Episode Details

WOR (Worthington) reported Q4 FY2026 earnings on 2026-06-23. Stock fell 0.8% on the print. Here's the breakdown: Is WOR a buy, hold, or sell after this quarter? In this Worthington (WOR) Q4 FY2026 earnings breakdown we cover the revenue and EPS print, the 8-quarter trend, segment detail, the free-cash-flow bridge, forward guidance, peer valuation, and management & earnings quality - ending with a clear price-aware Buy / Hold / Avoid Call and a Wall Street consensus comparison. If you follow Industrials stocks or WOR earnings, this is the Q4 FY2026 deep dive. 🎧 Listen on Podbean: https://chargedalpha.podbean.com (also on Apple Podcasts & Spotify) 🔔 Subscribe for daily earnings deep-dives → @ChargedAlpha | Call tracker: chargedalpha.com THE CALL: HOLD (3/5 conviction, MODERATE) - CURRENT @ $61.03 - HOLD - BUY below $52.00 with $45.00 stop - AVOID above $70.00 TRIGGER: ClarkDietrich JV income recovers AND organic revenue growth accelerates above ~5% for two quarters WINDOW: Through Q1 FY27 earnings (September 2026) TRACKER: chargedalpha.com WALL STREET CONSENSUS - Ratings: 0 Strong Buy / 3 Buy / 5 Hold / 1 Sell / 0 Strong Sell - HOLD - Median 12-month price target: $64.00 (range $52 - $75) - Charged Alpha vs consensus: IN-LINE THESIS The post-split asset-light consumer + building-products compounder - JV equity income (WAVE, ClarkDietrich) plus an M&A roll-up - with durable free cash flow and a rising dividend, but a quarter that missed on every line as JV income dropped. Bull lever: If ClarkDietrich JV income recovers with the building cycle and organic growth firms up while Consumer Products margins keep improving, the durable FCF compounds, the dividend keeps rising, and the asset-light multiple holds. Key risk: If organic growth stays near 3%, the JV income keeps wobbling, and the drained cash balance forces a pause in M&A or capital return, a bought-growth roll-up with declining EPS de-rates. QUALITY CHECK - Management quality grade: B (CEO Joseph Hayek runs a disciplined asset-light model with a clear capital-return ethos - a 5% dividend raise, buybacks, durable FCF.) - Earnings quality grade: B (Earnings are cash-backed by a durable $170M FCF and reliable JV equity income (WAVE steady at $32.3M). GAAP and adjusted EPS were identical this quarter ($0.) CHAPTERS 0:00 Hook 0:13 The Year in One Chart 0:55 The Print 1:37 Beat Decomposition 2:20 The Trend 3:01 The Segments 3:40 The FCF Bridge 4:22 Margin Quality 5:00 Guidance & The Narrative Diff 5:54 Catalyst Calendar 6:32 Peer Dot-Plot 7:10 Valuation 7:49 Management & Earnings Quality 8:29 The Call - Verdict 9:10 The Call - Evidence 9:50 The Call - Supporting Figures KEY METRICS - Q4 FY2026 - Revenue: $0.37B (YoY +17.0%, beat est by -3.9%) - EPS: $0.97 (vs $1.06 est, beat -8.5%) - Free cash flow: $0.17B (13.0% margin) WOR (Worthington Enterprises, the post-split consumer + building products co - NOT Worthington Steel) Q4 FY2026: TRIPLE MISS - net sales $371.5M (+17% but missed ~$386.5M, only ~3% organic), adj EPS $0.97 missed ~$1.06 (down YoY), adj EBITDA $83.5M missed ~$89.6M - driven by a ClarkDietrich JV income drop (-$6.8M). Consumer Products EBITDA +$3.5M bright spot; dividend RAISED 5% to $0.20; FY26 FCF $170M; cash drained to $27.7M; NO guide. Stock ~flat (-0.75%, FMP authoritative over prep's stale -8.6%). HOLD conv 3 at $61.03 - durable FCF + dividend, but bought growth + JV wobble unresolved. CEO Joseph Hayek. NARRATIVE DIFF - what changed in management tone - Prior call: "Our asset-light model and market-leading brands continue to generate strong, consistent free cash flow." - This call: "We closed fiscal 2026 with another quarter of solid performance, delivering positive organic growth and strong free cash flow while continuing to execute our strategy." - Tone shift: The compounding thesis held on cash and capital return, but the quarter exposed two cracks: the growth is bought not earned (only ~3% organic), and th