Worthington Beats Estimates, Data-Center Tank Demand Accelerates
Q1 earnings beat lifts stock Worthington reported Q1 revenue of $343.9 million, up 13.2%, and adjusted EPS of $0.82, beating estimates. Adjusted EBITDA rose 10% and free cash flow nearly doubled. The stock jumped about 15% as results showed the business is growing faster than expected.
The earnings beat is the main new event driving the stock this period.
Data-center liquid cooling tanks gain traction Worthington shipped $13 million of ASME tanks for data-center liquid cooling in the quarter, matching its full prior-year total. Management expects sequential growth through fiscal 2027 in a market that could be over 10 times its legacy size. This opens a fast-growing new demand source.
It explains a key growth driver behind the earnings beat and future upside.
Investor day highlights under-the-radar data-center play Ahead of its November 10 investor day, Worthington emphasized its focus on construction, heating/cooling products, and data-center liquid-cooling tanks. Shares jumped 10% as investors saw it as an overlooked data-center supplier with double-digit contractor sales growth.
It shows a new narrative that attracted buyers before earnings.
Tariff refunds and steel weakness offset some gains Trade and Specialty Solutions got a $4 million boost from IEEPA tariff refunds, but the A2L refrigerant transition cut Building Performance EBITDA by about $7 million. The company also faces tariff uncertainty and weaker equity earnings from softer steel pricing, which could weigh on future results.
It gives a fair picture of real counterweights to the positive earnings and demand news.