WEBCO INDUSTRIES, INC. REPORTS FISCAL 2026 FIRST QUARTER RESULTS

Rhea-AI Summary

Webco Industries (OTC: WEBC) reported fiscal 2026 first quarter results for the period ended October 31, 2025. Net income was $4.8M ($6.79 diluted) versus a net loss of $0.1M in Q1 FY2025. Net sales rose 13.0% to $159.7M. Gross profit was $21.0M (13.2% margin) compared with $13.6M (9.7%). Income from operations was $7.4M. Cash, short-term investments and available revolver capacity totaled $80.8M. Operating cash flow was $(7.8)M for the quarter.

Positive

• Net income of $4.8M in Q1 FY2026
• Net sales increased 13.0% year-over-year to $159.7M
• Gross profit margin improved to 13.2% from 9.7%
• Income from operations of $7.4M
• Total cash, short-term investments and revolver availability of $80.8M

Negative

• Net cash used in operations of $(7.8M) in Q1
• Current portion of long-term debt classified as $79.6M
• Accounts receivable declined to $68.0M from $73.0M
• Interest expense rose to $1.4M from $1.15M

SAND SPRINGS, Okla., Nov. 24, 2025 /PRNewswire/ -- Webco Industries, Inc. (OTC: WEBC) today reported results for our first fiscal quarter ended October 31, 2025.

For our first quarter of fiscal year 2026, we had a net income of $4.8 million, or $6.79 per diluted share, while in our first quarter of fiscal year 2025, we had had a net loss of $0.1 million, or a loss of $0.13 per diluted share.  Net sales for the first quarter of fiscal 2026 were $159.7 million, a 13.0 percent increase from the $141.4 million of sales in the first quarter of fiscal year 2025. 

Dana S. Weber, Chief Executive Officer and Board Chair, stated, "We believe that the domestic manufacturing sector has been in a recession for more than the last two years. Unfair dumping of products by foreign manufacturers into our markets made a suppressed manufacturing environment more difficult.  The dynamic and evolving tariff environment, which affect each of our customers and vendors very differently, presents numerous opportunities and challenges.  So far, we perceive that Webco's benefits from tariffs have been greater than the costs to our business.  We continue to focus on maintaining our strong balance sheet, good liquidity in order to make compelling investments in our business.  Our total cash, short-term investments and available credit on our revolver were $80.8 million at October 31, 2025, which we believe to be a competitive advantage."

In the first quarter of fiscal year 2026, we had income from operations of $7.4 million after depreciation of $4.8 million.  The first fiscal quarter of the prior year generated income from operations of $1.1 million after depreciation of $4.7 million.  Gross profit for the first quarter of fiscal 2026 was $21.0 million, or 13.2 percent of net sales, compared to $13.6 million, or 9.7 percent of net sales, for the first quarter of fiscal year 2025.   

Selling, general and administrative expenses were $13.6 million in the first quarter of fiscal 2026 and $12.6 million in the first quarter of fiscal 2025. SG&A expenses reflect increases in costs related to higher profitability, such as company-wide incentive compensation and variable pay programs, plus inflation we have experienced in wages and other expenses.

Interest expense was $1.4 million in the first quarter of fiscal year 2026 and $1.2 million in the same quarter of fiscal year 2025.  Interest rates were lower and average debt balances were higher in the current fiscal quarter than in the prior fiscal year's first quarter.

Capital expenditures incurred amounted to $3.5 million in the first quarter of fiscal year 2026.  Capital spending in the first quarter of fiscal year 2026 was focused on expansion at our stainless facilities.   

As of October 31, 2025, we had $16.8 million in cash and short-term investments, in addition to $64.0 million of available borrowing under our $220 million senior revolving credit facility.  Availability on the revolver, which had $79.6 million drawn at October 31, 2025, is subject to advance rates on eligible accounts receivable and inventories.  Our term loan and revolver mature in September 2027.  Accounting rules require asset-based debt agreements like our revolver to be classified as a current liability, despite its fiscal year 2028 maturity.

Webco's stock repurchase program authorizes the purchase of our outstanding common stock in private or open market transactions.  In September 2023, the Company's Board of Directors refreshed the repurchase program with a new limit of up to $40 million and extended the program's expiration until July 31, 2026.  We purchased 3,000 shares of our stock during the first quarter of fiscal year 2026 and 167,000 shares in fiscal year 2025, including the previously disclosed 143,000 shares acquired on December 31, 2024.  At October 31, 2025, there was approximately $4.1 million of purchase authority left in the current stock repurchase program.  The repurchase plan may be extended, suspended or discontinued at any time, without notice, at the Board's discretion. 

Webco's mission is to continuously build on our strengths as we create a vibrant company for the ages.  We leverage our core values of trust and teamwork, continuously building strength, agility and innovation.  We focus on practices that support our brand such that we are 100% engaged every day to build a forever kind of company for our Trusted Teammates, customers, business partners, investors and community.  We provide high-quality carbon steel, stainless steel and other metal specialty tubing products designed to industry and customer specifications.  We have five tube production facilities in Oklahoma and Pennsylvania and eight value-added facilities in Oklahoma, Illinois, Michigan, Pennsylvania and Texas, serving customers globally.  Our F. William Weber Leadership Campus is in Sand Springs, Oklahoma and houses our corporate offices and our Webco TechCenter™, providing a state-of-the-art laboratory and R & D facility to lead and develop technical solutions for the metal tubing industry.

Risk Factors and Forward-looking statements: Certain statements in this release, including, but not limited to, those preceded by or predicated upon the words "anticipates," "appears," "believes," "estimates," "expects," "forever," "hopes," "intends," "plans," "projects," "pursue," "should," "will," "wishes," or similar words may constitute "forward-looking statements."  Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance or achievements expressed or implied herein. Such risks, uncertainties and factors include the factors discussed above and, among others: general economic and business conditions, including any global economic downturn; government policy or low hydrocarbon prices that stifle domestic investment in energy; competition from foreign imports, including any impacts associated with dumping or the strength of the U.S. dollar; political or social environments that are unfriendly to industrial or energy-related businesses; changes in manufacturing technology; the banking environment, including availability of adequate financing; worldwide and domestic monetary policy; changes in tax rates and regulation; regulatory and permitting requirements, including, but not limited to, environmental, workforce, healthcare, safety and national security; availability and cost of adequate qualified and competent personnel; changes in import / export tariff or restrictions; volatility in raw material cost and availability for the Company, its customers and vendors; the cost and availability, including time for delivery, of parts and services necessary to maintain equipment essential to the Company's manufacturing activities; the cost and availability of manufacturing supplies, including process gases; volatility in oil, natural gas and power cost and availability;  world-wide or national transition from hydrocarbon sources of energy that adversely impact demand for our products; problems associated with product development efforts; significant shifts in product demand away from internal combustion engine automobiles; appraised values of inventories that can impact available borrowing under the Company's credit facility; declaration of material adverse change by a lender; industry capacity; domestic competition; loss of, or reductions in, purchases by significant customers and customer work stoppages; work stoppages by critical suppliers; labor unrest; conditions, including acts of God, that require more costly transportation of raw materials; accidents, equipment failures and insured or uninsured casualties; third-party product liability claims; flood, tornado, winter storms and other natural disasters;  customer or supplier bankruptcy; customer or supplier declarations of force majeure; customer or supplier breach of contract; insurance cost and availability; lack of insurance coverage for floods; the cost associated with providing healthcare benefits to employees; customer claims; supplier quality or delivery problems; technical and data processing capabilities; cyberattack on our information technology infrastructure; world, domestic or regional health crises; vaccine mandates or related governmental policy that would cause significant portions of our workforce, or that of our customers or vendors, to leave their current employment; global or regional wars and conflicts; our inability or unwillingness to comply with rules required to maintain the quotation of our shares on any market place; and our inability to repurchase the Company's stock. The Company assumes no obligation to publicly update any such forward-looking statements.  No assurance is provided that current results are indicative of those that will be realized in the future.

TABLES FOLLOW

WEBCO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data - Unaudited)
	Three Months Ended October 31,
	2025	2024
Net sales	$     159,725	$     141,386
Cost of sales	138,683	127,740
Gross profit	21,043	13,646
Selling, general & administrative expenses	13,604	12,564
Income (loss) from operations	7,438	1,082
Interest expense	1,410	1,151
Pretax income (loss)	6,028	(69)
Provision for (benefit from) income taxes	1,261	37
Net income (loss)	$         4,768	$         (106)
Net income (loss) per share:
Basic	$        7.24	$        (0.13)
Diluted	$        6.79	$        (0.13)
Weighted average common shares outstanding:
Basic	658,000	798,000
Diluted	702,000	798,000

 

CASH FLOW DATA (Dollars in thousands - Unaudited)
	Three Months Ended October 31,
	2025	2024
Net cash provided by     (used in) operating activities	$      (7,815)	$      13,851
Depreciation and amortization	$        4,874	$        4,694
Cash paid for capital expenditures	$       4,236	$        5,551
Notes: Amounts may not sum due to rounding.

 

	WEBCO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands - Unaudited)
		October 31,		July 31,
		2025		2025
Current assets:
	Cash	$       2,461		$       1,894
	U.S. Treasury Bonds	14,363		13,235
	Accounts receivable	67,983		73,004
	Inventories, net	198,285		188,943
	Prepaid expenses	8,438		4,502
	Total current assets	291,530		281,579
Property, plant and equipment, net		166,105		167,275
Right of use, finance leases, net		1,035		1,000
Right of use, operating leases, net		20,749		20,793
Other long-term assets		18,648		18,605
Total assets		$   498,066		$   489,251
Current liabilities:
	Accounts payable	$     37,127		$     51,742
	Accrued liabilities	32,017		31,380
	Current portion of long-term debt, net	79,573		65,636
	Current portion of finance lease liabilities	450		459
	Current portion of operating lease liabilities	5,592		5,367
	Total current liabilities	154,759		154,585
Long-term debt, net of current portion		20,000		20,000
Finance lease liabilities, net of current portion		637		592
Operating lease liabilities, net of current portion		15,248		15,545
Deferred tax liability		4,418		-
Stockholders' equity:
	Common stock	7		7
	Additional paid-in capital	47,097		47,007
	Retained earnings	255,900		251,515
	Total stockholders' equity	303,004		298,529
Total liabilities and stockholders' equity		$   498,066		$   489,251
Notes: Amounts may not sum due to rounding.

 

CONTACT:	Mike Howard
	Chief Financial Officer
	(918) 241-1094
	mhoward@webcotube.com

 

View original content:https://www.prnewswire.com/news-releases/webco-industries-inc-reports-fiscal-2026-first-quarter-results-302625007.html

SOURCE Webco Industries, Inc.

FAQ

What were Webco (WEBC) Q1 FY2026 net sales and the year-over-year change?

Webco reported $159.7M in Q1 FY2026 net sales, a 13.0% increase versus Q1 FY2025.

How much net income did Webco (WEBC) report for the quarter ended October 31, 2025?

Webco reported net income of $4.8M, or $6.79 per diluted share for Q1 FY2026.

What happened to Webco's gross margin in Q1 FY2026 compared to Q1 FY2025?

Gross profit margin increased to 13.2% in Q1 FY2026 from 9.7% in Q1 FY2025.

How much liquidity did Webco (WEBC) report at October 31, 2025?

Webco reported $16.8M in cash and U.S. Treasury bonds plus $64.0M available borrowing, totaling $80.8M.

Why was operating cash flow negative for Webco in Q1 FY2026?

Webco reported net cash used in operating activities of $(7.8M) for the quarter; the filing shows working capital and timing changes affecting cash.

Does Webco (WEBC) have a share repurchase program and how much authority remains?

Webco's repurchase program authorizes up to $40M; approximately $4.1M remained available at October 31, 2025.