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 August 31, 2026, the Company owns a noncontrolling interest (50%) in one unconsolidated joint venture, Serviacero Worthington. 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 a distribution of $22.0 million from Serviacero Worthington during the three months ended August 31, 2026. No distributions were received during the three months ended August 31, 2025. The gross distribution to the members of Serviacero Worthington during the three months ended August 31, 2026 was $44.0 million, of which the Company received $22.0 million. This distribution was reported as a reduction of the Company’s investment in unconsolidated affiliate balance but is not reflected in the summarized financial information presented below because it occurred during the lag period.

The following tables summarize certain financial information of Serviacero Worthington as of the dates, and for the periods presented:


	August 31,		May 31,
(In millions)	2026		2026
Cash and cash equivalents (1)	$	52.8	$	24.3
Other current assets		220.7		221.8
Non-current assets		61.1		61.9
Total assets	$	334.6	$	308.0

Current liabilities		73.6		57.6
Other non-current liabilities		4.7		4.7
Equity (1)		256.3		245.7
Total liabilities and equity	$	334.6	$	308.0

(1)

Excludes the impact of a $44.0 million distribution paid in cash to members in August 2026 due to reporting Serviacero Worthington on a one-month lag.


	Three Months Ended
	August 31,		August 31,
(In millions)	2026		2025
Net sales	$	134.0	$	134.2
Gross margin		19.3		18.6
Operating income		15.4		14.5
Depreciation and amortization		1.0		1.0
Interest expense		-		-
Income tax expense		4.1		2.0
Net earnings		10.7		12.8

The following table presents the net earnings of Serviacero Worthington attributable to the Company for the periods presented:


	Three Months Ended
	August 31,		August 31,
(In millions)	2026		2025
Equity in net income of unconsolidated affiliate	$	5.3	$	6.4

Amounts presented as net gains (losses) on equity securities reflect changes in fair value and exclude transaction costs, which are expensed as incurred. The following table summarizes the net gains and losses recognized in miscellaneous income (expense), net, for the periods presented:


	Three Months Ended
	August 31,			August 31,
(In millions)	2026			2025
Net unrealized gains (losses) on equity securities	$	-		$	-
Realized gains (losses) on sales of equity securities		-			-
Realized gains (losses) on remeasurement of previously held equity interest (1)		(15.5	)		-
Total recognized in net earnings	$	(15.5	)	$	-

(1)

The realized loss recognized during the three months ended August 31, 2026 relates to the remeasurement of the Company's previously held equity interest in Kloeckner to its acquisition-date fair value in connection with the Company's acquisition of a controlling interest in Kloeckner. The remeasurement resulted from the difference between the carrying value of the Company's previously held interest and its acquisition-date fair value.

For additional information, see “Note 2 – Acquisitions” and “Note 15 – Fair Value.”