Worthington Steel, Inc. reported a director-level stock purchase and several corporate developments that together signal active portfolio and growth management at the Cleveland-based steel service center operator.
Insider purchase
According to a Form 4 filed with the Securities and Exchange Commission, director Kelly Scott J. acquired 7,000 shares of Worthington Steel common stock on January 27, 2026. The shares were purchased at $39.1099 each, bringing the total cost of the transaction to $273,769. After the purchase, Kelly directly holds 16,157 shares of the company.
Recent financials
Worthington Steel's second quarter of fiscal 2025 delivered mixed results. Net sales for the period were $871.9 million, above the consensus expectation of $802 million. Earnings per share came in at $0.38, narrowly below the forecasted $0.39.
Acquisition plans
In a material strategic move, Worthington Steel announced it plans to acquire Klöckner & Co., a German-listed steel service center, in an all-cash transaction at a price of €11 per share. The transaction is scheduled to close in the second half of 2026 if completed. Management said the acquisition would position Worthington as the second largest steel service center company in North America.
The deal attributes an enterprise value of $2.4 billion to Klöckner, corresponding to an EV/EBITDA multiple of approximately 8.5x, based on Klöckner’s trailing twelve-month EBITDA.
Analyst reaction
Following the announcement, KeyBanc raised its price target for Worthington Steel to $47.00 and maintained an Overweight rating on the shares.
Context and implications
The director purchase, the company’s quarterly performance, and the proposed Klöckner acquisition together outline a period of active corporate positioning for Worthington Steel. The insider transaction indicates a direct increase in executive ownership. The financials show stronger-than-expected top-line momentum while EPS lagged slightly. The proposed acquisition represents a sizable transaction that would alter Worthington’s scale within the North American steel service center market.