Insteel Industries Reports First Quarter 2026 Results

MOUNT AIRY, N.C.--(BUSINESS WIRE)--Insteel Industries Inc. (NYSE: IIIN) (“Insteel” or the “Company”), the largest manufacturer of steel wire reinforcing products for concrete construction applications in the United States, today reported financial results for its first quarter of fiscal 2026, ended December 27, 2025. First Quarter 2026 Highlights Payment of special cash dividend totaling $19.4 million, or $1.00 per share Net sales of $159.9 million Gross profit of $18.1 million, or 11.3% of net sales Net income of $7.6 million, or $0.39 per share Net cash balance of $15.6 million and no debt outstanding as of December 27, 2025 Positive momentum with a strengthening outlook First Quarter 2026 Results Net earnings for the first quarter of fiscal 2026 increased to $7.6 million, or $0.39 per share, compared with $1.1 million, or $0.06 per share, in the prior year quarter. Prior year results included $1.0 million in restructuring charges and acquisition-related costs, which reduced net earnings per share by $0.04. Insteel’s first quarter results were driven by stronger demand for the Company’s concrete reinforcement products, which supported wider spreads between selling pricing and raw material costs. Net sales increased 23.3% to $159.9 million from $129.7 million in the prior year quarter, driven by an 18.8% increase in average selling prices and a 3.8% rise in shipments. Higher average selling prices reflect pricing actions taken over the course of last year to offset increased raw material and operating costs. Shipments for the current quarter benefited from favorable demand trends in our infrastructure and commercial construction markets, as well as incremental contributions from our prior year acquisitions. Sequentially, shipments decreased 9.7% from the fourth quarter of fiscal 2025, reflecting the usual seasonal slowdown, while average selling prices were essentially unchanged. Gross margin expanded by 400 basis points to 11.3%, from 7.3% in the prior year quarter, driven by wider spreads, higher shipment volumes and lower unit manufacturing costs. Operating activities used $0.7 million of cash during the quarter compared with generating $19.0 million in the prior year quarter, primarily due to the relative change in net working capital, partially offset by higher earnings. Net working capital used $16.6 million in the current quarter, driven by higher inventories resulting from increased international steel wire rod purchases due to limited domestic availability. In contrast, net working capital provided $12.3 million in the prior year quarter. Capital Allocation and Liquidity Capital expenditures for the first quarter of fiscal 2026 decreased to $1.5 million from $2.7 million in the prior year quarter. Capital outlays for fiscal 2026 are expected to total up to approximately $20.0 million, primarily focused on cost and productivity improvement initiatives as well as recurring maintenance requirements. On December 12, 2025, Insteel paid a special cash dividend totaling $19.4 million, or $1.00 per share, in addition to its regular quarterly cash dividend of $0.03 per share and ended the quarter with $15.6 million of cash and no borrowings outstanding on its $100.0 million revolving credit facility. Outlook “Despite industry statistics that would indicate softening construction activity, our markets were resilient during our first quarter and shipment volumes held up,” said H.O. Woltz III, Insteel’s President and CEO. “Nonresidential construction remained a key demand driver, supported by infrastructure spending and data center activity. While residential markets remain soft, we are encouraged by early signs of stabilization. As anticipated, first quarter shipments reflected the typical seasonal slowdown, and margins were impacted by the consumption of higher-cost raw material inventories.” Mr. Woltz added, “While forecasters have raised questions surrounding future construction activity, we continue to experience positive customer sentiment and expect 2026 to offer solid opportunity for Insteel. The downward trajectory of interest rates, together with contributions from our recent investments, causes us to be optimistic about our prospects. With that said, we remain concerned about the significant steel price premium in the U.S. relative to the global market, and we expect finished products markets exposed to imports to remain highly competitive. As we have stated previously, only about 10% of our revenues are directly affected by import competition. Looking ahead, we are optimistic that Insteel is positioned for a year of strong performance.” Conference CallRead the full story here

Insteel Industries Reports First Quarter 2026 Results

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