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WEBCO INDUSTRIES, INC. REPORTS FISCAL 2025 FOURTH QUARTER AND YEAR END RESULTS
Prnewswireยท 2025-10-01 22:25
Financial Performance - For the fourth quarter of fiscal year 2025, the company reported a net income of $6.5 million, or $9.18 per diluted share, compared to $4.3 million, or $4.94 per diluted share in the same quarter of fiscal year 2024, representing a significant increase in profitability [2] - Net sales for the fourth quarter of fiscal 2025 were $158.2 million, a 4.5% increase from $151.4 million in the fourth quarter of fiscal year 2024 [2] - For the entire fiscal year 2025, net income was $9.3 million, or $12.30 per diluted share, down from $16.0 million, or $19.24 per diluted share in fiscal year 2024, with net sales decreasing by 3.9% to $584.7 million from $608.4 million [2] Operational Insights - The company experienced an income from operations of $9.0 million in the fourth quarter of fiscal year 2025, up from $4.3 million in the same quarter of the previous year, with gross profit increasing to $22.0 million, or 13.9% of net sales, compared to $17.6 million, or 11.6% of net sales in the prior year [3] - For fiscal year 2025, income from operations was $16.6 million, down from $20.9 million in fiscal year 2024, with gross profit at $66.8 million, or 11.4% of net sales, compared to $71.8 million, or 11.8% of net sales in the previous year [3] Expense Management - Selling, general and administrative (SG&A) expenses were $12.9 million in the fourth quarter of fiscal 2025, slightly down from $13.2 million in the same quarter of fiscal year 2024, and totaled $50.2 million for the entire fiscal year 2025, compared to $50.9 million in fiscal year 2024 [4] - The decrease in SG&A expenses reflects lower profitability-related costs, offset by inflation in wages and other expenses [4] Capital Expenditures and Investments - Capital expenditures for the fourth quarter of fiscal year 2025 amounted to $4.0 million, with total capital spending for the fiscal year at $18.6 million, primarily focused on construction and expansion at stainless facilities [6] - As of July 31, 2025, the company had $15.1 million in cash and short-term investments, along with $75.4 million available under its $220 million senior revolving credit facility [6] Stock Repurchase Program - The company has a stock repurchase program with a new limit of up to $40 million, extended until July 31, 2026, having purchased 1,000 shares in the fourth quarter of fiscal year 2025 and 167,000 shares throughout the fiscal year [8] - As of July 31, 2025, approximately $4.7 million of purchase authority remained in the current stock repurchase program [8] Industry Context - The CEO indicated that the domestic manufacturing sector has been in a recession for over two years, exacerbated by unfair dumping of products by foreign manufacturers and a dynamic tariff environment [3] - The company perceives that the benefits from tariffs have outweighed the costs, and it continues to focus on maintaining a strong balance sheet and liquidity [3]