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

Webco Industries Reports Impressive First Quarter of Fiscal 2026

Webco Industries, Inc., a leading manufacturer in the metal tubing industry, has recently reported robust financial results for the first quarter ended October 31, 2025, signaling a remarkable turnaround from the previous fiscal year.

In the first quarter of fiscal 2026, the company reported a net income of $4.8 million, translating to earnings of $6.79 per diluted share. This is a significant improvement over the same quarter last year, where the firm recorded a net loss of $0.1 million, or a loss of $0.13 per diluted share. Notably, the net sales for the quarter reached $159.7 million, reflecting a 13% increase from the $141.4 million reported in the first quarter of fiscal 2025. These figures are seen as a strong indicator of the company’s resilience and adaptability in a challenging manufacturing environment.

Dana S. Weber, Chief Executive Officer and Chair of the Board, emphasized the turbulent backdrop of the domestic manufacturing sector, highlighting that it has faced a recession for over two years. The company confronted various challenges, particularly due to the unfair dumping of products by foreign manufacturers that has complicated the competitive landscape. However, she noted that the advantages gained from evolving tariff policies have outweighed the costs, marking an optimistic outlook for Webco.

As of the end of October 2025, Webco listed $80.8 million in total cash, short-term investments, and available credit on their revolving credit line. This strong liquidity positions the company favorably for future investments and operational sustainability. The income from operations also saw a considerable rise, with $7.4 million reported after accounting for $4.8 million in depreciation. In contrast, the previous fiscal year's first quarter yielded only $1.1 million in income from operations.

The gross profit margin for the first quarter stood at 13.2% of net sales, amounting to a gross profit of $21 million, which is a stark increase from the $13.6 million achieved during the same period last year, where the margin was only 9.7%.

Nevertheless, Webco experienced an uptick in selling, general and administrative (SGA) expenses, which reached $13.6 million for the quarter compared to $12.6 million a year prior. This increase is attributed to a variety of factors, including heightened profitability-driven incentives and inflationary pressures affecting wages and operational costs. Additionally, the company incurred $1.4 million in interest expenses, reflecting changes in interest rates and debt levels compared to the previous year.

Capital expenditures for the quarter were reported at $3.5 million, mainly directed towards enhancing the company’s stainless steel facilities. This strategic investment emphasizes Webco’s commitment to maintaining high-quality production capabilities while adapting to market demands.

Webco’s stock repurchase program has also been extended, allowing for the repurchase of up to $40 million worth of shares until July 31, 2026. It is important to note that during the first quarter of fiscal 2026, the company bought back 3,000 shares, adding to the previously acquired 167,000 shares in fiscal 2025. Such initiatives signal both confidence in their financial outlook and a desire to enhance shareholder value.

The long-standing mission of Webco Industries remains rooted in leveraging core values such as trust and teamwork. The company is steadfast in its goal to cultivate a legacy that prioritizes high-quality products and exceptional service to its customers, partners, and the broader community. With facilities located across various states, including Oklahoma and Pennsylvania, Webco produces a diverse range of metal tubing products, tailored to meet stringent industry specifications.

In conclusion, Webco Industries has demonstrated commendable growth and resilience in the face of external challenges, setting a solid foundation for future opportunities and investments. As the company continues to navigate complexities in the manufacturing sector, their proactive strategies and commitment to innovation will be pivotal for sustained success.