Worthington Steel Inc (WS) 2026 Q2 法說會逐字稿

Good morning, and welcome to Worthington Steel's second quarter fiscal year 2026 earnings call. (Operator Instructions). I will now turn the call over to Melissa Dykstra, Vice President of Corporate Communications and Investor Relations. Please go ahead.

早安，歡迎參加沃辛頓鋼鐵公司2026財年第二季財報電話會議。（操作說明）現在我將把電話交給企業傳播與投資者關係副總裁梅麗莎·戴克斯特拉。請繼續。

Thank you, operator. Good morning and welcome to Worthington Steel's second quarter fiscal year 2026 earnings call. On our call today, we have Geoff Gilmore, Worthington Steel's President and Chief Executive Officer; and Tim Adams, Vice President and Chief Financial Officer.

謝謝接線生。早安，歡迎參加沃辛頓鋼鐵公司2026財年第二季財報電話會議。今天參加我們電話會議的有沃辛頓鋼鐵公司總裁兼執行長傑夫·吉爾摩，以及副總裁兼財務長提姆·亞當斯。

Before we begin, I'd like to remind everyone that certain statements made today are forward-looking within the meaning of the 1995 Private Securities Litigation Reform Act. These statements are subject to risks and uncertainties that could cause actual results to differ from those suggested. We issued our earnings release yesterday after the market closed. Please refer to it for more detail on the factors that could cause actual results to differ materially.

在開始之前，我想提醒大家，今天發表的某些聲明屬於 1995 年《私人證券訴訟改革法案》意義上的前瞻性聲明。這些聲明存在風險和不確定性，可能導致實際結果與預期結果不同。我們昨天在股市收盤後發布了獲利報告。請參閱該報告以了解可能導致實際結果與預期結果有重大差異的因素的更多詳細資訊。

Unless noted as reported, today's discussion will reference non-GAAP financial measures which adjust for certain items included in our GAAP results and which are presented on a standalone basis. You can find definitions of each non-GAAP measure and GAAP to non-GAAP reconciliations within our earnings release.

除非另有說明，今天的討論將參考非GAAP財務指標，這些指標調整了我們GAAP結果中包含的某些項目，並以獨立形式列示。您可以在我們的獲利報告中找到每個非GAAP指標的定義以及GAAP與非GAAP的調節表。

Today's call is being recorded, and a replay will be made available later today on worthingtonsteel.com. Now I'll turn it over to Geoff Gilmore.

今天的電話會議正在錄音，稍後將在worthingtonsteel.com網站上提供回放。現在我將把發言權交給傑夫吉爾摩。

Good morning, and thank you for joining Worthington Steel's second quarter fiscal year 2026 earnings call. Before we discuss our second quarter results, I want to thank our more than 6,000 employees across North America and Europe. Your commitment to safety, quality and service, every shift, every plant continues to set the standard. I'm proud of the work you're doing and grateful for it. On December 6, we issued a statement regarding potential M&A activity.

早安，感謝各位參加沃辛頓鋼鐵公司2026財年第二季財報電話會議。在討論第二季業績之前，我要感謝我們在北美和歐洲的 6,000 多名員工。你們對安全、品質和服務的承諾，在每個班次、每個工廠都持續樹立著產業標竿。我為你所做的工作感到驕傲和感激。12月6日，我們發布了一份關於潛在併購活動的聲明。

Consistent with that statement, we will not be providing additional detail or addressing related questions on this call.

根據上述聲明，本次電話會議我們將不提供更多細節或回答相關問題。

With that, let's turn to the second quarter. Net sales were $871.9 million. Adjusted EBITDA was $48.3 million, and adjusted earnings per share was $0.38. We delivered these results in a market that remains mixed, combined with compressed galvanized spreads. Even with those headwinds, our execution remains strong where it matters most: Safety, shareholder value, customer service and transformation.

接下來，我們進入第二季。淨銷售額為 8.719 億美元。調整後 EBITDA 為 4,830 萬美元，調整後每股收益為 0.38 美元。我們在市場行情依然不明朗，鍍鋅鋼板價格競爭激烈的情況下取得了這些業績。即使面臨這些不利因素，我們在最重要的方面——安全、股東價值、客戶服務和轉型——的執行力仍然強勁。

On the commercial front, our team continues to win and capture high-margin business, particularly in cold rolled strip. This quarter, we gained market share with new and existing customers. We saw all-time high shipments during the month of October to a key D3 automotive customer and won new business with a large Japanese OEM. While these programs will take some time to ramp up, this momentum fuels cautious optimism for early 2026 and a positive outlook for the second half of the calendar year.

在商業方面，我們的團隊不斷贏得並拿下高利潤業務，尤其是在冷軋帶鋼領域。本季度，我們透過新舊客戶獲得了市場份額。10 月份，我們向 D3 的重要汽車客戶實現了歷史最高出貨量，並贏得了與一家大型日本 OEM 的新業務。雖然這些計劃需要一些時間才能全面展開，但這種勢頭激發了人們對 2026 年初的謹慎樂觀態度，並對下半年抱持著積極的展望。

Looking more closely at our key markets. Our sales to the automotive market were strong this quarter. Looking ahead, North American light vehicle output is expected to hold near 15.2 million units in calendar year 2025, essentially flat with 2024.

更深入地了解我們的主要市場。本季我們對汽車市場的銷售表現強勁。展望未來，預計 2025 年北美輕型車產量將維持在 1,520 萬輛左右，與 2024 年基本持平。

Consumer demand is also expected to continue to drive growth in the electrified vehicle market, particularly hybrids, which suits our strategy and product mix very well. Construction is stable but subdued. We are seeing pockets of strength in areas related to power and infrastructure.

消費者需求也預計將繼續推動電動車市場（尤其是混合動力車市場）的成長，這與我們的策略和產品組合非常契合。建設工作穩定但進展緩慢。我們看到電力和基礎設施等領域出現了一些強勁的跡象。

In agriculture, we have been able to capitalize on our diverse customer base to partially offset continuing soft conditions. We are hopeful that ag starts to rebound later in calendar year 2026, but there are many variables that could impact this market. The heavy truck and trailer market continues to be slow. We expect to see the beginnings of rebound in late calendar year 2026.

在農業領域，我們利用多元化的客戶群，在一定程度上抵消了持續疲軟的市場環境。我們希望農業能在 2026 年稍後開始復甦，但有許多因素可能會影響這個市場。重型卡車和拖車市場持續低迷。我們預計在2026年底將開始出現反彈跡象。

Stepping back, while the macro remains uncertain, we believe conditions are setting up for improvement in calendar year 2026 as interest rates ease and some policy uncertainties subsides. We're positioning the business so we're ready as demand grows.

退一步講，雖然宏觀經濟仍不明朗，但我們認為，隨著利率下降和一些政策不確定性的消退，2026 年的情況將會有所改善。我們正在調整業務佈局，以便為不斷增長的需求做好準備。

We are making good progress on our long-term strategy, executing on our electrical steel growth plans, pursuing new growth opportunities using CapEx and acquisitions, developing new products and optimizing our business through transformation, our proven process of continuous improvement. We moved forward in each of these areas in the second quarter.

我們在長期策略方面取得了良好進展，正在執行電工鋼成長計劃，利用資本支出和收購尋求新的成長機會，開發新產品，並透過轉型和我們行之有效的持續改進流程來優化業務。第二季度，我們在這些領域都取得了進展。

Starting with electrical steel, our expansion projects are on track. In Mexico, where we make electrical steel laminations for traction motors, we're preparing for initial production in the first quarter of calendar year 2026. Those products will ship in the first or second quarter of the year depending on OEM release schedules. Production and shipments will continue to ramp up as additional automotive platforms and supply chains come online.

從電工鋼開始，我們的擴建項目正在按計劃進行。我們在墨西哥生產用於牽引馬達的電工鋼片，目前正準備在 2026 年第一季開始投產。這些產品將根據原始設備製造商 (OEM) 的發布計劃，在今年第一季或第二季發貨。隨著更多汽車平台和供應鏈上線，生產和出貨量將持續提升。

Our transformer core manufacturing expansion in Canada remains on schedule. We will transition production to our new facility in the first quarter of the calendar year. We have secured business to fill more than 60% of the new capacity and expect to begin seeing incremental revenue in the spring full production.

我們在加拿大的變壓器鐵芯製造擴建工程仍按計劃進行。我們將於今年第一季將生產轉移到新工廠。我們已獲得訂單，可填滿新增產能的 60% 以上，預計春季全面投產後將開始看到收入成長。

You may recall, we added a new calendar to Serviacero, our joint venture in Mexico a little over a year ago. We are well on our way to filling the capacity for that slitter, which is located in Northern Mexico, and we are moving forward with adding a new slider to our Serviacero operation in Central Mexico.

您可能還記得，一年多前，我們在墨西哥的合資企業 Serviacero 上新增了一個新的日曆。我們正在穩步推進位於墨西哥北部的那台分切機的產能利用，我們正在為位於墨西哥中部的 Serviacero 工廠添加一台新的滑塊。

We believe this will allow us to capture new market share and better serve our existing customers.

我們相信這將使我們能夠獲得新的市場份額，並更好地服務我們現有的客戶。

On the M&A front, with Sitem now part of the Worthington Steel family, integration is progressing well. Their capabilities in stamping electrical steel laminations die casting and automation complement our core, extend our European reach and improve our competitiveness in advanced mobility and industrial markets. We see good cultural alignment and early collaboration across operations and commercial teams. Thank you to everyone who is involved in this integration.

在併購方面，隨著 Sitem 成為 Worthington Steel 集團的一員，整合進展順利。他們在沖壓電工鋼疊片、壓鑄和自動化方面的能力與我們的核心業務相輔相成，拓展了我們在歐洲的業務範圍，並提高了我們在先進移動出行和工業市場的競爭力。我們看到營運和銷售團隊之間有著良好的文化契合度和早期合作。感謝所有參與此次整合工作的人員。

Shifting to new products. This quarter, we announced an innovative technology related to our electrical steel laminations called full surface bonding. This patent-pending technique creates a stronger bond between the laminations and the motor core, eliminating gaps and resulting in a motor that is more efficient, durable and cost-effective.

轉向新產品。本季度，我們發布了一項與電工鋼片相關的創新技術，稱為全表面黏合。這項正在申請專利的技術在疊片和馬達鐵芯之間建立了更牢固的結合，消除了縫隙，從而製造出更有效率、更耐用、更經濟的馬達。

All of this is underpinned by daily transformation. Transformation at Worthington Steel isn't a project. It's how we run the company. We measure it in safety, quality, delivery, cost and revenue and we work to make progress every day.

這一切都建立在日常轉變的基礎上。沃辛頓鋼鐵公司的轉型並非一個項目。這就是我們公司的經營方式。我們從安全、品質、交付、成本和收入等方面進行衡量，並努力每天取得進步。

This quarter was no exception as a key tool in our transformation toolbox, artificial intelligence is becoming more integrated into our processes. We deployed two AI agents in our credit department, which allows us to speed up individual customer updates and cut down on the time it takes to process a new customer's credit application. These agents should eliminate more than 350 hours of manual efforts each year and strengthen our financial discipline and risk monitoring.

本季也不例外，人工智慧作為我們轉型工具箱中的關鍵工具，正日益融入我們的流程中。我們在信貸部門部署了兩個人工智慧代理，這使我們能夠加快單一客戶的更新速度，並減少處理新客戶信貸申請所需的時間。這些代理商每年應減少 350 多個小時的人工工作，並加強我們的財務紀律和風險監控。

Another success was the development of automation to improve advanced shipping notices to one of our key OEM customers. Automating this process increased the accuracy of our advanced shipping notice and resulted in improved payment timeliness.

另一項成功之處在於開發了自動化技術，以改善向我們的一位重要 OEM 客戶發送的高級出貨通知。自動化此流程提高了我們提前出貨通知的準確性，並提高了付款及時性。

The common thread here is practical impact, same dollars, higher accuracy, faster decisions and better use of our assets. These efforts are key to holding operating expenses flat, even as volumes and complexity grow.

共同點在於實際影響，同樣的資金投入，更高的準確性，更快的決策速度和更好的資產利用。即使業務量和複雜性不斷成長，這些努力也是維持營運成本不變的關鍵。

For instance, in plants where we streamline changeovers and reduce scrap, service levels improve and cost per ton comes down. In shared services, where we automate manual reviews and postings, we redeploy talent to analysis. And in the supply chain, where we improve visibility, we integrate inventory more tightly with demand. These are small changes, but they are critical to building a stronger company quarter after quarter.

例如，在工廠中，我們簡化換型流程並減少廢料，服務水準就會提高，每噸成本就會下降。在共享服務中，我們實現了手動審核和發布的自動化，並將人才重新部署到分析領域。在供應鏈中，我們提高了透明度，並將庫存與需求更緊密地結合。這些都是一些小的變化，但對於公司每季持續成長至關重要。

In parallel with these improvements, our culture and customer relationships continue to shine and receive recognition. Last month, we were honored to be named a 2025 Supplier of the Year by Scheffler Group USA, receiving the Americas Region Supply Chain Award, recognition for performance collaboration and service.

與這些改進同步，我們的企業文化和客戶關係也持續表現出色，並獲得認可。上個月，我們榮幸地被 Scheffler Group USA 評為 2025 年度最佳供應商，並榮獲美洲地區供應鏈獎，以表彰我們在績效、協作和服務方面的卓越表現。

Just as our customers are recognizing how we show up for them, others are recognizing how we show up for our people. We received the military-friendly employer gold designation for the 11th consecutive year. We support those who have served our country to a range of programs, including focused recruitment onboarding resources and the internal veterans network that fosters belonging and connection across our company.

正如我們的客戶認可我們如何為他們服務一樣，其他人也認可我們如何對待我們的員工。我們連續第 11 年獲得「軍人友善雇主」金獎稱號。我們為那些為國家服務過的人提供一系列支持，包括重點招募入職資源和公司內部退伍軍人網絡，以促進公司內部的歸屬感和聯繫。

Additionally, Computer World has named Worthington Steel to its 2026 Best Places to Work in IT for the eighth year in a row. I'm proud to see this recognition for our team's work this year to update global systems, introduce AI-driven tools enhance our work and support growth through integration and modernization projects.

此外，《電腦世界》雜誌連續第八年將沃辛頓鋼鐵公司評為 2026 年 IT 產業最佳工作場所之一。我很自豪地看到我們團隊今年在更新全球系統、引入人工智慧驅動工具、增強我們的工作以及透過整合和現代化專案支援成長方面所做的努力獲得了認可。

Finally, this quarter, we released our 2025 corporate citizenship and sustainability report, highlighting progress in safety, greenhouse gas emissions and waste elimination as well as our commitment to developing people through training and supporting communities.

最後，在本季度，我們發布了 2025 年企業公民和永續發展報告，重點介紹了我們在安全、溫室氣體排放和消除廢物方面取得的進展，以及我們透過培訓和支持社區來發展人才的承諾。

Our report sums up what makes Worthington Steel different, our culture and commitment to safety. In calendar year 2025, we also marked our 70th anniversary. In celebration, our employees set a goal they called 70 for good to complete access service with 70 nonprofits in our communities, and I'm proud to share that we exceeded that goal.

我們的報告總結了沃辛頓鋼鐵公司的獨特之處、我們的企業文化以及我們對安全的承諾。2025年，我們也迎來了公司成立70週年。為了慶祝，我們的員工設定了一個名為「70 for good」的目標，即與我們社區的 70 個非營利組織完成服務接入，我很自豪地宣布，我們超額完成了這個目標。

The program embodies who we are at Workington Steel. It's a tangible expression of being strong for good, and it reflects our belief that investing in our people and communities makes the business stronger.

該項目體現了沃金頓鋼鐵公司的企業文化。這是我們為善而強大的切實體現，也反映了我們「投資員工和社區會讓企業更強大」的信念。

So let me end where I began with our people. Thank you to every Worthington Steel employee for your commitment to safety, quality and service to our customers for your trust and partnership, and to our shareholders for your continued support. We have a clear strategy, a resilient model and a team that knows how to execute.

那麼，就讓我以我們人民的話題作為結尾吧。感謝沃辛頓鋼鐵公司的每一位員工，感謝你們對安全、品質和服務的承諾；感謝你們對客戶的信任和合作；感謝我們的股東們的持續支持。我們擁有清晰的策略、穩健的模式和一支懂得如何執行的團隊。

As I said in my opening remarks, the environment is mixed today. We remain cautiously optimistic about the first half of 2026. We believe conditions are setting up for improvement in the back half of 2026, and we intend to be ready.

正如我在開場白中所說，今天的情況喜憂參半。我們對2026年上半年仍持謹慎樂觀態度。我們相信，2026 年下半年情況將會好轉，我們打算做好準備。

I'll now turn the call over to Tim for more detail on the financials for the quarter.

現在我將把電話交給提姆，讓他詳細介紹本季的財務狀況。

Thank you, Geoff, and good morning, everyone. Before diving into the details, I want to start with the headline. This was a solid quarter operationally and financially, particularly given a mixed demand environment and continued volatility in steel pricing. We expanded adjusted EBIT meaningfully year-over-year generated strong free cash flow and continued to gain share in our most important markets, while maintaining balance sheet strength and financial flexibility.

謝謝你，傑夫，大家早安。在深入細節之前，我想先從標題說起。從營運和財務角度來看，這是一個穩健的季度，尤其是在需求環境喜憂參半和鋼鐵價格持續波動的情況下。我們實現了調整後息稅前利潤的顯著增長，產生了強勁的自由現金流，並在最重要的市場中繼續擴大市場份額，同時保持了資產負債表的穩健性和財務靈活性。

For the second quarter, we are reporting earnings of $18.8 million or $0.37 per share as compared with earnings of $12.8 million or $0.25 per share in the prior year quarter. There were a handful of nonrecurring items in both periods. Excluding those, adjusted earnings were $0.38 per share this quarter compared with $0.19 per share last year, reflecting improved underlying performance.

第二季度，我們公佈的收益為 1,880 萬美元，即每股 0.37 美元，而去年同期收益為 1,280 萬美元，即每股 0.25 美元。兩個時期都存在少量非重複性項目。剔除這些因素後，本季調整後每股收益為 0.38 美元，而去年同期為 0.19 美元，反映出基本面有所改善。

In the second quarter, we reported adjusted EBIT of $26.6 million, which was up $12.3 million from the prior year quarter adjusted EBIT of $14.3 million. That improvement was driven primarily by higher direct volumes, including continued share gains, improved direct spreads and higher equity earnings from Serviacero, partially offset by lower toll processing volumes and higher SG&A, largely related to compensation, benefits and professional fees.

第二季度，我們報告的調整後息稅前利潤為 2,660 萬美元，比去年同期調整後息稅前利潤 1,430 萬美元增加了 1,230 萬美元。這項改善主要得益於直接交易量的增加，包括持續的市場佔有率成長、直接價差的改善以及Serviacero帶來的更高股權收益，但部分被收費處理量下降和銷售、一般及行政費用（SG&A）上升所抵消，而SG&A上升主要與薪酬、福利和專業費用有關。

Total shipments were approximately 902,000 tonnes, down modestly year-over-year as lower toll volumes more than offset volume growth in direct sales. Importantly, direct sale volume made up 65% of our mix in the current year quarter compared with 55% in the prior year quarter. Direct volumes increased 13% compared with the prior year quarter with the vast majority of the volume increase coming from our existing facilities complemented by the addition of Sitem. Our increased shipments in the automotive market continue to be a standout.

總出貨量約為 902,000 噸，年比略有下降，原因是代銷量下降超過了直接銷售量的增長。值得注意的是，本季直銷額占我們總銷售額的 65%，而去年同期為 55%。與去年同期相比，直接銷量成長了 13%，其中絕大部分銷售成長來自我們現有的工廠，並輔以 Sitem 的新增產量。我們在汽車市場的出貨量持續成長，表現特別突出。

Direct shipments to automotive increased 26% year-over-year. This reflects both share gains from new programs reaching expected volumes and a return to more normal production levels at one OEM customer that had curtailed production last year. More broadly, it reflects the strength of our long-standing OEM relationships and our collaborative solutions-oriented approach with customers. Outside of automotive, energy shipments were up 50% year-over-year, largely driven by project-based solar programs.

直接發往汽車業的貨物年增 26%。這不僅反映了新項目達到預期產量帶來的市場份額成長，也反映了去年減產的一家 OEM 客戶恢復了較正常的生產水準。更廣泛地說，這反映了我們與 OEM 廠商之間長期穩固的合作關係，以及我們與客戶合作、以解決方案為導向的方法。除汽車業外，能源出貨量年增 50%，這主要得益於基於專案的太陽能計劃。

Agriculture volume was up 1% as ring bins strength offset weaker OEM equipment demand. These gains were partially offset by softness in construction, down 9%, heavy truck down 6% and service center where customers continue to destock. Toll processing volumes declined year-over-year primarily due to the closure of our Cleveland area, Worthington Samuel Coil Processing facility last fiscal year and softer market conditions. We view this decline as cyclical, not structural, and expect toll volumes to improve as end market demand normalizes, excluding the impact of that consolidation.

農業用料量成長了 1%，環形料倉的強勁需求抵消了 OEM 設備需求的疲軟。這些成長部分被建築業（下降 9%）、重型卡車（下降 6%）以及客戶持續去庫存的服務中心的疲軟所抵消。收費加工量較去年同期下降，主要是由於上個財政年度我們位於克利夫蘭地區的沃辛頓·塞繆爾線圈加工廠關閉以及市場環境疲軟。我們認為這種下降是週期性的，而不是結構性的，並預計隨著終端市場需求的正常化，通行費收入將會改善，但不包括行業整合的影響。

Turning to the other drivers for adjusted EBIT this quarter. First, direct spreads increased year-over-year. direct spreads were up $6.5 million, primarily due to a $6.2 million favorable swing in pretax inventory holding losses. In the current quarter, we had estimated pretax inventory holding losses of $7.2 million compared to estimated pretax inventory holding losses of $13.4 million in the prior year quarter. We expect the market price for steel to remain volatile in the near term.

接下來，我們來看看本季調整後息稅前利潤的其他驅動因素。首先，直接利差年增。直接利差增加了650萬美元，主要原因是稅前存貨持有損失出現了620萬美元的有利變動。本季度，我們預計稅前存貨持有損失為 720 萬美元，而去年同期預計稅前存貨持有損失為 1,340 萬美元。我們預期短期內鋼鐵市場價格仍將波動。

After stabilizing around $800 per tonne in September and October, the price for hot-rolled coil has increased to approximately $900 per ton.

熱軋捲板價格在 9 月和 10 月穩定在每噸 800 美元左右後，已上漲至每噸約 900 美元。

Given that many of our contracts use lagging index-based pricing mechanisms, we estimate in our third quarter of fiscal 2026 inventory holding gains and losses will fall within a range of a pretax gain of $3 million to a pretax loss of up to $3 million. As I mentioned earlier, adjusted EBIT also improved year-over-year due to the increase in equity earnings from Serviacero, our Mexico-based joint venture. Serviacero's equity income increased $7.7 million due to higher direct brands, inventory holding gains as well as the favorable impact of exchange rate movements.

鑑於我們的許多合約都採用滯後指數定價機制，我們估計在 2026 財年第三季度，庫存持有損益將在稅前收益 300 萬美元至稅前損失 300 萬美元的範圍內。正如我之前提到的，由於我們在墨西哥的合資企業 Serviacero 的股權收益增加，調整後的息稅前利潤也較去年同期成長。由於自有品牌收益增加、庫存持有收益以及匯率變動帶來的有利影響，Serviacero 的權益收入增加了 770 萬美元。

Finally, these improvements in adjusted EBIT were offset somewhat by an increase in SG&A. The $9.8 million increase in SG&A was primarily due to increased compensation and benefits expense, up $5.9 million, and higher professional fees related to various strategic projects we are evaluating, up $2.3 million.

最後，調整後息稅前利潤的這些改善被銷售、一般及行政費用的增加部分抵銷了。銷售、一般及行政費用增加 980 萬美元，主要是由於薪酬和福利支出增加 590 萬美元，以及與我們正在評估的各種戰略項目相關的專業費用增加 230 萬美元。

Turning to cash flows and the balance sheet. For the quarter, cash flow from operations was $99 million and free cash flow was $75 million, benefiting from a reduction in working capital. Capital expenditures were $25 million in the quarter, primarily related to previously announced electrical steel investments. For fiscal 2026, we expect CapEx of approximately $110 million. reflecting a disciplined approach aligned with long-term growth priorities while maintaining flexibility in uncertain markets.

接下來我們來看現金流量表和資產負債表。本季度，經營活動產生的現金流為 9,900 萬美元，自由現金流為 7,500 萬美元，得益於營運資本的減少。本季資本支出為 2,500 萬美元，主要與先前宣布的電工鋼投資有關。2026財年，我們預期資本支出約為1.1億美元，這反映了我們採取的嚴謹方法，既符合長期成長重點，又能在不確定的市場中保持彈性。

On a trailing 12-month basis, we generated $73 million of free cash flow. We ended the quarter with $90 million of cash and net debt of $92 million, down sequentially driven primarily by working capital improvements. Earlier this week, we announced a quarterly dividend of $0.16 per share payable on March 27, 2026.

過去 12 個月，我們產生了 7,300 萬美元的自由現金流。本季末，我們持有現金 9,000 萬美元，淨負債 9,200 萬美元，季減，主要得益於營運資金的改善。本週早些時候，我們宣布將於 2026 年 3 月 27 日派發每股 0.16 美元的季度股息。

In summary, this was a solid quarter. We're gaining share in key markets generating consistent cash flow and maintaining a strong balance sheet. That combination positions Worthington Steel well to navigate uncertainty and to act decisively when opportunities arise.

總而言之，這是一個穩健的季度。我們在關鍵市場中不斷擴大市場份額，產生持續的現金流，並維持強勁的資產負債表。這種組合使沃辛頓鋼鐵公司能夠更好地應對不確定性，並在機會出現時果斷行動。

I want to thank our entire Worthington Steel team for their continued focus on safety, customer service and execution this quarter. At this point, we will be happy to take your questions.

我要感謝沃辛頓鋼鐵公司的全體員工，感謝他們在本季繼續專注於安全、客戶服務和執行工作。現在，我們很樂意回答您的問題。

(Operator Instructions)

（操作說明）

Phil Gibbs, KeyBanc Capital Markets.

Phil Gibbs，KeyBanc Capital Markets。

You'd mentioned in the SG&A increase in your remarks, Tim, that compensation and benefits up $5.9 million and higher professional fees of $2.3 million. So I'm wondering what out of that larger increase or more -- is more onetime in nature? Because I know you had called out a Sitem fee, I also know that some of this is related to some of the M&A that you're potentially working on? So just trying to think about what may be core because clearly, it was elevated this quarter.

提姆，你在演講中提到了銷售、一般及行政費用的增加，薪資和福利增加了 590 萬美元，專業費用增加了 230 萬美元。所以我想知道，在這種更大的成長或更多——更多是一次性的——之中，哪些是真正意義上的？因為我知道你提到了 Sitem 的費用，所以我也知道其中一些費用與你可能正在進行的一些併購專案有關？所以，我只是想思考一下核心指標可能是什麼，因為很明顯，本季它被提振了。

If you look at it from a year-over-year perspective. So we now have see them in there. That's one thing we pointed out during my opening remarks. But if you're talking about onetime, it's those professional fees of $2.3 million, I think is how we had it quantified that is related to these strategic projects.

如果從同比角度來看。所以我們現在在那裡看到了它們。這是我在開場白中提到的其中一點。但如果你指的是一次性費用，那就是 230 萬美元的專業服務費，我認為我們是這樣量化的，它與這些策略項目有關。

What about the $2.5 million that you had called out from just the Sitem, I believe it was like an earn-out --

那麼，你之前提到的僅從 Sitem 專案中撥出的 250 萬美元呢？我相信那就像是獲利分成——

Sitem was not in the results Yes. Sitem was not in the results last year. And now they're in the this year. That's the --

Sitem 不在結果中。是的。Sitem去年並未進入評選結果。現在他們進入了今年。那就是--

Okay. So that wasn't a onetime payment. That was their underlying results.

好的。所以這不是一次性付款。這就是他們得出的根本結果。

Yes. The onetime payment was related last quarter to the bonus was a transaction bonus that happened, I think it was $4.6 million. That's all done. And now what you're seeing is just adding Sitem to the mix, adding them to the financials.

是的。那筆一次性付款與上個季度的獎金有關，是一筆交易獎金，我記得是 460 萬美元。一切都完成了。現在你看到的只是將 Sitem 也加入進來，將其加入財務報表中。

Okay. So the higher professional fees of $2.3 million, and that's largely related to the M&A, and that could obviously be somewhat more volatile and unpredictable.

好的。因此，230 萬美元的專業費用較高，這主要與併購有關，而且顯然可能更具波動性和不可預測性。

Correct.

正確的。

And then on the -- just the automotive momentum that you had on the direct side, pretty impressive, Geoff or was the primary catalyst behind that, the cold-rolled strip piece. I thought I heard you mention that earlier in the call.

然後，就汽車產業的直接發展勢頭而言，Geoff，這相當令人印象深刻，或者說，冷軋鋼帶是背後的主要催化劑。我好像在之前的通話中聽到你提到過這件事。

Yes. So Phil, actually not. Most of what you saw this quarter was the market share gains that we had talked about in previous quarters and really those programs working to 100% of the market share that we gained. We have been fortunate in the market share gains have continued. And a lot of those recent wins are automotive and they are specifically cold-rolled strip specific and those are programs that we will look forward to starting really in the first quarter of the calendar year.

是的。所以菲爾，其實不是。本季你們看到的大部分都是我們在前幾個季度討論過的市佔率成長，實際上，這些項目實現了我們100%的市佔率成長。我們很幸運，市場佔有率的成長動能一直持續。最近贏得的許多項目都與汽車行業有關，特別是冷軋帶材，我們期待在今年第一季真正開始這些項目。

I would probably that third month of the first quarter and then starting to reach full potential in the second quarter of the calendar year.

我大概會在第一季的第三個月達到巔峰狀態，然後在第二季開始充分發揮潛力。

How do we tease out or think about how much of of that, which is on the come that you just mentioned is related to the tariffs from just imported foreign steel, but also how much eventually is related to onshoring of just OE platforms overall. So I'm trying to tease out the short term versus the long term.

我們如何區分或思考，您剛才提到的即將到來的一部分，有多少與進口外國鋼鐵的關稅有關，又有多少最終與整個OE平台回流國內有關。所以我正在努力區分短期和長期因素。

Yes, that's a great question. So the recent market share gains, I would tell you, a pretty significant amount of that is coming due to the onshoring of supply chains. We definitely had some customers bringing material over from Europe or elsewhere, and they are now localizing that supply chain. So certainly, it was favorable to us. We have not seen any market share gains due to any announcements of onshoring manufacturing.

是的，這是一個很好的問題。因此，我認為，近期市場份額的成長，很大程度上是由於供應鏈回流到國內所致。我們確實有一些客戶從歐洲或其他地方進口原料，他們現在正在實現供應鏈本地化。所以，這當然對我們有利。我們沒有看到任何因宣布將製造業遷回國內而帶來的市場份額增長。

So to your point, that is something that would be more in the future for us to look forward to.

所以，正如您所說，這確實是我們未來可以期待的事情。

John Tumazos, John Tumazos Very Independent Research.

John Tumazos，John Tumazos 非常獨立的研究。

Could you walk us through the adoptions for your minority interest partners. They were a little smaller this quarter than last year.

可否請您詳細介紹一下貴公司少數股權合作夥伴的股權收購情況？本季比去年同期略小。

Yes. compared to year over year, I think what you're seeing is there's definitely some slowness in demand. right? And I think we're seeing some of that. So also, what you have to keep in mind is last year, at this time, we had the Workington Samuel Coil Processing joint venture in there. And we've removed that this year. So we've had some differences in profitability year-over-year, really due to demand.

是的。與去年同期相比，我認為你看到的是需求確實有所放緩，對吧？我認為我們已經看到了一些這樣的跡象。所以，你也要記住，去年這個時候，我們還有 Workington Samuel Coil Processing 合資企業。今年我們已經取消了這項規定。因此，由於需求變化，我們的獲利能力逐年有所不同。

With the disappearance of the Cleveland facility in the Samuel JV, what happens to the machinery? Do you move it to other Worthington plants? Does it get sold for scrap? Just what happens to the equipment.

隨著 Samuel 合資公司克利夫蘭工廠的消失，機器設備將何去何從？你會把它移到其他沃辛頓工廠嗎？它會被當廢品賣掉嗎？這些設備最終會怎麼樣？

Sure. So just to be clear, we had several facilities up there. So the business that we could we move to Twinsburg. Question is a good one. We typically sell the real estate, and we got that underway already. I think it depends on the type of equipment. If we think it's high value-add equipment, we won't sell it or we'll try to sell it offshore. If it's something that's a little more generic like a fitter or cut to length line, we'll find a home for it.

當然。所以說清楚點，我們在那裡有好幾個設施。所以我們有可能把生意搬到特溫斯堡。這是一個很好的問題。我們通常負責出售房產，而且我們已經開始著手這項工作了。我認為這取決於設備的類型。如果我們認為它是高附加價值設備，我們就不會出售，或者我們會嘗試在海外出售。如果是像裁縫師或訂製長度生產線這樣比較通用的產品，我們會找到合適的歸宿。

If we can use it mean the first question you asked is, can you use it internally somewhere and we try to do that first. And then if we don't have a need for it internally, then we'll look to sell it if it's low value-added equipment.

如果我們能用它，意味著你問的第一個問題是，我們能否在內部某個地方使用它，我們會先嘗試這樣做。如果內部不需要，而且設備附加價值較低，我們會考慮出售。

Martin Englert, Seaport Research Partners.

Martin Englert，Seaport Research Partners。

The compressed galvanized spreads in recent history, what do you think is contributing to that?

近年來，壓縮鍍鋅材料的廣泛應用，您認為造成這種現象的原因是什麼？

It is certainly just decreased demand, Martin, and specifically construction. And so with decreased demand, it just creates certainly a lot more competitive rivalry. And certainly, that's what we have been facing. Martin, we feel like we hit the trough, and we'll start to see some margin expansion going forward. We saw a little of that in CRU here on Wednesday.

馬丁，這當然只是需求下降，尤其是建築業的需求下降。因此，需求下降必然會導致競爭更加激烈。當然，這正是我們一直面臨的情況。馬丁，我們感覺已經觸底反彈，未來利潤率將會開始擴張。我們在周三的 CRU 會議上看到了這一點。

And the reason for the expansion and then potentially normalizing hopefully in the second quarter of the calendar year has much to do with the 232. I mean there is obviously limited galvanized product coming into the US at this point, I think it was down, Tim, correct me if I'm wrong, 35% and probably will continue to increase. That has to do with anti-dumping as well.

而此次擴張以及預計在今年第二季恢復正常的原因與 232 有關。我的意思是，目前進入美國的鍍鋅產品顯然是有限的，我認為下降了，蒂姆，如果我沒記錯的話，下降了 35%，而且可能還會繼續下降。這也與反傾銷有關。

So I'd expect we continue to see that expand and then normalize somewhere around the second quarter. I think there's a ceiling because there certainly has been added capacity in the US as well, but we're certainly looking forward to that, Martin. Good question.

所以我預計我們會繼續看到這種擴張趨勢，然後在第二季左右趨於正常化。我認為產能是有上限的，因為美國也確實增加了產能，但我們當然對此充滿期待，馬丁。問得好。

Have prime scrap spreads relative to obsolete had any negative impact on your business recently.

最近，優質廢料與報廢料的價格差異是否對您的業務產生了任何負面影響？

No, nothing material, nothing meaningful to our margins, Martin.

不，沒什麼實質的，對我們的利潤來說沒什麼意義，馬丁。

Okay. And last one that I have is calendar year 2026, what are your top transformation initiatives that you're focused on?

好的。最後一個問題是，對於 2026 年，您重點關注的首要轉型措施是什麼？

Yes. So we have -- we mentioned in prior quarters, everything in our facilities, we have transformation events ongoing. You're very familiar with that. That's just how we do business. where we really turned our focus after separation was transformation through our back office.

是的。所以，正如我們在前幾季所提到的，我們所有的設施都在進行轉型改造。你對此非常熟悉。這就是我們的經營方式。分拆後，我們真正關注的重點是透過後台部門進行轉型。

And that's been certainly a big priority of ours. We just had our fourth report out with the back office teams. And the progress has been nothing less been amazing. The team has embraced it. We are seeing certainly savings and the hours saved have been significant as well.

這無疑是我們工作的重中之重。我們剛剛向後台團隊提交了第四份報告。而取得的進展也確實令人驚嘆。團隊欣然接受了這一點。我們確實看到了成本節約，而且節省的時間也相當可觀。

And in addition to that, Martin, that group has fully embraced artificial intelligence, and we have had some great success stories with automation and have launched our first two agents. So we've now moved to a genetic AI with much on deck there.

此外，Martin，該團隊已經全面擁抱人工智慧，我們在自動化方面取得了一些巨大的成功，並推出了我們的前兩個智能體。所以，我們現在已經轉向基因人工智慧，而且還有很多工作要做。

And then the second, which is a key priority is Temple. Transformation is not an area where we got too deep into it while we were getting integrated and familiar with their business. We have really started to double down on those efforts as we just think whether it's the income statement or the balance sheet, there's going to be a lot of good meaningful opportunities for the shareholders. And in addition to that, I say Temple is Sitem. We have mentioned they are world-class at tool and dye making as well as world-class and automation.

其次，也是重中之重的是坦普大學。在融入並熟悉他們的業務過程中，我們並沒有深入研究轉型領域。我們已經開始加倍努力，因為我們認為，無論是損益表還是資產負債表，都將為股東帶來許多有意義的好機會。除此之外，我認為 Temple 就是 Sitem。我們已經提到過，他們在模具製造和自動化方面都是世界一流的。

And so we have been excited to learn their best practices and embrace them because they're all scalable across that footprint. But back office and Temple would be the priorities.

因此，我們很高興能夠學習並採納他們的最佳實踐，因為它們都具有可擴展性，能夠涵蓋整個業務範圍。但後台部門和天普大學將是優先事項。

Do you have an estimate of any type of annualized savings that you've achieved, I guess, since targeting the back office with the transformation?

自從後台部門進行改造以來，您能否估算每年可以節省多少成本？

I don't -- yes. Good question. I don't have numbers right now, but here is my commitment to you. We are working towards a scorecard. I surely hope to have that available for our next call.

我不——是的。問得好。我現在沒有具體數字，但我向你們承諾：我們正在製定一份評分卡。我當然希望下次通話時能夠提供這些資訊。

We want to do a better job of quantifying the savings that were seen through transformation as well as the launch of artificial intelligence. We have seen savings. We're going to continue to see a lot more. We have five pretty robust pilots that I think will have certainly a positive impact on the income statement as well as the balance sheet. So we're going to start quantifying those savings for you, specifically transformation and artificial intelligence.

我們希望能更好地量化轉型以及人工智慧的推出所帶來的節省。我們已經看到了節省。我們將繼續看到更多這樣的情況。我們有五個非常成功的試點項目，我認為它們肯定會對損益表和資產負債表產生正面影響。因此，我們將開始為您量化這些節省，特別是轉型和人工智慧的節省。

And then in line with that, we want to quantify and share with you the hours saved in the workplace as well. We're seeing significant hours saved now, which is allowing us to redeploy all of our employees to more meaningful work. So we're excited about that as well. But that's certainly a commitment that I'm making to you right now, Martin.

然後，我們也希望量化並與您分享在工作場所節省的時間。現在我們看到節省了大量工時，這使我們能夠將所有員工重新安排到更有意義的工作中。所以我們也對此感到興奮。但馬丁，這絕對是我現在對你所做的承諾。

I will now turn the call back over to Jeff Gilmore, President and CEO, for closing remarks.

現在我將把電話轉回給總裁兼執行長傑夫·吉爾摩，請他作總結發言。

Just want to thank everybody for joining us this morning and showing interest in Worthington Steel. Clearly, we're quite pleased with the quarter results and excited for our strategy and the opportunities we have to continue to execute on it. Clearly, the story today was gained market share. And we've talked quite a bit about the market share gains in automotive. But even more exciting, we've started to see market share gains in other markets as well, whether it's agriculture, energy or transformers core specifically as well.

非常感謝大家今天上午蒞臨參觀，並對沃辛頓鋼鐵公司表現出濃厚的興趣。顯然，我們對本季的業績非常滿意，並對我們的策略以及我們繼續執行該策略的機會感到興奮。顯然，今天的故事贏得了市場份額。我們已經多次討論過汽車市場份額的成長情況。但更令人興奮的是，我們已經開始看到在其他市場也獲得了市場份額，無論是農業、能源還是變壓器鐵芯等特定領域。

So look forward to start seeing those shipments probably early second quarter of the calendar year. And so a lot for us to look forward, along with transformation and artificial intelligence. So with that, we wish everybody happy holidays. And we very much look forward to talking to you again following the current quarter.

所以，預計今年第二季初就能開始看到這些貨物的出貨。因此，未來有很多值得我們期待的事情，包括轉型和人工智慧。最後，祝大家節日快樂。我們非常期待在本季結束後再次與您交流。

Thank you. This concludes today's call. Thanks for joining. You may now disconnect.

謝謝。今天的電話會議到此結束。謝謝參與。您現在可以斷開連線了。