Worthington Steel (NYSE:WS) Shares Gap Down on Disappointing Earnings

Posted by Geri Gentry on Oct 7th, 2026

Shares of Worthington Steel, Inc. (NYSE:WS – Get Free Report) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $38.19, but opened at $36.19. Worthington Steel shares last traded at $34.9380, with a volume of 128,076 shares trading hands.

The company reported $0.57 EPS for the quarter, missing the consensus estimate of $1.16 by ($0.59). Worthington Steel had a net margin of 0.50% and a return on equity of 8.87%. The firm had revenue of $2.73 billion for the quarter, compared to analyst estimates of $3.14 billion. During the same quarter in the prior year, the business posted $0.77 EPS. The firm’s quarterly revenue was up 212.4% compared to the same quarter last year.

Worthington Steel Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 28th. Investors of record on Monday, December 14th will be paid a $0.16 dividend. This represents a $0.64 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Monday, December 14th. Worthington Steel’s payout ratio is currently 46.04%.

Key Worthington Steel News

Here are the key news stories impacting Worthington Steel this week:

Positive Sentiment: Quarterly dividend maintained: Worthington Steel declared a quarterly dividend of $0.16 per share, payable December 28 to shareholders of record December 14. The $0.64 annualized payout represents a yield of approximately 1.7% and signals continued shareholder distributions. Worthington Steel Declares Quarterly Dividend
Positive Sentiment: Klöckner agreement: The company announced an agreement intended to advance its control of Klöckner, a strategic development that could support operational integration and long-term growth, although the available report provides limited financial detail. Worthington Steel Advances Control With Klöckner Agreement
Neutral Sentiment: Revenue increased sharply: Fiscal Q1 revenue reached $2.73 billion, up 212.4% from the prior-year period, but still below the $3.14 billion analyst consensus. The large year-over-year increase may reflect portfolio or transaction-related changes, while the miss raises questions about demand and execution. Worthington Steel Fiscal Q1 Adjusted Earnings Fall, Revenue Rises
Negative Sentiment: Significant earnings miss: Adjusted EPS was $0.57, down from $0.77 a year earlier and well below the $1.16 consensus estimate. The $0.59-per-share miss, along with a reported net margin of only 0.50%, is the main reason investors are reacting negatively to the results. Worthington Steel Falls Short on Q1 Earnings Estimates

Analyst Upgrades and Downgrades

Several brokerages have commented on WS. Wall Street Zen lowered Worthington Steel from a “buy” rating to a “hold” rating in a report on Sunday, July 12th. Zacks Research lowered Worthington Steel from a “strong-buy” rating to a “hold” rating in a research report on Thursday, September 17th. KeyCorp reissued an “overweight” rating on shares of Worthington Steel in a research note on Tuesday. Finally, Weiss Ratings lowered shares of Worthington Steel from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, August 3rd. One analyst has rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $46.00.

Get Our Latest Research Report on Worthington Steel

Institutional Investors Weigh In On Worthington Steel

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Rockefeller Capital Management L.P. raised its position in shares of Worthington Steel by 1,239.3% in the fourth quarter. Rockefeller Capital Management L.P. now owns 750 shares of the company’s stock valued at $26,000 after buying an additional 694 shares during the last quarter. Public Employees Retirement System of Ohio acquired a new position in Worthington Steel during the second quarter worth about $51,000. OP Asset Management Ltd acquired a new position in Worthington Steel during the first quarter worth about $49,000. Security National Bank of SO Dak purchased a new position in Worthington Steel in the 2nd quarter worth approximately $111,000. Finally, Moran Wealth Management LLC acquired a new position in shares of Worthington Steel during the 1st quarter worth approximately $244,000. Institutional investors and hedge funds own 45.41% of the company’s stock.

Worthington Steel Trading Down 8.8%

The company has a current ratio of 1.46, a quick ratio of 0.92 and a debt-to-equity ratio of 0.04. The company has a fifty day moving average price of $35.68 and a two-hundred day moving average price of $36.33. The firm has a market capitalization of $1.77 billion, a price-to-earnings ratio of 25.18 and a beta of 2.24.

About Worthington Steel

(Get Free Report)

Worthington Steel, Inc is a steel processing company that produces value-added flat-rolled steel products for manufacturers in the automotive, construction, energy, industrial and consumer markets. Its offerings include electrical steel, laser-welded and tailor-welded blanks, and other processed steel products designed to meet specific customer requirements.

The company provides services such as slitting, blanking, cold reduction, welding and other steel processing capabilities. Its products are used in applications including automotive components, electrical motors and transformers, building products, pressure vessels and industrial equipment.

Worthington Steel was separated from Worthington Industries as an independent public company in December 2023.