Investments in affiliated companies that the Company does not control, either through majority ownership or otherwise, are accounted for using the equity method. As of May 31, 2026, the Company owns a noncontrolling interest (50%) in one unconsolidated joint venture, Serviacero Worthington. The Company accounts for its investment in Serviacero Worthington using the equity method of accounting. Serviacero Worthington provides steel processing services, such as pickling, blanking, slitting, multi-blanking and cutting-to-length, to customers in a variety of industries including automotive, appliance and heavy equipment.

The Company accounts for its investment in Serviacero Worthington under the equity method using financial information on a one-month lag. Accordingly, the summarized financial information included below does not reflect events occurring in the subsequent one-month period.

The Company received distributions from Serviacero Worthington totaling $23.5 million in fiscal 2026, $12.8 million in fiscal 2025, and $2.0 million in fiscal 2024.

The following table presents the summarized financial position of Serviacero Worthington as of the fiscal years ended May 31:


(In millions)	2026		2025
Cash and cash equivalents	$	24.3	$	16.0
Other current assets		221.8		219.4
Noncurrent assets		61.9		62.2
Total assets	$	308.0	$	297.6

Current liabilities	$	57.6	$	40.5
Other noncurrent liabilities		4.7		5.0
Equity		245.7		252.1
Total liabilities and equity	$	308.0	$	297.6

The following table presents summarized financial information for Serviacero Worthington for the fiscal years ended May 31:


(In millions)	2026		2025		2024
Net sales	$	488.9	$	507.6	$	604.1
Gross margin		61.6		48.3		70.4
Operating income		45.0		32.7		56.4
Depreciation and amortization		4.1		4.7		4.4
Interest expense		-		-		-
Income tax expense		4.1		15.0		8.4
Net earnings		40.6		8.7		44.8

The following table presents the net earnings of Serviacero Worthington attributable to the Company for the fiscal years ended May 31:


(In millions)	2026		2025		2024
Equity in net income of unconsolidated affiliate	$	20.3	$	4.4	$	22.4

At May 31, 2026, and 2025, $61.7 million and $64.9 million, respectively, of the Company’s consolidated retained earnings represented undistributed earnings of Serviacero Worthington, net of tax.

Amounts presented as net gains (losses) on equity securities reflect changes in fair value and exclude transaction costs, which are expensed as incurred. During fiscal 2026, the Company recognized dividend income of $1.9 million related to its equity securities, which is included in miscellaneous income, net. The Kloeckner shares have a readily determinable fair value and are measured at fair value on a recurring basis, with changes in fair value recognized in miscellaneous income, net.

The following table summarizes the net gains recognized in miscellaneous income, net for the fiscal years ended May 31:


(In millions)	2026		2025		2024
Net unrealized gains on equity securities	$	15.7	$	-	$	-
Realized gains on sales of equity securities		-		-		-
Total recognized in net earnings	$	15.7	$	-	$	-

For additional information, see “Note 2 – Acquisitions,” “Note 17 – Fair Value” and “Note 21 – Subsequent Events”.