WSWorthington Steel, Inc.

Steel Works, Blast Furnaces & Rolling & Finishing Mills

Revenue: $3.4B; 11% YoY
Operating margin: -0.0%; 101% YoY
EBITDA: $83M; 61% YoY
Market cap: $2.0B
Employees: 5,400; $638K revenue each
Net debt / EBITDA: 23.5×; $1.9B net debt
AI in 10-K: 2.4; mentions per 10K words

Takeover score 1 of 13

Fixable underperformance 0 of 7

TSR below peersNo
0 of 3 years
3+ of last 5 years
High CEO pay despite TSRNo
$7M median
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
—
Cash flow under 80% of net income
Dilutive SBCNo
0% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
16% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
1% of assets
Over 40% of assets
Shareholder dissentNo
98% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeNo
$638K · 46th pct
Bottom quartile of its SIC industry
Quiet on AINo
2.4 per 10K words · 61st pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
23.5× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedYes
$2.0B market cap
Market cap $500M–$5B

Catalysts 0 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingNo
−$2M net
Net sales over $10M in 12 months

Financials

Metric	FY2022	FY2023	FY2024	FY2025	FY2026	YoY	Trend
Revenue	$4.1B	$3.6B	$3.4B	$3.1B	$3.4B	11%
Operating income	$227M	$120M	$195M	$147M	−$1M	101%
Net income	$180M	$87M	$170M	$119M	−$13M	111%
Operating cash flow	$40M	$315M	$200M	$230M	$201M	13%
Capex	$36M	$46M	$103M	$130M	$121M	7.1%
Stock-based comp	$9M	$10M	$10M	$11M	$14M	26%
Dividends	$0	$0	$8M	$32M	$33M	2.2%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Dec 11, 2023	MCCONNELL JOHN P/OH	SC 13D	34.3%	Passive

Insider trading

Open-market buys, 12 mo: $406K · 3
Open-market sells, 12 mo: $3M · 11
Net: −$2M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2026	$7M	$13M	199	179
FY2025	$5M	$2M	115	94
FY2024	$9M	$9M	149	109