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Insteel Industries Reports Fourth Quarter 2025 Results

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 announced financial results for its fourth quarter and fiscal year ended September 27, 2025.

Fourth Quarter 2025 Highlights

  • Net earnings of $14.6 million, or $0.74 per diluted share
  • Net sales of $177.4 million
  • Gross profit of $28.6 million, or 16.1% of net sales
  • Net cash balance of $38.6 million and no debt outstanding as of September 27, 2025
  • Strong finish to 2025, outlook remains cautiously optimistic

Fourth Quarter 2025 Results

Net earnings for the fourth quarter of fiscal 2025 rose to $14.6 million, or $0.74 per diluted share, from $4.7 million, or $0.24 per share, for the same period a year ago. The strong performance was driven primarily by wider spreads between selling prices and raw material costs, along with higher shipments of Insteel’s concrete reinforcement products. These gains were partially offset by higher selling, general, and administrative expenses, mainly reflecting increased incentive plan costs.

Net sales increased 32.1% to $177.4 million from $134.3 million in the prior-year quarter, driven by a 20.3% rise in average selling prices and a 9.8% increase in shipment volumes. The higher average selling prices reflected pricing actions implemented across all product lines to recover increased raw material and operating costs. Shipment growth was supported by incremental contributions from acquisitions completed earlier in the year, along with a steady recovery in demand across key construction end markets. Sequentially, average selling prices rose 4.7% from the third quarter of fiscal 2025, while shipments declined 5.8%. Gross profit improved to $28.6 million from $12.3 million in the prior-year quarter, with gross margin expanding to 16.1% from 9.1%, reflecting favorable market conditions.

Operating activities used $17.0 million of cash during the fourth quarter compared to generating $16.2 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 $37.4 million in the current year quarter, driven by a decrease in accounts payable and accrued expenses and an increase in inventories, compared to providing $5.3 million in the prior year quarter.

Fiscal 2025 Results

Net earnings for fiscal 2025 were $41.0 million, or $2.10 per diluted share, compared with $19.3 million, or $0.99 per share, for the same period a year ago. Insteel’s earnings for the current year period reflect $2.6 million of restructuring charges and acquisition-related costs, which collectively reduced net earnings per share by $0.10.

Net sales increased to $647.7 million from $529.2 million for the prior year period, driven by a 14.8% increase in shipments and a 6.7% rise in average selling prices. Gross profit increased to $93.4 million from $49.6 million in the same period a year ago, and gross margin widened to 14.4% from 9.4% due to improved conditions in reinforcing markets. Operating activities generated $27.2 million of cash compared with $58.2 million in the prior year period due to the relative change in net working capital partially offset by higher net earnings.

Capital Allocation and Liquidity

Capital expenditures for fiscal 2025 decreased to $8.2 million from $19.1 million in the prior year period and are expected to total up to approximately $20.0 million in fiscal 2026, primarily focused on cost and productivity improvement initiatives as well as recurring maintenance requirements.

Insteel ended the quarter debt-free with $38.6 million of cash and no borrowings outstanding on its $100.0 million revolving credit facility.

Outlook

“Our fourth quarter was reasonably strong, supported by steady operational improvements and continued strength in our core markets,” said H.O. Woltz III, President and CEO of Insteel. “Over the course of the quarter, we addressed raw material sourcing challenges that had constrained production, although not until the end of the quarter were lead times more normal for the season. The supply of hot rolled steel wire rod, our primary raw material, meaningfully improved due to increased domestic production and substantial offshore purchases. Eliminating the raw material constraint enabled us to better align production with customer demand and reduce lead times as we closed the year.

“As we enter fiscal 2026, market conditions are generally strong and stable, although residential construction remains moribund, as it has been for much of the year. Our recent acquisitions contributed meaningfully to our fiscal 2025 results and continue to perform well, driving higher shipment volumes and strengthening our competitive position in key markets. That said, we are closely monitoring broader macroeconomic conditions which could weigh on customer sentiment and demand. Nevertheless, we remain cautiously optimistic about the 2026 outlook, confident in our long-term strategy, and pleased with our market position.”

Mr. Woltz continued, “Looking ahead, we remain focused on driving shareholder value through disciplined execution and targeted growth. With strengthened operations and an expanding market presence, Insteel is well-positioned not only to sustain performance but also to capitalize on future opportunities and further solidify its leadership within the industry.”

Conference Call

Insteel will hold a conference call at 10:00 a.m. ET today to discuss its fourth quarter financial results. A live webcast of this call can be accessed on Insteel’s website at https://investor.insteel.com and will be archived for replay.

About Insteel

Insteel is the nation’s largest manufacturer of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets prestressed concrete strand and welded wire reinforcement, including engineered structural mesh (“ESM”), concrete pipe reinforcement and standard welded wire reinforcement. Insteel’s products are sold primarily to manufacturers of concrete products and concrete contractors for use, primarily, in nonresidential construction applications. Headquartered in Mount Airy, North Carolina, Insteel operates eleven manufacturing facilities located in the United States.

Cautionary Note Regarding Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words “believes,” “anticipates,” “expects,” “estimates,” “appears,” “plans,” “intends,” “may,” “should,” “could” and similar expressions are intended to identify forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, they are subject to several risks and uncertainties, and we can provide no assurances that such plans, intentions or expectations will be implemented or achieved. Many of these risks and uncertainties are discussed in detail in our Annual Report on Form 10-K for the year ended September 28, 2024 and may be updated from time to time in our other filings with the U.S. Securities and Exchange Commission (the “SEC”).

All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. All forward-looking statements speak only to the respective dates on which such statements are made, and we do not undertake any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as may be required by law.

It is not possible to anticipate and list all risks and uncertainties that may affect our business, future operations or financial performance; however, they include, but are not limited to, the following: general economic and competitive conditions in the markets in which we operate, including uncertainty over global trade policies and the financial impact of related tariffs and retaliatory tariffs; changes in the spending levels for nonresidential and residential construction and the impact on demand for our products; changes in the amount and duration of transportation funding provided by federal, state and local governments and the impact on spending for infrastructure construction and demand for our products; the cyclical nature of the steel and building material industries; credit market conditions and the relative availability of financing for us, our customers and the construction industry as a whole; the impact of rising interest rates on the cost of financing for our customers; fluctuations in the cost and availability of our primary raw material, hot-rolled carbon steel wire rod, from domestic and foreign suppliers; competitive pricing pressures and our ability to raise selling prices in order to recover increases in raw material or operating costs; changes in United States or foreign trade policy affecting imports or exports of steel wire rod or our products; unanticipated changes in customer demand, order patterns and inventory levels; the impact of fluctuations in demand and capacity utilization levels on our unit manufacturing costs; our ability to further develop the market for ESM and expand our shipments of ESM; legal, environmental, economic or regulatory developments that significantly impact our business or operating costs; unanticipated plant outages, equipment failures or labor difficulties; the impact of cybersecurity breaches and data leaks: and the “Risk Factors” discussed in our Annual Report on Form 10-K for the year ended September 28, 2024, and in other filings made by us with the SEC.

INSTEEL INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share data)
 
Three Months Ended Year Ended
(Unaudited) (Unaudited) (Unaudited)
September 27, September 28, September 27, September 28,

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 
Net sales

$

177,444

 

$

134,304

 

$

647,706

 

$

529,198

 

Cost of sales

 

148,836

 

 

122,045

 

 

554,268

 

 

479,566

 

Gross profit

 

28,608

 

 

12,259

 

 

93,438

 

 

49,632

 

Selling, general and administrative expense

 

9,708

 

 

7,470

 

 

39,002

 

 

29,591

 

Restructuring charges, net

 

103

 

 

-

 

 

2,304

 

 

-

 

Acquisition costs

 

-

 

 

61

 

 

325

 

 

61

 

Other expense, net

 

29

 

 

35

 

 

17

 

 

37

 

Interest expense

 

12

 

 

13

 

 

52

 

 

89

 

Interest income

 

(493

)

 

(1,382

)

 

(2,067

)

 

(5,433

)

Earnings before income taxes

 

19,249

 

 

6,062

 

 

53,805

 

 

25,287

 

Income taxes

 

4,699

 

 

1,393

 

 

12,785

 

 

5,982

 

Net earnings

$

14,550

 

$

4,669

 

$

41,020

 

$

19,305

 

 
 
Net earnings per share:
Basic

$

0.75

 

$

0.24

 

$

2.11

 

$

0.99

 

Diluted

 

0.74

 

 

0.24

 

 

2.10

 

 

0.99

 

 
Weighted average shares outstanding:
Basic

 

19,481

 

 

19,502

 

 

19,484

 

 

19,502

 

Diluted

 

19,599

 

 

19,564

 

 

19,558

 

 

19,575

 

 
Cash dividends declared per share

$

0.03

 

$

0.03

 

$

1.12

 

$

2.62

 

INSTEEL INDUSTRIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
(Unaudited)
September 27, June 28, September 28,

 

2025

 

 

 

2025

 

 

 

2024

 

Assets
Current assets:
Cash and cash equivalents

$

38,630

 

$

53,665

 

$

111,538

 

Accounts receivable, net

 

78,719

 

 

83,264

 

 

58,308

 

Inventories

 

137,776

 

 

119,171

 

 

88,840

 

Other current assets

 

6,822

 

 

7,442

 

 

8,608

 

Total current assets

 

261,947

 

 

263,542

 

 

267,294

 

Property, plant and equipment, net

 

128,691

 

 

131,083

 

 

125,540

 

Intangibles, net

 

16,553

 

 

17,034

 

 

5,341

 

Goodwill

 

37,755

 

 

37,755

 

 

9,745

 

Other assets

 

17,704

 

 

22,478

 

 

14,632

 

Total assets

$

462,650

 

$

471,892

 

$

422,552

 

 
Liabilities and shareholders' equity
Current liabilities:
Accounts payable

$

48,173

 

$

73,424

 

$

37,487

 

Accrued expenses

 

17,836

 

 

16,301

 

 

9,547

 

Total current liabilities

 

66,009

 

 

89,725

 

 

47,034

 

Other liabilities

 

25,109

 

 

25,959

 

 

24,663

 

Commitments and contingencies
Shareholders' equity:
Common stock

 

19,420

 

 

19,410

 

 

19,452

 

Additional paid-in capital

 

89,402

 

 

88,368

 

 

86,671

 

Retained earnings

 

262,746

 

 

249,038

 

 

245,340

 

Accumulated other comprehensive loss

 

(36

)

 

(608

)

 

(608

)

Total shareholders' equity

 

371,532

 

 

356,208

 

 

350,855

 

Total liabilities and shareholders' equity

$

462,650

 

$

471,892

 

$

422,552

 

INSTEEL INDUSTRIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
Three Months Ended Year Ended
(Unaudited) (Unaudited) (Unaudited)
September 27, September 28, September 27, September 28,

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Cash Flows From Operating Activities:
Net earnings

$

14,550

 

$

4,669

 

$

41,020

 

$

19,305

 

Adjustments to reconcile net earnings to net cash (used for) provided by operating activities:
Depreciation and amortization

 

4,664

 

 

4,001

 

 

18,390

 

 

15,413

 

Amortization of capitalized financing costs

 

12

 

 

12

 

 

50

 

 

50

 

Stock-based compensation expense

 

1,374

 

 

1,169

 

 

3,489

 

 

3,072

 

Deferred income taxes

 

(207

)

 

557

 

 

(748

)

 

4,195

 

Asset impairment charges

 

-

 

 

-

 

 

1,001

 

 

-

 

Loss on sale and disposition of property, plant and equipment

 

41

 

 

49

 

 

127

 

 

99

 

Increase in cash surrender value of life insurance policies over premiums paid

 

(300

)

 

(503

)

 

(452

)

 

(1,532

)

Net changes in assets and liabilities (net of assets and liabilities acquired):
Accounts receivable, net

 

4,545

 

 

2,926

 

 

(20,411

)

 

5,116

 

Inventories

 

(18,605

)

 

539

 

 

(36,466

)

 

14,466

 

Accounts payable and accrued expenses

 

(23,352

)

 

1,853

 

 

19,260

 

 

(639

)

Other changes

 

271

 

 

957

 

 

1,903

 

 

(1,338

)

Total adjustments

 

(31,557

)

 

11,560

 

 

(13,857

)

 

38,902

 

Net cash (used for) provided by operating activities

 

(17,007

)

 

16,229

 

 

27,163

 

 

58,207

 

 
Cash Flows From Investing Activities:
Acquisition of businesses

 

(33

)

 

-

 

 

(72,089

)

 

-

 

Capital expenditures

 

(1,723

)

 

(1,689

)

 

(8,213

)

 

(19,149

)

Increase in cash surrender value of life insurance policies

 

(110

)

 

(74

)

 

(581

)

 

(517

)

Proceeds from sale of assets held for sale

 

4,954

 

 

-

 

 

5,011

 

 

-

 

Proceeds from sale of property, plant and equipment

 

8

 

 

-

 

 

107

 

 

4

 

Proceeds from surrender of life insurances policies

 

41

 

 

-

 

 

91

 

 

25

 

Net cash provided by (used for) investing activities

 

3,137

 

 

(1,763

)

 

(75,674

)

 

(19,637

)

 
Cash Flows From Financing Activities:
Proceeds from long-term debt

 

68

 

 

68

 

 

291

 

 

298

 

Principal payments on long-term debt

 

(68

)

 

(68

)

 

(291

)

 

(298

)

Cash dividends paid

 

(583

)

 

(583

)

 

(21,761

)

 

(50,942

)

Cash received from exercise of stock options

 

-

 

 

-

 

 

62

 

 

428

 

Payment of employee tax withholdings related to net share transactions

 

(275

)

 

(90

)

 

(425

)

 

(352

)

Repurchases of common stock

 

(307

)

 

-

 

 

(2,273

)

 

(1,836

)

Net cash used for financing activities

 

(1,165

)

 

(673

)

 

(24,397

)

 

(52,702

)

 
Net (decrease) increase in cash and cash equivalents

 

(15,035

)

 

13,793

 

 

(72,908

)

 

(14,132

)

Cash and cash equivalents at beginning of period

 

53,665

 

 

97,745

 

 

111,538

 

 

125,670

 

Cash and cash equivalents at end of period

$

38,630

 

$

111,538

 

$

38,630

 

$

111,538

 

 
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Income taxes, net

$

5,622

 

$

65

 

$

10,775

 

$

3,332

 

Non-cash investing and financing activities:
Purchases of property, plant and equipment in accounts payable

 

1,549

 

 

2,449

 

 

1,549

 

 

2,449

 

Restricted stock units and stock options surrendered for withholding taxes payable

 

275

 

 

90

 

 

425

 

 

352

 

 

Contacts

Scot Jafroodi

Vice President,

Chief Financial Officer and Treasurer

Insteel Industries Inc.

(336) 786-2141

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