Metallus Wins $995 Million Defense Logistics Agency Steel Contract, Gets $125 Million Initial Order

Worthington Steel reported first-quarter fiscal 2027 adjusted earnings per share of $0.57, missing the analyst consensus of $0.68 by $0.11, sending shares down 1.5% after hours on Wednesday. Revenue surged 212% year over year to $2.73 billion from $872.9 million, driven primarily by the inclusion of Kloeckner & Co following the company's majority acquisition completed on June 3, 2026; Kloeckner contributed $1.77 billion to net sales in the quarter. Excluding Kloeckner's impact, revenue increased 9% compared to the prior year quarter on higher direct volumes and improved pricing, with direct tons sold up 3% and direct selling prices up 6%. Adjusted EBIT reached $78.5 million, up from $55.5 million a year earlier, but the company reported a net loss attributable to controlling interest of $7.0 million, or -$0.14 per diluted share, compared to net earnings of $36.8 million, or $0.73 per share, in the prior year quarter, impacted by approximately $43 million in inventory fair value step-up costs related to the Kloeckner acquisition. Worthington Steel ended the quarter with total debt of $2.20 billion and cash of $248.2 million, resulting in net debt of $1.95 billion, and declared a quarterly dividend of $0.16 per share payable December 28, 2026.