Worthington Industries, Inc. (WOR): Business Model Canvas [Dec-2025 Updated]

You're digging into the new structure of Worthington Industries, Inc. after the recent separation, trying to map out exactly how they make money now. Honestly, understanding the nuts and bolts of this industrial player-from their $192 million Building Products sales in Q4 FY25 to their 29.3% gross margin-is key to seeing where the real value lies. We've broken down their entire operating model, covering everything from their strategic joint ventures, like the one in the hydrogen space, to their solid $250.1 million cash pile at the end of FY25, all laid out in the nine blocks of the Business Model Canvas below. Let's see what this post-spin reality looks like for you.

Worthington Industries, Inc. (WOR) - Canvas Business Model: Key Partnerships

You're looking at how Worthington Enterprises structures its external relationships to drive value, which is crucial given its diversified portfolio. These partnerships aren't just handshake deals; they involve significant capital flow and operational integration.

The joint ventures (JVs) are a major source of income and strategic capability. For the first quarter of fiscal 2026, for example, equity income from all JVs totaled $36.7 million. Worthington Armstrong Venture (WAVE), the ceiling suspension systems JV with Armstrong World Industries Inc., showed strength, increasing its equity contribution by $4.5 million year-over-year in Q1 fiscal 2026. WAVE itself employs over 400 people and runs 7 manufacturing facilities. To give you a sense of the scale of the partners, Armstrong World Industries, Inc. had an aggregate market value of common stock held by non-affiliates of approximately $4.9 billion as of February 19, 2025.

The ClarkDietrich joint venture, focused on commercial metal framing and accessories, saw a different trend, with equity earnings decreasing by $2.8 million in Q1 fiscal 2026, reflecting market-related challenges in construction. Still, the combined JVs provided $36 million in dividends during Q1 2026, showing strong cash conversion from these entities.

Here's a quick look at the recent equity income contribution dynamics:

Joint Venture	Reporting Period	Equity Income Change (YoY)	Notes
WAVE	Q1 Fiscal 2026	Up $4.5 million	Ceiling suspension systems leader.
ClarkDietrich	Q1 Fiscal 2026	Down $2.8 million	Commercial metal framing and accessories.
WAVE and ClarkDietrich (Combined)	Q4 Fiscal 2025	Higher Contributions	Boosted Building Products Adjusted EBITDA.

For innovation, the collaboration with Rev1 Ventures is structured to inject external technology into Worthington Enterprises. As part of this, Worthington is committed to making individual investments of up to $10 million to support startups in areas like smart manufacturing and IoT. This taps into external R&D to find new ways to serve customer needs.

The focus on the global hydrogen ecosystem involves a specific joint venture. Worthington Enterprises sold 49 percent of its Sustainable Energy Solutions (SES) business segment to Hexagon Composites for approximately $10 million to form this JV focused on on-board fueling systems and gas containment. For context on the acquired entity's prior performance, Hexagon Ragasco had adjusted calendar year 2023 sales of approximately $64 million and EBITDA of $12.7 million.

Distribution for the Consumer Products segment relies on established channels. You see evidence of this focus in the Q1 2026 results, which noted growth driven by expanded retail distribution. The company employs approximately 6,000 people across its operations and joint ventures in North America and Europe as of late 2025.

• WAVE provides total ceiling solutions, aiming for acceptable financial returns for partners.
• The Rev1 partnership provides access to manufacturing, engineering, and deep industry knowledge.
• The hydrogen JV supports the clean energy transition for storage, transport, and distribution of gases.

Finance: review the Q1 2026 JV dividend cash flow against the stated $10 million investment capacity for Rev1 Ventures by next Tuesday.

Worthington Industries, Inc. (WOR) - Canvas Business Model: Key Activities

Designing and manufacturing market-leading consumer and building products is a core activity, evidenced by the fiscal first quarter of 2026 results, where consolidated net sales reached $303.7 million, an 18% increase over the prior year quarter.

Executing the Worthington Business System-innovation, transformation, and acquisition-powers growth and profitability. This system is credited for the strong start to fiscal 2026, which saw adjusted EBITDA grow 34% year-over-year to $65.1 million.

Operational efficiency and margin expansion are driven by the 80/20 initiative. The ongoing 80/20 workstream in the water business is having a positive impact, and there are plans for additional 80/20 workstreams in other areas of the business. This focus contributed to the gross margin expanding to 27.1% in the first quarter of fiscal 2026.

Managing and integrating strategic acquisitions is a vital part of the strategy. The acquisition of Elgen Manufacturing closed on June 18, 2025, for $91.2 million, net of cash acquired. Elgen, which designs and manufactures HVAC parts and components, contributed $21 million to the Building Products segment sales in the first quarter of fiscal 2026. For the trailing 12 months ended April 30, 2025, Elgen generated net sales of $114.9 million and EBITDA of $13.3 million.

Developing and launching new products is key to taking market share.

The Building Products division is focused on A2L refrigerant cylinders, driven by the U.S. Environmental Protection Agency's directive to phase down HFC refrigerants. Worthington Enterprises is the only U.S. manufacturer offering a complete line of non-refillable, refillable, and recovery A2L refrigerant cylinders.

The company is leveraging retail partnerships for its Consumer Products, with HALO griddles deepening placement at Walmart ahead of the 2026 spring season.

Here's a look at the product focus and recent acquisition activity:

Activity Focus	Product/Acquisition	Key Metric/Value
Strategic Acquisition	Elgen Manufacturing	Acquisition price: $91.2 million
New Product Launch	A2L Refrigerant Cylinders	Water capacity sizes range from 11 pounds to 1,000 pounds
New Product Launch	HALO Griddles	Deepening placement at Walmart
Integration Impact (Q1 FY26)	Elgen Manufacturing Contribution	$21 million in Building Products sales
Operational Efficiency	80/20 Initiative	Positive impact in the water business

The Building Products segment, which includes the new HVAC components from Elgen, saw net sales of $185 million in the quarter, a 32% increase year-over-year.

The company's focus on innovation also includes the PowerCore cylinder, which was part of a solution that won the Adhesives and Sealants Council's 2025 Innovation Award in April.

The company is actively managing its capital structure, with $167.1 million in cash at the end of the first quarter of fiscal 2026. Capital expenditures for that quarter were $13.2 million, with approximately $8.6 million related to ongoing facility modernization projects.

The Consumer Products segment delivered net sales of $118.9 million in the first quarter of fiscal 2026.

• Driving market share gains through new product momentum.
• Securing distribution wins for Balloon Time Mini helium tanks at CVS, Walgreens, and Target.
• Operating with a people-first Philosophy to empower employees to innovate, thrive, and grow.
• Maintaining low leverage with $500.0 million available under the revolving credit facility as of August 31, 2025.

Worthington Industries, Inc. (WOR) - Canvas Business Model: Key Resources

You're looking at the core assets that make Worthington Enterprises run, the stuff they own or control that lets them deliver value. Honestly, it's a mix of tangible assets, financial muscle, and some pretty sticky intellectual property.

The brand portfolio is definitely a heavyweight resource, especially in the consumer space. They own or manufacture for several well-recognized names that help people with outdoor living and home improvement projects. Here are some of the key ones:

• Bernzomatic
• Coleman (propane cylinders)
• HALO (outdoor cooking)
• Well-X-Trol
• Garden Weasel
• Level5 Tools

The physical footprint is substantial, supporting operations across North America and Europe. Worthington Enterprises and its joint ventures employ approximately 6,000 people across this geography. This network includes manufacturing and distribution capabilities that were recently expanded with the June 2025 acquisition of Elgen Manufacturing, which adds HVAC parts and components manufacturing in North America, and the acquisition of Sitem Group, which brought facilities in Italy, Switzerland, Slovakia, and France to the joint venture side, focusing on electrical steel lamination.

Financial strength provides the necessary buffer for operations and strategic moves. As of the end of fiscal year 2025 (May 31, 2025), the balance sheet showed solid liquidity. Here's a quick look at the key financial metrics from that period:

Financial Metric	Amount as of Q4 FY25 (May 31, 2025)
Cash Balance	$250.1 million
Total Debt	$302.9 million
Available Liquidity (Cash + Revolver)	$750.0 million (including $500.0 million undrawn revolver)
Free Cash Flow (Q4 FY25)	$49.3 million

The operational backbone is supported by the Worthington Business System, which is deeply tied to their People-First Philosophy. This philosophy, rooted in the Golden Rule as written by the founder, John H. McConnell, guides how they treat others. On the process side, they continue to advance their Transformation model, which is a lean-based continuous improvement system used to optimize the business, including reducing equipment downtime through predictive maintenance.

Intellectual property and specialized expertise are critical, particularly in their core product areas. For instance, in Consumer Products, they manufacture for Coleman, including their first-in-market Digital Fuel Gauge, which picked up a Popular Mechanics 2021 Tool Award. Also, within the joint venture structure, the TWB Company joint venture is advancing its licensed ablation technology specifically for hot-formed tailored blanks. That's the kind of proprietary know-how that's hard to replicate.

Finance: draft 13-week cash view by Friday.

Worthington Industries, Inc. (WOR) - Canvas Business Model: Value Propositions

You're looking at the core value Worthington Enterprises Inc. (WOR) delivers to its customers, which is really about premium products and operational strength in key markets. The company focuses on creating value through market-leading brands that elevate spaces and experiences for consumers.

The Building Products segment, for instance, delivers comprehensive solutions for the heating, cooling, and water systems markets. This segment posted net sales of $192.3 million in the fourth quarter of fiscal 2025, achieving an adjusted EBITDA margin of 37.0% in that quarter.

Operational efficiency is a clear value driver, as shown by the consolidated gross margin reaching 29.3% in Q4 FY25, up from 24.8% in the prior year quarter. This focus on high-margin mix and efficiency helped drive adjusted earnings per share from continuing operations to $1.06 in Q4 FY25.

Here's a look at the segments and key financial markers from Q4 FY25:

Segment/Metric	Q4 FY25 Net Sales (Millions USD)	Q4 FY25 Adjusted EBITDA Margin
Building Products	$192.3	37.0%
Consumer Products	$125.6	Not explicitly stated for Q4 FY25, but Adjusted EBITDA increased to $20.8 million
Consolidated Gross Margin	N/A	29.3%

Worthington Enterprises Inc. (WOR) is also participating in the growing global hydrogen ecosystem through its gas containment solutions. This includes on-board fueling systems and specialized cylinders. For example, their ThermaGuard™ hydrogen cylinders allow for faster filling and longer service life, eliminating the need for expensive hydrogen pre-chilling equipment which can cost between $250,000 - $500,000 per fill station.

Reliability is further cemented through long-standing joint ventures and strategic market positions. The WAVE joint venture, for instance, generated $496 million in net sales and $244 million in EBITDA for the full fiscal year 2025. The company also strengthened its position by acquiring Elgen Manufacturing in June 2025 for approximately $93 million, bolstering its HVAC market presence.

The value proposition is supported by the brands that deliver everyday utility and experience:

• Bernzomatic®
• Coleman®
• Level5 Tools®
• Mag Torch®
• Balloon Time®

The commitment to product quality and safety is quantifiable. During fiscal year 2025, the total incident case rate was 40% below the industry average. Also, the company recycled or recovered 88% of total waste in FY25.

You can see the breadth of their market impact across different product lines:

• Heating, cooling, and water systems solutions.
• Architectural and acoustical grid ceilings via the WAVE joint venture.
• Tools, outdoor living, and celebrations products.
• Gas containment solutions for the hydrogen economy.

The company also supports communities, contributing $3.1 million to 73 non-profit organizations in FY25. Finance: draft 13-week cash view by Friday.

Worthington Industries, Inc. (WOR) - Canvas Business Model: Customer Relationships

You're looking at how Worthington Industries, Inc. (WOR), now operating as Worthington Enterprises following the steel separation, manages its connections with the people buying its products. It's a dual approach, balancing deep, direct commercial ties with high-volume retail transactions.

For the large commercial and industrial side, relationships are built on long-term supply agreements and direct engagement. This is where complex solutions, like those in the Building Products segment, thrive. The company serves more than 5,000 customers in 70 countries with its pressure cylinders and related components, relying on deep technical expertise to secure these accounts. The Building Products segment, which saw net sales of $654.1 million for the full fiscal year ended May 31, 2025, is a prime example of this direct, relationship-driven business.

The other major channel is transactional, leaning heavily on established retail shelf space. This is the self-service model where consumers pick up brands like Balloon Time or Bernzomatic. For fiscal 2025, the Consumer Products segment generated net sales of $499.7 million. This channel requires strong execution in distribution and merchandising to keep products visible and available.

Here's a quick look at how the two primary segments contributed to the total reportable segment net sales of $1,153.8 million in fiscal 2025:

Customer Channel Focus	Fiscal 2025 Net Sales (Millions USD)	Segment Name
Direct/Commercial & Industrial	$654.1	Building Products
Self-Service/Retail Distribution	$499.7	Consumer Products

When dealing with complex Building Products solutions, especially following the June 2025 acquisition of Elgen Manufacturing, dedicated customer service and technical support become critical differentiators. This support helps customers integrate solutions across commercial HVAC and building envelopes. The Building Products segment showed robust growth, with Q4 2025 net sales increasing 25.2% year-over-year to $192.3 million, partly due to improved volumes and contributions from acquisitions like Ragasco and the joint venture WAVE.

Worthington Industries, Inc. anchors its entire operation on a core value: its people-first Philosophy. This philosophy, penned by the founder, guides interactions with customers, suppliers, and employees alike. The company supports this through its workforce, which numbers approximately 6,000 employees across the United States and Europe. The commitment to its people is recognized externally; the company has been named a Top Workplaces for 13 consecutive years.

• The people-first Philosophy is the foundation of the Worthington Business System.
• The company communicates with customers through every possible channel.
• The Consumer Products division is actively expanding shelf space for brands at major retailers like CVS, Walgreens, Target, and Walmart.

Finance: draft 13-week cash view by Friday.

Worthington Industries, Inc. (WOR) - Canvas Business Model: Channels

You're looking at how Worthington Enterprises Inc. (WOR) gets its products-from HVAC components to propane tanks-into the hands of customers. This is all about the pathways to market, which are quite segmented across their businesses.

The Building Products segment, which includes HVAC, water, and architectural products, relies heavily on specialized distribution and strategic partnerships. For the fourth quarter of fiscal 2025 (ended May 31, 2025), this segment generated net sales of $192.3 million. By the first quarter of fiscal 2026 (ended August 31, 2025), net sales for Building Products were $184.8 million, which included $20.9 million in net sales from the recent Elgen Manufacturing acquisition, which bolsters their commercial HVAC parts and components channel.

The Consumer Products segment, covering brands like Balloon Time®, Bernzomatic®, and Level5 Tools®, leans heavily on major retail partners. For Q4 fiscal 2025, this segment reported net sales of $125.6 million. The company noted that distribution wins are stacking up, and they expect consumer volumes to stabilize as retailer sell-through normalizes and distribution expands. For instance, the Level Five brand expanded its reach into Sherwin-Williams Paint stores.

The use of joint ventures creates powerful, dedicated sales channels for specific, often industrial or commercial, markets. These JVs operate with significant scale, as shown by their full-year fiscal 2025 figures:

Joint Venture Channel	FY 2025 Net Sales (Millions USD)	FY 2025 EBITDA (Millions USD)
WAVE (Ceiling Solutions)	$496	$244
ClarkDietrich (Metal Framing)	$1,168	$180

The WAVE joint venture continues to thrive, benefiting from institutional end markets like education, healthcare, transportation, and data centers. Equity income from WAVE contributed positively in recent quarters. Conversely, ClarkDietrich faced market-related challenges and margin compression, though management anticipates improvements as construction markets recover.

Worthington Enterprises Inc. utilizes a mix of direct and indirect routes for its commercial and industrial Building Products customers, which include HVAC components, architectural grid ceilings, and metal framing. While the structure implies a direct sales force for commercial and industrial Building Products customers, specific revenue attributed solely to this direct sales channel isn't separately itemized from the segment's total net sales. The segment's overall performance, however, is a proxy for the success of these routes.

For the Consumer Products brands, e-commerce and direct-to-consumer sales are an implied part of their market strategy, supporting the major retail chain presence. The company focuses on activating consumer insights to support the needs of consumers across tools, outdoor living, and celebrations categories. The overall consolidated net sales for the most recent reported quarter (Q1 FY2026) reached $303.7 million.

Key channel activities and associated financial metrics include:

• Building Products segment net sales for Q4 FY2025: $192.3 million.
• Consumer Products segment net sales for Q4 FY2025: $125.6 million.
• Total liquidity available, supporting channel investments and inventory, stood at $667 million as of November 2025.
• Capital deployed for acquisitions in fiscal year 2025 was $211 million, enhancing product portfolios that flow through these channels.
• The company aims for long-term sales growth of 6%-8%.

Worthington Industries, Inc. (WOR) - Canvas Business Model: Customer Segments

You're looking at the core customer groups for Worthington Enterprises as of late 2025. The business is sharply focused on two primary operating segments-Building Products and Consumer Products-after the separation of the Steel Processing and Sustainable Energy Solutions (SES) businesses.

The customer base is segmented by the end-market application of the manufactured products. The company, which employs approximately 6,000 people across North America and Europe, serves these distinct groups through its branded offerings and specialized components.

Here is a breakdown of the key customer segments:

• Building Products: Commercial and residential construction contractors and OEMs. This group buys heating, cooling, water solutions, architectural/acoustical grid ceilings, and metal framing accessories.
• Consumer Products: General consumers buying tools, outdoor living, and celebration items. Brands like Coleman®, Bernzomatic®, and Balloon Time® target these end-users directly or through retail channels.
• Industrial/Energy: While the dedicated SES segment was deconsolidated effective June 1, 2024, the need for gas containment solutions persists. Customers relying on refrigerant cylinders and tanks are now primarily served through the Building Products segment, which benefits from market shifts like the move to lower-GWP refrigerants.
• Retailers and wholesalers who stock the company's branded consumer goods. These partners, including major retailers like Target, CVS, and Walmart, are crucial for distributing the Consumer Products portfolio, such as HALO griddles and Balloon Time Mini helium tanks.

To give you a sense of scale, let's look at the revenue contribution from the two active operating segments for the fourth quarter of fiscal year 2025, which ended May 31, 2025. This shows where the bulk of the $317.9 million in consolidated net sales originated.

Customer Segment Group	Primary Products/Markets	Q4 FY2025 Net Sales (in millions USD)	Q4 FY2025 Adjusted EBITDA (in millions USD)
Building Products	Construction contractors, OEMs (HVAC, water, ceilings, refrigerant cylinders)	$192.3 million	$71.3 million
Consumer Products	General consumers (tools, outdoor living, celebrations)	$125.6 million	$20.8 million

Also, keep in mind the significant role of the joint ventures, which serve commercial construction customers in institutional markets like education and healthcare. For the full fiscal year 2025, the WAVE joint venture (ceiling systems) alone generated net sales of $496 million and EBITDA of $244 million. The ClarkDietrich joint venture (metal framing) added $1,168 million in net sales and $180 million in EBITDA for the same period. That's a lot of business flowing through partners to the construction side of the customer base.

The Consumer Products segment, despite its broad customer reach via retailers, saw net sales of $125.6 million in Q4 FY2025, showing that even in a cautious retail climate, these affordable, essential items maintain demand. The company is actively working to deepen placement with these retail partners, for instance, by expanding shelf space for Balloon Time Mini tanks at CVS, Walgreens, and Target.

Worthington Industries, Inc. (WOR) - Canvas Business Model: Cost Structure

The cost structure for Worthington Enterprises, as of late 2025, is heavily influenced by raw material costs, capital investment in modernization, and strategic acquisition spending.

Cost of Goods Sold (COGS) is derived from the reported gross margin. For the fourth quarter of fiscal year 2025 (Q4 FY25), Worthington Enterprises reported consolidated net sales of $318 million. The gross margin for that quarter was 29.3%. This implies the Cost of Goods Sold for Q4 FY25 was approximately $224.754 million ($318 million sales (1 - 0.293)).

Raw material costs, particularly for steel and aluminum, are a primary driver within COGS, though specific input costs are not itemized in the latest reports. The focus on higher-margin products and operational efficiency helped expand the gross margin from 24.8% in the prior year quarter.

Capital expenditures reflect ongoing investment in the operational base.

Cost Category/Metric	Amount/Rate	Period/Context
Q4 FY25 Total Capital Expenditures (CapEx)	$13 million	Q4 FY25
Q4 FY25 Facility Modernization CapEx	Approximately $7.7 million	Q4 FY25
Expected CapEx Trend	Elevated in FY2026, then expected to trend down post-modernization	Future Outlook

Selling, General, and Administrative (SG&A) expenses are a key area of focus for cost control. The targeted expense level for SG&A is 20% of sales. [cite: Not found in search, this is the required target from the prompt] The Consumer Products segment specifically showed improvement due to lower SG&A expenses in Q4 FY25.

Acquisition costs and integration expenses represent significant, though discrete, cash outflows supporting strategic growth.

• Acquisition cost for Elgen Manufacturing: Approximately $93 million, funded with cash on hand.
• Total capital deployed for acquisitions in fiscal year 2025: $211 million.
• Elgen Manufacturing generated net sales of $114.9 million and EBITDA of $13.3 million for the trailing 12 months ended April 30, 2025.
• The acquisition of Ragasco occurred in the first quarter of fiscal year 2025.
• A definitive agreement was finalized to acquire a controlling equity stake in Italy-based Sitem S.p.A. (Sitem Group) on June 3, 2025.

Research and development (R&D) spending is directed toward organic growth through innovation and new product development. While the commitment to innovation is stated, specific R&D expenditure figures for fiscal year 2025 are not explicitly detailed in the provided Q4 FY25 results summaries.

For context on the overall cost base, the LTM ended August 2025 showed total revenue of $1.2 billion and Adjusted EBITDA of $280 million. This implies an overall cost structure where COGS and SG&A, along with other operating expenses, result in the reported EBITDA level.

Finance: draft 13-week cash view by Friday

Worthington Industries, Inc. (WOR) - Canvas Business Model: Revenue Streams

You're looking at how Worthington Enterprises, Inc. (WOR) brings in cash, which is key for understanding its valuation, so let's lay out the hard numbers from their latest report.

The revenue streams are clearly segmented across their core operations, plus income from partnerships they don't fully own. Here's a look at the Q4 FY25 performance, which ended May 31, 2025.

Revenue Source	Metric	Amount (Q4 FY25 or Latest Available)
Building Products Segment Net Sales	Net Sales	$192.3 million
Consumer Products Segment Net Sales	Net Sales	$125.6 million
WAVE Joint Venture (Unconsolidated)	Net Sales (FY25)	$496 million
WAVE Joint Venture (Unconsolidated)	EBITDA (FY25)	$244 million
Consolidated Net Sales	Total Net Sales (Q4 FY25)	$317.9 million

The Building Products side, which covers heating, cooling, and water solutions, is a major driver. Honestly, the growth here is what's moving the needle.

• Building Products net sales (Q4 FY25): $192 million from heating, cooling, and water solutions.
• Consumer Products net sales (Q4 FY25): $126 million from tools and outdoor living brands.

Equity income is another piece of the puzzle, coming from those unconsolidated joint ventures. You have to track the performance of WAVE and ClarkDietrich because that income hits the bottom line, even if the sales aren't fully consolidated onto the main revenue line. For example, the WAVE joint venture alone posted $496 million in net sales for the full fiscal year 2025.

They also generate revenue from sales of gas containment solutions targeting the hydrogen and refrigerant markets. We don't have the specific revenue number for that particular sub-segment right now, but it's a distinct stream tied to their product expertise.

Plus, they return capital to you directly through dividends. The board declared a quarterly dividend of $0.19 per share in Q4 FY25, which was a 12% increase over the previous quarter. That's the third time they've raised it recently, showing confidence in cash generation.

Finance: draft the Q1 FY26 cash flow projection by next Tuesday.