May 21st, 2025
SAND SPRINGS, Oklahoma, May 21, 2025 – Webco Industries, Inc. (OTC: WEBC) today reported results for our third quarter of fiscal year 2025, which ended April 30, 2025.
Download PDFFor our third quarter of fiscal year 2025, we had a net income of $5.0 million, or $7.05 per diluted share, while in our third quarter of fiscal year 2024, we had net income of $6.4 million, or $7.49 per diluted share. Net sales for the third quarter of fiscal 2025 were $155.4 million, a 1.4 percent increase from the $153.2 million of sales in the third quarter of fiscal year 2024.
For the first nine months of fiscal year 2025, we generated a net income of $2.9 million, or $3.68 per diluted share, compared to a net income of $11.8 million, or $14.30 per diluted share, for the same period in fiscal year 2024. Net sales for the first nine months of the current year amounted to $426.5 million, a 6.7 percent decrease from the $457.0 million in sales for the same nine-month period of last year.
Dana S. Weber, Chief Executive Officer and Board Chair, stated, “Our third fiscal quarter was marginally more active when compared to business levels over the last two years, a period we believe reflected a domestic manufacturing sector recession. 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 our strong balance sheet, good liquidity and making compelling investments in our business. Our total cash, short-term investments and available credit on our revolver were $75.7 million at April 30, 2025, which we believe to be a competitive advantage.”
In the third quarter of fiscal year 2025, we had income from operations of $8.3 million after depreciation of $4.9 million. The third fiscal quarter of the prior year generated income from operations of $7.1 million after depreciation of $3.8 million. Gross profit for the third quarter of fiscal 2025 was $21.3 million, or 13.7 percent of net sales, compared to $19.7 million, or 12.9 percent of net sales, for the third quarter of fiscal year 2024.
Our income from operations for the first nine months of fiscal year 2025 was $7.6 million, after depreciation expense of $14.2 million. Income from operations in the first nine-month period of fiscal year 2024 was $16.6 million, after depreciation expense of $11.2 million. Gross profit for the first nine months of fiscal 2025 was $44.8 million, or 10.5 percent of net sales, compared to $54.3 million, or 11.9 percent of net sales for the same period in fiscal year 2024.
Selling, general and administrative expenses were $13.0 million in the third quarter of fiscal 2025 and $12.6 million in the third quarter of fiscal 2024. SG&A expenses were $37.3 million in the first nine months of fiscal year 2025 and $37.7 million for the first nine-month period of fiscal year 2024. SG&A expenses in fiscal year 2025 reflect decreases in costs related to lower profitability, such as company-wide incentive compensation and variable pay programs, offset by inflation we have experienced in wages and other expenses.
Interest expense was $1.5 million in the third quarter of fiscal year 2025 and $0.7 million in the same quarter of fiscal year 2024. Interest expense was $3.9 million and $3.0 million in the first nine-month periods of the current and prior fiscal years, respectively. Average constructionbased investments decreased in fiscal year 2025 and, as a result, capitalized interest decreased $0.6 million and $1.3 million when compared to the third quarter and first nine months of fiscal year 2024, respectively. Capitalized interest decreases net interest expense in the consolidated statement of operations. Notwithstanding capitalized interest, interest rates were marginally lower and average debt balances were higher in the current fiscal quarter and first nine-month periods than in the prior fiscal year.
Capital expenditures incurred amounted to $4.3 million in the third quarter of fiscal year 2025 and $16.0 million for the first nine months of fiscal year 2025. Capital spending in fiscal year 2025 was dominated by construction and expansion at our stainless facilities. Included in capital spending for the third quarter and first nine months of fiscal year 2024 was construction of our F. William Weber Leadership Campus, which houses our Tech Center and corporate headquarters. The Tech Center, which is the tip of the spear that leads Webco’s trusted and technical brand throughout our industry, was completed in the fourth quarter of fiscal year 2024.
As of April 30, 2025, we had $15.0 million in cash and short-term investments, in addition to $60.7 million of available borrowing under our $220 million senior revolving credit facility. Availability on the revolver, which had $80.7 million drawn at April 30, 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 18,000 shares of our stock during the third quarter of fiscal year 2025 and 166,000 shares in the first nine months of fiscal year 2025, including the previously disclosed 143,000 shares acquired on December 31, 2024. At April 30, 2025, there was approximately $4.9 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.
Download PDF