Worthington Steel Q1 FY2027: Kloeckner Integration Drives 212% Revenue Surge, Net Loss on Acquisition Costs
WS sits 38% above its 52-week low of $27.22 on elevated volume (2.3× avg).
Summary
Worthington Steel reported Q1 FY2027 revenue of $2.73 billion, up 212% on the Kloeckner acquisition, but swung to a $7.0 million net loss on acquisition costs and higher interest expense. The company declared a $0.16 quarterly dividend and targets net leverage below 2.5x within 24 months of DPLTA effectiveness.
Key Events · Earnings and Guidance · WS
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Q1 Revenue Triples on Kloeckner
Net sales of $2,726.6 million increased 212% year-over-year, with Kloeckner contributing $1,772.7 million. Legacy Worthington Steel grew 9% to $953.9 million.
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Net Loss on Acquisition Costs
Net loss attributable to controlling interest was $7.0 million (diluted EPS -$0.14), driven by $22.6 million in Kloeckner acquisition-related expenses, a $15.5 million securities remeasurement loss, and $38.8 million in interest expense. Adjusted diluted EPS was $0.57.
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Debt Load and Cash Burn
Total debt reached $2,196.4 million with net debt of $1,948.2 million. Free cash flow was negative $69.0 million in the quarter, with $63.0 million in capital expenditures.
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DPLTA Vote Set for October 23
Kloeckner shareholders vote on the Domination and Profit and Loss Transfer Agreement on October 23, 2026. If approved, full operational control and integration begin as early as January 1, 2027.
Analysis · WS · Manufacturing
The first quarter including Kloeckner reveals the transformative scale of the acquisition—revenue tripled to $2.73 billion—but the bottom line swung to a $7.0 million net loss attributable to controlling interest. Acquisition-related expenses of $22.6 million, a $15.5 million securities remeasurement loss, and $38.8 million in interest expense on the new $2.2 billion debt load overwhelmed the operating gains. Adjusted EPS of $0.57 shows the underlying business is performing, yet the company now carries $1.95 billion in net debt and negative free cash flow of $69 million. The path forward hinges on the DPLTA vote on October 23, 2026, which would unlock full operational control and the $150 million synergy program.
How filings like this one have moved
In the 30 days to Oct 7, 2026, 29% of the 1648 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.62%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, WS was trading at $37.45 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.9B. The 52-week trading range was $27.22 to $49.17. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.