Note O – Segment Data

Our operations are organized under two operating segments: Consumer Products and Building Products. These operating segments correspond directly with our reportable segments, as described further below. Activity outside of our two reportable segments is presented within “Other” and “Unallocated Corporate” to reconcile to our consolidated results.

Our segment structure reflects the manner in which internally reported financial information is regularly reviewed by our CODM, who is our President and CEO, to evaluate the performance and allocate resources. Operating segments are identified based on the nature of the products and services offered, the management reporting structure, similarity of economic characteristics and certain quantitative measures as prescribed by authoritative accounting guidance. The CODM evaluates segment performance and makes resource allocation decisions based on adjusted EBITDA from continuing operations. Adjusted EBITDA from continuing operations is a non-GAAP financial measure, as described in the “Use of Non-GAAP Financial Measures” section preceding Part I, Item 1 of this Form 10-K. At the reportable segment level, adjusted EBITDA from continuing operations excludes public company and other governance-related costs.

Consumer Products: Our Consumer Products segment has a diverse product offering in the tools, outdoor living and celebrations categories, including propane-filled cylinders for torches and related accessories, handheld torches, specialized hand tools and instruments, drywall tools (collectively, tools), propane-filled camping cylinders helium-filled balloon kits, and accessories and gas grills and pizza ovens sold primarily to mass merchandisers, retailers and distributors. In fiscal 2025, Consumer Products generated approximately 43% of our consolidated net sales, compared to 40% and 39% in fiscal 2024 and fiscal 2023, respectively. Approximately 28% of fiscal 2025 Consumer Products net sales was attributable to our largest customer.

Building Products: Our Building Products segment is a market-leading provider of pressurized containment solutions, providing critical components in the residential, non-residential, and repair and remodel end markets through essential categories, such as heating, cooking, cooling and water, and, through our unconsolidated joint ventures, WAVE and ClarkDietrich, ceiling suspension systems and light gauge metal framing products, respectively. Our pressurized containment solutions include refrigerant and LPG cylinders, well water and expansion tanks, and other specialty products which are generally sold to gas producers and distributors. In fiscal 2025, Building Products generated approximately 57% of our consolidated net sales, compared to 50% and 51% in fiscal 2024 and 2023, respectively.

Other: Includes the activity of our Sustainable Energy Solutions and Workhorse unconsolidated joint ventures, as well as the activity of our former Sustainable Energy Solutions operating segment, on an historical basis, through May 29, 2024, when 51% of the nominal share capital was sold triggering the deconsolidation of corresponding net assets. Upon closing, this business, as historically operated, is no longer part of our management structure and therefore is not presented separately as a reportable segment.

Unallocated Corporate: Includes certain assets and liabilities (e.g. public debt) held at the corporate level as well as general corporate expenses that are not directly attributable to our business operations and are administrative in nature, such as public company and other governance-related costs that benefit the organization as a whole, have not been allocated to our operating segments and are held at the corporate level, including direct and incremental costs incurred in connection with the Separation but not attributed to discontinued operations in fiscal 2024 and fiscal 2023.

The accounting policies of the reportable segments are described in “Note A – Summary of Significant Accounting Policies.” Inter-segment sales are not material.

The following tables present financial information for both of our reportable segments, consistent with the level of disaggregation regularly reviewed by the CODM for performance evaluation and resource allocation.


	2025
						Total
	Consumer		Building			Reportable						Unallocated
	Products		Products			Segments			Other			Corporate			Consolidated
Net sales	$	499,625	$	654,137		$	1,153,762		$	-		$	-		$	1,153,762
Cost of goods sold		323,659		510,962			834,621			-			106			834,727
SG&A		114,681		116,183			230,864			-			37,549			268,413
Impairment of long-lived assets		50,050		763			50,813			-			-			50,813
Restructuring and other expense, net		-		1,500			1,500			-			9,024			10,524
Other segment items (1)		27		(780	)		(753	)		5,000			1,065			5,312
Equity in net income of unconsolidated affiliates		-		150,895			150,895			(6,059	)		-			144,836
Earnings (loss) before income taxes from continuing operations	$	11,208	$	176,404		$	187,612		$	(11,059	)	$	(47,744	)	$	128,809

Reconciling items to Adjusted EBITDA from continuing operations
Depreciation and amortization		17,418		30,070			47,488			-			774			48,262
Interest expense		-		(78	)		(78	)		-			2,168			2,090
Stock-based compensation		2,917		2,695			5,612			-			7,909			13,521
Impairment of long-lived assets (2)		50,050		763			50,813			-			-			50,813
Restructuring and other expense, net (3)		-		1,500			1,500			-			9,024			10,524
Non-cash charges in miscellaneous income (4)		-		-			-			5,000			-			5,000
Non-recurring loss in equity income (5)		-		-			-			3,387			-			3,387
Net loss attributable to noncontrolling interest		1,083		-			1,083			-			-			1,083
Adjusted EBITDA from continuing operations	$	82,676	$	211,354		$	294,030		$	(2,672	)	$	(27,869	)	$	263,489

(1)

Other segment items consist of non-operating activity included in adjusted EBITDA, which is our measure of segment profit.

(2)

Significant pre-tax impairment charges include $50,050 in the fourth quarter of fiscal 2025 related to the write-down of intangible assets associated with GTI.

(3)

Significant pre-tax restructuring charges include $4,536 in fiscal 2025 related to an increase in the fair value of the contingent liability associated with the Ragasco earnout arrangement.

(4)

Reflects a pre-tax charge of $5,000 during the fourth quarter of fiscal 2025 to write down an investment that was determined to be other than temporarily impaired.

(5)

Reflects a non-cash impairment charge of $3,387 at the Sustainable Energy Solutions joint venture during the fourth quarter of fiscal 2025.


	2024
							Total
	Consumer			Building			Reportable						Unallocated
	Products			Products			Segments			Other			Corporate			Consolidated
Net sales	$	495,259		$	618,973		$	1,114,232		$	131,471		$	-		$	1,245,703
Cost of goods sold		335,069			497,311			832,380			129,061			(757	)		960,684
SG&A		113,960			107,009			220,969			16,259			46,243			283,471
Impairment of goodwill and long-lived assets		-			772			772			32,203			-			32,975
Restructuring and other expense (income), net		(2,000	)		714			(1,286	)		30,613			-			29,327
Separation costs		-			-			-			-			12,705			12,705
Other segment items (1)		78			(88	)		(10	)		17,799			2,461			20,250
Equity in net income of unconsolidated affiliates		-			163,126			163,126			4,590			-			167,716
Earnings (loss) before income taxes from continuing operations	$	48,152		$	176,381		$	224,533		$	(89,874	)	$	(60,652	)	$	74,007

Reconciling items to adjusted EBITDA from continuing operations
Depreciation and amortization		16,512			23,805			40,317			7,283			1,063			48,663
Interest expense		-			-			-			-			1,587			1,587
Stock-based compensation		1,964			2,826			4,790			-			8,365			13,155
Corporate costs eliminated at Separation		4,707			4,650			9,357			-			9,986			19,343
Impairment of goodwill and long-lived assets (2)		-			772			772			32,203			-			32,975
Restructuring and other expense (income), net (3)		(2,000	)		714			(1,286	)		30,613			-			29,327
Separation costs		-			-			-			-			12,705			12,705
Non-cash charges in miscellaneous income (4)		-			-			-			19,180			-			19,180
Non-recurring (gain) loss in equity income (5)		-			980			980			(2,720	)		-			(1,740	)
Loss on extinguishment of debt		-			-			-			-			1,534			1,534
Net loss attributable to noncontrolling interest		263			-			263			-			-			263
Adjusted EBITDA from continuing operations	$	69,598		$	210,128		$	279,726		$	(3,315	)	$	(25,412	)	$	250,999

(1)

Other segment items consist of non-operating activity included in adjusted EBITDA, which is our measure of segment profit.

(2)

Significant pre-tax impairment charges include $32,203 in the fourth quarter of fiscal 2024 due to the deconsolidation of our former SES operating segment.

(3)

Significant pre-tax restructuring charges include a loss of $30,502 in the fourth quarter of fiscal 2024 due to the deconsolidation of our former Sustainable Energy Solutions operating segment during the fourth quarter of fiscal 2024.

(4)

Reflects the following non-cash charges in miscellaneous expense:

•

A pre-tax charge of $11,077 during the fourth quarter of fiscal 2024 to write down an investment that was determined to be other than temporarily impaired.

•

A pre-tax charge of $8,010 during the fourth quarter of fiscal 2024 related to the completion of a pension lift-out transaction.

(5)

Includes a net gain of $2,780 associated with the divestiture of the Brazilian operations of Workhorse during the fourth quarter of fiscal 2024 and the settlement of certain participant balances within the pension plan maintained by WAVE.


	2023
						Total
	Consumer		Building			Reportable						Unallocated
	Products		Products			Segments			Other			Corporate			Consolidated
Net sales	$	555,309	$	717,069		$	1,272,378		$	146,118		$	-		$	1,418,496
Cost of goods sold		373,094		587,429			960,523			130,095			4,290			1,094,908
SG&A		113,267		110,208			223,475			15,304			48,339			287,118
Impairment of long-lived assets		-		484			484			-			-			484
Restructuring and other expense (income), net		213		597			810			-			(1,177	)		(367	)
Separation costs		-		-			-			-			6,534			6,534
Other segment items (1)		181		(325	)		(144	)		5,715			17,224			22,795
Equity in net income of unconsolidated affiliates		-		166,427			166,427			(13,165	)		-			153,262
Earnings (loss) before income taxes from continuing operations	$	68,554	$	185,103		$	253,657		$	(18,161	)	$	(75,210	)	$	160,286

Reconciling items to Adjusted EBITDA from continuing operations
Depreciation and amortization		16,210		22,127			38,337			6,319			1,319			45,975
Interest expense		-		-			-			1,140			17,158			18,298
Stock-based compensation		1,949		3,420			5,369			-			9,197			14,566
Corporate costs eliminated at Separation		10,444		10,466			20,910			-			20,569			41,479
Impairment of long-lived assets		-		484			484			-			-			484
Restructuring and other expense, net		213		597			810			-			(1,177	)		(367	)
Separation costs		-		-			-			-			6,534			6,534
Non-cash charges in miscellaneous income (2)		-		-			-			4,774			-			4,774
Non-recurring loss in equity income (3)		-		-			-			-			13,996			13,996
Adjusted EBITDA from continuing operations	$	97,370	$	222,197		$	319,567		$	(5,928	)	$	(7,614	)	$	306,025

(1)

Other segment items consist of non-operating activity included in adjusted EBITDA, which is our measure of segment profit.

(2)

Reflects a pre-tax charge of $4,774 during the fourth quarter of fiscal 2023 related to a pension lift-out transaction.

(3)

Reflects the following activity within equity income:

•

A pre-tax loss of $16,059 related to the sale of our 50% noncontrolling equity investment in ArtiFlex.

•

A net gain of $2,063 related to a sale-leaseback transaction during the fourth quarter of fiscal 2023.

Total assets for each of our reportable segments as of the end of the past two fiscal years were as follows:


	May 31,
	2025		2024
Consumer Products	$	531,187	$	557,826
Building Products		795,837		672,723
Total reportable segments		1,327,024		1,230,549
Other		38,002		43,008
Unallocated Corporate		330,126		365,080
Total	$	1,695,152	$	1,638,637

The following table presents property, plant and equipment, net, by geographic region as of the end of the past two fiscal years:


	May 31,
	2025		2024
United States	$	223,117	$	207,772
International		47,109		19,434
Total	$	270,226	$	227,206

The following table presents net sales by geographic region for the past three fiscal years:


	2025		2024		2023
United States	$	891,428	$	923,556	$	1,041,723
International		262,334		322,147		376,773
Total	$	1,153,762	$	1,245,703	$	1,418,496

The following table presents capital expenditures for each of our reportable segments for the past three fiscal years:


	2025		2024		2023
Consumer Products	$	28,330	$	14,447	$	8,612
Building Products		15,050		20,945		22,843
Total reportable segments		43,380		35,392		31,455
Other		-		3,829		6,495
Unallocated Corporate		7,200		8,200		733
Total	$	50,580	$	47,421	$	38,683

Historical Timeline

Fiscal Year	Filed
2025	Jul 30, 2025	Showing above
2024	Jul 30, 2024

2023	Jul 31, 2023

2022	Aug 1, 2022

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

WORTHINGTON ENTERPRISES, INC. Segments Disclosure

Historical Timeline

About Segments Disclosures

Other Available Disclosures