# EDGAR Filing Document

**Accession Number:** 0000108516
**File Stem:** 0000108516-25-000013
**Filing Date:** 2025-8
**Character Count:** 39494
**Document Hash:** 33e67f697e64322da69437a0f2144ee9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000108516-25-000013.hdr.sgml**: 20250815

**ACCESSION NUMBER**: 0000108516-25-000013

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 11

**CONFORMED PERIOD OF REPORT**: 20250812

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250815

**DATE AS OF CHANGE**: 20250815

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** WORTHINGTON ENTERPRISES, INC.
- **CENTRAL INDEX KEY:** 0000108516
- **STANDARD INDUSTRIAL CLASSIFICATION:** STEEL WORKS, BLAST FURNACES & ROLLING & FINISHING MILLS [3310]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 311189815
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 0531

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-08399
- **FILM NUMBER:** 251224172

**BUSINESS ADDRESS:**
- **STREET 1:** 200 W. OLD WILSON BRIDGE ROAD
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43085
- **BUSINESS PHONE:** 6144383210

**MAIL ADDRESS:**
- **STREET 1:** 200 W. OLD WILSON BRIDGE ROAD
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43085

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WORTHINGTON INDUSTRIES INC
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WORTHINGTON STEEL CO
- **DATE OF NAME CHANGE:** 19720123

?xml version='1.0' encoding='ASCII'? 8-K

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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## **FORM** 8-K

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** August 12, 2025<br>

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WORTHINGTON ENTERPRISES, INC.

**(Exact name of Registrant as Specified in Its Charter)**

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| | | |
|:---|:---|:---|
| Ohio | 001-08399 | 31-1189815 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 200 West Old Wilson Bridge Road |  |  |
| Columbus**,** Ohio |  | 43085 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

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**Registrant's Telephone Number, Including Area Code:** (614) 438-3210<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **<br>Title of each class** | **Trading<br>Symbol(s)** | **<br>Name of each exchange on which registered** |
| Common Shares, Without Par Value | WOR | The New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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## **Item 7.01 Regulation FD Disclosure.** 
On August 12, 2025, Worthington Enterprises, Inc. (the "Company"), participated in a fireside chat discussion at the Canaccord Genuity 45th Annual Growth Conference.

A copy of the transcript of the discussion is being made available on the Investor Relations section of the Company's website at https://ir.worthingtonenterprises.com, and is also furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information furnished under Item 7.01 in this Current Report on Form 8-K (this "Form 8-K"), including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section and shall not be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as set forth by specific reference in such filing. This Form 8-K shall not be deemed an admission as to the materiality of any information in this Form 8-K.

**Safe Harbor Statement** 

Selected statements contained in this release constitute "forward-looking statements," as that term is used in the Private Securities Litigation Reform Act of 1995 (the "Act"). The Company wishes to take advantage of the safe harbor provisions included in the Act. Forward-looking statements reflect the Company's current expectations, estimates or projections concerning future results or events. These statements are often identified by the use of forward-looking words or phrases such as "believe," "expect," "anticipate," "may," "could," "should," "would," "intend," "plan," "will," "likely," "estimate," "project," "position," "strategy," "target," "aim," "seek," "foresee" and similar words or phrases. These forward-looking statements include, without limitation, statements relating to: future or expected cash positions, liquidity and ability to access financial markets and capital; outlook, strategy or business plans; the anticipated benefits of the separation of the Company's Steel Processing business (the "Separation); the expected financial and operational performance of, and future opportunities for, the Company following the Separation; the Company's performance on a pro forma basis to illustrate the estimated effects of the Separation on historical periods; the tax treatment of the Separation transaction; future or expected growth, growth potential, forward momentum, performance, competitive position, sales, volumes, cash flows, earnings, margins, balance sheet strengths, debt, financial condition or other financial measures; pricing trends for raw materials and finished goods and the impact of pricing changes; the ability to improve or maintain margins; expected demand or demand trends for the Company or its markets; additions to product lines and opportunities to participate in new markets; expected benefits from transformation and innovation efforts; the ability to improve performance and competitive position at the Company's operations; anticipated working capital needs, capital expenditures and asset sales; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof; projected profitability potential; the ability to make acquisitions and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations; projected capacity and the alignment of operations with demand; the ability to operate profitably and generate cash in down markets; the ability to capture and maintain market share and to develop or take advantage of future opportunities, customer initiatives, new businesses, new products and new markets; expectations for Company and customer inventories, jobs and orders; expectations for the economy and markets or improvements therein; expectations for generating improving and sustainable earnings, earnings potential, margins or shareholder value; effects of judicial rulings; the ever-changing effects of the novel coronavirus ("COVID-19") pandemic and the various responses of governmental and nongovernmental authorities thereto on economies and markets, and on our customers, counterparties, employees and third-party service providers; and other non-historical matters.

Because they are based on beliefs, estimates and assumptions, forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Any number of factors could affect actual results, including, without limitation, those that follow: the uncertainty of obtaining regulatory approvals in connection with the Separation, including rulings from the Internal Revenue Service; the Company's ability to successfully realize the anticipated benefits of the Separation; the risks, uncertainties and impacts related to the COVID-19 pandemic – the duration, extent and severity of which are impossible to predict, including the possibility of future resurgence in the spread of COVID-19 or variants thereof – and the availability, effectiveness and acceptance of vaccines, and other actual or potential public health emergencies and actions taken by governmental authorities or others in connection therewith; the effect of national, regional and global economic conditions generally and within major product markets, including significant economic disruptions from COVID-19, the actions taken in connection therewith and the implementation of related fiscal stimulus packages; the effect of conditions in national and worldwide financial markets, including inflation, increases in interest rates and economic recession, and with respect to the ability of financial institutions to provide capital; the impact of tariffs, the adoption of trade restrictions affecting the Company's products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; changing oil prices and/or supply; product demand and pricing; changes in product mix, product substitution and market acceptance of the Company's products; volatility or fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities, labor and other items required by operations (especially in light of the COVID-19 pandemic and Russia's invasion of Ukraine); effects of sourcing and supply chain constraints; the outcome of adverse claims experience with respect to workers' compensation, product recalls or product liability, casualty events or other matters; effects of facility closures

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and the consolidation of operations; the effect of financial difficulties, consolidation and other changes within the steel, automotive, construction and other industries in which the Company participates; failure to maintain appropriate levels of inventories; financial difficulties (including bankruptcy filings) of original equipment manufacturers, end-users and customers, suppliers, joint venture partners and others with whom the Company does business; the ability to realize targeted expense reductions from headcount reductions, facility closures and other cost reduction efforts; the ability to realize cost savings and operational, sales and sourcing improvements and efficiencies, and other expected benefits from transformation initiatives, on a timely basis; the overall success of, and the ability to integrate, newly-acquired businesses and joint ventures, maintain and develop their customers, and achieve synergies and other expected benefits and cost savings therefrom; capacity levels and efficiencies, within facilities, within major product markets and within the industries in which the Company participates as a whole; the effect of disruption in the business of suppliers, customers, facilities and shipping operations due to adverse weather, casualty events, equipment breakdowns, labor shortages, interruption in utility services, civil unrest, international conflicts (especially in light of Russia's invasion of Ukraine), terrorist activities or other causes; changes in customer demand, inventories, spending patterns, product choices, and supplier choices; risks associated with doing business internationally, including economic, political and social instability (especially in light of Russia's invasion of Ukraine), foreign currency exchange rate exposure and the acceptance of the Company's products in global markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; the effect of inflation, interest rate increases and economic recession, which may negatively impact the Company's operations and financial results; deviation of actual results from estimates and/or assumptions used by the Company in the application of its significant accounting policies; the level of imports and import prices in the Company's markets; the impact of environmental laws and regulations or the actions of the United States Environmental Protection Agency or similar regulators which increase costs or limit the Company's ability to use or sell certain products; the impact of increasing environmental, greenhouse gas emission and sustainability regulations and considerations; the impact of judicial rulings and governmental regulations, both in the United States and abroad, including those adopted by the United States Securities and Exchange Commission and other governmental agencies as contemplated by the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of healthcare laws in the United States and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase the Company's healthcare and other costs and negatively impact the Company's operations and financial results; the effects of tax laws in the United States and potential changes for such laws, which may increase the Company's costs and negatively impact the Company's operations and financial results; cyber security risks; the effects of privacy and information security laws and standards; and other risks described from time to time in the Company's filings with the United States Securities and Exchange Commission, including those described in "Part I – Item 1A. – Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2025.

Forward-looking statements should be construed in the light of such risks. The Company notes these factors for investors as contemplated by the Act. It is impossible to predict or identify all potential risk factors. Consequently, readers should not consider the foregoing list to be a complete set of all potential risks and uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. The Company does not undertake, and hereby disclaims, any obligation to update any forward-looking statements, whether as a result of new information, future developments

## **Item 9.01 Financial Statements and Exhibits.** 
(a) through (c): Not applicable.

(d) <u>Exhibits</u>:

The following exhibits are included with this Current Report on Form 8-K:

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| | |
|:---|:---|
| <u>Exhibit No.</u> | <u>Description</u> |
| 99.1 | [<u>Transcript of Canaccord Genuity Growth Conference Fireside Chat Discussion on August 12, 2025 (furnished herewith)</u>](wor-ex99_1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | | |
|:---|:---|:---|:---|
|  |  |  | **WORTHINGTON ENTERPRISES, INC.** |
| Date: | August 15, 2025 | By:  | /s/Patrick J. Kennedy |
|  |  |  | Patrick J. Kennedy, Vice President - <br>General Counsel and Secretary |

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## Exhibit 99.1

<u>EXHIBIT 99.1</u>

Company Name: Worthington Enterprises, Inc. (WOR)

Event: CG 45th Annual Growth Conference

Date: August 12, 2025

<>

Thank you, everyone for attending CG's 45th Annual Growth Conference. Obviously, conferences like these are non-existent without investors like yourselves and obviously great management teams like we have here with Worthington. So I'm Brian McNamara, one of Canaccord's analysts in the consumer/industrial space. We are delighted to have Worthington Enterprises here and a host CEO, Joe Hayek; CFO, Colin Souza; and Marcus Rogier, Investor Relations. So thanks very much for joining us guys.

<>

Thanks for having us.

<>

So Joe, let's start at a high level as I consider Worthington kind of a well kept secret since you guys separated from your steel business nearly two years ago. Can you give us a rationale for that separation and kind of a high level overview of your stock of your company?

<>

Sure. And I think maybe the way I would answer that, Brian is in reverse. And so today, Worthington, when we think about ourselves is that we elevate spaces and experiences that people have with leading building and consumer products. And what that really means is where we show up is in a building in a room with the grid ceiling over your head, or we show up in that building behind the wall with steel framing studs.

We probably had something to do with keeping that room cool through our refrigerant cylinders. We probably potentially not a building like this, but in a house, we had something to do with keeping that building warm or providing the cooking fuel based on our propane tank business. And then we have tools along the way.

And so where that manifests itself for us is post separation, which was December 2023, the things that we are most proud of and most excited about are really probably three things. One is our culture. We're a 70-year old company, but we're only 18, 20 months into our journey as Worthington Enterprises. So we think of ourselves as a 70-year old startup, and we have a people first performance based culture. There are profit sharing incentives for every single person in our company.

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But I've been at Worthington for 12 years. Colin's been at Worthington for 15. And Marcus has been at Worthington for 20 years. And so we tend to, in part because of our culture, attract and retain people for a long time. And it goes without saying that somebody that's been in their job for five years is better than somebody that's been in their job for 5 minutes or for 5 months. And so we have a great culture. We have and seek out leadership in niche markets. We don't want to be in markets that are $50 billion where we're number 100 on the depth chart. We'd rather be in niche markets where we can have a leading market share or one, two or three market share, but not be competing with 50 other folks.

Because our business system, which is really our growth engine, it consists of transformation, which is continuous improvement and lean manufacturing, doing better every day. And then new product development, NPD, places where we can understand new products that might make sense to launch or extensions of products we already have. And then targeted M&A that, that we talked about a little bit. That growth orientation, that business system is really tailor made for niche markets where you have market leadership.

So we're super excited about what we have in front of us. Again, we think of ourselves as a 70-year old start up, but we've got a ton to be proud of and a lot to look forward to. And the reason that we ultimately decided to separate the businesses was that the Board concluded that the businesses, steel processing, which was our old sister business, it's now Worthington Steel, and Worthington Enterprises were big enough and successful enough to thrive on their own.

And when we looked at the capital allocation, capital intensity of both businesses, the steel processing business just needs more capital than our business does. And so to enable them to chase their sort of dreams in terms of a strategy and allocate capital appropriately and for us to do the same thing, that was a big impetus for the reason it made sense to spin, and so far, so good. We've been at it for almost two years, but we have a long way to go. And we know that we have lots of opportunities that we have to be disciplined about, but also execute very well in. But we're pretty excited about the future as well.

<>

So how have your consumer and building products businesses been impacted by the pandemic and its aftermath and kind of where do they stand today?

<>

Do you want to take it?

<>

Yeah. So a lot of our businesses, we had a COVID run up or benefit during COVID as people were just in their homes for longer periods of time doing repair and remodel projects on their homes, and then spending more time outdoors, which our products benefit from as well. So definitely a

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COVID run up and then a COVID hangover, and that's really worked its way through in through 2024 and demand patterns have stabilized and normalized.

And during that time, we really used it to really invest in our businesses and streamline, capture efficiencies where we can and really optimize our – across our portfolio and that's where we've had some good momentum. We've seen year-over-year improvement from 2024 to 2025 now and have good momentum heading into our new fiscal year 2026.

<>

So let's drill down on your JVs, namely WAVE and ClarkDietrich. If I'm an investor looking at the investment merits of building a position in Worthington stock, why are they important?

<>

Well, they're both great businesses and they play a really important piece. I mentioned when you look up and you see the grid ceiling, that's WAVE. And when you look behind the walls and you might see steel framing studs, that's ClarkDietrich. And so they're both great businesses. They're both unconsolidated JVs for us. And so we own 50% of WAVE, our joint venture partner is Armstrong, AWI. And then with ClarkDietrich, we own 25% and 75% is owned by Marubeni-Itochu Steel America.

And so, for us, we get two things. We've got a great relationship with the companies and our JV partners in both of those JVs, we learn from each other, we share best practices, we share talent back and forth. People from Worthington go to WAVE or ClarkDietrich and come back or vice versa. We've seeded those companies with folks operationally and on the commercial side. That's gone very well.

But it also represents another entree into the building envelope. And so we have even more chops in the things in buildings that you can't see. And so we just acquired a company that's got in the HVAC componentry spaces that's related to things that happen over that acoustical grid ceiling. And it goes without saying, and I think it's pretty important, that represents a fair amount of free cash flow for us. I think WAVE last year was over $100 million and ClarkDietrich was around $40 million. And so that for us is capital that comes in, because it's not consolidated. It comes into us as equity income that we can redeploy and use to acquire companies, build our own company, pay dividends or buy back stock.

<>

Does WAVE benefit significantly from this data center boom we're seeing or anything else structurally?

<>

They are benefiting from it and we're benefiting from it across a number of areas in our portfolio, WAVE, but in addition to that, ClarkDietrich is also benefiting from some of the growth there.

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Our water business, AMTROL benefits from that in the plumbing space. And then our recently acquired business that Joe mentioned, Elgen Manufacturing plays in that space a little bit and is benefiting. WAVE in particular, they have some products that serve that market. It's a small but very fast growing area for them. They serve it through their structural ceiling grid products, which are kind of stronger reinforcements to hold cables, trays and panels.

And then they did a small acquisition last year, business called DCR in New York, which is really providing them expansion in the aisle containment solution area. So, small but growing area for WAVE benefiting across a number of other businesses in our portfolio. And then WAVE also benefits just from growth in not just data centers, but healthcare is an area that's growing for them, education, transportation and those are other areas that they're benefiting from here recently.

<>

Maybe give us a high level overview of your consumer business, kind of key brands and growth drivers there.

<>

Sure. So consumer business, it's really three segments there, tools, outdoor living and celebrations. And there's a number of brands within that portfolio there. The bigger ones are the Coleman camping cylinder brand, the Bernzomatic plumber's torch brand, and then the Balloon Time celebrations brand. So those businesses are going to ebb and flow based on consumer spend. And we've mentioned, the demand there is really keeping up with POS activity. We don't sense any overstocking or destocking at the moment there. But things are – that team's really focused on how can we optimize margins and cost to maintain and then introduce new products where we can through innovation, like our Balloon Time mini product that we've launched recently.

<>

So both of you have been at the company for a long time, 12 and 15 years, but you've been in your current seats for a little under a year now. I guess, how has what you've experienced in your new roles differed from your expectations before you took the seat? We'll start with Joe.

<>

It's a great question. I think for us, I mean, I view it a little more maybe sort of institutionally rather than personally. I mean this – obviously it's not about me, it's about the company. But when we separated from our sister company, the steel processing business, we went from being almost $5 billion company, depending on where steel prices were to a $1.2 billion company. And there are certain mindsets that you might have if you are part of a $5 billion company that's a little cyclical and tied to steel prices versus being 24% that size. And so we kind of established in our mind which was kind of an order of operations as to what we wanted to do.

And it was – we think about it as reset, optimize and grow. And when I say reset, for 40 years when we were founded 70 years ago, for the first 40 years of our existence, we were a founder led

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business. And there are a lot of really cool attributes of founder led businesses. First and foremost is you have this insurgent mission, because you started a business and you saw an opportunity or you saw a problem that you're solving and you're completely committed to that mission. And so there's this shared sense of purpose. But then eventually, you become an incumbent and you become maybe a little, I mean, complacent is the wrong word, but you become used to doing things because you did them yesterday as opposed to, because it was this aha moment that you had.

And so we really wanted to get people thinking more like a startup and to get people thinking more like what is our mission and what are we trying to accomplish and really prioritizing the front lines of what it is that we do, which is taking care of our customers and then taking care of the 90% of the people that work for Worthington that don't come to work in our office, they come to work in one of our facilities. And people have been amazing, people have been great. Our teams have embraced that mission.

They're thinking differently, they're thinking more like a startup. And so as we optimize our businesses, we've talked about automation, we've talked about AI throughout, we've talked about initiatives like 80-20, which is really trying to get through and leverage transformation and then grow. We saw a return to growth in Q4 and we've seen some growth and we're growing through acquisitions. So when we frame it, reset, optimize, grow. I would say, so far so good and people have really responded and we're kind of speaking with one voice even though we have lots of different things that we need to do every day. And it's been a ton of fun, couldn't be happier with the way the team's performing right now.

<>

Anything to add, Colin?

<>

No, just more of the same. I think it's people are really embracing it. It's optimizing areas where we spend our time really embracing, thinking differently. How can we leverage technology and what we're doing as an example, and there is that energy within the team that is in a lot of ways we're almost two years post separation, but we feel like the journey is just getting started and we're really excited for the path ahead.

<>

Great. So I'm going to front run a question we're asking all consumer focused companies at this conference because I think it impacts you disproportionately. So tariffs have obviously taken up a lot of investor focus, but we haven't really seen huge broad based price increases on the shelf across consumer quite yet. So do you expect overall tariffs to be a net positive or a net negative to your businesses?

<>

So about 80% of what we sell is sourced, produced, and I mean manufactured and sold in the states. Another 12%, 13% looks like that, only it's in Europe and gets sold into Europe and the

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Middle East. So we have 7% of our business where we design the product, have it manufactured for us, bring it into the states and then sell it. That part of our business which is in our tools business is impacted by tariffs. And there's a lot to sort out. There's – it seems to change every day, so when you get some certainty there, I think people will be able to do the right things for their business, whether it's us or somebody else.

But getting beyond that, in the 80% of our business that is sourced, produced and sold domestically, we feel like we're on balance. That's at worst a neutral for us. And in a lot of cases it's a benefit for us because in some cases we're the primary domestic manufacturer of the products that we make. And so having a level playing field, somebody in Asia, their value proposition is going to be price. And our value proposition, which is innovation, quality, being easy to do business with, having a tight supply chain, sometimes those matter enough to offset something that's cheaper. Sometimes people make different decisions. And so having a bit more of a level playing field, we think on balance, all those things being considered is a net positive for us.

<>

Are you guys seeing anything in the marketplace in terms of pricing, whether it be maybe some competitors that are more exposed to those tariffs?

<>

I mean, it's hard thus far just because there have been ebbs and flows and fits and starts. This is an aside. I don't know anything about this personally, but it seems like automotive has been the hardest hit from tariffs thus far because it was so immediate and it was Canada and Mexico centric. But the offshore tariffs have been on again. They've had pauses, they've been deals there. But there was that 90-day pause from China that got announced yesterday. So we've clearly seen some of that. But it's not as though it's manifested itself in 50% price increases on shelf. Yeah, it doesn't mean it won't happen, but we haven't seen that yet.

<>

So your 6% to 8% kind of long-term top line ambition in terms of growth, which could come from both organic and inorganic. It appears ambitious, at least in the current macro backdrop. Assuming M&A will naturally be lumpy, what drives kind of that 3% to 4% organic growth annually?

<>

Yeah. So that's going to be, Joe touched on it earlier. We're leaders in these niche areas of consumer and building products and we're very important to our customers in those smaller niche areas. And so we're going to benefit from general market growth in those categories. We're going to take some market share where we can, but then also as we launch innovative products, that's a key part of our business system: innovation. And we've been doing that over the past, demonstrating a track record there over the past couple quarters with some of the products I mentioned earlier, the Balloon Time mini tank or on the building product side, products like SureSense. And that's going to really enable some incremental growth for us that we're going to

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make sure we're deploying the teams to focus on. And then from a commercial standpoint too, we'll look to also enhance that growth rate.

<>

So the company has been acquisitive since the separation. What are you looking for in terms of targets and how does the M&A environment look today? We've heard from other companies that's been relatively dormant given the tariffs and the overall uncertainty.

<>

Certainly wouldn't disagree with that description of the market. In 2024, late 2024, people thought that 2025 would be the year that the logjam broke and there'd be lots of M&A activity, that didn't happen. 2025 heading into 2026 people thought that was going to be true. And it was for the first 90 days of the year. And then April 2 came along and uncertainty was injected back into the market. So it's a little slow, but there's pent-up demand there.

We obviously were able to acquire a company in June. But when we look at acquisitions, what we're trying to find is like looking in the mirror and seeing a resemblance of ourselves when we're really good. We're not always really good, but when we're really good, we're in niche markets and we have a leadership position. And so we're looking for companies that are in niche markets with a leadership position that have a demonstrable sustainable competitive advantage that we can make better. We know a lot about buying steel and buying metals and buying other things. We know a lot about manufacturing, we know a lot about two-step distribution in building products. We know a lot about being close and tight with retailers and consumer. And so we hope that there are companies out there that not only we can make better, but in theory, that we'd like them to make us better as well, right?

Instead of them being a fit with our company or a fit with our culture, we'd like them to be additive to our company, like to be additive to our culture. So that's what we're ultimately looking for because you find companies like that and they're high margin, right, on a path to or north of 20% EBITDA margins and they're less asset intensive than we are today. We over time lower our asset intensity, increase our cash earnings and all of a sudden our free cash flows continue to build on themselves and we can reinvest those free cash flows into companies with similar characteristics. And we think if we're able to do that, then we'll be pretty pleased.

<>

So what did you like about the Elgen acquisition that you guys announced in June and it gives you more exposure to HVAC?

<>

Yeah. Elgen was a natural extension for us in the building product space. They serve the HVAC componentry space with metal products. It's elbows, fittings and strut that go around HVAC ductwork. So what we saw in them is, they serve an attractive market. It's primarily commercial

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HVAC and a lot of its repair and remodel business. As we got to know the team there, we thought highly of them and the culture that they built.

And then, as we got to know the manufacturing process, a lot of it is roll forming steel and stamping out products, which we know very well across our portfolio and our expertise really lends itself well to that. So, very excited about that business. It's early days obviously and we're focused on integrating that with our teams and we'll look to create some value with them over time here.

<>

Remind us what your margin ambition is for targets, like what potential do you look for in M&A targets?

<>

Yeah. For M&A, we'd like to see a 20% EBITDA margin or a path to that over time. And then just as important, as Joe mentioned, it's capital intensive, right? So lower capital intensity than the rest of the portfolio we have.

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Got it. And then, Colin, what is the earnings power of this business as a whole?

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Yeah. I see, that's a great question.

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Yeah. That is a good question, Brian.

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Glad he asked you.

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So we ended fiscal year 2025, May 31st, this past May 31st, our fiscal year 2025, $1.2 billion in revenue, $263 million EBITDA, just under 23% EBITDA margins. And we put out some long-term targets of 6% to 8% growth, which we talked about, and then 24% EBITDA margins over time. So we're really focused within that, our gross margins we want to get to north of 30% from a gross margin standpoint and get our SG&A as a percent of sales at or less than 20% of sales.

And on top of that from a leverage standpoint we have very low leverage, ample liquidity to really unlock and deploy capital to our growth initiatives. Some of that's going be M&A, some of it's going to be some organic growth opportunity. And then we play in what we believe are niche areas

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of attractive markets. So lot of its non-res construction activity, repair and remodel, home improvement or DIY. And as we get potential interest rate relief and spur some construction activity, we feel like we're very well positioned to grow and deploy capital and enable more growth there.

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Great. And then the final question we're asking all of our companies that are exposed to consumer, like I guess, how healthy is the consumer today versus this time last year when you were at this conference? And how do you see consumer spending shaping up as we head into the back half of this year and then into 2026?

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I think it's not that different than it was a year ago. I was actually going back and looking through some of our – some thoughts and musings at this time last year. And the consumer is definitely stretched. The consumer has definitely borne the brunt of inflation whether it was caused by tariffs or whether it was caused by any number of things. And people aren't being laid off, but people aren't growing at a rapid clip either from a hiring perspective.

And so, it's this little bit of kind of push pull and the consumer is as a consequence, is cautious. At the same time, the consumer isn't running away and hiding. And so when we think about consumer generally, we want a healthy consumer. We want a consumer that feels good about their futures and is willing to go out and participate in things that make them live more rich and fulfilled lives. Our products oftentimes can be almost seen as a little bit of a trade down.

If you don't think you should get on a plane and fly somewhere and go to a hotel and see a concert and instead you want to go on a camping trip or spend more time outside or do DIY project, you might actually end up buying more of our products than you would otherwise. But generally speaking, I think the watchword is cautious. And I think the next six to 12 months will tell the tale.

Colin's right, if we could get lower interest rates without a hard landing in a recession, that would be wonderful.

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Great. We're out of time. I guess we'll leave it there. Thanks so much guys.

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You bet.

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Appreciate it.

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Thanks, Brian.

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