Worthington Steel (WS) risk factors, FY2025 10-K

Worthington Steel's FY2025 10-K, filed Jul 29, 2025, lists 23 risk factors in 3 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
233 groups
Section length
13k wordsItem 1A

Worthington Steel's biggest risks in the FY2025 10-K

  • Worthington Steel faces significant customer concentration, with the automotive and construction markets accounting for 52.0% and 11.0% of net sales respectively.
  • Raw material cost volatility in steel, zinc, and flat-rolled products heavily impacts manufacturing margins.
  • Capital intensity is high, with projected capital expenditures of $130.4 million for fiscal 2025.

The risks most specific to Worthington Steel

  • Risks Related to Our Business

    Economic or Industry Downturns and Weakness

    The automotive and construction end markets account for 52.0% and 11.0% of net sales respectively, making the company vulnerable to declines in those sectors.

  • Risks Related to Our Business

    Raw Material Pricing and Availability

    Operating results are exposed to continued volatility in steel prices driven by supplier consolidation, pandemic mill tightness, tariffs, and the war in Ukraine.

  • Risks Related to Our Business

    impact how much of the price increases we can pass on to our customers. To the extent we are unable to pass on future price increases in our raw materials to our customers, our financial results could be adversely affected

    The company may be unable to pass on raw material price increases for flat-rolled steel, electrical steel, and zinc to customers.

  • Risks Related to Our Business

    Material or Component Substitution

    Increases in steel prices relative to aluminum, cement, wood, and composites could drive material substitution and reduce product demand.

  • Risks Related to Our Business

    Capital Expenditures and Capital Resources

    Capital-intensive operations required total capital expenditures of approximately $130.4 million for the fiscal year ended May 31, 2025.

  • Risks Related to the Separation and Our Relationship with the Former Parent

    Our historical financial information prior to the Separation does not reflect the debt or the associated interest expense that we expected to incur after the Separation

    Historical financial information prior to separation does not reflect expected post-separation debt and interest expense, and potential indemnification obligations to the former parent could adversely affect operations.

All 23 risk factors

Headings as the filing states them, in filing order.

Risks Related to Our Business

  1. 01Economic or Industry Downturns and Weakness
  2. 02Raw Material Pricing and Availability
  3. 03impact how much of the price increases we can pass on to our customers. To the extent we are unable to pass on future price increases in our raw materials to our customers, our financial results could be adversely affected
  4. 04Excess Capacity and Over-Production by Foreign Steel Producers or Decreases in Tariffs
  5. 05There is a focus by governmental and non-governmental entities on sustainability matters. Any perception that we have failed to act responsibly regarding climate change could result in negative publicity and adversely affect our business and reputation
  6. 06Material or Component Substitution
  7. 07Public Health Emergencies
  8. 08The ongoing conflict between Russia and Ukraine may adversely affect our business and results of operations
  9. 09Information Systems and Cybersecurity
  10. 10Artificial Intelligence Technologies and Machine Learning
  11. 11Joint Ventures and Investments
  12. 12Acquisitions and Equity Investments
  13. 13Capital Expenditures and Capital Resources
  14. 14Difficult Financial Markets
  15. 15Guidance Regarding Future Performance
  16. 16Accounting and Tax-Related Estimates
  17. 17Environmental, Health and Safety

Risks Related to the Separation and Our Relationship with the Former Parent

  1. 18Our historical financial information prior to the Separation does not reflect the debt or the associated interest expense that we expected to incur after the Separation
  2. 19These restrictions may limit for a period of time our ability to pursue certain transactions that we may believe to be in the best interests of our shareholders or that might increase the value of our business

Risks Related to Owning Our Common Shares

  1. 20other factors described in this Item 1A
  2. 21the requirement that the affirmative vote of shareholders holding at least two-thirds of our voting shares is required to amend our amended and restated code of regulations and certain provisions in our amended and restated articles of incorporation
  3. 22Legislation and Regulations
  4. 23on the economy, our markets or the ability of domestic businesses to compete against foreign operations, we could also be adversely impacted

Other Worthington Steel 10-Ks

  • FY2026 10-K risk factors
    22 risks3 new4 dropped10 reworded

    New risks center on Iran-related geopolitical disruption, the Kloeckner takeover, and restrictions from the tax matters agreement.

    Filed Jul 30, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.