#United States #financial results #Webco Industries #Oklahoma #Sand Springs

Webco Industries Reports Q1 Fiscal 2025 Results

Webco Industries, Inc. (OTC: WEBC) has recently shared its financial outcomes for the first quarter of fiscal year 2025, which concluded on October 31, 2024. The results indicate significant challenges as the company experienced a net loss of $0.1 million, translating to a loss of $0.13 per diluted share. This is a stark contrast to the Q1 of fiscal 2024, which boasted a net income of $5.1 million or $6.25 per diluted share.

In terms of revenue, Webco’s net sales for the first quarter of FY 2025 totaled $141.4 million, marking a 10.4% decline from $157.8 million in the same quarter of the previous fiscal year. CEO Dana S. Weber commented on the persistent deterioration of the domestic manufacturing landscape, which he attributes partly to adverse impacts from foreign imports. Despite these setbacks, Weber expressed a commitment to strategically position Webco for varying economic climates.

The company maintains a focus on liquidity with a total cash and short-term investments compounded with available credit, amounting to $89 million by the end of October 2024. Such liquidity is viewed as a significant competitive edge in turbulent times.

Income from Operations

For the first quarter of FY 2025, Webco reported an income from operations of $1.1 million, subsequently down from $8.0 million in the first quarter of the prior fiscal year. The gross profit in this quarter was recorded at $13.6 million, reflecting 9.7% of net sales, a notable decrease compared to the previous year's gross profit of $21.6 million, which represented 13.7% of net sales.

Selling, administrative, and general expenses have decreased from $13.6 million in Q1 FY 2024 to $12.6 million in Q1 FY 2025. This variation primarily reflects adjustments related to lower profitability and changing costs influenced by inflation affecting wages and other operational expenses.

Interest and Capital Expenditures

The interest expense for the quarter was reported at $1.2 million, a slight reduction from $1.3 million in Q1 FY 2024. This drop can be attributed to a decrease in average construction-based investments. Furthermore, capital expenditures saw a significant decline, totaling $5.1 million compared to $10.1 million in the same quarter of the prior fiscal year, which included expenses for the development of the F. William Weber Leadership Campus.

Stock Repurchase Program

Webco has also refreshed its stock repurchase program, permitting up to $40 million in buybacks and extending the program's life until July 31, 2026. In the first quarter of FY 2025, Webco acquired 2,850 shares, bringing the total to approximately 158,000 shares repurchased over the last five fiscal years.

Forward-Looking Insights

Webco aims to capitalize on its foundational strengths, upholding values of trust and teamwork, while continuously seeking innovative pathways forward. The company is dedicated to producing high-quality carbon steel, stainless steel, and specialized metal tubing products that meet diverse customer specifications. With manufacturing plants in Oklahoma and Pennsylvania, alongside additional value-added facilities across multiple states, Webco serves customers on a global scale.

In conclusion, although Webco has encountered hurdles in its Q1 of FY 2025, the company aims to leverage its robust practices and financial strategies to navigate these challenging times and emerge resilient. The executive leadership remains optimistic about the future despite current adversities, indicating a strong commitment to nurturing a sustainable and impactful business landscape.