TRG | The Bottom Line – 1/30

TRG earlier this week marketed with Worthington Enterprises (WOR) with conversations focusing on recent M&A, seasonality, and overall end market themes. WOR continues to improve the core business, invest in automation, benefit from domestic manufacturing, and acquire niche market leaders. These actions usually transform a company over time. WOR is speed running this process and has materially improved the business over just the past 12 months.  EBITDA margins for the trailing 12 months are up to 23% vs. 20% a year ago, and wholly owned Building Products EBTIDA margin is up to 12% vs. 6% a year ago. Put differently, in just a year’s time, WOR has expanded consolidated EBITDA margins 300bps and wholly-owned Building Products EBITDA margins by a solid 600bps. It is noteworthy the results have come in a period of end market uncertainty, and we would expect to see further gains from volume uplift when end markets return to higher growth levels. WOR continues to focus on wrapping up automation and efficiency improvements in its Wisconsin plant in calendar 2026, which should yield additional improvements to the overall enterprise.