WBI (WBI) Financials

WBI’s second-quarter 2026 results show substantial operational improvement, but the company remains highly capital-intensive and dependent on debt financing. Revenue increased to $217.8 million from $201.0 million in Q1 2026 and more than doubled from $95.5 million in Q2 2025. Gross profit rose to $130.2 million, producing a gross margin of approximately 59.8%, compared with 24.0% in Q1 2026 and a gross loss in Q2 2025.

Operating income increased to $40.3 million from $30.5 million in Q1. Consolidated net income was $14.6 million, while net income attributable to common shareholders was $5.1 million, or $0.10 per basic and diluted share. The difference reflects $9.4 million of income attributable to noncontrolling interests. Common-shareholder earnings improved from $3.5 million, or $0.08 per share, in Q1.

Operating cash flow remained positive at $64.9 million, although it declined from $95.1 million in Q1. Cash generation benefited heavily from noncash depreciation of $72.1 million and amortization of $1.5 million, meaning reported earnings converted into cash less strongly than the headline operating profit might suggest. Working-capital changes were also a $29.6 million use of cash in Q2, compared with a $12.3 million source of cash in Q1.

WBI continued to invest aggressively. Capital expenditures were $123.3 million in Q2, and acquisitions required another $82.8 million, resulting in $206.0 million of negative investing cash flow. The spending was funded in part by $150.0 million of new debt. Despite this financing, cash declined by $3.0 million during the quarter to $47.6 million.

The balance sheet reflects the company’s expansion strategy. Net property, plant and equipment increased by $123.9 million from Q1 to $2.5 billion, while total assets rose to $3.9 billion. However, long-term debt increased by $152.6 million to $1.6 billion, and total debt, including short-term borrowings, was approximately $1.6 billion. Accounts receivable also rose to $212.8 million, making collections and working-capital management important areas for investors to monitor.

• Revenue momentum improved: Q2 2026 revenue of $217.8 million was approximately 8.4% higher than Q1 2026 and 128% above Q2 2025.
• Profitability strengthened: Gross profit increased to $130.2 million, and operating income reached $40.3 million, a notable improvement from the loss-making gross-profit periods reported in portions of 2024 and 2025.
• Common-shareholder earnings improved: Net income attributable to common shareholders increased sequentially to $5.1 million, while diluted EPS rose from $0.08 to $0.10.
• Operating cash flow remained positive: WBI generated $64.9 million of operating cash flow in Q2 and $160.0 million during the first half of 2026.
• Infrastructure investment is expanding the asset base: Net PP&E increased to $2.5 billion, suggesting continued investment in the company’s operating network and capacity.
• Liquidity remains adequate but narrowed: Cash was $47.6 million at June 30, 2026, while current assets of $268.5 million exceeded current liabilities of $174.3 million. However, cash fell from $50.7 million in Q1 despite receiving substantial new debt financing.
• Noncontrolling interests materially affect common returns: $9.4 million of Q2 net income was allocated to noncontrolling interests, leaving only $5.1 million for common shareholders.
• Leverage increased: Long-term debt rose to $1.6 billion from $1.5 billion in Q1, and Q2 financing cash flow was positive primarily because of $150.0 million of new borrowing.
• Capital spending exceeded operating cash flow: Q2 capital expenditures and acquisitions totaled approximately $206.0 million, more than three times quarterly operating cash flow and contributing to a decline in cash.
• Cash earnings depend heavily on depreciation add-backs: Q2 depreciation and amortization totaled approximately $73.6 million versus $14.6 million of consolidated net income, highlighting the capital-intensive nature of the business and the need for ongoing reinvestment.

Overall, the trend from late 2024 and early 2025 to Q2 2026 is one of sharply higher revenue, improved margins and a return to positive common-shareholder earnings. The principal risks are rising leverage, significant acquisition and capital-spending requirements, declining cash balances and the large share of earnings allocated to noncontrolling interests. Some historical figures are restated or reflect unusual reporting periods, including zero revenue in Q3 2025, so year-over-year comparisons should be interpreted cautiously.