Why Worthington Steel Stock Dropped Today

By Jeremy Bowman – Mar 26, 2026 at 10:44AM ESTKey PointsWorthington reported 12% growth in the quarter, but that was driven by higher prices. Volumes fell, and costs rose.Its acquisition of Kloeckner could be a turning point for the business. Shares of Worthington Steel (WS 17.45%) were heading lower today after the company posted solid top-line growth, but disappointing bottom-line results, as the company noted a challenging macroeconomic environment and pressure from tariffs. As a result, the stock was trading down 12.8% as of 10:01 a.m. ET this morning. Image source: Getty Images. What's happening with Worthington Steel Worthington, a processor of carbon flat-rolled steel, reported 12% revenue growth to $769.8 million, though that was well behind the average estimate of the two analysts following the stock at $888 million. Volume in the quarter fell from 881,410 tons to 817,524, but higher prices, in part due to tariffs, drove sales growth. Costs rose sharply, as gross profit declined from $81.2 million to $76.1 million, and adjusted operating income slipped from $26.6 million to $14 million. Adjusted earnings per share came in at $0.27, which compared to $0.35 in the quarter a year ago, and an expectation of $0.46 from the two analysts following the stock. CEO Geoff Gilmore said, "This was a challenging quarter from a macroeconomic standpoint, but our focus did not change." The company also entered an agreement to acquire Kloeckner, a German metals processor with operations in Europe and North America. ExpandNYSE: WSWorthington SteelToday's Change(-17.45%) $-6.11Current Price$28.90Key Data PointsMarket Cap$1.8BDay's Range$28.40 - $31.6852wk Range$21.30 - $49.17Volume311KAvg Vol292KGross Margin12.65%Dividend Yield1.83% What's next for Worthington Worthington didn't provide guidance for the fourth quarter, but its volume declines seem likely to continue as global steel demand is down, driven by weakness in China. Additionally, there's still uncertainty over where tariff rates will settle. The merger with Kloeckner could be transformative as it will create the second-largest steel service center company in North American with more than $9.5 billion combined revenue. Worthington trades at a P/E of just around 12. If the steel market starts to turn around, the stock could be a winner.Read NextMar 26, 2026 •By Motley Fool TranscribingWorthington Steel (WS) Q3 2026 Earnings TranscriptMar 2, 2026 •By Adé HennisWorthington Steel Board Director Sells 2500 Shares Amid Major AcquisitionMar 26, 2026 •By Leo SunAmid High Profile Deals, Is AST SpaceMobile's Stock a Buy in 2026?Mar 26, 2026 •By Jeff SiegelCan Solid Power Cash In on a 900-Mile Electric Car Battery?Mar 26, 2026 •By James Halley3 Rock-Solid Dividend Stocks to Buy Before a DownturnMar 26, 2026 •By Rick Munarriz2 No-Brainer Dividend Stocks to Buy in 2026About the AuthorJeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011.

Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.TMFHoboX@TMFBowmanStocks MentionedWorthington SteelNYSE: WS$28.90(-17.45%)-$6.11*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.