WEBCO INDUSTRIES, INC. REPORTS FISCAL 2026 FOURTH QUARTER AND YEAR END RESULTS

Annual sales and profit rose, while operating cash flow turned negative and fourth-quarter profit declined.

Rhea-AI Summary

Webco Industries (WEBC) reported fiscal 2026 net income of $18.3 million for the year ended July 31, 2026.

Annual sales rose 14.8% to $670.9 million from $584.7 million in fiscal 2025. Diluted earnings per share increased to $26.50 from $12.30, and gross margin rose to 14.0% from 11.4%. Operating activities used $3.880 million in cash, compared with $35.965 million provided a year earlier.

Fourth-quarter sales rose 19.9% to $189.7 million, but net income fell to $5.0 million from $6.5 million. Quarterly selling, general and administrative expenses rose to $20.0 million from $12.9 million. At July 31, Webco had $9.1 million in cash and short-term investments and $112.9 million in available revolving credit. It repurchased 33,800 shares during fiscal 2026 and had approximately $1.6 million of repurchase authority remaining.

Positive

• Fiscal 2026 sales rose 14.8% to $670.9 million.
• Fiscal 2026 net income rose to $18.3 million from $9.3 million.
• Annual gross margin rose to 14.0% from 11.4%.

Negative

• Fourth-quarter net income fell to $5.0 million from $6.5 million.
• Annual operating cash flow shifted to $3.880 million used from $35.965 million provided.
• Fourth-quarter administrative expenses rose to $20.0 million from $12.9 million.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

SAND SPRINGS, Okla., Sept. 25, 2026 /PRNewswire/ -- Webco Industries, Inc. (OTC: WEBC) today reported results for our fourth fiscal quarter and year ended July 31, 2026.

For our fourth quarter of fiscal year 2026, we had net income of $5.0 million, or $7.35 per diluted share, while in our fourth quarter of fiscal year 2025, we had net income of $6.5 million, or $9.18 per diluted share. Net sales for the fourth quarter of fiscal 2026 were $189.7 million, a 19.9 percent increase from the $158.2 million in sales in the fourth quarter of fiscal year 2025.

For fiscal year 2026, we generated net income of $18.3 million, or $26.50 per diluted share, compared to a net income of $9.3 million, or $12.30 per diluted share, in fiscal year 2025. Net sales for the current fiscal year totaled $670.9 million, a 14.8 percent increase from the $584.7 million in sales for last year.

In the fourth quarter of fiscal year 2026, we had income from operations of $7.7 million after depreciation of $5.1 million. The fourth fiscal quarter of the prior year generated income from operations of $9.0 million after depreciation of $4.8 million. Gross profit for the fourth quarter of fiscal 2026 was $27.7 million, or 14.6 percent of net sales, compared to $22.0 million, or 13.9 percent of net sales, for the fourth quarter of fiscal year 2025.

Our income from operations for fiscal year 2026 was $28.0 million, after depreciation expense of $20.0 million. Income from operations in fiscal year 2025 was $16.6 million, after depreciation expense of $19.0 million. Gross profit for fiscal 2026 was $94.0 million, or 14.0 percent of net sales, compared to $66.8 million, or 11.4 percent of net sales for fiscal year 2025.

Selling, general and administrative expenses were $20.0 million in the fourth quarter of fiscal 2026 and $12.9 million in the fourth quarter of fiscal 2025. SG&A expenses were $66.0 million in fiscal year 2026 and $50.2 million for fiscal year 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 $1.5 million in the fourth quarter of fiscal year 2026 and $1.4 million in the same quarter of fiscal year 2025. Interest expense was $5.9 million and $5.3 million in the current and prior fiscal years, respectively. Interest expense increased due to higher average debt balances than in the prior fiscal periods.

Capital expenditures incurred amounted to $1.8 million in the fourth quarter of fiscal year 2026 and $15.4 million for fiscal year 2026. Capital spending in fiscal year 2026 has been focused on plant equipment updates and improvements.

At July 31, 2026, we had $9.1 million in cash and short-term investments, in addition to $112.9 million of available borrowing under our $220 million senior revolving credit facility. Availability on the revolver, which had $89.3 million drawn at July 31, 2026, is subject to advance rates on eligible accounts receivable and inventories. In February 2026, we extended the maturity on our debt agreement to February 2031. Accounting rules require asset-based debt agreements like our revolver to be classified as a current liability, despite its fiscal year 2031 maturity.

Webco's stock repurchase program authorizes the purchase of our outstanding common stock in private or open market transactions. In March 2026, the Company's Board of Directors refreshed the repurchase program with a new limit of up to $6.0 million and extended the program's expiration until July 31, 2029. We purchased 11,900 shares of our stock during the fourth quarter of fiscal year 2026 and 33,800 shares in fiscal year 2026. At July 31, 2026, there was approximately $1.6 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 STATEMENT OF OPERATIONS (Dollars in thousands, except per share data – Unaudited)
	Three Months Ended July 31,				Fiscal Year Ended July 31,
	2026		2025		2026		2025
Net sales	$   189,726		$   158,211		$   670,934		$   584,678
Cost of sales	162,018		136,255		576,918		517,896
Gross profit	27,709		21,956		94,015		66,782
Selling, general & administrative expenses	20,045		12,937		66,030		50,196
Income (loss) from operations	7,664		9,018		27,985		16,586
Interest expense	1,507		1,419		5,918		5,317
Pretax income (loss)	6,156		7,600		22,067		11,269
Provision for (benefit from) income taxes	1,125		1,132		3,723		1,948
Net income (loss)	$      5,031		$     6,468		$    18,345		$      9,321
Net income (loss) per share:
Basic	$      7.75		$        9.79		$      28.11		$      13.21
Diluted	$      7.35		$        9.18		$      26.50		$      12.30
Weighted average common shares outstanding:
Basic	649,000		661,000		653,000		705,000
Diluted	685,000		704,000		692,000		758,000

 

CONSOLIDATED CASH FLOW DATA (Dollars in thousands – Unaudited)
	Three Months Ended July 31,				Fiscal Year Ended July 31,
	2026		2025		2026		2025
Net cash provided by (used in)      operating activities	$   13,127		$     19,417		$    (3,880)		$      35,965
Depreciation and amortization	$     5,106		$       4,886		$     20,235		$      19,097
Cash paid for capital expenditures	$     2,157		$       3,985		$     15,801		$      19,946

Notes: Amounts may not sum due to rounding.

	WEBCO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands - Unaudited)
		July 31,		July 31,
		2026		2025
Current assets:
	Cash	$         349		$       1,894
	U.S. Treasury Bonds	8,734		13,235
	Accounts receivable	90,106		73,004
	Inventories, net	226,263		188,943
	Prepaid expenses	3,925		4,502
	Total current assets	329,377		281,579
Property, plant and equipment, net		163,362		167,275
Right of use, finance leases, net		1,479		1,000
Right of use, operating leases, net		20,212		20,793
Other long-term assets		20,394		18,605
Total assets		$   534,823		$   489,251
Current liabilities:
	Accounts payable	$     49,172		$     51,742
	Accrued liabilities	41,690		31,380
	Current portion of long-term debt, net	88,885		65,636
	Current portion of finance lease liabilities	517		459
	Current portion of operating lease liabilities	5,612		5,367
	Total current liabilities	185,876		154,585
Long-term debt, net of current portion		20,000		20,000
Finance lease liabilities, net of current portion		1,018		592
Operating lease liabilities, net of current portion		14,256		15,545
Deferred tax liability		1,969		-
Stockholders' equity:
	Common stock	7		7
	Additional paid-in capital	48,151		47,007
	Retained earnings	263,277		251,515
	Total stockholders' equity	311,434		298,529
Total liabilities and stockholders' equity		$   534,823		$   489,251

Notes: Amounts may not sum due to rounding.

FOR:	WEBCO INDUSTRIES, INC.
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-fourth-quarter-and-year-end-results-302890674.html

SOURCE Webco Industries, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Webco Industries' fiscal 2026 sales and earnings?

Webco Industries (WEBC) recorded $670.9 million in sales and $18.3 million in net income for the fiscal year ended July 31, 2026. Fiscal 2025 sales were $584.7 million, and net income was $9.3 million.

What are the terms of Webco Industries' revolving credit facility?

Webco Industries (WEBC) had $112.9 million of available borrowing under its $220 million senior revolving credit facility at July 31, 2026, with $89.3 million drawn. Availability is subject to advance rates on eligible accounts receivable and inventories. The debt agreement matures in February 2031.

How much remains under Webco Industries' stock repurchase program?

Approximately $1.6 million of repurchase authority remained at July 31, 2026. In March 2026, Webco Industries (WEBC) refreshed the program with a limit of up to $6.0 million and extended its expiration to July 31, 2029. The board may extend, suspend or discontinue the plan at any time without notice.