Revenue: As of FY2026 Q3, the actual value is USD 769.8 M, missing the estimate of USD 857.2 M.EPS: As of FY2026 Q3, the actual value is USD 0.2, missing the estimate of USD 0.58.EBIT: As of FY2026 Q3, the actual value is USD 16.4 M.Worthington Steel, Inc. operates as a single reportable segment, primarily processing flat-rolled steel coils for diverse end markets.<h4>Segment Revenue</h4><ul><li>Net Sales: For the three months ended February 28, 2026, net sales were $769.8 million, an increase of 12% compared to $687.4 million for the same period in 2025. For the nine months ended February 28, 2026, net sales were $2,514.6 million, up from $2,260.4 million in the prior year.</li><li>Direct Sales: Direct sales were $743.0 million for the three months ended February 28, 2026, and $2,426.6 million for the nine months ended February 28, 2026.</li><li>Toll Sales: Toll sales were $26.8 million for the three months ended February 28, 2026, and $88.0 million for the nine months ended February 28, 2026.</li><li>Sitem Group Contribution: The Sitem Group contributed net sales of $41.8 million and a net loss of - $4.5 million for the three months ended February 28, 2026. For the nine months ended February 28, 2026, Sitem Group contributed net sales of $133.8 million and a net loss of - $8.2 million.</li><li>Net Sales to Former Parent: Net sales to the Former Parent were $19.0 million for the three months ended February 28, 2026, and $56.1 million for the nine months ended February 28, 2026.</li></ul><h4>Operational Metrics</h4><ul><li>Net Earnings Attributable to Controlling Interest: For the three months ended February 28, 2026, net earnings were $10.4 million, down from $13.8 million in the prior year. For the nine months ended February 28, 2026, net earnings increased to $66.0 million from $55.0 million in the prior year.</li><li>Gross Margin: Gross margin was $76.1 million for the three months ended February 28, 2026, compared to $81.2 million in the prior year. For the nine months ended February 28, 2026, gross margin was $284.5 million, up from $261.6 million in the prior year.</li><li>Operating Income: Operating income for the three months ended February 28, 2026, was $3.1 million, a decrease from $18.3 million in the prior year. For the nine months ended February 28, 2026, operating income was $73.1 million, down from $80.6 million in the prior year.</li><li>Cost of Goods Sold: Cost of goods sold was $693.7 million for the three months ended February 28, 2026, and $2,230.1 million for the nine months ended February 28, 2026.</li><li>Selling, General and Administrative Expense (SG&amp;A): SG&amp;A was $77.5 million for the three months ended February 28, 2026, compared to $54.6 million in the prior year. For the nine months ended February 28, 2026, SG&amp;A was $216.3 million, up from $172.7 million in the prior year.</li><li>Impairment of Assets: Impairment charges were $1.5 million for the three months ended February 28, 2026, and $2.1 million for the nine months ended February 28, 2026.</li><li>Restructuring and Other (Income) Expense, Net: The company reported - $6.0 million in restructuring and other income (expense), net for the three months ended February 28, 2026, and - $7.0 million for the nine months ended February 28, 2026.</li><li>Equity in Net Income of Unconsolidated Affiliate: Equity in net income was $3.5 million for the three months ended February 28, 2026, and $16.7 million for the nine months ended February 28, 2026.</li></ul><h4>Cash Flow</h4><ul><li>Net Cash Provided by Operating Activities: For the nine months ended February 28, 2026, net cash provided by operating activities was $156.3 million, down from $176.4 million in the prior year.</li><li>Net Cash Used in Investing Activities: For the nine months ended February 28, 2026, net cash used in investing activities was - $170.1 million, compared to - $83.8 million in the prior year.</li><li>Net Cash Provided by (Used in) Financing Activities: For the nine months ended February 28, 2026, net cash provided by financing activities was $11.0 million, compared to net cash used of - $69.5 million in the prior year.</li></ul><h4>Unique Metrics</h4><ul><li>Volume (tons): Total volume decreased by 7% to 817,524 tons in the three months ended February 28, 2026, compared to 881,410 tons in the prior year. Direct tons sold increased by 4%, while toll volumes decreased by 22% in the three months ended February 28, 2026.</li><li>Automotive End Market: The automotive industry represented 54% of consolidated net sales for the three months ended February 28, 2026, and 55% for the nine months ended February 28, 2026. Direct shipments to the Detroit Three Automakers increased by approximately 13% in the third quarter of fiscal 2026 compared to the prior year.</li><li>Redeemable Noncontrolling Interest (Redeemable NCI): As of February 28, 2026, Redeemable NCI was $96.8 million.</li><li>Equity Securities: As of February 28, 2026, Worthington Steel, Inc. owned $101.3 million in Kloeckner Shares.</li></ul><h4>Future Outlook and Strategy</h4>Worthington Steel, Inc. is in the process of acquiring Klöckner &amp; Co SE (Kloeckner) through a voluntary public cash takeover offer, with the minimum acceptance threshold achieved on March 31, 2026. The Offer Closing is expected in the second half of calendar 2026, subject to regulatory conditions, and is anticipated to materially impact the company’s business, results of operations, and financial condition. The company also expects inventory holding gains of $15.0 million to $20.0 million in the fourth quarter of fiscal 2026 due to recent upward steel price movements.

Worthington Steel | 10-Q: FY2026 Q3 Revenue Misses Estimate at USD 769.8 M