Worthington Sees Data-Center Cooling Sales Match Last Year’s Total

Worthington Enterprises said fiscal first-quarter sales rose 13% to $343.9 million, as organic growth and acquisitions lifted revenue. Adjusted earnings per share reached 82 cents, up from 78 cents a year earlier.

On the September 23 earnings call, CEO Joe Hayek highlighted a fast-growing data-center business. Sales of engineered tanks used in liquid-cooling systems reached $13 million in the quarter, matching the company’s total for all of fiscal 2026.

Hayek said Worthington expects those sales to grow sequentially through the rest of fiscal 2027. He cited industry estimates that the market for data-center liquid-cooling and thermal-management tanks could grow to more than 10 times its legacy size in coming years. The company is investing in equipment, engineering staff and production capacity, but noted that project timing remains uncertain.

Adjusted EBITDA, a measure of operating earnings, increased 10% to $74 million. Free cash flow nearly doubled to $54 million, while the company repurchased $18.2 million of shares. It ended August with $55.1 million in cash and $305.6 million in debt.

The results included uneven performance across its renamed business segments. Building Performance Solutions sales increased 16.4% to $215.1 million, but adjusted EBITDA was nearly flat at $59.8 million. Trade & Specialty Solutions sales rose 8.3% to $128.8 million, and adjusted EBITDA climbed to $24 million.

Management pointed to tight steel supplies, muted home sales and lower demand for A2L refrigerant cylinders as pressures on cooling and construction products. The company estimated the A2L-related comparison reduced adjusted EBITDA by about $7 million. It expects the second quarter to remain difficult before seasonal strength helps comparisons in the second half.

Worthington also said $19.2 million of quarterly sales came from recent acquisitions. Investors will get a broader update on strategy and growth opportunities at the company’s November 10 Investor Day in New York.