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Webco Industries Reports Impressive Financial Performance in Q3

On May 26, 2026, Webco Industries, Inc. (OTC: WEBC) announced their financial results for the third quarter of the fiscal year 2026, ending on April 30, 2026. This quarter is notable for its significant growth metrics, particularly in net income and sales.

Third Quarter Financial Highlights

Webco Industries achieved a net income of $8.0 million, which equates to $11.61 per diluted share. This figure represents a substantial increase from the $5.0 million net income or $7.05 per diluted share reported in the same quarter of the previous year, fiscal year 2025.

Additionally, the company's net sales for this third quarter soared to $179.6 million, marking a 15.6% rise compared to $155.4 million in Q3 of fiscal 2025. This demonstrates the strong demand for Webco's products and services, which have contributed to the profitable growth.

Year-to-Date Performance

Over the first nine months of fiscal year 2026, Webco generated a net income of $13.3 million or $19.16 per diluted share. This is a remarkable leap from last year's earnings of just $2.9 million or $3.68 per diluted share. The net sales for the first three quarters totaled $481.2 million, reflecting a 12.8% increase over $426.5 million from the corresponding period in fiscal year 2025.

Operational Insights

For the third quarter of fiscal 2026, income from operations was $10.8 million after accounting for $5.1 million in depreciation. In contrast, the same period last year showed $8.3 million after $4.9 million in depreciation expenses. The gross profit surged to $29.0 million or 16.1% of the net sales, compared to $21.3 million, or 13.7%, in Q3 of the prior fiscal year.

Over the year-to-date, Webco's income from operations totaled $20.3 million after depreciation expenses of $15.0 million, compared to $7.6 million with $14.2 million depreciation in fiscal year 2025. The first nine months also see a gross profit of $66.3 million or 13.8% of net sales, up from $44.8 million at a 10.5% margin previously.

Expenses and Investments

Selling, general and administrative (SGA) expenses stood at $18.2 million for Q3, up from $13.0 million in Q3 2025. The first three quarters of this fiscal year saw SGA expenses at $46.0 million, compared to $37.3 million for the same period last year. The increase reflects costs related to higher profitability, including company-wide incentive compensation and inflationary pressures.

Interest expenses have also seen a slight increase, totaling $1.6 million in Q3 2026 compared to $1.5 million in Q3 2025. For the first nine months, interest expense rose to $4.4 million, up from $3.9 million in the previous fiscal year.

Webco reported capital expenditures amounting to $6.1 million in the third quarter, with investments focused on updating plant equipment and improvements.

Cash Position and Debt Management

As of April 30, 2026, Webco holds $9.9 million in cash and short-term investments, alongside $95.4 million available through their $220 million senior revolving credit facility. It is noteworthy that the company extended the maturity of its debt agreement to February 2031, showcasing confidence in their financial strategy.

The company has a robust stock repurchase program authorized by its Board, recently refreshed with a new cap of $6.0 million, allowing for continued investment in its own shares. The program allows for a proactive approach to stock management, providing the board with flexible strategies to enhance shareholder value.

Commitment to Growth

Webco is steadfast in its mission to build a resilient company characterized by trust and teamwork. Highlighting its focus on innovation, Webco aims continually to enhance its operational strengths, ensuring sustainable growth, and consistently meeting industry and customer specifications. Presently, the company operates five tube production facilities and various value-added facilities spread across Oklahoma, Illinois, Michigan, Pennsylvania, and Texas, serving clients globally.

Conclusion

In summary, Webco Industries, Inc. has reported excellent financial results for Q3 in fiscal 2026, demonstrating impressive growth in both income and sales. Looking ahead, the company appears well-positioned to continue its upward trajectory, bolstered by a commitment to innovation and operational excellence.