WEBCO INDUSTRIES, INC. REPORTS FISCAL 2026 FOURTH QUARTER AND YEAR END RESULTS

For our fourth quarter of fiscal year 2026, we had net income of $5.0 million, or $7.35 per diluted share, while in our fourth quarter of fiscal year 2025, we had net income of $6.5 million, or $9.18 per diluted share.

Net sales for the fourth quarter of fiscal 2026 were $189.7 million, a 19.9 percent increase from the $158.2 million in sales in the fourth quarter of fiscal year 2025.

For fiscal year 2026, we generated net income of $18.3 million, or $26.50 per diluted share, compared to a net income of $9.3 million, or $12.30 per diluted share, in fiscal year 2025.

Net sales for the current fiscal year totaled $670.9 million, a 14.8 percent increase from the $584.7 million in sales for last year.

In the fourth quarter of fiscal year 2026, we had income from operations of $7.7 million after depreciation of $5.1 million.

The fourth fiscal quarter of the prior year generated income from operations of $9.0 million after depreciation of $4.8 million.

Gross profit for the fourth quarter of fiscal 2026 was $27.7 million, or 14.6 percent of net sales, compared to $22.0 million, or 13.9 percent of net sales, for the fourth quarter of fiscal year 2025.

Our income from operations for fiscal year 2026 was $28.0 million, after depreciation expense of $20.0 million.

Income from operations in fiscal year 2025 was $16.6 million, after depreciation expense of $19.0 million.

Gross profit for fiscal 2026 was $94.0 million, or 14.0 percent of net sales, compared to $66.8 million, or 11.4 percent of net sales for fiscal year 2025.

Selling, general and administrative expenses were $20.0 million in the fourth quarter of fiscal 2026 and $12.9 million in the fourth quarter of fiscal 2025.

SG&A expenses were $66.0 million in fiscal year 2026 and $50.2 million for fiscal year 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 $1.5 million in the fourth quarter of fiscal year 2026 and $1.4 million in the same quarter of fiscal year 2025.

Interest expense was $5.9 million and $5.3 million in the current and prior fiscal years, respectively.

Interest expense increased due to higher average debt balances than in the prior fiscal periods.

Capital expenditures incurred amounted to $1.8 million in the fourth quarter of fiscal year 2026 and $15.4 million for fiscal year 2026.

Capital spending in fiscal year 2026 has been focused on plant equipment updates and improvements.

At July 31, 2026, we had $9.1 million in cash and short-term investments, in addition to $112.9 million of available borrowing under our $220 million senior revolving credit facility.

Availability on the revolver, which had $89.3 million drawn at July 31, 2026, is subject to advance rates on eligible accounts receivable and inventories.

In February 2026, we extended the maturity on our debt agreement to February 2031.

Accounting rules require asset-based debt agreements like our revolver to be classified as a current liability, despite its fiscal year 2031 maturity.

Webco's stock repurchase program authorizes the purchase of our outstanding common stock in private or open market transactions.

In March 2026, the Company's Board of Directors refreshed the repurchase program with a new limit of up to $6.0 million and extended the program's expiration until July 31, 2029.

We purchased 11,900 shares of our stock during the fourth quarter of fiscal year 2026 and 33,800 shares in fiscal year 2026.

At July 31, 2026, there was approximately $1.6 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.