Above: Worthington Steel is working to improve how galvanized material is developed and made
August, 2025- When Worthington Steel became a standalone public company in December 2023, it wasn’t about responding to disruption—it was about seizing opportunity. The spinoff from Worthington Enterprises (formerly Worthington Industries) allowed each organization to sharpen its focus and unlock value through a dedicated growth strategy.
For Worthington Steel, that strategy focuses on three key growth areas: expanding its electrical steel business, building capabilities through strategic acquisitions and capital investments, and driving operational excellence through its companywide continuous improvement system.
The Columbus, Ohio-based company is executing its vision with the clarity and confidence that comes from decades of technical experience and a people-first culture. “We’re growing in ways that strengthen who we are and position us for what’s next,” says Geoff Gilmore, Worthington Steel president and CEO. “Even as we expand our capabilities and reach, we continue to be guided by a philosophy that focuses on doing what’s right for our people, our customers and the communities we serve.”
A CLEAR DIRECTION
Worthington Steel operates 37 manufacturing facilities across North America, Europe and Asia, and employs about 6,000 people. Roughly half of its business supports the automotive sector, with a strong presence spread across construction, agriculture and energy markets, among others.
What differentiates Worthington Steel is its value-added approach. Approximately 97 percent of the steel it processes undergoes at least one enhancement, and nearly 90 percent goes through two or more processes—pickling and galvanizing, specialty cold rolling, blanking and laser welding. This technical capability positions the company as a top-tier processor and a strategic partner in complex manufacturing value chains.
“Very few companies have the breadth of value-add capabilities that we have,” Gilmore claims. “And the more processes we apply to steel, the more value we bring.
Worthington Steel recently acquired a 52 percent ownership stake in Sitem Group. Pictured are leadership teams from both companies. Sitem has facilities in Italy, France, Switzerland and Slovakia.
POWERING THE FUTURE
Among Worthington Steel’s significant growth drivers is its electrical steel business. The global push toward electrification in vehicles, power infrastructure and industrial systems is creating sustained demand for laminations and core assemblies.
Jeff Klingler, executive vice president and COO points out that many new technologies, including AI data centers and hybrid and battery electric vehicles, require electricity. “And the power grid can’t keep up. There’s a two-year backlog on electrical transformers alone, and global electricity demand is expected to grow more than 6 percent annually over the next 15 years.”
Cross-functional teams use standard work, data analytics, AI and collaboration to identify and solve problems.
Worthington Steel is well positioned to meet the challenge. The company processes steel used in powertrain components across all propulsion system types—from clutch plates in internal combustion engines to electrical laminations in electric drivetrains. Hybrid vehicles, which require both, highlight the company’s ability to support evolving drivetrain configurations.
It’s also investing heavily in capacity expansion. In Mexico, where the company manufactures electrical steel laminations for motors and EVs, five new presses have been installed and are undergoing testing. Production is expected to begin later this year. In Canada, construction is under way on an expansion focused on transformer core manufacturing, with production targeted for early 2026.
On the global stage, Worthington Steel recently completed its acquisition of a 52 percent ownership stake in Sitem Group, an electrical steel lamination manufacturer with facilities in Italy, France, Switzerland and Slovakia. The move expands Worthington’s international footprint and deepens its technical capabilities in power-focused applications.
“Sitem’s technical expertise and culture are an excellent match for Worthington,” Klingler said. “We’re excited to bring our teams together and strengthen our position as a global leader in electrical steel.”
Combined with strong demand tailwinds, market forecasts project up to 10 percent annual growth in these value-added product lines over the next decade—well above GDP and traditional steel benchmarks.
M&A, CAP EX
Beyond electrical steel, Worthington Steel continues to grow through targeted acquisitions and capital investments that align with its customers’ needs, technical strengths and cultural values.
The company’s acquisition philosophy prioritizes long-term fit and integration readiness. Sitem Group is a case in point—it wasn’t just acquiring a strategic capability, but finding a cultural match with Worthington’s philosophy, which emphasizes trust, accountability and the potential of every employee.
“Introducing new teams to our philosophy is one of the most meaningful parts of my work,” says Colleen Philabaum, director of M&A integration. “We want every new business to see that they’re not just being acquired, they’re joining a company that puts people first and is invested in their success.”
New commercial initiatives are also under way to increase share and volume across core product lines, supported by strategic capital expenditures in equipment and technology.
CONTINUOUS IMPROVEMENT
Worthington Steel refers to its internal continuous improvement model as Transformation and it’s rooted in lean thinking. Rather than functioning as a one-off initiative, Transformation is a daily discipline embedded across the company. Cross-functional teams use standard work, data analytics, AI and collaboration to identify and solve problems at the source.
“If we find something that’s good, we look for ways to double it. If we find something bad, we find ways to cut it in half,” Gilmore said.
Recent Transformation work has delivered meaningful results:
• Reduced press changeover times to improve uptime
• Lowered work-in-progress inventory for greater efficiency and space utilization
• Streamlined HR processes to accelerate hiring and onboarding
• Deployed wireless sensor technology to monitor machine health, reduce downtime and extend equipment life through predictive maintenance
Transformation also contributes to Worthington Steel’s environmental efforts. Through the company’s Green Star initiative, teams identify practical ways to reduce waste, energy and water use—reinforcing the commitment to continuous improvement and responsible operations.
LONG-TERM VALUE
As a newly independent public company with a strong foundation and a clear strategy, Worthington Steel is moving forward with purpose, investing in the areas where it can create lasting value.
That focus has made it a trusted supplier for 70 years and, now, a growth-oriented partner for the future of steel in mobility, infrastructure, energy and beyond.
“Our strength comes from putting people first and staying focused on how we work,” Gilmore said. “It’s what drives long-term value for our customers, our teams and the future we’re building.”
Worthington Steel, 800/944-3733, worthingtonsteel.com.
