Worthington Steel Inc (WS) 2026 Q3 法說會逐字稿

Good morning, and welcome to Worthington Steel's third quarter fiscal year 2026 earnings call. (Operator Instructions)

早安，歡迎參加 Worthington Steel 2026 會計年度第三季財報電話會議。(接線員指示)

I will now hand the call over to Melissa Dykstra, Vice President of Corporate Communications and Investor Relations. Please go ahead.

現在我將把電話交給企業傳播與投資人關係副總裁 Melissa Dykstra。請開始。

Thank you, operator. Good morning, and welcome to Worthington Steel's third 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，接線員。早安，歡迎參加 Worthington Steel 2026 會計年度第三季財報電話會議。今天與會者包括 Worthington Steel 總裁兼執行長 Geoff Gilmore，以及副總裁兼財務長 Tim Adams。

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 materially from those suggested.

在開始之前，我想提醒各位，今天所作的某些陳述依 1995 年《私人證券訴訟改革法》之定義屬於前瞻性陳述。這些陳述受風險與不確定性影響，可能導致實際結果與所暗示者有重大差異。

We issued our earnings release yesterday after the market closed. Please refer to it for more detail on factors that could cause actual results to differ materially. Unless noted as reported, today's discussion will reference non-GAAP financial measures which adjust for certain items included in our GAAP results and are presented on a standalone basis.

我們已於昨日收盤後發布財報新聞稿。請參閱該新聞稿，以取得可能導致實際結果與預期有重大差異之因素的更多細節。除非特別註明為「依報導口徑」，今天的討論將引用非 GAAP 財務衡量指標；該等指標會就 GAAP 結果中包含的特定項目進行調整，並以獨立基礎呈列。

You can find definitions of each non-GAAP measure and GAAP to non-GAAP reconciliations within our earnings release. Today's call is being recorded, and a replay will be made available later today on worthingtonsteel.com.

您可在我們的財報新聞稿中找到各項非 GAAP 指標的定義，以及 GAAP 與非 GAAP 之間的調節表。今天的電話會議將被錄音，並將於今日稍晚在 worthingtonsteel.com 提供重播。

Now I'll turn it over to Geoff Gilmore.

現在我把時間交給 Geoff Gilmore。

Good morning, and thanks for being with us today. It's been a memorable few months for us, to say the least. As most of you know, in January, we announced our proposed acquisition of Klockner, which will be the largest in our history and a meaningful strategic step for the company.

早安，感謝各位今天與會。可以說，過去幾個月對我們而言相當難忘。如各位多數人所知，我們在 1 月宣布擬收購 Klockner，這將是我們史上最大的一筆收購，也是公司重要的策略性一步。

I appreciate that even with an announcement of this size and the work that goes with it, our team stayed anchored in what matters safety, serving customers and improving the business every day. Thank you to the entire Worthington Steel team.

我很感謝，即便面對如此規模的公告及其伴隨的工作，我們的團隊仍然專注於最重要的事：安全、服務客戶，以及每天持續改善業務。感謝所有 Worthington Steel 團隊成員。

This quarter, I'll start with an update on the Kloeckner acquisition. The combination of our two organizations will create a larger, more diversified metals processing platform with meaningful opportunities to generate value and capture synergies through Worthington's proprietary base business improvement program that we call the transformation.

本季我將先就 Kloeckner 收購案提供最新進展。我們兩個組織的結合，將打造一個規模更大、更多元化的金屬加工平台，並透過 Worthington 專有的基礎業務改善計畫（我們稱之為 transformation）帶來可觀的價值創造機會與協同效益。

This transaction is being executed through a voluntary public tender offer in Germany and remains subject to the tender process and required regulatory approvals. Since our investor call in January, the voluntary tender offer has been launched. We have submitted requests for regulatory approval in the required jurisdictions, and we are beginning to see approvals come through.

本交易將透過在德國進行的自願性公開收購要約（tender offer）來執行，仍須完成要約流程並取得必要的監管核准。自我們 1 月的投資人電話會議以來，自願性收購要約已正式啟動。我們已在所需司法管轄區提交監管核准申請，並開始看到核准陸續到位。

Overall, the process is progressing well. Today is the final day of the initial acceptance period of the tender offer process, and we are confident we will secure enough shares to meet the 57.5% minimum threshold. We continue to expect the transaction to close in the second half of the calendar year.

整體而言，流程進展順利。今天是收購要約流程初始接受期間的最後一天，我們有信心能取得足夠股份以達到 57.5% 的最低門檻。我們仍預期交易將於曆年下半年完成交割。

In preparation for closing, we've begun internal planning focused on integration, governance and day 1 readiness. We're doing that responsibly and deliberately with an eye toward maintaining our high-performing cultures, unlocking value and accelerating growth.

為了準備交割，我們已開始進行內部規劃，重點聚焦於整合、治理以及 Day 1 就緒。我們以負責且審慎的方式推進，並著眼於維持高績效文化、釋放價值與加速成長。

Most importantly, this deal is about combining two great companies that share the same values. I've had the opportunity to spend time with several of our future Kloeckner teammates, and it reinforces our view that Worthington and Kloeckner are culturally aligned and fit together very well.

最重要的是，這筆交易在於結合兩家共享相同價值觀的優秀公司。我有機會與幾位未來的 Kloeckner 團隊夥伴相處交流，這也再次強化我們的看法：Worthington 與 Kloeckner 在文化上高度契合，彼此非常合拍。

Furthermore, since our announcement, the response from customers, suppliers and investors has been overwhelmingly positive. As a reminder, the German public company takeover process is highly structured, and we will continue to provide updates as we reach key milestones.

此外，自我們宣布以來，客戶、供應商與投資人的反應極為正面。提醒各位，德國上市公司收購流程高度制度化，我們將在達成關鍵里程碑時持續提供最新資訊。

With that, let's turn to our results for the third quarter. Net sales were $769.8 million. Adjusted EBITDA was $41.6 million, and adjusted earnings per share were $0.27. On a macro level, the third quarter of our fiscal year was volatile and uneven, with galvanized spreads remaining compressed and the effects of the holidays and winter weather dampening and delaying industrial activity.

接下來讓我們看看第三季的業績表現。淨銷售額為 7.698 億美元。調整後 EBITDA 為 4,160 萬美元，調整後每股盈餘為 0.27 美元。從總體面來看，我們本會計年度第三季波動且不均，鍍鋅價差仍然受壓縮，假期與冬季天候也抑制並延後了工業活動。

While direct volumes were up over the prior year, overall conditions were stable to soft, keeping customers' inventory disciplined and highly sensitive to interest rates and uncertainty. Even with those headwinds, our execution remains strong where it matters most safety, customer service and transformation.

雖然直接出貨量較去年同期增加，但整體環境持平偏弱，使客戶庫存維持紀律，且對利率與不確定性高度敏感。即便面臨這些逆風，我們在最重要的面向—安全、客戶服務與 transformation—的執行力仍然強勁。

Commercially, the team continued to win the right work and capture high-value opportunities, including building on our momentum in the automotive market. Our direct shipments in Q3 to the Detroit 3 increased by approximately 13%, significantly outpacing the reported 3% growth in Detroit 3 production for the quarter.

在商務面，團隊持續爭取合適的業務並掌握高價值機會，包括延續我們在汽車市場的動能。我們第三季對底特律三大車廠（Detroit 3）的直接出貨量約增加 13%，顯著優於該季底特律三大車廠產量報導的 3% 成長。

As discussed last quarter, the outlook for the automotive market heading into calendar year 2026 remains cautiously optimistic. Conditions appear to be moving toward a more robust market later in the year. That view is supported by growing confidence that a USMCA agreement will be completed in 2026, removing a significant amount of market uncertainty.

如上季所述，展望進入 2026 曆年，汽車市場前景仍維持審慎樂觀。市場狀況似乎正朝向今年稍晚更為強勁的市場發展。此觀點也受到一項因素支持：市場對於 USMCA 協議將於 2026 年完成的信心提升，可望消除相當程度的市場不確定性。

Turning to agriculture. We believe we are nearing the trough of the market cycle and that a slow rebound will begin in late calendar year 2026. On a positive note, our team has been able to secure new business with a key customer in this market, which will continue to ramp up over the next few quarters.

接著談農業市場。我們認為市場循環已接近谷底，並預期在 2026 曆年下半年開始緩慢復甦。正面的是，我們的團隊已成功與該市場的一家關鍵客戶取得新業務，未來幾季將持續放量。

In construction, conditions remained flat in most segments. We expect to see data center growth continue. And as lower interest rates take hold, we believe we will see some expansion in the second half of 2026 due to pent-up demand.

在建築方面，多數細分市場狀況仍持平。我們預期資料中心的成長將持續。隨著較低利率逐步發揮作用，我們相信 2026 年下半年將因累積需求而出現一定程度的擴張。

And in heavy truck and trailer, as we expected, the market started off slowly in calendar year 2026. We are more confident about the back half of this year, where we expect to see a pickup in both the Class 8 truck sector as well as the trailer market. Looking ahead, we are still cautiously optimistic about the second half of calendar year 2026.

至於重型卡車與拖車，如我們所預期，2026 曆年開局偏慢。我們對今年下半年更有信心，預期 Class 8 卡車領域以及拖車市場都將回升。展望未來，我們對 2026 曆年下半年仍維持審慎樂觀。

Overall, the backdrop looks modestly encouraging as key economic indicators show a return to expansion. With that market context, let me turn to our strategic priorities. We continue to make progress in the areas that matter most investments in electrical steel growth, innovation and transformation. In electrical steel, we advanced the projects that underpin our longer-term growth strategy.

整體而言，背景環境看起來略為令人鼓舞，因為關鍵經濟指標顯示重回擴張。在這樣的市場脈絡下，讓我談談我們的策略重點。我們持續在最重要的領域取得進展：電工鋼成長投資、創新與 transformation。在電工鋼方面，我們推進了支撐長期成長策略的各項專案。

In Canada, we have shifted some production to our new facility and are shipping from both locations. We will finish moving the existing equipment and production to the new facility over the next few months. We have more than 60% of the increased capacity sold for the facility. We're sequencing the start-up to protect performance and service levels, and we expect to fill the balance relatively quickly as the facility ramps up.

在加拿大，我們已將部分產能轉移至新廠，並從兩個據點出貨。未來幾個月內，我們將完成把既有設備與產能移轉至新廠。該廠新增產能已有超過 60% 完成銷售。我們正依序安排試產與啟動，以確保績效與服務水準，並預期隨著產能爬坡，剩餘部分將能相對快速地填滿。

Our traction motor lamination facility expansion in Mexico is also on track and will begin shipping production parts this quarter. Almost all the OEMs tied to the expansion are experiencing some type of OEM delays. Previously, we expected to reach full production levels in fiscal 2028.

我們在墨西哥的牽引馬達疊片（lamination）廠擴建也按計畫推進，並將於本季開始出貨量產零件。幾乎所有與此次擴建相關的 OEM 都正面臨某種形式的 OEM 延遲。先前我們預期在 2028 會計年度達到滿產水準。

However, the OEMs have pushed out a number of the programs for a variety of reasons. While timing is shifting on production starts for some of our new programs, when these platforms reach full production volumes in fiscal 2029, we will be at 75% capacity based upon the current contracts.

然而，OEM 因各種原因將多個專案時程往後延。雖然我們部分新專案的量產啟動時間正在調整，但當這些平台在 2029 會計年度達到滿產量時，依目前合約計算，我們的產能利用率將達到 75%。

These delays are not surprising, as many automotive OEMs are rethinking their electrification strategy. With the elimination of the fuel economy mandate and the elimination of the $7,500 federal tax credit, the market is clearly pivoting away from a government-driven BEV mandate to a consumer-led demand for hybrids.

這些延遲並不令人意外，因為許多汽車 OEM 正在重新思考其電動化策略。隨著燃油經濟性強制規定的取消，以及 7,500 美元聯邦稅收抵免的取消，市場顯然正從政府主導的 BEV 強制推動，轉向由消費者主導的混合動力需求。

The data is quite clear. Year-over-year, hybrid sales in the US increased 18% in 2025, and the same trend is happening in early 2026. Sales and production of hybrids are both up more than 10%, and the shift to hybrids is expected to continue.

數據相當清楚。按年比較，2025 年美國混合動力車銷量成長 18%，而同樣的趨勢也出現在 2026 年初。混合動力車的銷售與生產均成長超過 10%，且預期轉向混合動力的趨勢將持續。

We are also seeing reports of increased consumer interest in hybrid and full electric vehicles due to rising oil prices and geopolitical tensions. While it is too soon to see if this will translate into sales, we will be watching closely and are well positioned to capitalize on this renewed interest.

我們也看到報告指出，由於油價上漲與地緣政治緊張局勢升溫，消費者對混合動力與純電動車的興趣增加。雖然現在判斷這是否會轉化為銷售仍為時過早，但我們將密切關注，並已做好準備把握這波重新升溫的興趣。

From a commercial standpoint, we have seen a slowdown in quotes for pure BEV opportunities, but the quote activity related to hybrids is picking up. We are excited by the growth in hybrids, as we have the opportunity to produce the electrical steel laminations for a hybrid traction motor as well as the specialty cold-rolled steel used in the powertrain for the hybrid internal combustion engine.

從商業角度來看，我們看到純 BEV 機會的報價活動放緩，但與混合動力相關的報價活動正在回升。我們對混合動力的成長感到振奮，因為我們有機會生產混合動力牽引馬達所需的電工鋼疊片，以及混合動力內燃機動力總成所使用的特殊冷軋鋼材。

We continue to improve our business and find efficiencies using the Worthington Business System and artificial intelligence. In one notable project, we used our transformation process to implement a lean flow operating model at our Delta, Ohio facility that aligns material release, production and purchasing directly to customer demand, replacing a forecast-driven push process with a more disciplined pull approach.

我們持續運用 Worthington Business System 與人工智慧改善營運並尋找效率提升。在一個值得注意的專案中，我們運用轉型流程，在俄亥俄州 Delta 廠導入精實流動（lean flow）營運模式，使物料放行、生產與採購直接對齊客戶需求，以更有紀律的拉式（pull）方式取代以預測為導向的推式（push）流程。

This allows us to tighten our purchasing windows and drive down inventory. The work has led to 60% fewer coils held in our work in process bay and an overall reduction of 6 days of inventory over the past 26 months.

這使我們得以縮短採購窗口並降低庫存。這項工作使我們在製程中（WIP）區域持有的鋼捲數量減少 60%，並在過去 26 個月內整體庫存天數降低 6 天。

As the next step in the process, we will be adding predictive AI tools to ensure our flow is not only disciplined, but also predictable. That means spotting problems earlier and moving more quickly to remedy them. Predictive flow helps us stabilize performance as we run leaner, enabling faster, more consistent decisions at lower working capital levels.

作為流程的下一步，我們將加入預測型 AI 工具，確保我們的流動不僅有紀律，也具可預測性。這意味著能更早發現問題並更快速地加以修正。預測型流動有助於我們在更精實的運作下穩定績效，使我們能在較低營運資金水位下做出更快速且更一致的決策。

Further, we will use what we learned at Delta, package what works and build scalable solutions we can use across our footprint. We also continue to make progress transforming our administrative functions. When we stepped back and looked at where we started about a year ago, a few themes stood out.

此外，我們將把在 Delta 學到的經驗加以整理，將有效的方法打包，並建立可擴展的解決方案，以便在我們的各據點推廣使用。我們也持續推進行政職能的轉型。當我們回頭檢視大約一年前的起點時，有幾個主題特別突出。

There was a significant amount of manual, repetitive work, a fair amount of variation on how processes were executed across functions and facilities, and much of the work was being managed through e-mail, spreadsheets and manual follow-ups.

存在大量手動、重複性的工作；各職能與各廠在流程執行方式上也有相當程度的差異；而且許多工作是透過電子郵件、試算表與人工追蹤來管理。

We are addressing that in a couple of ways. First, where we see discrete opportunities to remove manual effort, we moved quickly using automation and AI. For example, we are developing an AI agent for daily cash posting in our finance group that is expected to eliminate a significant amount of manual data entry and free up about 30 hours per month of analyst time.

我們正以幾種方式加以改善。首先，對於可明確移除人工投入的機會，我們運用自動化與 AI 快速推進。例如，我們正在財務團隊開發用於每日現金入帳（cash posting）的 AI 代理，預期可消除大量人工資料輸入，並每月釋放約 30 小時的分析師工時。

We've also deployed automation in accounts payable that is reducing manual invoice interventions and should remove roughly 150 hours of work per month as the models continue to improve. And in our order-to-cash process, robotic automation that reconciles shipping notices with customer portal data has helped accelerate cash collection and reduce past due balances.

我們也在應付帳款導入自動化，正在降低人工介入處理發票的需求，且隨著模型持續改善，預計每月可減少約 150 小時的工作量。此外，在我們的訂單到收款（order-to-cash）流程中，用於比對出貨通知與客戶入口網站資料的機器人自動化，已協助加速現金回收並降低逾期應收款。

Second, for workflows that are more interconnected, we are using AI to assist us in mapping processes, establishing standard work and removing waste. For instance, in the indirect purchasing, we redesigned the sourcing workflow and then layered in analytics and AI tools that allow the team to focus more on strategic sourcing rather than repetitive tasks.

第二，對於彼此連動性較高的工作流程，我們使用 AI 協助流程盤點、建立標準作業並消除浪費。例如，在間接採購方面，我們重新設計了採購尋源（sourcing）工作流程，並進一步疊加分析與 AI 工具，使團隊能更專注於策略性採購，而非重複性工作。

We're still early in this part of the transformation journey, but what we are building is a repeatable capability that allows us to apply automation and AI across more processes and functions over time, structurally improving efficiency and scalability across the organization.

我們在這段轉型旅程的這一部分仍處於早期階段，但我們正在打造的是一項可重複的能力，讓我們能隨時間將自動化與 AI 應用到更多流程與職能，從結構上提升整個組織的效率與可擴展性。

To close, while this was a challenging quarter from a macroeconomic standpoint, our team remained focused on executing the business, advancing our electrical steel strategy and moving the Kloeckner process forward in a disciplined way.

最後，儘管從總體經濟角度來看本季充滿挑戰，我們的團隊仍專注於業務執行、推進電工鋼策略，並以有紀律的方式推動 Kloeckner 流程向前。

At the center of that is a culture that puts safety first and reflects the dedication of our people across the organization. To our employees, thank you. The discipline, care and commitment you bring every day are what turn our strategy into action.

其核心是一種以安全為先的文化，並反映出全體同仁在整個組織中的投入與奉獻。對我們的員工，謝謝你們。你們每天展現的紀律、用心與承諾，正是把我們的策略化為行動的關鍵。

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

接下來我將把電話會議交給 Tim，請他更詳細說明本季的財務狀況。

Thank you, Geoff, and good morning, everyone. Our third quarter was a disciplined quarter in a more challenging environment. While we saw softer demand in certain markets and continued pressure in Europe, we executed well, generating strong free cash flow, gaining share in key markets and maintaining a strong balance sheet.

謝謝你，Geoff，各位早安。在更具挑戰的環境下，我們第三季仍是一個有紀律的季度。儘管我們在部分市場看到需求轉弱、歐洲壓力持續，我們仍執行得當，創造強勁的自由現金流，在關鍵市場提升市占，並維持穩健的資產負債表。

That consistency in execution, particularly in more challenging environments, is a hallmark of how we run the business. We also took an important strategic step forward with the proposed Kloeckner transaction, which we believe will strengthen our long-term positioning.

這種執行上的一致性，尤其是在更具挑戰的環境中，是我們經營業務方式的標誌。我們也透過擬議中的 Kloeckner 交易，在策略上向前邁出重要一步；我們相信這將強化我們的長期定位。

For the third quarter, we reported earnings of $10.4 million or $0.20 per share as compared with earnings of $13.8 million or $0.27 per share in the prior year quarter. There were several non-recurring items that impacted comparability in the quarter, including a number of Kloeckner related items which are primarily transactional and timing related and not indicative of our ongoing operating performance.

第三季，我們報告盈餘為 1,040 萬美元，或每股 0.20 美元；相較之下，去年同期盈餘為 1,380 萬美元，或每股 0.27 美元。本季有數項一次性項目影響可比性，其中包括多項與 Kloeckner 相關的項目，主要屬交易性與時點性因素，並不代表我們持續性的營運表現。

First, the current quarter results include $15.4 million of pretax SG&A expense or $0.24 per share for advisory, legal and regulatory fees incurred in connection with the previously announced acquisition of Kloeckner.

首先，本季結果包含 1,540 萬美元的稅前銷售、一般及行政（SG&A）費用，或每股 0.24 美元，係因先前公告之收購 Kloeckner 所產生的顧問、法律與監管費用。

Additionally, we recognized $9.1 million of pretax miscellaneous income or $0.14 per share related to a foreign currency forward contract designed to hedge a portion of the Kloeckner purchase price. Unrelated to the Kloeckner transaction, we recognized a $6 million pretax restructuring gain or $0.06 per share on the sale of real estate and equipment associated with our previously announced Worthington Samuel Coil Processing plant closure in Cleveland, Ohio.

此外，我們認列 910 萬美元的稅前雜項收入，或每股 0.14 美元，與一項外匯遠期合約相關，該合約旨在對沖 Kloeckner 購買價款的一部分。與 Kloeckner 交易無關的是，我們就先前公告關閉位於俄亥俄州克里夫蘭的 Worthington Samuel Coil Processing 工廠所相關的不動產與設備出售，認列 600 萬美元的稅前重組利益，或每股 0.06 美元。

Finally, in the quarter, we recognized a $1.5 million pretax impairment of certain internal use software, over $0.03 per share. The prior year quarterly results included several non-recurring items, including a $7.4 million pretax impairment of assets or $0.07 per share, primarily related to the operational consolidation of our Worthington Samuel Coil Processing facility in Cleveland into WSCP's remaining facility in Twinsburg, Ohio.

最後，本季我們認列 150 萬美元的稅前減損，係針對部分內部使用軟體，超過每股 0.03 美元。去年同期結果包含數項一次性項目，其中包括 740 萬美元的稅前資產減損，或每股 0.07 美元，主要與將我們位於克里夫蘭的 Worthington Samuel Coil Processing 設施營運整併至 WSCP 在俄亥俄州 Twinsburg 的剩餘設施相關。

Additionally, we recognized pretax restructuring expenses of $900,000 or $0.01 per share related to a voluntary retirement plan and at our tailor-welded blank joint venture. Excluding these items, we generated adjusted earnings of $0.27 per share in the current year quarter compared with $0.35 per share in the prior year quarter.

此外，我們認列 90 萬美元的稅前重組費用，或每股 0.01 美元，與自願退休方案以及我們的拼焊板（tailor-welded blank）合資企業相關。排除上述項目後，本年度本季調整後每股盈餘為 0.27 美元，去年同期為 0.35 美元。

In the third quarter, we reported adjusted EBIT of $20 million, which was down $5.3 million from the prior year quarter adjusted EBIT of $25.3 million. The year-over-year decrease was driven primarily by lower toll processing volumes, higher SG&A largely related to compensation and unfavorable results in Europe, partially offset by higher direct volumes and higher equity earnings from Serviacero.

第三季，我們報告調整後 EBIT 為 2,000 萬美元，較去年同期調整後 EBIT 2,530 萬美元減少 530 萬美元。年對年下降主要由較低的代工處理（toll processing）量、更高的 SG&A（多與薪酬相關）以及歐洲不利的經營結果所致，部分被較高的直接出貨量以及來自 Serviacero 的較高權益法收益所抵銷。

Total shipments were approximately 818,000 tons, down 64,000 tons or 7% year-over-year as lower toll volumes more than offset volume growth in direct sales. Direct sale volume made up 63% of our mix in the current year quarter compared with 57% in the prior year quarter. Direct volume increased 4% compared with the prior year quarter.

總出貨量約為818,000噸，年減64,000噸或7%，因代工（toll）量下滑的影響超過直銷量成長。本年度當季直銷量占我們產品組合的63%，相較於去年同期的57%。直銷量較去年同期增加4%。

The year-over-year increase was split evenly between the legacy business and the addition of Sitem compared to the prior year quarter. Our increased shipments to the automotive market remained a bright spot. Direct shipments to automotive increased 10% year-over-year.

年增幅度一半來自既有業務，另一半來自相較去年同期新增併入的Sitem。我們對汽車市場的出貨增加仍是一大亮點。汽車直銷出貨年增10%。

Similar to last quarter, the increase in automotive volume reflects share gains from new programs, plus the impact of a key automotive OEM customer returning to a more normal build schedule after curtailing production last fiscal year.

與上季類似，汽車量的增加反映了新專案帶來的市占提升，加上某家關鍵汽車OEM客戶在上一財年縮減產量後，回到較正常的生產排程所帶來的影響。

This growth in the automotive market reflects the strength of our long-standing customer relationships and our collaborative, proactive approach to assisting customers to meet their needs. Outside of automotive, agriculture volume was up 9%, primarily due to improved OEM equipment demand, and container volume was up 11%.

汽車市場的成長反映我們長期客戶關係的穩固，以及我們以協作、主動的方式協助客戶滿足其需求。除汽車外，農業量成長9%，主要因OEM設備需求改善；貨櫃量成長11%。

As Geoff mentioned earlier, we won additional business with a key OEM customer in the ag sector. These gains were partially offset by lower shipments to a number of other markets, including energy, which was down 22% year-over-year, largely driven by project-based solar programs. Construction was down 7%, and service center, where we saw some increased competition, was down 21%. Heavy truck was down 12% due to ongoing market weakness.

如Geoff先前提到，我們在農業領域與一位關鍵OEM客戶贏得了更多業務。這些成長部分被其他多個市場出貨下滑所抵銷，包括能源市場年減22%，主要由專案型太陽能計畫所致。建築市場年減7%；而服務中心市場因競爭加劇年減21%。重型卡車因市場持續疲弱年減12%。

Toll processing volumes declined 22% year-over-year due to a combination of closing our Cleveland area Worthington Samuel Coil Processing facility in fiscal 2025 and near-term demand headwinds. We view the softer market conditions in toll processing as cyclical, not structural, and expect toll volumes to improve as end market demand recovers, excluding the impact of the Cleveland facility consolidation last May.

代工處理量年減22%，原因包括我們在2025財年關閉克里夫蘭地區的Worthington Samuel Coil Processing廠，以及短期需求逆風。我們認為代工處理市場轉弱屬於景氣循環而非結構性問題，並預期隨終端市場需求復甦，代工量將改善；惟不含去年5月克里夫蘭廠整併的影響。

Direct spreads were relatively flat year-over-year, excluding the impact of the Sitem acquisition, which closed in June. Direct spreads were impacted by a $3.3 million favorable swing in pretax inventory holding gains. In the current year quarter, we had estimated pretax inventory holding gains of $2.1 million compared to estimated pretax inventory holding losses of $1.2 million in the prior year quarter.

若排除6月完成交割的Sitem收購影響，直銷價差（spreads）年比大致持平。直銷價差受到稅前存貨持有損益有利變動3,300萬美元的影響。本年度當季我們估計稅前存貨持有收益為210萬美元，相較去年同期估計稅前存貨持有損失120萬美元。

After stabilizing around $800 per ton in the fall, the price for hot-rolled coil increased $175 per ton in our third quarter to approximately $975 per ton. We expect the market price for steel to remain volatile in the near term with expected mill outages, extending lead times and a tightening market. Given that many of our contracts use lagging index-based pricing mechanisms, we estimate in our fourth quarter of fiscal 2026, pretax inventory holding gains will fall within a range of $15 million to $20 million.

熱軋捲價格在秋季穩定於每噸約800美元後，於我們第三季上漲每噸175美元至約每噸975美元。我們預期短期鋼價仍將波動，因預期鋼廠停產、交期延長以及市場趨緊。鑑於我們許多合約採用落後的指數連動定價機制，我們估計在2026財年第四季，稅前存貨持有收益將落在1,500萬至2,000萬美元區間。

Turning to the other drivers for adjusted EBIT this quarter. SG&A expense, excluding the $15.4 million impact of the Kloeckner-related acquisition expenses, was up $7.5 million, primarily due to increased compensation expense in the legacy business and $4.8 million of incremental SG&A with the addition of Sitem.

接著談本季調整後EBIT的其他驅動因素。SG&A費用（不含與Kloeckner相關的收購費用1,540萬美元影響）增加750萬美元，主要因既有業務的薪酬費用上升，以及併入Sitem帶來的480萬美元新增SG&A。

It is worth noting that our Q3 results include increased headwinds in Europe. As expected, Sitem EBIT prior to minority interest decreased $8.4 million during the quarter. This performance reflects challenging economic conditions in Europe, particularly in the electrical steel and automotive end markets, where demand remains weak, and competition, especially from China has intensified.

值得注意的是，我們第三季結果包含歐洲逆風加劇。如預期，Sitem在少數股權（minority interest）之前的EBIT於本季減少840萬美元。此表現反映歐洲具挑戰的經濟環境，特別是在電工鋼與汽車終端市場，需求仍疲弱，且競爭（尤其來自中國）加劇。

While expected, we are actively addressing these headwinds through cost actions and operational adjustments, and our team in Europe is moving with urgency to improve performance. Although near-term conditions remain challenging, we are focused on positioning the business to return to profitability and to capture share as the market recovers.

雖然符合預期，我們正透過成本措施與營運調整積極因應這些逆風，歐洲團隊也正以緊迫感推動改善績效。儘管短期情勢仍具挑戰，我們專注於讓業務重回獲利，並在市場復甦時把握市占提升機會。

Finally, equity earnings from Serviacero, our Mexico-based joint venture, increased $3.5 million due to higher direct spreads, inventory holding gains, as well as the favorable impact of exchange rate movements. Turning to cash flows on the balance sheet. For the quarter, cash flow from operations was $63 million, and free cash flow was $33 million, with both metrics benefiting from a reduction in working capital.

最後，我們位於墨西哥的合資企業Serviacero之權益法收益增加350萬美元，原因包括較高的直銷價差、存貨持有收益，以及匯率變動帶來的有利影響。接著看資產負債表上的現金流。本季營運活動現金流為6,300萬美元，自由現金流為3,300萬美元，兩項指標皆受惠於營運資金下降。

Capital expenditures were $30 million in the quarter related to several projects, including the previously announced electrical steel investments. We expect CapEx for fiscal 2026 to finish in the range of $110 million to $115 million as several of our large capital growth projects transition from the build phase into start-up production. In addition, we are pursuing maintenance projects that keep our key assets market ready.

本季資本支出為3,000萬美元，與多項專案相關，包括先前宣布的電工鋼投資。我們預期2026財年CapEx將落在1.10億至1.15億美元區間，因多項大型資本成長專案將由建置階段轉入試車與投產。此外，我們也在推動維護性專案，以確保關鍵資產隨時具備市場競爭力。

We take a disciplined approach to capital allocation, balancing investment in growth with maintaining balance sheet strength. On a trailing 12-month basis, we generated $81 million of free cash flow. We increased borrowings during the current quarter on our ABL to purchase approximately $8.3 million or 8% of Kloeckner shares for $101 million.

我們以嚴謹的資本配置方式，在成長投資與維持資產負債表強度之間取得平衡。以過去12個月計，我們產生8,100萬美元的自由現金流。本季我們透過ABL增加借款，以1.01億美元購買約830萬美元（或8%）的Kloeckner股份。

We ended the quarter with $90 million of cash and net debt of $161 million, up sequentially, driven primarily by the purchase of Kloeckner shares. Earlier this week, we announced a quarterly dividend of $0.16 per share, payable on June 26, 2026.

本季末我們持有現金9,000萬美元，淨負債1.61億美元，較前一季上升，主要由於購買Kloeckner股份。本週稍早，我們宣布每股0.16美元的季度股利，將於2026年6月26日支付。

In summary, this was a disciplined quarter in a more challenging environment. We are gaining share in key markets, generating consistent cash flow and maintaining a strong balance sheet. At the same time, we are taking actions to address underperformance in Europe while continuing to advance our strategic priorities, including the proposed Kloeckner transaction.

總結而言，在更具挑戰的環境下，這是一個紀律嚴謹的季度。我們在關鍵市場提升市占、持續產生穩定現金流，並維持強健的資產負債表。同時，我們正採取行動改善歐洲的表現不佳，並持續推進策略重點，包括擬議中的Kloeckner交易。

This reflects how we manage the business, staying focused on execution and positioning the company to perform through cycles. We believe these actions position Worthington Steel to navigate the current environment and continue creating value over the long term. I want to thank our entire Worthington Steel team for their continued focus on safety, customer service and execution this quarter.

這反映我們的經營方式：專注於執行，並讓公司能在景氣循環中保持表現。我們相信這些行動將使Worthington Steel得以因應當前環境，並在長期持續創造價值。我要感謝Worthington Steel全體團隊在本季持續專注於安全、客戶服務與執行力。

At this point, we'll be happy to take your questions.

接下來，我們很樂意回答各位的問題。

(Operator Instructions) Samuel McKinney, KeyBanc Capital Markets.

(接線員指示) Samuel McKinney，KeyBanc Capital Markets。

Hey, good morning. It's Sam, with direct volumes for the third quarter only up 3% year-over-year, I'm surprised to hear you say the direct auto shipments increased by 10%. Assuming much of this was owed to the market share wins you've outlined, can you talk through some of those wins and the impact they're having?

嗨，早安。我是Sam。第三季直銷量年增只有3%，但你們說汽車直銷出貨增加了10%，我有點意外。假設這多半來自你們提到的市占勝出，能否談談其中一些勝出案例，以及它們帶來的影響？

Yeah, Sam, this is Geoff. I'll take that. Clearly, positive impact. If you look at automotive as a whole, it was down maybe 1% or 2% actually year-over-year. And -- so I think as we mentioned, if you look specifically at the Detroit 3, their production was up 3%, and ours were up 13%.

好的，Sam，我是Geoff。我來回答。顯然是正面影響。如果看整體汽車市場，年比可能下滑約1%或2%。所以我想如我們提到的，若特別看底特律三大車廠（Detroit 3），他們的產量成長3%，而我們成長13%。

So if you look at the difference in the GAAP, that really is that market share gain that we've been speaking about the last several quarters. And fortunately, for us, we've continued to win market share with those customers mentioned as several -- as well as several others. So that's something that you'll continue to see layered in.

因此，如果你看GAAP口徑的差異，那確實就是我們過去幾季一直在談的市占提升。而且對我們而言很幸運的是，我們持續在上述客戶以及其他幾位客戶身上贏得市占。所以你會持續看到這部分的貢獻逐步疊加。

The beginning of your question was, hey, being up 13% there, but only 3% as a whole. As you're aware, weather in the Midwest was quite challenging in late January, and specifically for a week. And that absolutely disrupted the entire supply chain, whether it was the mills trying to ship out, to us receiving in, and to -- then to us trying to ship to our customers. And probably, the impact there was 10,000 to 15,000 tons. And look, the mills are extremely busy right now.

你問題的開頭是，嘿，那邊成長了 13%，但整體只有 3%。如你所知，中西部在一月底的天氣相當嚴峻，特別是有一週。這確實擾亂了整個供應鏈，無論是鋼廠嘗試出貨、我們端的收貨，以及——接著我們再出貨給客戶。而那邊的影響大概是 10,000 到 15,000 噸。而且你看，鋼廠現在非常忙。

They have extended lead times, their on-time delivery performance has been challenging. And so we just weren't able to make up for that backlog during the month of February. We did some, but again, we probably could have shipped closer to 15,000 additional tons. Fortunately, those aren't orders lost. We'll make up that backlog and are starting to do so already this month.

他們的交期已經拉長，準時交付表現也一直很具挑戰。所以我們在二月份就是無法把那個積壓量補回來。我們有補一些，但再說一次，我們可能本來可以多出貨接近 15,000 噸。幸好，那些不是流失的訂單。我們會把積壓補回來，而且這個月已經開始在補了。

Okay. That's helpful. And then on to Kloeckner, how should we think about the over $100 million of short-term debt you used to purchase their securities? Just any other color you could give on that equity investment in the context of meeting the threshold would be helpful.

好的。這很有幫助。接著談到 Kloeckner，你們用超過 1 億美元的短期負債去購買他們的證券，這件事我們應該怎麼看？如果你能就這筆股權投資在達到門檻（threshold）的脈絡下再補充一些說明，會很有幫助。

Like Tim said, that's about 8% of the Kloeckner shares.

就像 Tim 說的，那大約是 Kloeckner 股份的 8%。

Yeah. Sam, this is Tim. So we had the ability through antitrust or we had to look at the regulations of antitrust as far as how much we could buy. And we did buy in the open market, 10%. And we used that opportunity when the tender offer was announced to buy in the open market.

對。Sam，我是 Tim。所以我們在反托拉斯方面有能力——或者說我們必須看反托拉斯的相關規範，來判斷我們最多能買多少。而我們確實在公開市場買到了 10%。而且在公開收購（tender offer）宣布時，我們就利用那個機會在公開市場買進。

So we increased our ABL by $126 million, and we used $101 million of it to buy shares in the open market. As long as the price stays below the tender offer of 11, we can buy shares. So you've seen the price of Kloeckner rise a little bit. That shut us out of the market. So we bought shares early in the quarter, and we haven't bought much since.

所以我們把 ABL 增加了 1.26 億美元，並用其中的 1.01 億美元在公開市場買股票。只要價格維持在公開收購價 11 以下，我們就可以買股。所以你也看到 Kloeckner 的股價有稍微上漲。那就讓我們暫時買不到了。因此我們在本季初期買了股票，之後就沒再買太多。

Okay, thanks. And then last one for me. Steel pricing obviously has remained hot in recent weeks. Can you give us a sense of the net working capital expectation for the fourth quarter in the context of the $15 million to $20 million of inventory holding gains?

好的，謝謝。那我最後一個問題。鋼價在最近幾週顯然仍然很火熱。在 1,500 萬到 2,000 萬美元的存貨持有收益（inventory holding gains）的背景下，你能否談談第四季淨營運資金（net working capital）的預期？

Yeah. I think there, I mean, we are definitely going to see some upward pressure on working capital. I think you can kind of look at the percentage price increase and kind of translate that into how much working capital should go up. But you will absolutely see some upward pressure on working capital in Q4 for sure.

可以。我想在那方面，我們確實會看到營運資金有一些上行壓力。我想你可以大致用價格上漲的百分比，去換算營運資金大概會增加多少。但你在第四季肯定會看到營運資金有一些上行壓力。

John Tumazos, John Tumazos Very Independent Research.

John Tumazos，John Tumazos Very Independent Research。

Thank you. The German stock market is down 8% year-to-date. And their economy is more vulnerable to the energy escalation as they're almost entirely an energy importer. Does your view of the amount of debt level that you want to hold post acquisition or the degree of exposure to Europe change given our incursion into Iran and the subsequent events in the last 4-weeks?

謝謝。德國股市今年以來下跌了 8%。而他們的經濟對能源升級（價格上升/緊張）更為脆弱，因為他們幾乎完全是能源進口國。鑑於我們對伊朗的軍事介入以及過去 4 週的後續事件，你對於收購後想要持有的負債水位，或對歐洲曝險程度的看法，是否有所改變？

John, good question. Hi, by the way. Thanks for calling in. Look, we went into this acquisition eyes wide open and a clear understanding on Europe and the current challenges. I think, a few things. First, their economy.

John，問得好。順帶一提，你好。謝謝你打進來。你看，我們進行這項收購時是充分了解狀況的，對歐洲以及目前的挑戰也有清楚的認知。我想有幾點。第一，他們的經濟。

I think they are doing their own things to increase, I'll call it, protectionism, which certainly will help their economy specifically, I think, aimed at China. I think they've increased spend on defense pretty significantly here over the last 6-, 12-months, which should benefit the business environment, specifically manufacturing.

我想他們正在做一些事情來提高——我稱之為——保護主義，這當然會對他們的經濟有幫助，我認為特別是針對中國。我想在過去 6 到 12 個月，他們在國防上的支出增加得相當顯著，這應該會有利於商業環境，特別是製造業。

But what we did not predict was a war with China and the impact -- or China, I'm sorry, with Iran and the impact on the oil prices. So right now, it's not having a major impact on the business here or Europe. But if this is prolonged, yes, then we certainly are concerned about their economy, but we're equally concerned about the economy here.

但我們沒有預測到會與伊朗爆發戰爭，以及對油價的影響——或是中國，抱歉，是與伊朗，以及對油價的影響。所以目前為止，這對這裡或歐洲的業務沒有造成重大影響。但如果這情況拖長，是的，那我們當然會擔心他們的經濟，但我們同樣也擔心這裡的經濟。

Obviously, higher energy prices, higher gas prices is certainly not going to be good for either economy. So that's really our position on it right now.

顯然，更高的能源價格、更高的汽油價格，對任何一個經濟體都不會是好事。所以這就是我們目前的立場。

So following up on what you just said, would you then want to have more equity in your financial structure and less debt?

那接續你剛才說的，你是否會希望在財務結構中提高股權比例、降低負債？

No, John. We're comfortable with the capital structure, where we're moving forward right now. We're quite comfortable with the debt level that we'll be carrying forward. And to be more transparent, it's because we're very confident in our plan and how we'll go about paying that debt down over time. So we haven't had any serious discussions about reducing the debt and increasing equity as part of the capital structure. And I think we're going to be in very good shape.

不會，John。我們對目前前進方向下的資本結構感到放心。我們也很放心我們接下來將承擔的負債水位。更坦白說，這是因為我們對計畫非常有信心，也很清楚我們會如何隨時間推進來償還這些債務。所以我們沒有就「降低負債、提高股權」作為資本結構的一部分進行任何嚴肅的討論。而且我認為我們會處於非常好的狀態。

There are no further questions at this time. I will now turn the call back to Geoff Gilmore, President and CEO, for closing remarks.

目前沒有其他問題。我現在把電話交回給總裁兼執行長 Geoff Gilmore，請他做結語。

From a macroeconomic standpoint, there were some challenges with the business. But just a reminder, during last call, I addressed the overall market as well as some of the challenges in spreads, specifically hot-rolled and coated and hot-rolled and cold-rolled. But at that time, I mentioned I felt like the quarter would be really -- we'd be experiencing the trough. And I feel strongly that that's the case, and that's what we've seen.

從總體經濟的角度來看，業務確實面臨一些挑戰。但提醒一下，在上一次電話會議中，我談到了整體市場以及價差（spreads）的一些挑戰，特別是熱軋與鍍層、以及熱軋與冷軋之間的價差。但當時我提到，我覺得本季會是——我們會經歷谷底。而我強烈認為確實如此，這也正是我們所看到的。

I think the tightness in the market in the US and where we're seeing prices headed, along with -- cautiously optimistic now on all markets that we're starting to see recovery. And that's the sentiment across the market. We're no different, that we can start to see signs of growth, not just with market share gains in automotive, but other key markets as well. And certainly, those markets will increase demand for galvanized as well as cold-rolled.

我想美國市場的緊俏程度，以及我們看到價格的走向，再加上——我們現在對所有市場都抱持審慎樂觀，因為開始看到復甦。而這也是整個市場的共同情緒。我們也一樣，開始看到成長的跡象，不只是汽車領域市占提升，其他關鍵市場也是如此。而且當然，這些市場也會提高對鍍鋅以及冷軋的需求。

And hopefully, we start to see some of that spread pressure alleviate gradually over time. More importantly, we could not be more well positioned to continue to grow as a company, have a great deal of confidence of us achieving the threshold goal for Kloeckner. And that just puts us in a position to accelerate growth moving forward. So the business is in great shape. Look forward to what's to come. And thank you again for listening in today.

也希望我們能看到這些價差壓力隨時間逐步緩解。更重要的是，我們的定位再好不過，能夠持續以公司之姿成長，並且對我們達成 Kloeckner 的門檻目標充滿信心。而這也讓我們處於能在未來加速成長的位置。所以公司營運狀況非常好。期待接下來的發展。也再次感謝各位今天收聽。

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

今天的電話會議到此結束。感謝各位參與。各位現在可以掛線。