Value-Added Processor in the Steel Supply Chain
We Are a Value-Added Processor in the Steel Supply Chain WORTHINGTON STEEL OPERATIONS Customized value-added services where we earn a processing spread Mills Hot Roll Specialty Dimensional Service Conversion Processing Processing Centers • Melt • Hot roll coil • Pickling / scale • Cold rolling, temp
Slide 6: Our Earnings and Cash Flow Have Been Resilient Despite Steel Price Volatility
Our Earnings and Cash Flow Have Been Resilient Despite Steel Price Volatility Net Sales ($M) & Volumes (M Tons) Adjusted EBITDA ($M) & Margin (%) $5,298 $306 $283 $3,431 $3,444 $251 $3,093 $228 4.6 4.0 3.8 8.9% 3.6 7.4% 7.3% FY2024 FY2025 FY2026 TTM 5.3% Net Sales ($M) Shipped Tons FY2024 FY2025 FY2
Slide 7: Mirrored Contracts and Disciplined Inventory Management Mitigate Steel Price Impact
Mirrored Contracts and Disciplined Inventory Management Mitigate Steel Price Impact on Our Performance We Seek to Minimize Steel Holding Gains and Losses Worthington Business System Helps Drive Down Inventory Baseline Transformation Advanced Lean Flow + AI • Worthington Business System to manage inv
Slide 8: Our Business System Is a Repeatable, Proven Playbook
Our Business System Is a Repeatable, Proven Playbook TRANSFORMATION: LEAN PRACTICES & TECHNOLOGY A Company-Wide System of Continuous Improvement Recent examples: • Delta, OH: WIP coils cut 60%; cycle times cut 25% • Bowling Green, KY: inventory down ~37%, 100% on time • Customer kaizen: customer wor
Slide 9: Kloeckner Adds Scale, Breadth, and Earnings Potential
Kloeckner Adds Scale, Breadth, and Earnings Potential
Slide 10: The Acquisition Adds Scale and Diversification to a Proven Operator
The Acquisition Adds Scale and Diversification to a Proven Operator Scale and breadth: greater North American scale and downstream reach, with broader geographic and customer coverage; adds aluminum, stainless, long products, plate and fabrication Diversification: a broader, more balanced portfolio
Slide 11: Kloeckner Is Shifting Toward Value-Added Processing in North America
Kloeckner Is Shifting Toward Value-Added Processing in North America ~37% → ~14% 86% Distribution share of sales, 2021 to 2025¹ Share of 2025 revenue from higher value- added and service center businesses¹ 1906 Founded North America Europe Locations across the U.S., Mexico, • ~40 U.S. and ~10 Mexico
Slide 12: Significant Synergy Opportunity in North America
Significant Synergy Opportunity in North America $150M targeted annual synergies by Year 2 Delivering the synergies • ~50% of run-rate synergies in the • Sourcing optimization of direct and indirect first full year after the DPLTA is effective; full run-rate by end of ~$55M Procurement spend Year 2
Slide 13: Focused on Executing the Path to Control and Deleveraging
Focused on Executing the Path to Control and Deleveraging
Slide 14: We Have a Clear Path to Full Operational Control
We Have a Clear Path to Full Operational Control Today Jan. 15, 2026 Mar. 27, 2026 Apr. 14, 2026 Jun. 3, 2026 July 4, 2026 Aug. 13, 2026 Sep. 8, 2026 Oct. 23, 2026 ~Jan. 1, 2027 Definitive Notice of intent Tender acceptance Acquisition closes New Kloeckner & Co Kloeckner DPLTA signed Kloeckner EGM v
Slide 15: Disciplined Capital Allocation Balances Deleveraging and Growth
Disciplined Capital Allocation Balances Deleveraging and Growth • Our #1 priority over the next two years 1 Deleveraging • • Targeting net leverage below 2.5x within 24 months of DPLTA effectiveness Driven by combined EBITDA, synergies and working capital reductions, and portfolio optimization • Com
Slide 16: One Team That Has Managed Cycles and Integrated Acquisitions Before
One Team That Has Managed Cycles and Integrated Acquisitions Before 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
Slide 17: Investment Summary
Investment Summary Earnings primarily follow the spread, not the steel price 1 Mirrored contracts and inventory discipline keep earnings steady A repeatable, proven playbook 2 The Worthington Business System will be applied to Kloeckner A broader, more value-added portfolio 3 Kloeckner adds new meta
Slide 18: Appendix
Appendix wT WORTHINGTON mp. STEEL
Slide 19: Q1 2027 Highlights
Q1 2027 Highlights Performance Summary (all comparisons to Q1 FY26) • Net sales of $2,726.6 million increased 212% compared to $872.9 million. • Operating income of $56 million compared to $48.3 million. • Net loss from continuing operations attributable to controlling interest of $7.0 million, comp
Slide 20: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures • Impairment of goodwill, long-lived assets, and other assets – impairments of assets are excluded to facilitate period- • Kloeckner purchase derivative (gain) loss - consists of the change in the fair value of an economic (non-designated) to-period comp
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 20