Worthington Enterprises, Inc.

and uncertainties that could cause actual results to differ materially from those expressed or implied. For more information on these risks and uncertainties, please refer to our earnings release issued yesterday after the market closed, which is available on the investor relations section of our website. Additionally, our remarks today will include references to non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP measures can also be found in the earnings release. With that, I'll turn the call over to Joe for opening remarks.

Thank you, Marcus, and good morning, everyone. Welcome to Williamson Enterprises' Fiscal 2025 Fourth Career Learnings Call. It's been a great fiscal 2025 for us on several fronts. We're exceptionally proud of and grateful for our people who continue to work safely, taking care of each other and our customers. We're a people-first company, and our culture powers our success. So to all of my colleagues, thank you. In the quarter, we delivered year-over-year and sequential growth in revenue, adjusted EBITDA, and earnings per share. Driven by great work across our teams in building products and consumer products, our revenue in Q4 was up 14% from last year, excluding the deconsolidation of SCS, and was up 8% excluding both SCS and revenues after GASCO. Growth margin was 29.3%, versus 24.8%, and adjusted EBITDA margin in the quarter was 26.8% versus 19.8% in Q4 a year ago. Our results in Q4 reflect our strategy and action. We're delivering on the commitments we make to each other and to our customers every day as we optimize our current businesses and grow Worthington. And we continue to leverage the Worthington business system and its three growth drivers, innovation, transformation, and M&A to maximize both our near and long-term success. On the innovation front, we've made great strides this year. The success of our new Balloon Time Mini has created opportunities for us in new channels, and we recently began partnering with CBS. You'll soon be able to buy our suite of Balloon Time products in their stores nationwide. Halo's riddles continue to receive accolades from various publications, and in Q4, Men's Journal and CNET both named Halo as among the best riddles of 2025. Finally, Our power core cylinder was part of a solution 3M leveraged to develop their 3M fast bond water-based adhesives, which in April won the Adhesives and Sealants Council's 2025 Innovation Award. Our teams continue to focus on productivity improvements across our network by leveraging transformation. These efficiency gains, driven by automation and technology, continue to contribute to our success. Our team in the water business has made good progress as they embrace 80-20 as a way of thinking differently. While it's early, we're confident that 80-20 will have a positive impact on that business and eventually across more of our value streams. Strategic M&A that leverages our core capabilities is the third vital leg of the Worthington business system that powers our growth. Last week, we were in New Jersey with our new colleagues at LG Manufacturing announcing that acquisition. Elgin is a leader in HVAC components and structural framing for commercial buildings and is a strong strategic and cultural fit that complements our existing building products business. It's a great example of how we apply our investment criteria to identify and acquire companies with leading positions in niche markets that we believe will be accretive to our margins and cash flows. The Elgin team has much to be proud of. Above and beyond their over $115 million in LTM revenue and $13 million in adjusted EBITDA, they're positioned for growth. And we think we can help them accelerate that growth. LTM forms coiled steel, something with which we have deep experience. Their processes, go-to-market strategies, and end markets mirror ours, creating meaningful opportunities for synergies and growth. We are thrilled to welcome their 250 employees to Worthington and look forward to their contribution to our collective success. For seven years, we have championed the idea that people are our most important asset. That conviction makes it particularly gratifying for us in Q4 to have been named the top workplace in Central Ohio for the 13th consecutive year and in our first year as Worthington Enterprises. In the quarter, we also announced the U.S. Army Partnership for Your Success at our facility in Wisconsin, We're very proud to be part of this unique program partnering with the U.S. Army as they integrate veterans into the workforce after their service to our country. A powerful people-first performance-based culture continues to serve us exceptionally well, and we leverage that strength every day as we focus on both the near term, executing our strategies and managing tariff and economic uncertainty, and on our long-term growth aspirations and performance. While we're happy to be here today discussing our Q4 results, we are constantly thinking about and investing in our future. Leveraging our culture, the Worthington business system, and our strong balance sheet, we believe we are very well positioned going forward. Our focus is on our people, our customers, our value propositions, and the opportunities we have to continue to improve everyday life by elevating spaces and experiences, which will ultimately enable us to create long-term value for shareholders. We'll now turn the call over to Collins, who will take you through some details related to our financial performance in the quarter.

Thank you, Joe, and good morning, everyone. We delivered strong financial results in Q4 to close out our fiscal year, even with a few unique items impacting comparability. On a gap basis, we reported earnings from continuing operations of $0.08 per share compared to a loss of $0.64 per share in the prior year quarter. Our quarterly results included the following unique items. A negative impact from net pre-tax restructuring impairment and other one-time charges of $61 million or 98 cents per share. These charges were primarily related to a non-cash impairment associated with our General Tools and Instruments business for GTI and consumer products, along with a non-cash impairment charge related to our equity investment in the Sustainable Energy Solutions joint venture and related investments. Both GTI and SES represent relatively small portions of our overall business, and these actions reflect updated long-term assumptions for these assets, inclusive of the changing tariff landscape. The prior year quarter included pre-tax charges of $74 million, or $1.38 per share, primarily related to the deconsolidation of SES. Excluding these items, adjusted earnings from continuing operations was $1.06 per share, marking another strong quarter for us as Worthington Enterprises. This compares to adjusted earnings from continuing operations of 74 cents per share in the prior year quarter. Consolidated net sales for the quarter were $318 million, essentially flat compared to the prior year period. This reflects the deconsolidation of our former sustainable energy solution segment, which contributed $40 million in sales last year. Excluding SES in both periods, net sales grew nearly 14%, driven by higher overall volumes and contributions from the Regasco acquisition. Gross profit increased significantly to $93 million, up from $79 million in the prior year quarter, reflecting an approximately 450 basis point expansion in gross margin to 29.3%, consistent with the levels we reported in Q3. Adjusted EBITDA for the quarter was $85 million, up from $63 million in Q4 of last year, and sequentially higher from $74 million in Q3. Adjusted EBITDA margin was 26.8%, up from 19.8% last year. For the full fiscal year, adjusted EBITDA was $263 million, with a TTM adjusted EBITDA margin of 22.8%. The second half of our fiscal year tends to be seasonally stronger, and this year followed that pattern, suggesting a return to normalized seasonal trends. We've been adding capacity in our heating, cooling, construction, and celebrations product lines in response to our customers, who have in some cases seen significant increases in demand and value as domestic manufacturing partners. Turning to our cash flow and capital allocation, we continue to invest in our operations while maintaining a disciplined and balanced approach. During the quarter, we invested $13 million in capital expenditures, including $8 million related to our facility modernization projects. We also returned capital to shareholders paying $8 million in dividends and repurchasing 200,000 shares of our common stock for $10 million at an average price of $49.16 per share. Our joint venture has generated $41 million in dividends during the quarter, representing a 95% cash conversion rate on equity income. For the full fiscal year, we invested approximately $51 million in CapEx, including $25 million related to our facility modernization projects. We have approximately $40 million remaining to spend on these projects, and we expect the majority of this to be spent over fiscal year 26 with completion anticipated in early fiscal year 27. Cash flow from operations for the quarter was $62 million, and free cash flow was $49 million. For the full fiscal year, free cash flow totaled $159 million, representing a 103% free cash flow conversion rate relative to our adjusted net earnings. Turning to our balance sheet and liquidity, we closed the quarter with $303 million in long-term funded debt, carrying an average interest rate of 3.6%, along with $250 million in cash. Subsequent to quarter end, in mid-June, we used approximately $93 million of that cash to complete the recently announced acquisition of Elgin Manufacturing, Our leverage remains extremely low with ample liquidity supported by a $500 million undrawn bank credit facility. Net debt at quarter end was $53 million, resulting in a net debt to trailing adjusted EBITDA leverage ratio of less than a quarter term. Yesterday, our Board of Directors declared quarterly dividends of $0.19 per share, an increase of $0.02 or 12% relative to the dividend paid last quarter, payable in September 2025. We are very pleased to continue rewarding shareholders as we deliver strong earnings while prioritizing and investing in long-term growth. I will now briefly walk through our segment performance where both businesses delivered excellent results to close out the fiscal year. In consumer products, Q4 net sales were $126 million, essentially flat compared to the prior year quarter, with a slight increase in volume. Adjusted EBITDA was $21 million with a 16.6% margin, up from $17 million and 13.6% in Q4 last year. The improvement was driven by lower SG&A expenses and a more favorable product mix. the consumer team continues to execute well in Q4, delivering higher profitability despite uncertainty in the broader consumer environment. As we have seen throughout the year, volumes remain closely tied to point-of-sale activity, and while consumers remain cautious, our market-leading brands and strong retail partnerships position us well. Our products remain highly relevant and valued by consumers as they elevate everyday experiences around outdoor living, celebrations, and home improvement. With a solid foundation in place, we believe we are poised for long-term growth as market conditions normalize and consumer confidence in repair and remodel activity improves. In building products, Q4 net sales grew 25% year-over-year to $192 million, up from $154 million in the prior year quarter. This growth was driven by higher overall volumes, along with the contributions from the Regasco acquisition completed in Q1. Q4 is typically our strongest seasonal quarter for building products, and this year was no exception, with volumes up 19% both sequentially and year-over-year. Adjusted EBITDA for the quarter was $71 million, 37% of sales, compared to $52 million and 33.6% in the prior year quarter. The year-over-year increase in adjusted EBITDA was driven by volume growth and a combined $6 million increase in equity income from Wave and Clark Beatrick. Wave delivered another solid performance, while Clark Beatrick continues to navigate a mixed demand environment and competitive pressures exceptionally well. overall the building products team had a strong finish to the fiscal year and continued to win with customers by providing reliable service product innovation and value-added solutions our portfolio of market leading products and solutions support critical building systems and components that elevate the spaces where people live work and gather As we look ahead, we remain confident in the long-term outlook for our building products business, and the recent addition of Elgin Manufacturing strengthens our offerings and further supports our growth strategy. At this point, we're happy to take any questions.

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 in your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. And your first question comes from the line of Catherine Thompson from Thompson Research Group. Your line is open.

Hi, thank you for taking my questions today. Good morning. Good morning. The theme of this quarter is pretty similar to the prior quarter, which was a pretty solid margin expansion for your wholly owned margins. So part of this is, we acknowledge, is lapping some easier comps, but also a large portion is company initiatives. Can you break down or break out what margin growth is? What is it more one-time, and how much of it is more company-specific initiatives?

Yeah, thanks, Catherine.

So like you said, right, good growth margin expansion in the quarter, 450 basis points. Similar to last quarter, we did have in Q4 last year, we completed the transaction for our SES business, so deconsolidated that from our financials. That led to roughly half of the 450 basis point margin expansion in the quarter. And then the balance of that was really driven by, in the wholly owned building products business, significant volume growth, which translated to good conversion costs and good product mix improvements as that business and the end markets there really returned to seasonally normal demand patterns. In particular, some of the higher margin products like the large format feeding tanks there. So ultimately, those things combined led to the operating margin improvement. And this will be the last quarter for the SES flat.

Yeah, and Catherine. Colin's absolutely right. You have a couple of other things. And when you talk about company-specific initiatives, you're absolutely right. And we've talked about this in the last couple of quarters. When you see growth margin go up by 14Million dollars in go down by 2Million dollars, you know, year over year that that's not on accident. And our teams have been doing a fantastic job of. Optimizing our businesses and certainly growing our businesses as concept because our conversion costs come down. But. You know, our goals over the next couple of years, which we've talked about, is to get gross margin over 30% and to have our SG&A as a trend of sales at 20 or less. And so we're not there yet, and we know that we have work to do, but we feel like we have plans in place and people are really leaning in, and we're pretty convicted and excited about where we can go in the next couple of years.

Okay. That's helpful. I wanted to shift the wave. Contributions were above 30 million this quarter. It's the first time we've seen that. Can you talk about the drivers for is this timing of projects, price, or the true uptake in volume demand? And is this level achievable going forward? Or maybe help us to think about how to frame wave based on what you're seeing in the market right now. Thank you.

Great question. It's a mix, Catherine, of all the things that you mentioned, a little bit on the volume side. Certainly, it's a great business, and they do a really good job taking care of their customers and understanding how customers can make more money using their products, and that allows them to generate returns that They're entitled to, but I would say from an end market perspective, they continue to see relative strengths in healthcare, education, transportation, retail is okay. Office is still a little soft, obviously. Not a lot different than it would have been when we were together in March. So, Morris, I think, steady as she goes there. I think as the rest of the year TAB, Ryan Schuchard, Lays out that will have a lot to do with both wave and Clark Dietrich and our businesses on the building product side so we'll get a little bit dependent on on market, but we kind of feel like that issue goes for way.

TAB, Okay, and tying into that for Clark Dietrich which you know for that jv I mean that's that's very heavily tied to just traditional commercial construction. But you saw a nice uplift at 13 million, which is, you know, higher than the sub 10 million range you've had in the past few quarters. Is that a signaling that we've hit more of a trough, or is it more, and you have some demand, or is it more kind of like what we talked about with WAVE, timing, price, true volume demand?

Another very fair question. On Clark-Dietrich, What we know and what you point out is there are a couple of differences. It is much more new construction-centric versus R&R on some of our core businesses and on Wave. So it's a bit more exposed to higher interest rates, and it's a bit more exposed to that commercial construction, which is a bit more challenged and has been challenged, and we think in the next several months will be more challenged. And so we actually view Q4 for us as a reflection of Clark-Dietrich being a market leader and having a great value proposition, but probably a little more of, at least in the near term, an aberration. And so we would look for Clark-Dietrich to be in Q1 at least, probably closer to flat with Q1 of last year.

Okay, great. I'll hop back in the queue. Thanks so much.

Your next question comes from a line of Daniel Moore from CJS Securities. Your line is open.

Thank you. Good morning, Joe. Colin Marcus. Thanks for taking the questions. If I missed it, forgive me. What were the revenue and EBITDA contributions from Regasco in the quarter, if you break those out? And What are your expectations for organic, wholly owned, top line growth, both consumer and building products for Q1 and the balance of the year? I know you don't like to give specific guidance, but just wondering if you expect to generate positive organic growth in fiscal 26, or are we thinking closer to flat given all the current macro uncertainty? Okay.

Thanks, Dan. I'll take the first part of your question, and then we'll attack the latter part. So Honor Gasko, specifically, very, very happy with that acquisition. They continue to perform well. Within the quarter, they contributed roughly $16.5 million in revenue and a couple million dollars, roughly $2 million in EBITDA to the building products business. So it's adding to the... year-over-year growth in building products, in addition to the base business, is operating very well, as I mentioned earlier, where those end markets and products are returning to seasonally normal demand patterns there. So very pleased with Regasco so far and excited of what's to come as well.

Yeah, Dan, relative to Q1 and beyond, you're right. We don't talk a lot about sort of specific guidance. I would type back to the market outlook is not terribly different than it was in March, which is to say it's a little bit murky. And you've got unemployment relatively low you've got interest rates stubbornly high consumer confidence is okay getting better you've got a lot of tariff uncertainty and and you continue to have a lot of things happening in the world and certainly in the economy for consumers and in building products that cause, I think, everybody to not have phenomenal visibility. When we were together in March, you know, a week and a half later was April 2nd. And, you know, all the tariff announcements and all the things that have been pursuant to that, we're sitting here chatting now in early July. There'll potentially be another set of data points that come out relative to what the trade policy and the tariff environment is likely to look like. And so, what we're focused on is really taking care of our customers. And I look at maybe the next few months as a reflection of the last quarter. And when we think about the quarter, I would say maybe take consumer and building products. But consumer, we held CERF in Q4. If you remember last year, Q3 was a very strong quarter for the consumer business because of some of the storms and the weather phenomenons that were there. And then Q4 wasn't as good as we hoped it was going to be. In this year, 2025, it was another excellent Q3, and Q4 was significantly better. There are two things going on there. We've gotten better at supporting our retailers and making sure that that demand for product is met with consistent supply. And our helium business has also showed a really good improvement in part because some of the things that we've been doing with our new products and with our supply chain, but also remember the party city bankruptcy and those stores closing has created more demand for our customers that are selling our products, and we're happy to support them. We think that's going to kind of continue to take place and be incremental. On the building product side, there's probably a little more visibility in the next several months based on some of the trends that we've seen in our cooling and construction business, in our heating business, and in our water business. And obviously, we'll now have... certainly for a little bit of June, and then the balance of fiscal 2026, the inclusion of elegance results. But so, yeah, we feel good about all the things that we can control and are pretty cautiously optimistic, I would say, about what will unfold in the next six months. But a lot of that won't always be totally in our control.

Understood. Appreciate it, Joe. maybe just provide a little bit more detail on elgin you know how it came about how their hvac components fit into the rest of your wholly owned building products and any potential revenue or cost synergies sure it's as we mentioned yeah that acquisition is a great example of our strategy in action dan they're they're a leader in a niche market they roll form steel

we can help them with that. They purchased coils of steel. We'd like to think that we're pretty good at that. They have a good operational footprint. We think that we're pretty good at that and can be helpful there. And they sell into, I think, the exact same customers that we have but several overlapping customers and the same types of customers which is really building products distribution so we think that creates meaningful opportunities for us for for synergies both on the top line and on the efficiency side we're one weekend uh so it's really hard to to quantify anything right now but we're We're pretty excited, and we've got folks up there right now helping to get people more integrated into Worthington. So again, it's early, but we're optimistic and excited.

And just out of curiosity, the purchase price is pretty attractive. It's, I think, around seven times EBITDA. Anything with the word HVAC in it, generally trading at much higher levels. So Just talk about maybe the customer base they serve, you know, and kind of growth outlook organically would be really helpful.

Yeah, so it is, Dan, for Elgin in particular, their channels they're serving is primarily building products, distribution, but also contractors as well. And we, through our M&A process, where we've talked about it before with you and others, just we continue to have a pipeline of attractive areas and adjacencies and niche areas within building products and consumer products. HVAC components, we identified as one of those attractive areas. And the M&A markets are what they are, a little softer than they've been historically. But we're able to fortunately get this transaction done and are excited to invest in this attractive niche area and excited, as Joe mentioned, of what's to come with that business and what we can do together.

All right. Very good. I'll circle back and then follow up. Thank you. Okay.

Your next question comes from a line of Susan McClary from Goldman Sachs. Your line is open.

Thank you. Good morning, everyone. Good morning. My first question is on steel. Can you talk a bit about what you're seeing in terms of input costs across the business and maybe how you're also approaching pricing relative to any inflation that you're seeing there, just given the softness that we are seeing across both the consumer and perhaps some of that building product space.

Yeah, thanks, Susan.

So just on the steel market in particular, it is a big input cost to our product. The steel market, as you've seen, there's a run-up in pricing in April, and it's come back down and been a little range-bound recently. But our teams are really working hard just around price risk mitigation, and we're hedging as necessary to support our customers and offer prices that are locked in. And ultimately, for us, it's about mitigating any volatility of those costs within our our results. And we continue to do that. We've been working through that for a long time with our price mitigation and price risk teams. And we don't anticipate any volatility as a result of that coming through here. And then just on the price and mix piece, we've talked about it a little bit just around as our building products in particular is a good story around margin expansion in the wholly owned business. With the increased volume there, we saw some good improvement from a conversion cost perspective that has trickled through the results as well.

Okay, that's helpful. And then turning to the modernization efforts, it's good to hear that that spend is coming through and it seems like it's been a really good effort there. Can you talk about the benefits that we should expect as we look to fiscal 2026? Anything that you're especially focused on and how we should think about perhaps some of that flow through across the various segments?

Sure, Susan. So, some of that is in 2026, but if you remember, there were two specific facilities. One is in Columbus and the other is in Wisconsin. You know, we spent 16, 17, 18 million dollars over the last couple of years in our gas grill, aluminum forklift, and other refillable tanks here in Columbus, automating and really investing in that business to be able to increase throughput and ultimately increase our efficiencies. That's served us well and I think will serve our customers well since a lot of them have seen an increase in demand. And as a domestic manufacturer, our supply chain is pretty tight. And so we talked about some of the things that we're able to do in cases of natural disasters and things like that. The other piece, which is really in the camping gas business and some of our torch businesses up in Wisconsin, that will run through probably another 15 months from now. And so the benefits from that won't really manifest themselves until maybe later in fiscal 2027.

Okay. And then just one last question. You mentioned in a response to a prior question that the M&A pipeline has perhaps softened a bit just given the backdrop that we're in. Can you talk a bit more about capital allocation, how you're thinking about the potential for deals in this environment? And it was nice to see the dividend raise come through yesterday. Any thoughts on how you're balancing M&A versus shareholder returns?

Yeah, great question. And I'll maybe talk for 30 seconds and let Colin kind of go into some of his thoughts. But capital allocation for us has long been balanced when we're buying back shares, not super aggressively because we have a bias towards growth and not growth at any price. But as Dan just alluded to, we found an acquisition that we thought made a lot of sense for us and was a reasonable value. And so we increased our dividend by 12%. The board of directors did that yesterday. We're still pretty committed to a balanced approach, but from an M&A pipeline perspective, I'll let Colin give you his thoughts.

Yeah, so the M&A markets, I would say, are softer. Our pipeline-on process, what our teams focus on is really identifying targets, both could be private equity-owned, could be family-owned, private companies. uh and progressing those through the pipeline having a number of conversations and ultimately it takes a buyer and seller to come together to agree on something and we were fortunate to get that something done on lg manufacturing um so We're continuing to focus there. It's a key part of our growth strategy. As Joe mentioned, the Elgin acquisition is our strategy in action, and our capital allocation focus will definitely include M&A in the future. With that being said, we do feel like we've got good free cash flow generation in the business, $159 million this fiscal year, and are mindful as well about the facility modernization spend that we talked about earlier, which will be elevated from a CapEx standpoint here for the next 15 months or so.

uncertainty with tariffs and interest rates and things like that tends to be a little chilling for the M&A market generally, but I would tell you that our teams are engaged in strategic conversations today, talking to folks and where it makes sense, we'll continue to have those conversations and would look to continue to grow, certainly both organically, but also through M&A.

Yeah. Okay. Thank you for all the color. Good luck with everything.

Thank you.

Your next question comes from a line of Brian McNamara from Canaccord Genuity. Your line is open.

Good morning, Brian. Hey, good morning, guys. Good morning, guys. Congrats on the strong results. So I'm curious what you're seeing in the marketplace as it relates to tariffs being a domestic manufacturer, presumably your advantage, but A lot has changed, as you mentioned, on China tariffs since your Q3 report in late March. What specifically are your China source competitors doing that you're observing? Are they running down inventories on hand? Have they already taken price on the shelf? Are they doing something else? That would be helpful. Thanks.

The answer to your question is yes, yes, yes, yes, and yes. Related to tariffs, we first talked about this, I think, in December. And we talked about it again in March. And we will certainly, it's appropriate to talk about it now. But it's been an interesting six months as people continue to plan and continue to react. And ultimately, we'll have to continue to do those things. But yes, only 7% or 8% of our revenues are sourced from overseas, predominantly in Asia. 80% of our revenue is sourced, produced, and sold in North America. And then another 12%, 13% looks like that only is in Europe. And so on the businesses, our tools businesses, so primarily that's GTI, and that's Level 5, and certainly Halo, are... mitigation efforts along the way you have included and will include asking our suppliers to help us trying to find cost savings everywhere we can when it's appropriate resourcing the locations where those products are made and And if it's necessary, it would include price increases. And I think people have taken a variety of approaches. And some of those things are already in place. And others, I think people are still trying to suss out or ascertain what the longer-term plan will be. And so we'll stay flexible. And we'll stay close with our customers. One of the things about our products is they tend to be pretty differentiated. And as you mentioned, as a domestic manufacturer, we've added capacity in a number of places to try and help our customers who are seeing increases in demand for their soap. it's hard to give a really definitive answer because things could change next week or in a couple weeks relative to the trade environment, but we feel reasonably good about where we sit.

Great. And then secondly, on gross margins, obviously a big improvement in H2. I think you said Q3 is typically a little stronger than Q4 and they're kind of in line-ish. So like Is there reasonable to assume kind of 29 plus percent sustains next year? I know that I guess the medium term target is 30. I'm just trying to figure out the nuances here. I know I think H1 is typically a bit weaker than H2, but any help there on the gross margin line for next year will be helpful.

Yeah, thanks, Brian. So just, you know, on the margin, you know, we've got a couple quarters in a row here, 29%, and You're right, Q3 and Q4 absolutely are seasonally stronger quarters here, and we don't think things will revert to significantly less than that over time, but we're going to be working hard to get those up to 30%, as Joe talked about earlier. So that's all the initiatives in place here around whether it's price risk, whether it's conversion costs, and a lot of where we're investing as well in some of our facilities. So, you know, over the near term, right, medium term, we'll be working towards to get that higher as best we can.

Okay. And then finally on Elgin, just three quick ones. One, in terms of modeling any seasonality on revenues. Two, I think the trailing 12-month EBITDA margin was a bit south of 12%. Is there a path to get that to 20 just in line with your your M&A framework? And if so, how do you get there? And then three, is there any China sourcing there?

So good question, Brian. On Elgin, roughly $115 million in revenue, $13 million was their trailing EBITDA. Seasonally, the second half of the calendar year tends to be a little stronger for them and where they play. From a margin standpoint, we feel, as Joe mentioned, this is attractive. business for us to really deploy our business system, Worthington business system. And what we feel like we can bring to them is a lot of operational experience, know-how, efficiencies, and benefits from a purchasing standpoint and price risk. And then, you know, complement that with, you know, where we play from a channel perspective and serving a number of areas across the building product space. and overlap with customers. So, you know, that's on top of the strong leadership team and the cultural fit that they have. So we're excited to get to work together and we'll absolutely be focused on improving the margins there.

Yeah, they don't have any sourcing from China.

Yeah.

Excellent. All right.

Thanks a lot, guys. Best of luck.

Thanks, Brian.

And again, if you'd like to ask a question, press star one in your telephone keypad. Your next question comes from the line of Walt Lipsack from Seaport Research. Your line is open.

Hey, thanks. Good morning, Joe and Colin. I'm Walt Lipsack. But, hey, great quarter. And I wanted to ask about building products. And, you know, you've gone into some detail already about the tariff impact, but I wonder if we could talk a little bit kind of specifically about building products and any, you know, just your thoughts on how tariffs impacted pricing, supply, demand, you know, those kind of issues.

Yeah, we didn't really, it's very hard for us, well, to quantify any of that because it continues to be, a little bit of a moving target i think the the teams certainly in consumer but also in in building products um have have done a nice job we're through the de-stocking and some of those phenomenons that we had to deal with um and we're seeing some real strength in you know our cooling and construction business as a lot of those things are kind of rolling out throughout the North American building products landscape and just done a really good job increasing volumes, which gets conversion costs lower and ultimately margins higher.

Okay, great. And, you know, kind of along those lines, I think you're talking about a little bit of this question here. In building products, when you're preparing remarks, it sounded like you're gaining some market share, or is there a share opportunity? I wonder if you could talk about that.

So, yeah, we're pretty focused. And as you know, we are zeroed in on having leadership in niche markets. And we do that regularly. effectively you know leveraging working business system innovation transformation and m a but that gives us the seat at the table with our customers when they're thinking through things and and when they're understanding their own markets and we're trying really hard to work with them and understand their pain points and so in a couple of different areas in I think on the heating and cooking side, but also on the refrigeration side and in the celebrations side, there's been increases in demand from our customers. And so we've responded there, both the investments we've historically made and certainly adding capacity and adding shifts. Is some of that related to us being a domestic manufacturer? Certainly probable, but we can't really quantify it relative to tariffs, but some of it related to what we think we do pretty well and having a very tight supply chain, very likely.

Okay, that sounds great. And then in your prepared remarks also, Colin, I think you talked about consumer mix. Was that consumer mix the balloon time, or is there some other? consumer mix that was positive for you guys.

Yeah, so good mix and balloon time, yes, performing very well. Joe mentioned it earlier. We make inroads on new product development there with the mini tank as well as channel expansion that we're seeing there. So absolutely, with balloon time and The other products contributing well as well. And, you know, demand's holding up similar to what we saw last quarter.

Okay, good. And, you know, you guys don't, you know, you gave some idea about the stability of the markets, but no guidance. I wonder, Joe, if you could help us just by talking about the year ahead, you know, as a new-ish product. you know, what are your objectives? What would you like to see happen over, you know, the next four quarters?

So you're giving me one more chance to give guidance, huh? Well, okay. Whatever you do. I just, we, we have a lot to be proud of and I said it at the beginning of my remarks, you know, our, our, culture is such a massive advantage for us and it leads to us being able to attract and retain the best and brightest for extended periods of time and people just get better the more they're in a role and we have So, you know, kind of many fantastic people that have been working hard on this, not just for the last 90 days, but for the last six months and the last 12 months and the last 18 months. And so, you know, when we think about what is possible for us, again, we're very happy to be here. talking about our Q4 results, but we've always had the luxury and a focus on thinking not just about the near term, but about the long term. And so we continue to invest. And so we're spending a lot of time when we talk about this with our people, we talk about why we win today, but then how we'll win tomorrow. So that's going to continue investments in connected culture and Automation and AI and additional leadership in these niche markets and the impactful strategic M&A. And so I think as we sit here today, we think we're really well positioned for the long term. We have to manage through some tariff uncertainty and some economic uncertainty. But our value propositions are really good. And if you think about going back to really our vision, right, is to elevate spaces and experiences. Sometimes that's making a room or part of a building more comfortable or more aesthetically pleasing. Other times it's giving somebody the ability to have that experience and And in a recession, sometimes it's harder for somebody to get on an airplane or stay in a hotel. And so they might want to be barbecuing or on a camping trip. And in other times, those spaces and experiences are in a time of need. where there's a natural disaster or a storm that can create hardships for somebody, and our products can be there to make things maybe just a little better or a little less bad. And so what I want us to accomplish, what we all want us to accomplish, is to continue to take care of our customers, continue to work our strategies, which are really, really good, And ultimately, we do those things, and there might be some bumps in the road, but we see a lot of growth opportunities for us ahead. Our aspirations are kind of, you know, we just talked about them a little bit ago, but we feel really good about what the future can look like for our teams.

Okay, great. Yeah, good luck in 2026. I hope you keep winning.

Thank you.

And that concludes our question and answer session. I will now turn the call back over to Joe Hayek for closing comments.

Thank you, everybody, for joining us this morning. Have a wonderful Fourth of July holiday and a great summer. We'll look forward to speaking to everybody again soon.

This concludes today's conference call. Thank you for your participation. You may now disconnect.