Worthington Steel Inc. (NYSE: WS) shares surged 5.58% in pre-market trading on Friday, following the company's impressive second-quarter fiscal 2025 earnings report. The steel producer reported a significant improvement in profitability and provided an optimistic outlook for the coming quarters.

The company's adjusted EBITDA rose to $30.6 million, up from $23 million in the prior year quarter, driven by higher direct material spreads and improved margins. Earnings per share (EPS) also rebounded to $0.25, compared to a loss of $0.12 per share in the same period last year, despite a 9% decrease in net sales.

Worthington Steel's strong performance can be attributed to several key factors outlined in the earnings report:

• Strategic acquisition of a majority stake in Sitem Group, expanding the company's presence in the European electrical steel laminations market.
• Continued focus on sustainability and corporate responsibility, with achievements such as a safety record nearly two times better than the industry average and a decrease in carbon emissions.
• Improved operational efficiencies and cost management, evidenced by the increase in adjusted EBIT from $6.6 million to $14.3 million year-over-year.