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# Worthington Steel CEO: Tight Supply Cost 30,000 Tons Of Shipments, But Spreads Should Hold
- URL: https://www.bullished.co/worthington-steel-ceo-tight-supply-cost-30-000-tons-of-shipments-but-spreads-should-hold-ec09b56a/
- Published: 2026-10-07T14:01:55.000Z
- Updated: 2026-10-07T14:01:55.000Z
- Description: Geoff Gilmore called it "one of the most challenging steel supply environments" he has seen, yet expects pricing to carry into January contracts.
- Author: Matteo Parrino
- Tags: Earnings, WS, Industry: Materials

[Worthington Steel](https://www.bullished.co/tag/ws/) CEO Geoff Gilmore said on the company's first-quarter fiscal 2027 earnings call that steel supply is as tight as he has seen, and that it cost the company about 30,000 tons of shipments in the quarter. He still expects strong pricing to carry into the contract season that starts January 1st.

## What Gilmore said about supply

Gilmore, the company's president and chief executive, told listeners: "this is one of the most challenging steel supply environments most of us have ever seen." He cited tight supply, long lead times and shifting production schedules, and said imports are down in the U.S.

An analyst asked about lost volume. Gilmore said the company "probably missed out on another 30,000 tons of shipments this quarter just due to the supply chain constraints." Share gains in heavy truck, agriculture and automotive still supported volumes.

Agriculture was the standout, with shipments up 40% year over year, mostly from OEM equipment and grain bin demand. Construction demand fell in the quarter, though data center projects helped. Heavy truck and trailer showed signs of stabilizing, and Gilmore said North American auto production should stay essentially flat versus calendar 2025.

On the numbers, he reported net sales of $2.7 billion, adjusted EBITDA of $111 million and adjusted [earnings per share of $0.57](https://sg.finance.yahoo.com/news/worthington-steel-falls-short-q1-210347210.html?ref=bullished.co). This is the first quarter that includes Kloeckner.

## Why he thinks spreads will last

Asked whether spreads, the gap between selling price and steel cost, can survive rising hot-rolled prices, Gilmore said "sustainability is an absolute go." He pointed to limited imports, little spot tonnage and contracts covering "90% or more" of the business.

The effect should show up as the company enters the new contract season on January 1st. Chief Financial Officer Tim Adams said mill maintenance outages should keep lead times extended.

Adams estimated pre-tax [inventory holding gains of $10 million](https://www.marketwatch.com/story/worthington-steel-swings-to-1q-loss-despite-kloeckner-acquisition-tripling-revenue-621cb521?ref=bullished.co) to $15 million in the legacy business for the second quarter, and said coil prices ended the quarter around $1,200 per ton. Shares fell about 7% to $35.64 in Wednesday trading, as of 9:55 a.m. ET (market data).

## The Kloeckner timetable

Gilmore said the Kloeckner deal closed June 3rd and its shares were delisted from Frankfurt on August 12th. A control and profit-transfer agreement was signed September 8th and still needs shareholder approval in October.

If approved and effective, it would give Worthington operational control and start formal integration and synergy work in the first quarter of calendar 2027.

Two dated items decide whether Gilmore's pricing view holds up: the January 1st contract season, and the Kloeckner shareholder vote in October.

### Sources

- [Worthington Steel Swings to 1Q Loss Despite Kloeckner Acquisition Tripling Revenue](https://www.marketwatch.com/story/worthington-steel-swings-to-1q-loss-despite-kloeckner-acquisition-tripling-revenue-621cb521?ref=bullished.co) — MarketWatch
- [Worthington Steel falls short on Q1 earnings estimates, shares edge lower](https://sg.finance.yahoo.com/news/worthington-steel-falls-short-q1-210347210.html?ref=bullished.co) — Yahoo Finance
- [Worthington Steel Declares Quarterly Dividend – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610061200BIZWIRE%5FUSPRX%5F%5F%5F%5F20261005%5FBW457896-1&ref=bullished.co) — Financial Times

### More on Worthington Steel

- [Worthington Steel CFO Offers No Kloeckner Segment Data, Only A $43 Million Add-Back](https://www.bullished.co/worthington-steel-cfo-offers-no-kloeckner-segment-data-only-a-43-million-add-back-f6422456/)
- [Worthington Steel Posts $7.0 Million Quarterly Loss As Kloeckner Deal Costs Outweigh Tripled Sales](https://www.bullished.co/worthington-steel-posts-7-0-million-quarterly-loss-as-kloeckner-deal-costs-outweigh-05427e4d/)

[All Worthington Steel (WS) coverage →](https://www.bullished.co/tag/ws/)