Webco Industries Reports Strong Quarterly Growth Despite Manufacturing Challenges

Webco Industries, Inc. Releases Fiscal 2025 Year-End Results

Webco Industries, Inc. (OTC: WEBC), based in Sand Springs, Oklahoma, has officially announced its financial results for the fourth quarter and full fiscal year ending on July 31, 2025. In spite of a challenging manufacturing environment, the company achieved notable growth in its quarterly net income, reporting $6.5 million, or $9.18 per diluted share. This marks an increase from $4.3 million or $4.94 per diluted share reported in the same period last year. Additionally, net sales for this quarter reached $158.2 million, reflecting a 4.5% increase from $151.4 million the year prior.

For the entire fiscal year 2025, Webco generated a net income of $9.3 million ($12.30 per diluted share), although this shows a decline compared to $16.0 million ($19.24 per diluted share) for fiscal year 2024. The annual net sales stood at $584.7 million, down by 3.9% from $608.4 million the previous year.

According to Dana S. Weber, Chief Executive Officer and Board Chair, the prolonged recession in the domestic manufacturing sector has significantly affected operations. Weber attributed the unfavorable business conditions to aggressive pricing tactics from foreign manufacturers. He noted how tariffs have provided both opportunities and challenges for Webco, positing that the benefits have outweighed the costs for their business. On July 31, 2025, the company reported having $90.5 million in total cash, short-term investments, and available credit, which they consider advantageous.

In terms of operational efficiency, the company achieved an income from operations of $9.0 million during the fourth quarter, significantly up from the $4.3 million earned in the same timeframe last year. The gross profit for Q4 of fiscal 2025 was reported at $22 million, representing 13.9% of net sales, compared to $17.6 million or 11.6% of sales in Q4 of 2024.

The total income from operations for the entire fiscal year was $16.6 million, down from $20.9 million in fiscal year 2024. Their gross profit for the year was $66.8 million, which is 11.4% of net sales, contrasted with 11.8% from the prior year. Selling, general and administrative expenses were reduced in Q4, showing a decrease from $13.2 million to $12.9 million compared to last year.

Webco's interest expenses rose to $1.4 million in Q4 of 2025, up from $1.0 million the previous year, totaling $5.3 million for the fiscal year. Capital expenditures for the fourth quarter amounted to $4.0 million, with the majority focusing on constructing and expanding their stainless steel facilities.

As of the end of July 2025, Webco Industries had accumulated $15.1 million in cash and short-term investments, in addition to $75.4 million available under their senior revolving credit facility. The refinancing of this facility, however, comes with stricter operational liabilities as dictated by accounting rules.

Furthermore, Webco’s stock repurchase initiative is currently active, with authorization to buy up to $40 million worth of common stock, set to expire in July 2026. The company repurchased 1,000 shares during Q4 and a total of 167,000 shares throughout the fiscal year.

Looking to the future, the mission of Webco Industries stands firm on its foundational values of trust and teamwork, aiming to build a sustainable and innovative business model. Their commitment to high-quality carbon and stainless steel specialty tubing products is evident, with five production facilities across Oklahoma and Pennsylvania, and multiple value-added facilities strategically located in various states.

While the future remains uncertain due to external factors impacting the economy and manufacturing sector, Webco Industries clearly demonstrates resilience and strategic foresight as they navigate these complexities.