WEBCO INDUSTRIES, INC. REPORTS FISCAL 2026 SECOND QUARTER RESULTS

Rhea-AI Summary

Webco Industries (OTC: WEBC) reported fiscal 2026 second quarter results with net income of $0.5M (diluted $0.79) on net sales of $141.9M, up 9.4% year-over-year. Six-month net income was $5.3M (diluted $7.62) on sales of $301.6M, up 11.3%.

Gross margin improved to 11.5% in the quarter and 12.4% for six months. Cash and short-term investments totaled $18.3M, revolver availability was $67.9M with $90.5M drawn, and debt maturity was extended to Feb 2031. Stock repurchase authority remaining approximately $0.4M.

Positive

• Net sales +9.4% in Q2 ($141.9M)
• Six-month net sales +11.3% ($301.6M)
• Returned to net income: Q2 net income $0.5M
• Gross margin improved to 11.5% in Q2
• Six-month net income $5.3M (diluted $7.62)

Negative

• SG&A increased to $14.2M in Q2
• Operating cash flow negative $10.2M for six months
• Current portion of long-term debt rose to $90.5M drawn
• Inventories high at $218.3M, tying working capital

SAND SPRINGS, Okla., March 3, 2026 /PRNewswire/ -- Webco Industries, Inc. (OTC: WEBC) today reported results for our second quarter of fiscal year 2026, which ended January 31, 2026.

For our second quarter of fiscal year 2026, we had net income of $0.5 million, or $0.79 per diluted share, while in our second quarter of fiscal year 2025, we had a net loss of $2.0 million, or a loss of $2.91 per diluted share.  Net sales for the second quarter of fiscal 2026 were $141.9 million, a 9.4 percent increase from the $129.7 million of sales in the second quarter of fiscal year 2025. 

For the first six months of fiscal year 2026, we generated net income of $5.3 million, or $7.62 per diluted share, compared to a net loss of $2.1 million, or a loss of $2.87 per diluted share, for the same period in fiscal year 2025.  Net sales for the first six months of the current year amounted to $301.6 million, an 11.3 percent increase from the $271.1 million in sales for the same six-month period of last year.

In the second quarter of fiscal year 2026, we had income from operations of $2.1 million after depreciation of $5.0 million.  The second fiscal quarter of the prior year generated a loss from operations of $1.8 million after depreciation of $4.6 million.  Gross profit for the second quarter of fiscal 2026 was $16.3 million, or 11.5 percent of net sales, compared to $9.9 million, or 7.6 percent of net sales, for the second quarter of fiscal year 2025.   

Our income from operations for the first six months of fiscal year 2026 was $9.5 million, after depreciation expense of $9.9 million.  We incurred a loss from operations in the first six-month period of fiscal year 2025 in the amount of $0.7 million, after depreciation expense of $9.3 million.   Gross profit for the first half of fiscal 2026 was $37.3 million, or 12.4 percent of net sales, compared to $23.6 million, or 8.7 percent of net sales for the same period in fiscal year 2025.

Selling, general and administrative expenses were $14.2 million in the second quarter of fiscal 2026 and $11.7 million in the second quarter of fiscal 2025. SG&A expenses were $27.8 million in the first half of fiscal year 2026 and $24.3 million for the first six-month period of 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 $1.4 million in the second quarter of fiscal year 2026 and $1.2 million in the same quarter of fiscal year 2025.  Interest expense was $2.8 million and $2.4 million in the first six-month periods of 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 $4.0 million in the second quarter of fiscal year 2026 and $7.5 million for the first six months of fiscal year 2026.  Capital spending thus far in fiscal year 2026 has been focused on plant equipment improvements.   

At January 31, 2026, we had $18.3 million in cash and short-term investments, in addition to $67.9 million of available borrowing under our $220 million senior revolving credit facility.  Availability on the revolver, which had $90.5 million drawn at January 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 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 15,300 shares of our stock during the second quarter of fiscal year 2026 and 18,300 shares in the first six months of fiscal year 2026.  At January 31, 2026, there was approximately $0.4 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 January 31,				Six Months Ended January 31,
	2026		2025		2026		2025
Net sales	$   141,880		$   129,710		$   301,606		$   271,096
Cost of sales	125,573		119,801		264,256		247,541
Gross profit	16,307		9,909		37,349		23,555
Selling, general & administrative expenses	14,197		11,703		27,801		24,267
Income (loss) from operations	2,110		(1,794)		9,548		(711)
Interest expense	1,438		1,246		2,848		2,397
Pretax income (loss)	672		(3,040)		6,700		(3,109)
Provision for (benefit from) income taxes	123		(999)		1,384		(962)
Net income (loss)	$         549		$     (2,040)		$      5,316		$    (2,147)
Net income (loss) per share:
Basic	$        0.84		$     (2.91)		$        8.12		$      (2.87)
Diluted	$        0.79		$     (2.91)		$        7.62		$      (2.87)
Weighted average common shares outstanding:
Basic	652,000		700,000		655,000		749,000
Diluted	695,000		700,000		698,000		749,000

 

CONSOLIDATED CASH FLOW DATA (Dollars in thousands – Unaudited)
	Three Months Ended January 31,				Six Months Ended January 31,
	2026		2025		2026		2025
Net cash provided by (used in)      operating activities	$   (2,360)		$         71		$  (10,174)		$     13,922
Depreciation and amortization	$     5,026		$     4,675		$       9,900		$       9,368
Cash paid for capital expenditures	$     3,599		$     6,085		$       7,835		$     11,636

Notes: Amounts may not sum due to rounding.

 

	WEBCO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands - Unaudited)
		January 31,		July 31,
		2026		2025
Current assets:
	Cash	$       2,341		$       1,894
	U.S. Treasury Bonds	16,008		13,235
	Accounts receivable	54,840		73,004
	Inventories, net	218,257		188,943
	Prepaid expenses	8,642		4,502
	Total current assets	300,089		281,579
Property, plant and equipment, net		165,286		167,275
Right of use, finance leases, net		1,061		1,000
Right of use, operating leases, net		19,527		20,793
Other long-term assets		19,073		18,605
Total assets		$   505,037		$   489,251
Current liabilities:
	Accounts payable	$     36,261		$     51,742
	Accrued liabilities	32,733		31,380
	Current portion of long-term debt, net	90,471		65,636
	Current portion of finance lease liabilities	439		459
	Current portion of operating lease liabilities	5,328		5,367
	Total current liabilities	165,233		154,585
Long-term debt, net of current portion		20,000		20,000
Finance lease liabilities, net of current portion		676		592
Operating lease liabilities, net of current portion		14,262		15,545
Deferred tax liability		4,420		-
Stockholders' equity:
	Common stock	7		7
	Additional paid-in capital	46,610		47,007
	Retained earnings	253,830		251,515
	Total stockholders' equity	300,447		298,529
Total liabilities and stockholders' equity		$   505,037		$   489,251

Notes: Amounts may not sum due to rounding.

 

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

 

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SOURCE Webco Industries, Inc.

FAQ

What were Webco (WEBC) second quarter fiscal 2026 earnings per share?

Diluted EPS for Q2 fiscal 2026 was $0.79. According to the company, diluted earnings per share recovered from a prior-year loss of $2.91 and reflect improved profitability for the quarter.

How much did Webco (WEBC) report in net sales for Q2 fiscal 2026?

Webco reported $141.9 million in net sales for Q2 fiscal 2026. According to the company, this represents a 9.4% increase versus the same quarter last fiscal year.

What is Webco's (WEBC) six-month net income and sales for fiscal 2026 year-to-date?

Year-to-date net income was $5.3 million on sales of $301.6 million. According to the company, sales rose 11.3% versus the prior-year six-month period.

How much cash and borrowing availability does Webco (WEBC) have at January 31, 2026?

Webco had $18.3 million in cash and short-term investments and $67.9 million available under its revolver. According to the company, $90.5 million remained drawn on the revolver at that date.

Did Webco (WEBC) change its debt maturity terms in early 2026?

Yes, Webco extended its debt agreement maturity to February 2031. According to the company, accounting classifies the asset-based revolver as a current liability despite the extended maturity.

How much did Webco (WEBC) spend on capital expenditures in Q2 fiscal 2026?

Capital expenditures for Q2 fiscal 2026 were approximately $4.0 million. According to the company, spending focused on plant equipment improvements during the period.

What remaining authority exists under Webco's (WEBC) stock repurchase program?

Approximately $0.4 million of repurchase authority remained at January 31, 2026. According to the company, the Board may extend, suspend or discontinue the program at any time.