Worthington Steel, Inc. reported its financial results for the first quarter of fiscal 2027, which ended August 31, 2026. The filing notes that the reported results reflect the impact of the company's acquisition of a majority interest in Klöckner & Co SE.

Net sales for the quarter totaled $2,726.6 million, a 212% increase compared to the same period in the prior year. The company attributes this growth to the inclusion of Klöckner, which contributed $1,772.7 million to net sales. Excluding the impact of the acquisition, net sales increased by 9% to $953.9 million. This increase was driven by higher direct volumes and improved pricing. The company processed a total of 1,943,340 tons of steel, a mix of 77% direct and 23% toll processing.

Operating income for the quarter was $56.0 million, an increase of $7.7 million compared to the prior year. Adjusted EBIT (non-GAAP) was reported at $78.5 million, and Adjusted EBITDA (non-GAAP) was $111.0 million. However, the company reported a net loss attributable to controlling interest of $7.0 million, compared to net earnings of $36.8 million in the prior year. Diluted loss per share from continuing operations was $0.14, while Adjusted Diluted EPS was $0.57.

During the quarter, the company completed the acquisition of approximately 62.11% of Klöckner's outstanding shares. The company also entered into a Domination and Profit and Loss Transfer Agreement with Klöckner in September 2026, which is subject to shareholder approvals and cannot occur before January 1, 2027.

As of August 31, 2026, the company had cash and cash equivalents of $248.2 million and total debt of $2,196.4 million, resulting in a net debt position of $1,948.2 million. The company reported negative free cash flow of $69.0 million for the quarter.

On October 6, 2026, the company's board of directors declared a quarterly cash dividend of $0.16 per common share. The dividend is payable on December 28, 2026, to shareholders of record as of the close of business on December 14, 2026.

The company will host a conference call on October 7, 2026, at 8:30 a.m. ET to discuss these results.