Worthington Steel Shares Gain Amid Acquisition Speculation

Shares of Worthington Steel traded higher on Monday following confirmation that the company is in preliminary talks regarding a potential acquisition of German steel distributor Klöckner & Co. This news has sparked market speculation about a strategic push by the U.S. metals processor to expand its European footprint.

In an official statement released last Friday, the Ohio-based firm acknowledged it is engaged in discussions with Klöckner & Co SE concerning a possible voluntary public takeover offer. The German company also confirmed the ongoing talks. Worthington Steel was careful to note that no final investment decision has been made and that these preliminary discussions may not result in a transaction.

Securing Klöckner would represent a significant enhancement of Worthington Steel's European operations and bolster its global strategy. The company already maintains a presence in ten countries. Its strategic focus on Europe was recently demonstrated by the majority stake acquisition in Italian electrical steel producer Sitem S.p.A. in June, a move aimed at establishing a foothold in the European electric motor market.

Financial Performance and Strategic Direction

The potential acquisition aligns with the company's stated growth strategy, which encompasses both organic initiatives and strategic purchases. Since its separation from Worthington Industries in December 2023, the steel-focused entity has been able to concentrate fully on its core business.

Should investors sell immediately? Or is it worth buying Worthington Steel?

Recent financial results have supported this strategic direction. For the first quarter of fiscal year 2026, which ended on August 31, 2025, Worthington Steel reported a 5% increase in net sales to $872.9 million. Its adjusted earnings per share outperformed expectations, coming in at $0.77.

Investor Focus Shifts to Upcoming Report

Market participants are now closely monitoring the progress of the negotiations. The next key milestone for investors will be the release of the company's second-quarter results, scheduled for after the market closes on Wednesday, December 17. A conference call to discuss the earnings is set for the following day, Thursday, December 18.

The stock closed last Friday at $35.92. According to the current analyst consensus, which is based on two ratings, the equity is viewed as a "Buy" with an average price target of $35.