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Worthington Steel is like **Cargill for industrial metals.**

Worthington Steel is like **Intel for industrial steel components.**

Worthington Steel is like a **custom butcher for industrial steel.**

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Worthington Steel (WS) Major Products:

• Flat-Rolled Steel Products: Worthington Steel processes flat-rolled steel into various custom forms, including coils, sheets, and blanks, for diverse industrial applications.
• Tailor-Welded Blanks: These are custom-engineered steel blanks, produced by laser welding different grades and thicknesses of steel, primarily used in the automotive industry for lightweighting and structural integrity.
• Electrical Steel Laminations: Through its Tempel Steel business, Worthington Steel manufactures precision-stamped electrical steel components essential for electric motors, generators, and transformers.

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Worthington Steel (symbol: WS) primarily sells its processed flat-rolled steel products to **other companies (B2B customers)** rather than directly to individuals.

Like many B2B suppliers, Worthington Steel does not publicly disclose the names of its specific major customers due to competitive and confidentiality reasons. Instead, the company serves a wide array of manufacturing customers across several key industries. Below are the major industries Worthington Steel targets, along with examples of prominent public companies that operate within those industries and would be typical customers for a steel processor like WS. Please note that these are illustrative examples of companies in their target markets, not explicitly named major customers by Worthington Steel.

Major Customer Industries and Example Companies:

1. Automotive Industry: Worthington Steel supplies steel for various automotive components, serving both original equipment manufacturers (OEMs) and their Tier 1 suppliers.

   • Ford Motor Company (F)
   • General Motors Company (GM)
   • Stellantis N.V. (STLA)
   • Tesla, Inc. (TSLA)
   • Magna International Inc. (MGA) - (A major automotive supplier)

2. HVAC (Heating, Ventilation, and Air Conditioning) Industry: The company provides steel for various HVAC system components.

   • Carrier Global Corporation (CARR)
   • Trane Technologies plc (TT)
   • Lennox International Inc. (LII)

3. Agricultural Equipment Industry: Worthington Steel supplies steel used in the manufacturing of various farming and agricultural machinery.

   • Deere & Company (DE)
   • CNH Industrial N.V. (CNHI)
   • AGCO Corporation (AGCO)

4. Construction & Outdoor Power Equipment Industries: This category encompasses manufacturers of building products, metal structures, and machinery for landscaping and outdoor maintenance.

   • The Toro Company (TTC) - (Outdoor Power Equipment)
   • Companies manufacturing metal roofing, siding, structural components, and other building materials.

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Geoff G. Gilmore, President and Chief Executive Officer

Geoff G. Gilmore brings nearly 30 years of experience in the metals industry, having held leadership roles in operations, sales, and purchasing. He joined Worthington Industries in 1998 as an inside sales representative in the Steel Processing division. Over 12 years, he advanced through various positions, including territory manager and commercial lead for automotive sales, before becoming general manager of a Steel Processing facility in 2010. Gilmore was named vice president of purchasing in 2011, responsible for company-wide steel, commodity, and OEM procurement. He became president of the Steel Processing division in 2012, and four years later, president of Worthington Industries' Pressure Cylinders division. Prior to his current role, he served as executive vice president and chief operating officer of Worthington Industries, taking the helm as President and CEO of Worthington Steel as a standalone company in December 2023.

Tim Adams, Vice President & Chief Financial Officer

Tim Adams has over 25 years of experience in managing strategic financial plans and pursuing new business opportunities both domestically and internationally. He joined Worthington Industries as a financial analyst in 1998 and progressed through multiple roles of increasing responsibility within the Financial Planning and Analysis team. Adams was appointed director of strategy and business development in 2008. Since 2012, he served as vice president of Strategy and Corporate Development for the Steel Processing business, where he was responsible for strategic planning, mergers and acquisitions, and business development. He also serves on the boards of two Worthington Steel joint ventures: TWB Company and Serviacero Worthington.

Jeff Klingler, Executive Vice President & Chief Operating Officer

Jeff Klingler began his career at Worthington in 1992 on the production floor and later advanced through various sales roles. He left Worthington to become vice president of Sales, Marketing and Procurement at Banner Service Corporation. Klingler returned to Worthington in 2014, where he was instrumental in establishing Steel Processing's supply chain solutions strategic business unit, and in May 2019, he was named president of Steel Processing.

Nikki Ballinger, Vice President of Human Resources

Nikki Ballinger serves as the Vice President of Human Resources for Worthington Steel.

Bill Wertz, Vice President & Chief Information Officer

Bill Wertz holds the position of Vice President and Chief Information Officer (also referred to as VP of Transformation & CIO) at Worthington Steel.

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Key Risks to Worthington Steel (WS)

1. Reliance on Cyclical Industries and Economic Downturns: Worthington Steel's financial performance is heavily concentrated in the automotive and construction sectors, making it highly susceptible to economic downturns and the cyclical nature of these industries. Any reduction in activity within these sectors can lead to decreased demand for steel products, adversely affecting the company's net sales and overall financial results.
2. Volatility in Steel Prices and Raw Material Costs: The company is significantly exposed to fluctuations in steel prices, influenced by factors such as supplier consolidation, international conflicts, and tariffs. The challenge of passing on increased raw material costs to customers poses a substantial risk to Worthington Steel's profit margins.
3. Tariffs and Global Trade Dynamics: Tariffs, including Section 232 tariffs on steel and aluminum, introduce a complex risk. While they can reduce import competition for domestic producers, they also lead to increased costs for raw materials and logistics, thereby squeezing profit margins. Furthermore, tariffs can potentially reduce demand in key sectors like automotive, and the threat of reciprocal tariffs adds another layer of uncertainty. Global overcapacity and government-subsidized exports also exert downward pressure on U.S. steel prices, impacting Worthington Steel's competitiveness.

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The clear emerging threat for Worthington Steel (WS) is the rapid transition of the automotive industry, a primary customer, to Electric Vehicles (EVs). This shift often entails significant changes in material composition, with EVs increasingly incorporating lighter-weight materials such as aluminum and composites, and utilizing advanced high-strength steels in different applications or grades than traditional internal combustion engine vehicles. Furthermore, innovative manufacturing processes being adopted by EV makers, such as large-scale giga-casting for structural components, aim to reduce part count and could diminish the demand for traditional steel stamping, blanking, and other processing services that form the core of Worthington Steel's business.

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Worthington Steel (NYSE: WS) operates in the steel processing industry, providing value-added services and products that serve various end markets, including automotive, agriculture, construction, energy, and heavy truck. The company's main products and services include carbon flat-rolled steel processing, electrical steel laminations, and tailor welded solutions.

Addressable Market Sizes:

• Steel Processing: The global steel processing market size was estimated at approximately $714.7 billion in 2024, with projections to reach $833.93 billion by 2029. The U.S. steel processing market is projected to grow from $850 billion in 2025 to $1,240 billion by 2031.
• Electrical Steel Laminations: The global electrical steel market, which includes products like electrical steel laminations, is expected to grow from $24.80 billion. Worthington Steel is investing in expanding its capacity for electrical steel products to meet the rising demand for electric and hybrid vehicles and to support growth in electrical infrastructure.
• Tailor Welded Solutions: null

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Expected Drivers of Future Revenue Growth for Worthington Steel (WS)

Worthington Steel (WS) is strategically positioned for revenue growth over the next 2-3 years, driven by several key initiatives and market trends:

1. Expansion in the Electrical Steel Market: Worthington Steel is heavily focused on capitalizing on the growing demand for electrical steel. This includes applications in electric vehicle (EV) traction motors, transformer cores, data center expansion, and the modernization of the electric grid. The company is making strategic capital expenditures to enhance its electrical steel capabilities and production.
2. Strategic Acquisitions, such as Sitem: The acquisition of a 52% stake in Sitem, a prominent European provider of electrical steel laminations, is a significant driver. This move is expected to expand Worthington Steel's presence in the global EV market and strengthen its European footprint.
3. Automotive Market Share Gains and New Programs: Worthington Steel has demonstrated strong performance in the automotive sector, with increased shipments to major manufacturers like the Detroit 3, surpassing overall industry production growth. This indicates successful market share capture and the ramp-up of new programs within the automotive industry.
4. Geographic Expansion in North America: The company is actively investing in and expanding its electrical steel production facilities in Canada and Mexico. These regional expansions are anticipated to contribute to increased production capacity and market penetration in these key areas.
5. Operational Transformation and Efficiency through the Worthington Business System (WBS) and AI: The Worthington Business System emphasizes transformation, innovation, and continuous improvement. Furthermore, the company is implementing AI-driven initiatives for demand forecasting, predictive inventory optimization, and predictive maintenance. While directly impacting cost savings, these operational efficiencies are expected to enhance competitiveness, improve product mix, and ultimately support revenue growth.

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Share Issuance

• Worthington Steel (WS) began trading as a standalone public company on December 1, 2023, following a pro rata distribution of 100% of its common shares to Worthington Industries shareholders.
• Each Worthington Industries shareholder received one common share of Worthington Steel for every one common share of Worthington Industries held.

Outbound Investments

• In November 2023 (within fiscal year 2024), Worthington Steel entered the European market through an electrical steel acquisition.
• On June 3, 2025, the company acquired 52% of S.I.T.E.M. S.p.A. (Sitem Group), an Italian joint stock company, through its subsidiary Tempel Steel Company, LLC, aiming to strengthen its global electrical steel business and support growth in the EV market.

Capital Expenditures

• For fiscal year 2024 (ended May 31, 2024), Worthington Steel deployed approximately $103 million in capital expenditures.
• These capital expenditures in fiscal 2024 were primarily directed towards strategic expansions in electrical steel operations located in Mexico and Canada.
• Worthington Steel anticipates capital expenditures of $100 million for fiscal year 2026, with a continued focus on the electrical steel and electrification markets.