November 24th, 2025
SAND SPRINGS, Oklahoma, November 24, 2025 – Webco Industries, Inc. (OTC: WEBC) today reported results for our first fiscal quarter ended October 31, 2025.
Download PDFFor 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.
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