WEBCO INDUSTRIES, INC. REPORTS FISCAL 2026 THIRD QUARTER RESULTS

Rhea-AI Summary

Webco Industries (OTC:WEBC) reported fiscal 2026 Q3 net income of $8.0 million, or $11.61 diluted EPS, up from $5.0 million, or $7.05, a year earlier. Net sales rose 15.6% to $179.6 million.

For the first nine months, net income was $13.3 million ($19.16 diluted EPS) on sales of $481.2 million, up 12.8%. Q3 gross margin improved to 16.1%, while SG&A and interest expense increased.

Operating cash flow was negative $17.0 million year-to-date. Webco extended its $220 million credit facility to 2031 and refreshed a $6.0 million stock repurchase program with about $5.3 million remaining.

AI-generated analysis. Not financial advice.

Positive

• Q3 2026 net income $8.0 million vs. $5.0 million prior year
• Q3 net sales $179.6 million, up 15.6% year-over-year
• Q3 gross margin 16.1% vs. 13.7% in Q3 2025
• Nine-month 2026 net income $13.3 million vs. $2.9 million
• Available liquidity: $9.9 million cash and investments plus $95.4 million revolver capacity
• Debt facility maturity extended to February 2031
• Refreshed $6.0 million stock repurchase program; $5.3 million authorization remaining

Negative

• Nine-month 2026 operating cash flow negative $17.0 million vs. positive $16.5 million
• Q3 operating cash flow negative $6.8 million vs. positive $2.6 million
• Q3 SG&A expenses $18.2 million vs. $13.0 million prior year
• Nine-month SG&A $46.0 million vs. $37.3 million prior year
• Interest expense $4.4 million nine-month 2026 vs. $3.9 million prior year
• Current portion of long-term debt $96.8 million vs. $65.6 million at July 31, 2025
• Cash balance $230 thousand vs. $1.9 million at July 31, 2025

SAND SPRINGS, Okla., May 26, 2026 /PRNewswire/ -- Webco Industries, Inc. (OTC: WEBC) today reported results for our third quarter of fiscal year 2026, which ended April 30, 2026.

For our third quarter of fiscal year 2026, we had net income of $8.0 million, or $11.61 per diluted share, while in our third quarter of fiscal year 2025, we had net income of $5.0 million, or $7.05 per diluted share.  Net sales for the third quarter of fiscal 2026 were $179.6 million, a 15.6 percent increase from the $155.4 million in sales in the third quarter of fiscal year 2025. 

For the first nine months of fiscal year 2026, we generated net income of $13.3 million, or $19.16 per diluted share, compared to a net income of $2.9 million, or $3.68  per diluted share, for the same period in fiscal year 2025.  Net sales for the first nine months of the current year amounted to $481.2 million, a 12.8 percent increase from the $426.5 million in sales for the same nine-month period of last year.

In the third quarter of fiscal year 2026, we had income from operations of $10.8 million after depreciation of $5.1 million.  The third fiscal quarter of the prior year generated income from operations of $8.3 million after depreciation of $4.9 million.  Gross profit for the third quarter of fiscal 2026 was $29.0 million, or 16.1 percent of net sales, compared to $21.3 million, or 13.7 percent of net sales, for the third quarter of fiscal year 2025.  

Our income from operations for the first nine months of fiscal year 2026 was $20.3 million, after depreciation expense of $15.0 million.  Income from operations in the first nine-month period of fiscal year 2025 was $7.6 million, after depreciation expense of $14.2 million.   Gross profit for the first nine months of fiscal 2026 was $66.3 million, or 13.8 percent of net sales, compared to $44.8 million, or 10.5 percent of net sales for the same period in fiscal year 2025.

Selling, general and administrative expenses were $18.2 million in the third quarter of fiscal 2026 and $13.0 million in the third quarter of fiscal 2025. SG&A expenses were $46.0 million in the first nine months of fiscal year 2026 and $37.3 million for the first nine-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 $1.6 million in the third quarter of fiscal year 2026 and $1.5 million in the same quarter of fiscal year 2025.  Interest expense was $4.4 million and $3.9 million in the first nine-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 $6.1 million in the third quarter of fiscal year 2026 and $13.6 million for the first nine months of fiscal year 2026.  Capital spending thus far in fiscal year 2026 has been focused on plant equipment updates and improvements.   

At April 30, 2026, we had $9.9 million in cash and short-term investments, in addition to $95.4 million of available borrowing under our $220 million senior revolving credit facility.  Availability on the revolver, which had $97.3 million drawn at April 30, 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 3,600 shares of our stock during the third quarter of fiscal year 2026 and 21,900 shares in the first nine months of fiscal year 2026.  At April 30, 2026, there was approximately $5.3 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 April 30,				Nine Months Ended April 30,
	2026		2025		2026		2025
Net sales	$   179,602		$   155,371		$   481,208		$   426,467
Cost of sales	150,645		134,100		414,901		381,641
Gross profit	28,957		21,271		66,307		44,827
Selling, general & administrative expenses	18,184		12,992		45,985		37,259
Income (loss) from operations	10,773		8,279		20,322		7,568
Interest expense	1,563		1,501		4,411		3,898
Pretax income (loss)	9,210		6,778		15,911		3,669
Provision for (benefit from) income taxes	1,214		1,778		2,598		816
Net income (loss)	$      7,997		$     5,000		$    13,313		$      2,853
Net income (loss) per share:
Basic	$      12.29		$        7.54		$      20.37		$        3.96
Diluted	$      11.61		$        7.05		$      19.16		$        3.68
Weighted average common shares outstanding:
Basic	651,000		663,000		654,000		720,000
Diluted	689,000		709,000		695,000		776,000

 

CONSOLIDATED CASH FLOW DATA (Dollars in thousands – Unaudited)
	Three Months Ended April 30,				Nine Months Ended April 30,
	2026		2025		2026		2025
Net cash provided by (used in)      operating activities	$   (6,833)		$     2,625		$  (17,007)		$      16,548
Depreciation and amortization	$     5,229		$     4,843		$     15,129		$      14,211
Cash paid for capital expenditures	$     5,809		$     4,325		$     13,644		$      15,961
Notes: Amounts may not sum due to rounding.

 

	WEBCO INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands - Unaudited)
		April 30,		July 31,
		2026		2025
Current assets:
	Cash	$         230		$       1,894
	U.S. Treasury Bonds	9,673		13,235
	Accounts receivable	82,039		73,004
	Inventories, net	213,757		188,943
	Prepaid expenses	4,847		4,502
	Total current assets	310,546		281,579
Property, plant and equipment, net		166,435		167,275
Right of use, finance leases, net		1,123		1,000
Right of use, operating leases, net		18,940		20,793
Other long-term assets		17,897		18,605
Total assets		$   514,940		$   489,251
Current liabilities:
	Accounts payable	$     32,878		$     51,742
	Accrued liabilities	33,002		31,380
	Current portion of long-term debt, net	96,768		65,636
	Current portion of finance lease liabilities	464		459
	Current portion of operating lease liabilities	5,387		5,367
	Total current liabilities	168,499		154,585
Long-term debt, net of current portion		20,000		20,000
Finance lease liabilities, net of current portion		713		592
Operating lease liabilities, net of current portion		13,552		15,545
Deferred tax liability		2,335		-
Stockholders' equity:
	Common stock	7		7
	Additional paid-in capital	48,453		47,007
	Retained earnings	261,381		251,515
	Total stockholders' equity	309,841		298,529
Total liabilities and stockholders' equity		$   514,940		$   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-third-quarter-results-302782353.html

SOURCE Webco Industries, Inc.

FAQ

How did Webco Industries (OTC:WEBC) perform in fiscal 2026 Q3?

Webco reported Q3 2026 net income of $8.0 million, or $11.61 diluted EPS. According to Webco, net sales reached $179.6 million, up 15.6% from $155.4 million in Q3 2025, with gross margin improving to 16.1% of net sales.

What were Webco Industries' year-to-date fiscal 2026 results for WEBC stock investors?

For the first nine months of fiscal 2026, Webco earned $13.3 million, or $19.16 diluted EPS. According to Webco, net sales were $481.2 million, a 12.8% increase from $426.5 million a year earlier, and gross profit margin rose to 13.8% of net sales.

How did Webco Industries' cash flow trend in fiscal 2026 impact WEBC?

Webco reported negative operating cash flow of $17.0 million for the first nine months of fiscal 2026. According to Webco, Q3 operating cash flow was negative $6.8 million, compared with positive $2.6 million in Q3 2025, while capital expenditures totaled $13.6 million year-to-date.

What is Webco Industries' debt and liquidity position as of April 30, 2026?

As of April 30, 2026, Webco had $230 thousand in cash and $9.7 million in U.S. Treasury bonds. According to Webco, $97.3 million was drawn on its $220 million revolving credit facility, with $95.4 million available, and maturity extended to February 2031.

What did Webco Industries announce about its WEBC stock repurchase program in 2026?

In March 2026, Webco’s board refreshed its stock repurchase program with a new $6.0 million limit through July 31, 2029. According to Webco, it bought 21,900 shares in the first nine months of 2026 and had about $5.3 million of remaining repurchase authority.

How are Webco Industries' expenses and interest costs changing in fiscal 2026?

Webco’s SG&A expenses increased to $18.2 million in Q3 2026 and $46.0 million year-to-date. According to Webco, interest expense rose to $1.6 million in Q3 and $4.4 million for nine months, reflecting higher average debt balances than prior fiscal periods.

What are key balance sheet changes for Webco Industries between July 2025 and April 2026?

Between July 31, 2025 and April 30, 2026, Webco’s total assets grew to $514.9 million from $489.3 million. According to Webco, inventories and receivables increased, while cash declined, and the current portion of long-term debt rose to $96.8 million from $65.6 million.