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Worthington Steel Reports Fourth Quarter and Full Year Fiscal 2025 Results
COLUMBUS, Ohio--(BUSINESS WIRE)--Worthington Steel, Inc. (NYSE: WS), a market-leading, value-added metals processing company, today reported financial results for the fiscal 2025 fourth quarter and full year ended May 31, 2025. Fourth Quarter Highlights (all comparisons to the fourth quarter of fiscal 2024): Net sales of $832.9 million decreased 9% compared to $911.0 million. Operating income of $66.4 million compared to $67.3 million. Net earnings attributable to controlling interest of $55.7 million compared to $53.2 million. Net earnings per diluted share attributable to controlling interest of $1.10 compared to $1.06; adjusted net earnings per diluted share attributable to controlling interest of $1.05 compared to $1.06. Adjusted EBIT of $70.1 million compared to $70.4 million. Finalized the definitive agreement to acquire a controlling equity stake in Italy-based Sitem S.p.A. (together with its subsidiaries, Stanzwerk AG, Decoup S.A.S. and Sitem Slovakia spol. s r.o., 'Sitem Group'). The transaction closed on June 3, 2025, subsequent to the end of fiscal 2025. Named No. 1 Top Workplace in Columbus in the large organization category by Columbus CEO magazine. This marks the 13th consecutive year Worthington Steel has been named to the list—and its first as a standalone public company. Earned 2024 Supplier of the Year by General Motors for the fourth time in five years. Recognized as a John Deere Partner-level Supplier for the 13th consecutive year. Declared a quarterly dividend of $0.16 per share payable on September 26, 2025, to shareholders of record at the close of business on September 12, 2025. 'Despite a mixed economic environment, our team executed well in the fourth quarter, advancing key growth initiatives while maintaining our focus on safety and partner relationships,' said Geoff Gilmore, president and CEO of Worthington Steel. 'We made meaningful progress on our long-term strategy — including closing on the Sitem acquisition earlier this month, making headway on our electrical steel investments, gaining market share in key sectors and earning accolades from our customers.' Net sales $ 832.9 $ 911.0 $ 3,093.3 $ 3,430.6 Operating income 66.4 67.3 147.0 194.5 Net earnings attributable to controlling interest 55.7 53.2 110.7 154.7 Adjusted EBIT (Non-GAAP) (1) 70.1 70.4 149.1 224.4 Equity in net income of unconsolidated affiliate 4.0 6.7 4.4 22.4 Net earnings per diluted share attributable to controlling interest $ 1.10 $ 1.06 $ 2.19 $ 3.11 Impairment of assets per diluted share (after-tax) - - 0.07 0.01 Restructuring and other expense, net per diluted share (after-tax) 0.01 - 0.02 - Separation costs per diluted share (after-tax) - - - 0.30 Pension settlement gain per diluted share (after-tax) - - (0.04 ) - Gain on land sale per diluted share (after-tax) - - (0.02 ) - Gain on Sitem Group purchase derivative per diluted share (after-tax) (0.06 ) - (0.06 ) - Adjusted net earnings per diluted share attributable to controlling interest (Non-GAAP) (1) $ 1.05 $ 1.06 $ 2.16 $ 3.42 Expand ___________________________ (1) Results in both the current year period and prior year period were impacted by certain items, as further discussed in the Non-GAAP Financial Measures / Supplemental Data section later in this release. Expand Quarterly Results Net sales for the fourth quarter of fiscal 2025 were $832.9 million, a decrease of $78.1 million, or 9%, compared to the prior year quarter. The decrease was driven primarily by lower average selling prices, and to a lesser extent, lower toll volumes. Direct selling prices decreased 8% and toll selling prices decreased 13% in the fourth quarter of fiscal 2025 compared to the prior year quarter. Direct tons sold were flat, while toll tons sold decreased 11% in the fourth quarter of fiscal 2025 compared to the prior year quarter. The mix of direct tons versus toll tons processed was 60% to 40% in the fourth quarter of fiscal 2025 compared to 58% to 42% in the prior year quarter. Gross margin decreased by $4.0 million over the prior year quarter to $127.0 million. The decrease was driven primarily by lower toll margins, partially offset by higher direct spreads. Toll margins, down $8.1 million, were impacted by a $3.9 million unfavorable change in toll mix and a $4.2 million unfavorable impact due to lower volumes. Direct spreads, up $3.4 million, were impacted by a $24.2 million favorable change from an estimated $3.4 million inventory holding loss in the prior year quarter to an estimated $20.8 million inventory holding gain in the fourth quarter of fiscal 2025. Operating income decreased $0.9 million from the prior year quarter to $66.4 million. The decrease was driven primarily by a $4.0 million decrease in gross margin and a $1.7 million fiscal 2025 restructuring and other expense, net, partially offset by lower selling, general and administrative ('SG&A') expense. The $4.8 million decrease in SG&A expense was primarily due to lower wage and benefits costs and lower bad debt expense. The Company recognized restructuring expenses due to the previously announced plans to combine Worthington Samuel Coil Processing's ('WSCP') toll processing manufacturing facility in Cleveland, Ohio into its existing manufacturing facility in Twinsburg, Ohio, as well as the severance expense associated with the TWB Company's ('TWB') voluntary retirement program. Joint ventures WSCP and TWB are consolidated with the equity owned by the other joint venture members shown as noncontrolling interests on the Company's consolidated balance sheets. The Company reported net earnings attributable to controlling interest of $55.7 million, or $1.10 per diluted share, for its fiscal 2025 fourth quarter. For the prior year quarter, the Company recorded net earnings attributable to controlling interest of $53.2 million, or $1.06 per diluted share. Adjusted net earnings attributable to controlling interest of $53.4 million, or $1.05 per diluted share, compares to the prior year quarter adjusted net earnings attributable to controlling interest of $53.2 million, or $1.06 per diluted share. The fiscal 2025 adjusted results exclude a $3.0 million after-tax gain on the Sitem Group purchase derivative, or $0.06 per diluted share, and $0.7 million after-tax restructuring and other expense, net, or $0.01 per diluted share. The adjustment in the prior year quarter did not have an impact on net earnings attributable to controlling interest. Balance Sheet, Cash Flow and Capital Allocation As of May 31, 2025, the Company had cash and cash equivalents of $38.0 million and restricted cash of $54.9 million. During the fourth quarter of fiscal 2025, net cash provided by operating activities was $53.9 million compared to $35.6 million in the prior year quarter. Investment in property, plant and equipment during the fourth quarter of fiscal 2025 was $45.5 million compared to $44.8 million in the prior year quarter. The Company generated free cash flow (as defined in the Non-GAAP Financial Measures / Supplemental Data section later in this release) of $8.4 million in the fourth quarter of fiscal 2025 compared to negative free cash flow of $9.2 million in the prior year quarter. The Company ended the fourth quarter of fiscal 2025 with debt of $151.5 million and $38.0 million in cash and cash equivalents, resulting in a net debt (as defined in the Non-GAAP Financial Measures / Supplemental Data section later in this release) position of $113.5 million. Restricted cash of $54.9 million was the result of routine pre-closing procedures related to funds designated for the Sitem Group acquisition early in the first quarter of fiscal 2026. The Board of Directors declared a quarterly dividend of $0.16 per common share. The dividend is payable on September 26, 2025, to shareholders of record at the close of business on September 12, 2025. Conference Call The Company will review fiscal 2025 fourth quarter results during its quarterly conference call on June 26, 2025, beginning at 8:30 a.m., Eastern Time. Conference call details are available in the investor section of the Company's website at About Worthington Steel Worthington Steel (NYSE:WS) is a metals processor that partners with customers to deliver highly technical and customized solutions. Worthington Steel's expertise in carbon flat-roll steel processing, electrical steel laminations and tailor welded solutions is driving steel toward a more sustainable future. As one of the most trusted metals processors in North America, Worthington Steel and its approximately 6,000 employees harness the power of steel to advance our customers' visions through value-added processing capabilities including galvanizing, pickling, configured blanking, specialty cold reduction, lightweighting and electrical lamination. Headquartered in Columbus, Ohio, Worthington Steel operates 37 facilities in seven states and 10 countries. Following a people-first Philosophy, commitment to sustainability and proven business system, Worthington Steel's purpose is to generate positive returns by providing trusted and innovative solutions for customers, creating opportunities for employees and strengthening its communities. 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,' 'anticipate,' 'may,' 'could,' 'should,' 'would,' 'intend,' 'plan,' 'will,' 'likely,' 'expect,' '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 Company's separation from Worthington Enterprises, Inc. (the 'Separation'); the expected financial and operational performance of, and future opportunities for, the Company following the Separation; the tax treatment of the Separation transaction; the leadership of the Company following the Separation; 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: our ability to successfully realize the anticipated benefits of the Separation; 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 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 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; the ability to realize expected benefits of strategically deployed capital expenditures; 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, as well as potential adverse impacts as a result of the Inflation Reduction Act of 2022, 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 ('SEC') 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, which may increase the Company's healthcare and other costs and negatively impact the Company's operations and financial results; the effect of tax laws in the United States and potential changes for such laws, which may increase the Company's costs and negatively impact its operations and financial results; cyber security risks; risks associated with artificial intelligence technologies; 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 SEC, 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, 2024. 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, you 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 or otherwise, except as required by applicable law. ___________________________ (1) Prior to the third quarter of fiscal 2024, Weighted average common shares outstanding (Basic) and Weighted average common shares outstanding (Diluted) reflects the basic common shares at the Separation. This share amount is being utilized in the calculation of basic and diluted earnings per common share for periods prior to the Separation. Expand WORTHINGTON STEEL, INC. CONSOLIDATED BALANCE SHEETS (In millions, except share amounts) (Unaudited) May 31, May 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 38.0 $ 40.2 Restricted cash 54.9 - Receivables, less allowances of $3.8 and $3.2, respectively 438.7 472.6 Inventories Raw materials 179.4 150.2 Work in process 165.6 176.8 Finished products 77.0 78.3 Total inventories 422.0 405.3 Income taxes receivable 0.1 4.2 Assets held for sale 11.5 2.9 Prepaid expenses and other current assets 83.3 76.6 Total current assets 1,048.5 1,001.8 Investment in unconsolidated affiliate 126.6 135.0 Operating lease assets 72.6 72.9 Goodwill 79.6 79.6 Other intangible assets, net of accumulated amortization of $50.3 and $45.3, respectively 67.9 77.0 Deferred tax asset 11.4 8.5 Other assets 7.0 16.8 Property, plant and equipment: Land 38.6 37.9 Buildings and improvements 190.4 177.1 Machinery and equipment 942.6 893.8 Construction in progress 132.7 83.6 Total property, plant and equipment 1,304.3 1,192.4 Less: accumulated depreciation 756.1 717.6 Total property, plant and equipment, net 548.2 474.8 Total assets $ 1,961.8 $ 1,866.4 Expand WORTHINGTON STEEL, INC. CONSOLIDATED BALANCE SHEETS (In millions, except share amounts) (Unaudited) May 31, May 31, 2025 2024 Liabilities and equity Current liabilities: Accounts payable $ 402.5 $ 380.4 Short-term borrowings 149.2 148.0 Accrued compensation, contributions to employee benefit plans and related taxes 43.0 52.8 Dividends payable 9.3 8.7 Other accrued items 15.3 15.7 Current operating lease liabilities 7.7 7.6 Income taxes payable 4.5 5.2 Total current liabilities 631.5 618.4 Other liabilities 32.8 34.3 Long-term debt 2.3 - Noncurrent operating lease liabilities 68.7 68.3 Deferred income taxes 28.6 27.9 Total liabilities 763.9 748.9 Preferred shares, without par value; authorized – 1,000,000 shares; no shares issued or outstanding - - Common shares, without par value; authorized – 150,000,000 shares; issued and outstanding 49,548,895 shares and 49,331,514 shares, respectively - - Additional Paid-in Capital 913.9 905.3 Retained Earnings 164.2 86.1 Accumulated other comprehensive loss, net of taxes of $(2.0) and $(1.7), respectively (4.0 ) (6.1 ) Total Shareholders' equity - controlling interest 1,074.1 985.3 Noncontrolling interests 123.8 132.2 Total equity 1,197.9 1,117.5 Total liabilities and equity $ 1,961.8 $ 1,866.4 Expand WORTHINGTON STEEL, INC. CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) May 31, 2025 2024 Operating activities: Net earnings $ 119.3 $ 170.1 Adjustment to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 66.0 65.3 Impairment of assets 7.4 1.4 Provision for (benefit from) deferred income taxes (3.1 ) 1.1 Bad debt expense 1.8 1.1 Equity in net income of unconsolidated affiliate, net of distributions 8.4 (20.4 ) Net (gain) loss on sale of assets (0.7 ) 1.0 Stock-based compensation 11.0 10.3 Changes in assets and liabilities, net of impact of acquisitions: Receivables 34.1 (1.4 ) Inventories (16.7 ) 16.4 Accounts payable 15.8 (26.7 ) Accrued compensation and employee benefits (9.8 ) 7.9 Other operating items, net (3.2 ) (26.6 ) Net cash provided by operating activities 230.3 199.5 Investing activities: Investment in property, plant and equipment (130.4 ) (103.4 ) Acquisitions, net of cash acquired - (21.0 ) Proceeds from sale of assets, net of selling costs 1.3 1.2 Net cash used in investing activities (129.1 ) (123.2 ) Financing activities: Distribution to the Former Parent in connection with the Separation - (150.0 ) Transfers to the Former Parent, net - (47.6 ) Proceeds from short-term borrowings, net 15.0 127.2 Proceeds from revolving credit facility borrowings - swing loans 508.7 266.1 Repayments of revolving credit facility borrowings - swing loans (522.5 ) (248.1 ) Proceeds from long-term debt, net of issuance costs 2.3 - Proceeds from issuance of common shares, net of tax withholdings (3.1 ) 0.3 Payments to noncontrolling interests (17.0 ) (8.8 ) Dividends paid (31.9 ) (7.9 ) Net cash used in financing activities (48.5 ) (68.8 ) Increase in cash, cash equivalents, and restricted cash 52.7 7.5 Cash, cash equivalents, and restricted cash at beginning of period 40.2 32.7 Cash, cash equivalents, and restricted cash at end of period $ 92.9 $ 40.2 Expand WORTHINGTON STEEL, INC. NON-GAAP FINANCIAL MEASURES / SUPPLEMENTAL DATA (In millions, except volume and per share amounts) The Company reports its financial results in accordance with accounting principles generally accepted in the United States ('GAAP'). The Company also presents certain non-GAAP financial measures including (a) adjusted operating income, (b) adjusted earnings before income taxes, (c) adjusted income tax expense, (d) adjusted net earnings attributable to controlling interest, (e) adjusted net earnings per diluted share attributable to controlling interest, (f) net earnings before interest and taxes attributable to controlling interest ('EBIT'), (g) adjusted net earnings before interest and taxes attributable to controlling interest ('adjusted EBIT'), (h) net earnings before interest, taxes, depreciation and amortization attributable to controlling interest ('EBITDA'), (i) adjusted net earnings before interest, taxes, depreciation and amortization attributable to controlling interest ('adjusted EBITDA'), (j) free cash flow, (k) total debt less cash and cash equivalents ('net debt'), and (l) pro forma adjusted net earnings before interest and taxes attributable to controlling interest ('pro forma adjusted EBIT'). These non-GAAP financial measures typically exclude impairment and restructuring charges (gains) but may also exclude other items that management believes are not reflective of, and thus should not be included when evaluating the performance of, the Company's ongoing operations. Management uses these non-GAAP financial measures to evaluate the Company's performance, engage in financial and operational planning, and determine incentive compensation and believes these non-GAAP financial measures provide useful information to investors because they provide additional perspective on the performance of the Company's ongoing operations. Additionally, management believes these non-GAAP financial measures provide useful information to investors because they allow for meaningful comparisons and analysis of trends in the Company's business and enable investors to evaluate operations and future prospects in the same manner as management. For the purposes of the subsequent tables, the non-GAAP measures have been adjusted for the items identified below: Impairment of assets – impairments of assets are excluded because they do not occur in the ordinary course of the Company's ongoing business operations, are inherently unpredictable in timing and amount, and are non-cash, so their exclusion facilitates the comparison of historical and current financial results. Restructuring – restructuring activities consist of items that are not part of the Company's ongoing operations, such as divestitures, closing or consolidating facilities, employee severance (including rationalizing headcount or other significant changes in personnel), and realignment of existing operations (including changes to management structure in response to underlying performance and/or changing market conditions). Separation costs – direct and incremental costs incurred in connection with the Separation from the Worthington Enterprises, Inc. (the 'Former Parent'), including audit, legal, and other fees paid to third-party advisors as well as direct and incremental costs associated with the separation of shared corporate functions which are not part of the Company's ongoing operations. Tax indemnification adjustment – tax and indemnification adjustments reported in income tax expense and miscellaneous income, net, related to an indemnification agreement with the former owners of Tempel Steel Company ('Tempel'). These adjustments are the result of a first quarter fiscal 2025 favorable tax ruling, a fourth quarter fiscal 2025 interest charge true-up, and a fourth quarter fiscal 2024 unfavorable tax ruling in one of the jurisdictions in which Tempel operates. The indemnification agreement, which was entered into with the former Tempel owners at the time the Company acquired Tempel, provides protection to the Company from rulings by tax authorities through the acquisition date. Pension settlement gain – pension lift-out transaction to transfer a portion of the total projected benefit obligation of the Tempel pension plan to a third-party insurance company, which resulted in a pre-tax non-cash gain reported in miscellaneous income, net, is excluded as it is not part of the Company's ongoing operations. Gain on land sale – sale of unused land on the campus of the Tempel subsidiary in China, which resulted in a pre-tax gain in miscellaneous income, net, is excluded as it is not part of the Company's ongoing operations. Gain on Sitem Group purchase derivative – mark-to-market gain on the economic (non-designated) foreign currency exchange contract entered into related to the purchase price for Sitem Group, which resulted in a pre-tax gain in miscellaneous income, net, and is excluded as it is not part of the Company's ongoing operations. The following provides a reconciliation to the non-GAAP financial measures adjusted operating income, adjusted earnings before income taxes, adjusted income tax expense, adjusted net earnings attributable to controlling interest and adjusted net earnings per diluted share attributable to controlling interest from the most comparable GAAP measures for the three- and 12-month periods ended May 31, 2025, and May 31, 2024. Three Months Ended May 31, 2024 Operating Income Earnings Before Income Taxes Income Tax Expense Net Earnings Attributable to Controlling Interest Net Earnings per Diluted Share Attributable to Controlling Interest GAAP $ 67.3 $ 75.3 $ 17.6 $ 53.2 $ 1.06 Tax indemnification adjustment - (2.8 ) (2.8 ) - - Non-GAAP $ 67.3 $ 72.5 $ 14.8 $ 53.2 $ 1.06 Expand Twelve Months Ended May 31, 2025 Operating Income Earnings Before Income Taxes Income Tax Expense Net Earnings Attributable to Controlling Interest (1) Net Earnings per Diluted Share Attributable to Controlling Interest GAAP $ 147.0 $ 148.1 $ 28.8 $ 110.7 $ 2.19 Impairment of assets 7.4 7.4 1.2 3.4 0.07 Restructuring and other expense, net 2.6 2.6 0.4 1.1 0.02 Tax indemnification adjustment - 4.6 4.6 - - Pension settlement gain - (2.7 ) (0.7 ) (2.0 ) (0.04 ) Gain on land sale - (1.5 ) (0.4 ) (1.1 ) (0.02 ) Gain on Sitem Group purchase derivative - (4.0 ) (1.0 ) (3.0 ) (0.06 ) Non-GAAP $ 157.0 $ 154.5 $ 32.9 $ 109.1 $ 2.16 Expand Twelve Months Ended May 31, 2024 Operating Income Earnings Before Income Taxes Income Tax Expense Net Earnings Attributable to Controlling Interest (1) Net Earnings per Diluted Share Attributable to Controlling Interest GAAP $ 194.5 $ 216.2 $ 46.1 $ 154.7 $ 3.11 Impairment of assets 1.4 1.4 0.2 0.7 0.01 Separation costs 19.5 19.5 4.3 15.1 0.30 Tax indemnification adjustment - (2.8 ) (2.8 ) - - Non-GAAP $ 215.4 $ 234.3 $ 47.8 $ 170.5 $ 3.42 Expand ___________________________ (1) Excludes the impact of the noncontrolling interest. Expand To further assist in the analysis of results for the periods presented, the following volume and net sales information for three- and 12-month periods ended May 31, 2025, and May 31, 2024, has been provided along with a reconciliation of the non-GAAP financial measures, EBIT, adjusted EBIT and adjusted EBITDA to the most comparable GAAP measure, which is net earnings attributable to controlling interests. Net earnings margin is calculated by dividing net earnings attributable to controlling interest by net sales. Adjusted EBIT margin is calculated by dividing adjusted EBIT by net sales. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net sales. Three Months Ended May 31, (In millions, except volume) 2025 2024 Volume (tons) 982,180 1,029,565 Net sales $ 832.9 $ 911.0 Net earnings attributable to controlling interest $ 55.7 $ 53.2 Interest expense, net 1.0 2.4 Income tax expense 16.2 17.6 EBIT 72.9 73.2 Restructuring and other expense, net (1) 1.0 - Tax indemnification adjustment 0.2 (2.8 ) Gain on Sitem Group purchase derivative (4.0 ) - Adjusted EBIT 70.1 70.4 Depreciation and amortization 16.9 16.1 Adjusted EBITDA $ 87.0 $ 86.5 Net earnings margin 6.7 % 5.8 % Adjusted EBIT margin 8.4 % 7.7 % Adjusted EBITDA margin 10.4 % 9.5 % Expand Twelve Months Ended May 31, (In millions, except volume) 2025 2024 Volume (tons) 3,793,752 4,007,373 Net sales $ 3,093.3 $ 3,430.6 Net earnings attributable to controlling interest $ 110.7 $ 154.7 Interest expense, net 7.1 6.0 Income tax expense 28.8 46.1 EBIT 146.6 206.8 Impairment of assets (2) 4.6 0.9 Restructuring and other expense, net (3) 1.5 - Separation costs - 19.5 Tax indemnification adjustment 4.6 (2.8 ) Pension settlement gain (2.7 ) - Gain on land sale (1.5 ) - Gain on Sitem Group purchase derivative (4.0 ) - Adjusted EBIT 149.1 224.4 Depreciation and amortization 66.0 65.3 Adjusted EBITDA $ 215.1 $ 289.7 Net earnings margin 3.6 % 4.5 % Adjusted EBIT margin 4.8 % 6.5 % Adjusted EBITDA margin 7.0 % 8.4 % Expand ___________________________ (1) Excludes the noncontrolling interest portion of restructuring and other expense, net of $0.7 million in the fiscal 2025 period. (2) Excludes the noncontrolling interest portion of impairment of assets of $2.8 million and $0.5 million in the fiscal 2025 and prior year periods, respectively. (3) Excludes the noncontrolling interest portion of restructuring and other expense, net of $1.1 million in the fiscal 2025 period. Expand The table below provides a reconciliation from net earnings attributable to controlling interest (the most comparable GAAP financial measure) to the non-GAAP financial measures, EBITDA and adjusted EBITDA, for each of the past five fiscal quarters, the 12 months ended May 31, 2025, and the 12 months ended February 28, 2025. 2025 2025 2025 2025 2024 Net earnings attributable to controlling interest $ 55.7 $ 13.8 $ 12.8 $ 28.4 $ 53.2 Interest expense, net 1.0 1.4 2.1 2.6 2.4 Income tax expense 16.2 5.0 3.6 4.0 17.6 Depreciation and amortization 16.9 16.6 16.3 16.2 16.1 EBITDA 89.8 36.8 34.8 51.2 89.3 Impairment of assets (1) - 4.6 - - - Restructuring and other expense, net (2) 1.0 0.5 - - - Tax indemnification adjustment 0.2 - - 4.4 (2.8 ) Pension settlement gain - - (2.7 ) - - Gain on land sale - - (1.5 ) - - Gain on Sitem Group purchase derivative (4.0 ) - - - - Adjusted EBITDA $ 87.0 $ 41.9 $ 30.6 $ 55.6 $ 86.5 Trailing 12 months adjusted EBITDA $ 215.1 $ 214.6 Expand ___________________________ (1) Excludes the noncontrolling interest portion of impairment of assets of $2.8 million in the third quarter of fiscal 2025. (2) Excludes the noncontrolling interest portion of restructuring and other expense, net of $0.7 million and $0.4 million in the fourth quarter and third quarter of fiscal 2025, respectively. Expand The following provides a reconciliation of net cash provided by operating activities (the most comparable GAAP financial measure) to free cash flow for each of the past five fiscal quarters and the 12 months ended May 31, 2025. Free cash flow is a non-GAAP financial measure that management believes measures the Company's ability to generate cash beyond what is required for its business operations and capital expenditures. The following provides a reconciliation of total debt (the most comparable GAAP financial measure) to the non-GAAP financial measure net debt. Net debt is calculated by subtracting cash and cash equivalents from total debt (defined as the aggregate of short-term borrowings, current maturities of long-term debt, and long-term debt). The calculation of net debt as of May 31, 2025, is outlined below. To further assist in the analysis of results for the periods presented, the following information for the 12 month periods ended May 31, 2025, and May 31, 2024, has been provided along with a reconciliation of net earnings attributable to controlling interest (the most comparable GAAP financial measure) to pro forma adjusted EBIT. Pro forma adjusted EBIT is a non-GAAP financial measure that management believes includes incremental and on-going impacts to the Company's operating results as a stand-alone public company resulting from the Separation from the Former Parent. The pro forma financial information assumes the Separation occurred on June 1, 2022, the first day of the Company's 2023 fiscal year. The pro forma financial information has been prepared based upon the best available information and management estimates and is subject to assumptions and adjustments described in the accompanying footnotes. It is not intended to be a complete presentation of the Company's financial position or results of operations had the Separation occurred as of and for the periods indicated. In addition, the pro forma financial information is being provided for informational purposes only, and is not necessarily indicative of the Company's future results of operations or financial condition had the Separation and related transactions been completed on the dates assumed. Management believes these assumptions and estimates are reasonable, given the information available on the date of this release. The three months ended May 31, 2025 and May 31, 2024 did not include any pro forma adjustments given these periods were both subsequent to the Separation, and thus no reconciliation of net earnings attributable to controlling interest (the most comparable GAAP financial measure) to pro forma adjusted EBIT was included. There were no incremental pro forma adjustments made for the 12 months ended May 31, 2025, given this period included the actual results of operating as a stand-alone public company. For the 12 months ended May 31, 2024, the adjustments included in the information below represent the adjustments for the period prior to the Separation. ___________________________ (1) Excludes the noncontrolling interest portion of impairment of assets of $2.8 million and $0.5 million in the fiscal 2025 and prior year periods, respectively. (2) Excludes the noncontrolling interest portion of restructuring and other expense, net of $1.1 million in the fiscal 2025 period. (3) Reflects the incremental margin on sales to the Former Parent under the steel supply agreement between the Company and the Former Parent. (4) Includes an increase in SG&A expense for the 12 months ended May 31, 2024, to capture the effects of recurring and ongoing costs required to operate the Company's stand-alone corporate functions as well as public company costs, offset by lower corporate profit sharing and bonus expense post-separation than what was allocated to the Company in the combined financial statements due to the employee matters agreement with the Former Parent. Expand
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Micron Technology, Inc. Reports Results for the Third Quarter of Fiscal 2025
Record revenue in fiscal Q3 with growth across end marketsFiscal Q4 revenue projected to grow another 15% sequentially BOISE, Idaho, June 25, 2025 (GLOBE NEWSWIRE) -- Micron Technology, Inc. (Nasdaq: MU) today announced results for its third quarter of fiscal 2025, which ended May 29, 2025. Fiscal Q3 2025 highlights Revenue of $9.30 billion versus $8.05 billion for the prior quarter and $6.81 billion for the same period last year GAAP net income of $1.89 billion, or $1.68 per diluted share Non-GAAP net income of $2.18 billion, or $1.91 per diluted share Operating cash flow of $4.61 billion versus $3.94 billion for the prior quarter and $2.48 billion for the same period last year 'Micron delivered record revenue in fiscal Q3, driven by all-time-high DRAM revenue including nearly 50% sequential growth in HBM revenue. Data center revenue more than doubled year-over-year and reached a quarterly record, and consumer-oriented end markets had strong sequential growth,' said Sanjay Mehrotra, Chairman, President and CEO of Micron Technology. 'We are on track to deliver record revenue with solid profitability and free cash flow in fiscal 2025, while we make disciplined investments to build on our technology leadership and manufacturing excellence to satisfy growing AI-driven memory demand.' Quarterly Financial Results (in millions, except per share amounts) GAAP(1) Non-GAAP(2) FQ3-25 FQ2-25 FQ3-24 FQ3-25 FQ2-25 FQ3-24 Revenue $ 9,301 $ 8,053 $ 6,811 $ 9,301 $ 8,053 $ 6,811 Gross margin 3,508 2,963 1,832 3,623 3,053 1,917 percent of revenue 37.7 % 36.8 % 26.9 % 39.0 % 37.9 % 28.1 % Operating expenses 1,339 1,190 1,113 1,133 1,046 976 Operating income 2,169 1,773 719 2,490 2,007 941 percent of revenue 23.3 % 22.0 % 10.6 % 26.8 % 24.9 % 13.8 % Net income 1,885 1,583 332 2,181 1,783 702 Diluted earnings per share 1.68 1.41 0.30 1.91 1.56 0.62 For the third quarter of 2025, investments in capital expenditures, net(2) were $2.66 billion and adjusted free cash flow(2) was $1.95 billion. Micron ended the quarter with cash, marketable investments, and restricted cash of $12.22 billion. On June 25, 2025, Micron's Board of Directors declared a quarterly dividend of $0.115 per share, payable in cash on July 22, 2025, to shareholders of record as of the close of business on July 7, 2025. Business Outlook The following table presents Micron's guidance for the fourth quarter of 2025: FQ4-25 GAAP(1) Outlook Non-GAAP(2) Outlook Revenue $10.7 billion ± $300 million $10.7 billion ± $300 million Gross margin 41.0% ± 1.0% 42.0% ± 1.0% Operating expenses $1.35 billion ± $20 million $1.20 billion ± $20 million Diluted earnings per share $2.29 ± $0.15 $2.50 ± $0.15 Further information regarding Micron's business outlook is included in the prepared remarks and slides, which have been posted at Investor Webcast Micron will host a conference call on Wednesday, June 25, 2025 at 2:30 p.m. Mountain Time to discuss its third quarter financial results and provide forward-looking guidance for its fourth quarter. A live webcast of the call will be available online at A webcast replay will be available for one year after the call. For Investor Relations and other company updates, follow us on X @MicronTech. About Micron Technology, Inc. We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, manufacturing, and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence (AI) and compute-intensive applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience. To learn more about Micron Technology, Inc. (Nasdaq: MU), visit © 2025 Micron Technology, Inc. All rights reserved. Micron, the Micron logo, and all other Micron trademarks are the property of Micron Technology, Inc. All other trademarks are the property of their respective owners. Forward-Looking Statements This press release contains forward-looking statements regarding our technologies, demand for our products, our investments, our industry and our financial and operating results, including our expectations and guidance for the fourth quarter of 2025 and full fiscal year. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially. Please refer to the documents we file with the Securities and Exchange Commission, including our most recent Form 10-K and our upcoming Form 10-Q. These documents contain and identify important factors that could cause our actual results to differ materially from those contained in these forward-looking statements. These certain factors can be found at Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. We are under no duty to update any of the forward-looking statements to conform these statements to actual results. (1) GAAP represents U.S. Generally Accepted Accounting Principles. (2) Non-GAAP represents GAAP excluding the impact of certain activities, which management excludes in analyzing our operating results and understanding trends in our earnings, adjusted free cash flow, and business outlook. Further information regarding Micron's use of non-GAAP measures and reconciliations between GAAP and non-GAAP measures are included within this press release. MICRON TECHNOLOGY, STATEMENTS OF OPERATIONS(In millions, except per share amounts)(Unaudited) 3rd Qtr. 2nd Qtr. 3rd Qtr. Nine Months Ended May 29,2025 February 27,2025 May 30,2024 May 29,2025 May 30,2024 Revenue $ 9,301 $ 8,053 $ 6,811 $ 26,063 $ 17,361 Cost of goods sold 5,793 5,090 4,979 16,244 14,485 Gross margin 3,508 2,963 1,832 9,819 2,876 Research and development 965 898 850 2,751 2,527 Selling, general, and administrative 318 285 291 891 834 Other operating (income) expense, net 56 7 (28 ) 61 (267 ) Operating income (loss) 2,169 1,773 719 6,116 (218 ) Interest income 135 108 136 350 398 Interest expense (123 ) (112 ) (150 ) (353 ) (426 ) Other non-operating income (expense), net (68 ) (11 ) 10 (90 ) (24 ) 2,113 1,758 715 6,023 (270 ) Income tax (provision) benefit (235 ) (177 ) (377 ) (695 ) 172 Equity in net income (loss) of equity method investees 7 2 (6 ) 10 (11 ) Net income (loss) $ 1,885 $ 1,583 $ 332 $ 5,338 $ (109 ) Earnings (loss) per share Basic $ 1.69 $ 1.42 $ 0.30 $ 4.79 $ (0.10 ) Diluted 1.68 1.41 0.30 4.75 (0.10 ) Number of shares used in per share calculations Basic 1,118 1,115 1,107 1,114 1,104 Diluted 1,125 1,123 1,123 1,123 1,104 MICRON TECHNOLOGY, BALANCE SHEETS(In millions)(Unaudited) As of May 29,2025 February 27,2025 August 29,2024 Assets Cash and cash equivalents $ 10,163 $ 7,552 $ 7,041 Short-term investments 648 663 1,065 Receivables 7,436 6,504 6,615 Inventories 8,727 9,007 8,875 Other current assets 945 963 776 Total current assets 27,919 24,689 24,372 Long-term marketable investments 1,402 1,375 1,046 Property, plant, and equipment 44,773 42,528 39,749 Operating lease right-of-use assets 628 637 645 Intangible assets 426 423 416 Deferred tax assets 483 552 520 Goodwill 1,150 1,150 1,150 Other noncurrent assets 1,616 1,699 1,518 Total assets $ 78,397 $ 73,053 $ 69,416 Liabilities and equity Accounts payable and accrued expenses $ 8,761 $ 6,176 $ 7,299 Current debt 538 504 431 Other current liabilities 836 1,197 1,518 Total current liabilities 10,135 7,877 9,248 Long-term debt 15,003 13,851 12,966 Noncurrent operating lease liabilities 600 599 610 Noncurrent unearned government incentives 603 836 550 Other noncurrent liabilities 1,308 1,257 911 Total liabilities 27,649 24,420 24,285 Commitments and contingencies Shareholders' equity Common stock 126 126 125 Additional capital 12,960 12,711 12,115 Retained earnings 45,559 43,839 40,877 Treasury stock (7,852 ) (7,852 ) (7,852 ) Accumulated other comprehensive income (loss) (45 ) (191 ) (134 ) Total equity 50,748 48,633 45,131 Total liabilities and equity $ 78,397 $ 73,053 $ 69,416 MICRON TECHNOLOGY, STATEMENTS OF CASH FLOWS(In millions)(Unaudited) Nine Months Ended May 29,2025 May 30,2024 Cash flows from operating activities Net income (loss) $ 5,338 $ (109 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation expense and amortization of intangible assets 6,203 5,794 Stock-based compensation 722 620 Change in operating assets and liabilities: Receivables (123 ) (2,562 ) Inventories 148 (125 ) Other current assets (206 ) (435 ) Accounts payable and accrued expenses 38 846 Other current liabilities (681 ) 769 Other 356 304 Net cash provided by operating activities 11,795 5,102 Cash flows from investing activities Expenditures for property, plant, and equipment (10,199 ) (5,266 ) Purchases of available-for-sale securities (1,203 ) (1,110 ) Proceeds from government incentives 1,294 267 Proceeds from maturities and sales of available-for-sale securities 1,249 1,433 Other (30 ) (35 ) Net cash used for investing activities (8,889 ) (4,711 ) Cash flows from financing activities Proceeds from issuance of debt 4,430 999 Repayments of debt (3,604 ) (1,816 ) Payments of dividends to shareholders (392 ) (384 ) Payments on equipment purchase contracts — (127 ) Other (220 ) (40 ) Net cash provided by (used for) financing activities 214 (1,368 ) Effect of changes in currency exchange rates on cash, cash equivalents, and restricted cash (3 ) (15 ) Net increase (decrease) in cash, cash equivalents, and restricted cash 3,117 (992 ) Cash, cash equivalents, and restricted cash at beginning of period 7,052 8,656 Cash, cash equivalents, and restricted cash at end of period $ 10,169 $ 7,664 MICRON TECHNOLOGY, OF GAAP TO NON-GAAP MEASURES(In millions, except per share amounts) 3rd Qtr. 2nd Qtr. 3rd Qtr. May 29,2025 February 27,2025 May 30,2024 GAAP gross margin $ 3,508 $ 2,963 $ 1,832 Stock-based compensation 115 89 80 Other — 1 5 Non-GAAP gross margin $ 3,623 $ 3,053 $ 1,917 GAAP operating expenses $ 1,339 $ 1,190 $ 1,113 Stock-based compensation (148 ) (144 ) (137 ) Patent license charges (57 ) — — Other (1 ) — — Non-GAAP operating expenses $ 1,133 $ 1,046 $ 976 GAAP operating income $ 2,169 $ 1,773 $ 719 Stock-based compensation 263 233 217 Patent license charges 57 — — Other 1 1 5 Non-GAAP operating income $ 2,490 $ 2,007 $ 941 GAAP net income $ 1,885 $ 1,583 $ 332 Stock-based compensation 263 233 217 Patent license charges 57 — — Loss on debt prepayments 46 4 — Other 1 — 3 Estimated tax effects of above and other tax adjustments (71 ) (37 ) 150 Non-GAAP net income $ 2,181 $ 1,783 $ 702 GAAP weighted-average common shares outstanding - Diluted 1,125 1,123 1,123 Adjustment for stock-based compensation 19 20 13 Non-GAAP weighted-average common shares outstanding - Diluted 1,144 1,143 1,136 GAAP diluted earnings per share $ 1.68 $ 1.41 $ 0.30 Effects of the above adjustments 0.23 0.15 0.32 Non-GAAP diluted earnings per share $ 1.91 $ 1.56 $ 0.62 RECONCILIATION OF GAAP TO NON-GAAP MEASURES, Continued 3rd Qtr. 2nd Qtr. 3rd Qtr. May 29,2025 February 27,2025 May 30,2024 GAAP net cash provided by operating activities $ 4,609 $ 3,942 $ 2,482 Expenditures for property, plant, and equipment (2,938 ) (4,055 ) (2,086 ) Payments on equipment purchase contracts — — (45 ) Proceeds from sales of property, plant, and equipment 12 7 41 Proceeds from government incentives 266 963 33 Investments in capital expenditures, net (2,660 ) (3,085 ) (2,057 ) Adjusted free cash flow $ 1,949 $ 857 $ 425 The tables above reconcile GAAP to non-GAAP measures of gross margin, operating expenses, operating income, net income, diluted shares, diluted earnings per share, and adjusted free cash flow. The non-GAAP adjustments above may or may not be infrequent or nonrecurring in nature but are a result of periodic or non-core operating activities. We believe this non-GAAP information is helpful in understanding trends and in analyzing our operating results and earnings. We are providing this information to investors to assist in performing analysis of our operating results. When evaluating performance and making decisions on how to allocate our resources, management uses this non-GAAP information and believes investors should have access to similar data when making their investment decisions. We believe these non-GAAP financial measures increase transparency by providing investors with useful supplemental information about the financial performance of our business, enabling enhanced comparison of our operating results between periods and with peer companies. The presentation of these adjusted amounts varies from amounts presented in accordance with U.S. GAAP and therefore may not be comparable to amounts reported by other companies. Our management excludes the following items as applicable in analyzing our operating results and understanding trends in our earnings: Stock-based compensation; Gains and losses from settlements; Gains and losses from debt prepayments; Restructure and asset impairments; and The estimated tax effects of above, non-cash changes in net deferred income taxes, assessments of tax exposures, certain tax matters related to prior fiscal periods, and significant changes in tax law. The divergence between our GAAP and non-GAAP income tax provision relates to the difference in our GAAP and non-GAAP estimated annual effective tax rates, which are computed separately. Non-GAAP diluted shares are adjusted for the impact of additional shares resulting from the exclusion of stock-based compensation from non-GAAP income. MICRON TECHNOLOGY, OF GAAP TO NON-GAAP OUTLOOK FQ4-25 GAAP Outlook Adjustments Non-GAAP Outlook Revenue $10.7 billion ± $300 million — $10.7 billion ± $300 million Gross margin 41.0% ± 1.0% 1.0% A 42.0% ± 1.0% Operating expenses $1.35 billion ± $20 million $147 million B $1.20 billion ± $20 million Diluted earnings per share(1) $2.29 ± $0.15 $0.21 A, B, C $2.50 ± $0.15Non-GAAP Adjustments(in millions) A Stock-based compensation – cost of goods sold $ 119 B Stock-based compensation – research and development 93 B Stock-based compensation – sales, general, and administrative 54 C Tax effects of the above items and other tax adjustments (27 ) $ 239 (1) GAAP earnings per share based on approximately 1.13 billion diluted shares and non-GAAP earnings per share based on approximately 1.15 billion diluted shares. The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, additional restructuring activities, balance sheet valuation adjustments, strategic investments, financing transactions, and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control. CONTACT: Contacts: Satya Kumar Investor Relations satyakumar@ (408) 450-6199 Mark Plungy Media Relations mplungy@ (408) 203-2910Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
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Leerink Partners Keeps a Hold Rating on Henry Schein (HSIC) With a $69 PT
Henry Schein, Inc. (NASDAQ:HSIC) is one of the . On June 16, Leerink Partners analyst Michael Cherny maintained a Hold rating on Henry Schein, Inc. (NASDAQ:HSIC) and set a price target of $69.00. The company also announced the successful completion of a $250 million strategic investment on May 16, which was extended by funds affiliated with KKR, a leading global investment firm. The closing of the transaction made KKR the holder of around 12% of the company's common shares. A close-up of a patient's mouth, the dental products from the company in view. Henry Schein, Inc. (NASDAQ:HSIC) reported a 22% growth in GAAP diluted EPS for fiscal Q1 2025, reaching $0.88. Non-GAAP diluted EPS for the quarter underwent a 4.5% rise to $1.15 when compared to the same period last year. Henry Schein, Inc. (NASDAQ:HSIC) is also advancing its BOLD+1 Strategic Plan, refreshing it for the 2025 to 2027 period. The plan focuses on expanding the company's corporate brand products and dental and medical specialty businesses, growing its distribution business by improving customer experience and rising operational efficiency, and developing its digital solutions and digital footprint. Henry Schein, Inc. (NASDAQ:HSIC) provides healthcare services and products to medical, veterinary, and dental office-based practitioners. It operates in the Healthcare Distribution and Technology and Value-Added Services business segments. While we acknowledge the potential of HSIC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
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4 days ago
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BB's Q1 Earnings Beat, Revenues Down Y/Y, Stock Up on Improved Outlook
BlackBerry Limited BB reported first-quarter fiscal 2026 non-GAAP earnings per share (EPS) of 2 cents. The figure beat the company's estimate of a loss of 1 cent to breakeven. In the year-ago quarter, it reported a non-GAAP loss of 2 cents. The Zacks Consensus Estimate was pegged at total revenues of $121.7 million exceeded its guidance ($107-$115 million) but fell 1.4% year over year, mainly due to soft sales in Secure Communications and Licensing units amid continued strength in the QNX continues to operate in a challenging macro environment, with some customers delaying guidance amid ongoing uncertainty. While automotive tariffs have not had a direct impact, they have contributed to delays in customer purchasing decisions. Potential supply chain disruptions for OEMs may also affect production volumes and, in turn, royalty revenues. These factors are reflected in its guidance, which will be continuously reviewed throughout fiscal 2026. Despite market fluctuations, BB has maintained its full-year revenue guidance of $250–$270 million and adjusted EBITDA of $55–$60 million for the QNX exceeded fiscal first-quarter Secure Comms expectations by closing major Secusmart deals earlier than planned. With a strong pipeline ahead, it has raised full-year revenue guidance by $4 million to $234–$244 million and adjusted EBITDA to $37–$47 million (16–19%). It continues to project Licensing & Other revenues to be around $24 million. Non-GAAP loss per share is expected to be between 8 cents and 10 cents, the same as the prior view. BlackBerry Limited price-consensus-eps-surprise-chart | BlackBerry Limited Quote With a stronger outlook for Secure Communications revenues and EBITDA, the company has also raised its fiscal 2026 revenue guidance. It now projects total revenues of $508–$538 million and adjusted EBITDA of $72–$87 million. Previously, it estimated revenues to be between $504 million and $534 million and adjusted EBITDA of $69–$84 better-than-anticipated performance and bolstered view, BB's shares gained 10% in the pre-market trading on June 25, 2025. The stock has gained 95.9% in the past year compared with the Zacks Internet-Software industry's growth of 37.6%. Image Source: Zacks Investment Research Revenues from the QNX business totaled $57.5 million, surpassing the high end of guidance ($51-$55 million). This reflects 8% year-over-year growth, despite ongoing uncertainty in the auto market and recent tariff announcements. The growth was mainly driven by a 9% increase in royalties and a 23% rise in development seat license revenues. During the quarter, the company continued its design win momentum in the core digital cockpit and ADAS. GEM now makes up 43% of the total SDP 8.0 pipeline, which grew 55% in the Communication revenues declined 7.3% year over year to $59.5 million. It, however, beat the top limit of guidance ($50-$54 million) driven by steady traction in its Secusmart product. It was a strong quarter for German government sales, with some large deals closing early. The global pipeline is growing, especially in defense, as governments seek more secure tools. Despite long government sales cycles, BB anticipates more Secusmart deals this year. Increasing design wins for AtHoc and UEM are another revenues reached $4.7 million compared with $6 million in the previous-year quarter, due to lower revenues from existing licensing deals. Malikie, which bought BB's noncore patents, is exploring new licensing opportunities. While no extra revenues are expected this year, management expects healthy performance in fiscal 2027 and fiscal 2028. Adjusted gross margin was 74.6%, up from 73.5% in the year-ago period. QNX's gross margin fell 1% year over year to 81% due to adverse forex impacts. Secure Comms' gross margin was 70%, up both sequentially and year over year, driven by a higher share of Secusmart software EBITDA was $16.4 million, up from $10.5 million in the year-ago quarter, owing to effective cost management. The company expected adjusted EBITDA to be breakeven to $7 million. QNX's adjusted EBITDA for the quarter came in above the high end of guidance ($2-$6 million) at $12.7 million. Strong leverage in the Secure Communications model helped the division beat expectations ($3-$6 million) with adjusted EBITDA of $9.6 million. Licensing adjusted EBITDA lagged projection (around $5 million) at $3.8 operating expenses were $78.4 million, down 7.5%. For the quarter that ended on May 31, 2025, BlackBerry used $18 million of net cash in operating activities compared with $15 million in the prior-year quarter. Management had guided the usage of $20-$30 of May 31, BlackBerry had $381.9 million in cash, cash equivalents, short-term and long-term investments, down from $410 million as of Feb. 28, 2025. The company returned $10 million to shareholders during the quarter via a buyback of 2.57 million common shares. The company expects fiscal second-quarter 2026 revenues to be in the $115-$125 million range. Non-GAAP EPS is expected to range between breakeven and 1 cent. It forecasts an operating cash usage of $5-$15 million band and adjusted EBITDA to be between $8 million and $14 is taking a cautious stance on QNX due to possible impacts from tariffs and slower buying decisions, mostly for fresh products like QNX Cabin. It expects revenues of $55–$60 million and adjusted EBITDA of $10–$13 by a strong Secure Communications' pipeline, it expects revenues of $54–$59 million and adjusted EBITDA of $3–$6 million. BB continues to expect licensing revenues of about $6 million and adjusted EBITDA of about $5 million per quarter. At present, BlackBerry carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. CoreWeave CRWV reported first-quarter 2025 loss per share of $1.49, which was much wider than a loss of 62 cents in the year-ago quarter. Adjusted net loss for the quarter was $149.6 million compared with a loss of $23.6 million a year ago. Shares of CoreWeave have surged 68% in the past month. Atlassian Corporation TEAM reported third-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Its non-GAAP earnings per share of 97 cents beat the Zacks Consensus Estimate by 7.8%. The figure jumped 9% from the year-ago quarter's non-GAAP earnings of 89 cents per share. Shares of TEAM have fallen 3% in the past Software, Inc GWRE reported non-GAAP earnings per share of 88 cents in third-quarter fiscal 2025 (ended April 30, 2025), up 238.5% year over year and beat the Zacks Consensus Estimate by 91.3%. In the past month, shares of GWRE have gained 13.1%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Business Wire
17-06-2025
- Business
- Business Wire
Jabil Posts Third Quarter Results
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Today, Jabil Inc. (NYSE: JBL), reported preliminary, unaudited financial results for its third quarter of fiscal year 2025. Third Quarter of Fiscal Year 2025 Highlights: Net revenue: $7.8 billion U.S. GAAP operating income: $403 million U.S. GAAP diluted earnings per share: $2.03 Core operating income (Non-GAAP): $420 million Core diluted earnings per share (Non-GAAP): $2.55 "We delivered a strong third quarter, outperforming expectations across key end-markets such as cloud, data center infrastructure, and capital equipment,' said CEO Mike Dastoor. "Our Intelligent Infrastructure segment remains a critical growth engine, benefiting from accelerating AI-driven demand. Despite softness in areas like EVs, Renewables, and 5G, our diversified portfolio and operational discipline have us tracking toward record core earnings per share. Looking ahead, we remain focused on enhancing core margins, optimizing cash flow, and returning value to shareholders—primarily through share repurchases and targeted investments in higher-margin opportunities," he added. Fourth Quarter of Fiscal Year 2025 Outlook: ____________________ (1) Core operating income and core diluted earnings per share exclude anticipated adjustments of $17 million for amortization of intangibles (or $0.14 per diluted share) and $20 million for stock-based compensation expense and related charges (or $0.18 per diluted share) and $60 million to $40 million (or $0.53 to $0.35 per diluted share) for restructuring, severance and related charges. Expand Fiscal Year 2025 Outlook: (Definitions: 'U.S. GAAP' means U.S. generally accepted accounting principles. Jabil defines core operating income as U.S. GAAP operating income less amortization of intangibles, stock-based compensation expense and related charges, restructuring, severance and related charges, distressed customer charges, loss on disposal of subsidiaries, settlement of receivables and related charges, impairment of notes receivable and related charges, goodwill impairment charges, business interruption and impairment charges, net, (gain) loss from the divestiture of businesses, acquisition and divestiture related charges, plus other components of net periodic benefit cost. Jabil defines core earnings as core operating income, less loss on debt extinguishment, loss (gain) on securities, other components of net periodic benefit cost, income (loss) from discontinued operations, gain (loss) on sale of discontinued operations and certain other expenses, net of tax and certain deferred tax valuation allowance charges. Jabil defines core diluted earnings per share as core earnings divided by the weighted average number of outstanding diluted shares as determined under U.S. GAAP. Jabil defines adjusted free cash flow as net cash provided by (used in) operating activities less net capital expenditures (acquisition of property, plant and equipment less proceeds and advances from sale of property, plant and equipment). Jabil reports core operating income, core earnings, core diluted earnings per share and adjusted free cash flow to provide investors an additional method for assessing operating income, earnings, diluted earnings per share and free cash flow from what it believes are its core manufacturing operations. See the accompanying reconciliation of Jabil's core operating income to its U.S. GAAP operating income, its calculation of core earnings and core diluted earnings per share to its U.S. GAAP net income and U.S. GAAP earnings per share and additional information in the supplemental information.) Forward Looking Statements: This release contains forward-looking statements, including those regarding our anticipated financial results for our third quarter of fiscal year 2025 and our guidance for future financial performance in our fourth quarter of fiscal year 2025 (including, net revenue, U.S. GAAP operating income, U.S. GAAP diluted earnings per share, core operating income (Non-GAAP), core diluted earnings per share (Non-GAAP) results and the components thereof, including but not limited to amortization of intangibles, stock-based compensation expense and related charges and restructuring, severance and related charges); and our full year 2025 (including net revenue, core operating margin (Non-GAAP), core diluted earnings per share (Non-GAAP), the components thereof and adjusted free cash flow (Non-GAAP)). The statements in this release are based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially from our current expectations. Such factors include, but are not limited to: our determination as we finalize our financial results for our third quarter of fiscal year 2025 that our financial results and conditions differ from our current preliminary unaudited numbers set forth herein; scheduling production, managing growth and capital expenditures and maximizing the efficiency of our manufacturing capacity effectively; managing rapid declines or increases in customer demand and other related customer challenges that may occur; our dependence on a limited number of customers; our ability to purchase components efficiently and reliance on a limited number of suppliers for critical components; risks arising from relationships with emerging companies; changes in technology and competition in our industry; our ability to introduce new business models or programs requiring implementation of new competencies; competition; transportation issues; our ability to maintain our engineering, technological and manufacturing expertise; retaining key personnel; risks associated with international sales and operations, including geopolitical uncertainties; energy price increases or shortages; our ability to achieve expected profitability from acquisitions; risk arising from our restructuring activities; issues involving our information systems, including security issues; regulatory risks (including the expense of complying, or failing to comply, with applicable regulations; risk arising from design or manufacturing defects; risk arising from compliance, or failure to comply, with environmental, health and safety laws or regulations; risk arising from litigation; and intellectual property risk); financial risks (including customers or suppliers who become financially troubled; turmoil in financial markets; tax risks; credit rating risks; risks of exposure to debt; currency fluctuations; and asset impairment); changes in financial accounting standards or policies; risk of natural disaster, climate change or other global events; and risks arising from expectations relating to environmental, social and governance considerations. Additional factors that could cause such differences can be found in our Annual Report on Form 10-K for the fiscal year ended August 31, 2024 and our other filings with the Securities and Exchange Commission. We assume no obligation to update these forward-looking statements. Supplemental Information Regarding Non-GAAP Financial Measures: Jabil provides supplemental, non-GAAP financial measures in this release to facilitate evaluation of Jabil's core operating performance. These non-GAAP measures exclude certain amounts that are included in the most directly comparable U.S. GAAP measures, do not have standard meanings and may vary from the non-GAAP financial measures used by other companies. Management believes these 'core' financial measures are useful measures that facilitate evaluation of the past and future performance of Jabil's ongoing operations on a comparable basis. Jabil reports core operating income, core earnings, core diluted earnings per share and adjusted free cash flows to provide investors an additional method for assessing operating income, earnings, earnings per share and free cash flow from what it believes are its core manufacturing operations. Among other uses, management uses non-GAAP financial measures to make operating decisions, assess business performance and as a factor in determining certain employee performance when determining incentive compensation. The Company determines an annual normalized tax rate ('normalized core tax rate') for the computation of the non-GAAP (core) income tax provision to provide better consistency across reporting periods. In estimating the normalized core tax rate annually, the Company utilizes a full-year financial projection of core earnings that considers the mix of earnings across tax jurisdictions, existing tax positions, and other significant tax matters. The Company may adjust the normalized core tax rate during the year for material impacts from new tax legislation or material changes to the Company's operations. Detailed definitions of certain of the core financial measures are included above under 'Definitions' and a reconciliation of the disclosed core financial measures to the most directly comparable U.S. GAAP financial measures is included under the heading 'Supplemental Data' at the end of this release. Meeting and Replay Information: Jabil will hold a conference call today at 8:30 a.m. ET to discuss its earnings for the third quarter of fiscal year 2025. To access the live audio webcast and view the accompanying slide presentation, visit the Investor Relations section of Jabil's website, located at An archived replay of the webcast will also be available after completion of the call. About Jabil: At Jabil (NYSE: JBL), we are proud to be a trusted partner for the world's top brands, offering comprehensive engineering, supply chain, and manufacturing solutions. With over 50 years of experience across industries and a vast network of over 100 sites worldwide, Jabil combines global reach with local expertise to deliver both scalable and customized solutions. Our commitment extends beyond business success as we strive to build sustainable processes that minimize environmental impact and foster vibrant and diverse communities around the globe. Discover more at JABIL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except for per share data) (Unaudited) Three months ended Nine months ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Net revenue $ 7,828 $ 6,765 $ 21,550 $ 21,919 Cost of revenue 7,147 6,157 19,687 19,906 Gross profit 681 608 1,863 2,013 Operating expenses: Selling, general and administrative 274 268 835 890 Research and development 7 9 22 29 Amortization of intangibles 17 12 45 27 Restructuring, severance and related charges 16 55 144 252 Gain from the divestiture of businesses (45 ) — (45 ) (944 ) Acquisition and divestiture related charges 9 3 17 64 Operating income 403 261 845 1,695 Loss on securities 46 — 46 — Interest and other, net 67 60 186 197 Income before income tax 290 201 613 1,498 Income tax expense 68 72 174 248 Net income 222 129 439 1,250 Net income attributable to noncontrolling interests, net of tax — — — — Net income attributable to Jabil Inc. $ 222 $ 129 $ 439 $ 1,250 Earnings per share attributable to the stockholders of Jabil Inc.: Basic $ 2.05 $ 1.08 $ 3.98 $ 10.01 Diluted $ 2.03 $ 1.06 $ 3.94 $ 9.86 Weighted average shares outstanding: Basic 108.0 119.9 110.2 124.9 Diluted 109.3 121.7 111.5 126.9 Expand JABIL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions) (Unaudited) Nine months ended May 31, 2025 May 31, 2024 Cash flows provided by operating activities: Net income $ 439 $ 1,250 Depreciation, amortization, and other, net 622 557 Gain from the divestiture of businesses (45 ) (944 ) Change in operating assets and liabilities, exclusive of net assets acquired 36 318 Net cash provided by operating activities 1,052 1,181 Cash flows (used in) provided by investing activities: Acquisition of property, plant and equipment (299 ) (660 ) Proceeds and advances from sale of property, plant and equipment 60 115 Cash paid for business and intangible asset acquisitions, net of cash (393 ) (90 ) Proceeds from the divestiture of businesses, net of cash 54 2,108 Other, net — (6 ) Net cash (used in) provided by investing activities (578 ) 1,467 Cash flows used in financing activities: Borrowings under debt agreements 1,604 1,895 Payments toward debt agreements (1,720 ) (1,987 ) Payments to acquire treasury stock (975 ) (1,824 ) Dividends paid to stockholders (28 ) (32 ) Net proceeds from exercise of stock options and issuance of common stock under employee stock purchase plan 33 31 Treasury stock minimum tax withholding related to vesting of restricted stock (41 ) (68 ) Other, net (38 ) (4 ) Net cash used in financing activities (1,165 ) (1,989 ) Effect of exchange rate changes on cash and cash equivalents 13 (6 ) Net (decrease) increase in cash and cash equivalents (678 ) 653 Cash and cash equivalents at beginning of period 2,201 1,804 Cash and cash equivalents at end of period $ 1,523 $ 2,457 Expand JABIL INC. AND SUBSIDIARIES SUPPLEMENTAL DATA RECONCILIATION OF U.S. GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES (in millions, except for per share data) (Unaudited) Three months ended Nine months ended May 31, 2025 May 31, 2024 May 31, 2025 May 31, 2024 Operating income (U.S. GAAP) $ 403 $ 261 $ 845 $ 1,695 Amortization of intangibles 17 12 45 27 Stock-based compensation expense and related charges 19 3 84 72 Restructuring, severance and related charges (1) 16 55 144 252 Net periodic benefit cost — 2 1 7 Business interruption and impairment charges, net (2) 1 14 10 14 Gain from the divestiture of businesses (3) (45 ) — (45 ) (944 ) Acquisition and divestiture related charges (3) 9 3 17 64 Adjustments to operating income 17 89 256 (508 ) Core operating income (Non-GAAP) $ 420 $ 350 $ 1,101 $ 1,187 Net income attributable to Jabil Inc. (U.S. GAAP) $ 222 $ 129 $ 439 $ 1,250 Adjustments to operating income 17 89 256 (508 ) Loss on securities (4) 46 — 46 — Net periodic benefit cost — (2 ) (1 ) (7 ) Adjustments for taxes (6 ) 14 (18 ) 51 Core earnings (Non-GAAP) $ 279 $ 230 $ 722 $ 786 Diluted earnings per share (U.S. GAAP) $ 2.03 $ 1.06 $ 3.94 $ 9.86 Diluted core earnings per share (Non-GAAP) $ 2.55 $ 1.89 $ 6.48 $ 6.20 Diluted weighted average shares outstanding (U.S. GAAP and Non-GAAP) 109.3 121.7 111.5 126.9 Expand ____________________ (1) Charges recorded during the three months and nine months ended May 31, 2025 and May 31, 2024, primarily related to the 2025 Restructuring Plan and 2024 Restructuring Plan, respectively. (2) Charges recorded during the nine months ended May 31, 2025, relate primarily to costs associated with damage from Hurricanes Helene and Milton, which impacted our operations in St. Petersburg, Florida and Asheville and Hendersonville, North Carolina. Charges recorded during the three months and nine months ended May 31, 2024, related to costs associated with product quality liabilities. (3) We completed the divestiture of our Mobility Business and recorded a pre-tax gain of $944 million during the nine months ended May 31, 2024. Certain post-closing adjustments were realized in March 2025, which resulted in the recognition of a $54 million pre-tax gain during the three months ended May 31, 2025. We incurred transaction and disposal costs in connection with the sale of approximately $64 million during the nine months ended May 31, 2024. (4) Charges recorded during the three months and nine months ended May 31, 2025, relate to an impairment of an investment in Preferred Stock. Expand ____________________ (1) Certain customers co-invest in PP&E with us. As we acquire PP&E, we recognize the cash payments in acquisition of PP&E. When our customers reimburse us and obtain control, we recognize the cash receipts in proceeds and advances from the sale of PP&E. Expand
