Insteel Industries Inc. (NYSE:IIIN) reported better-than-expected fiscal Q3 2025 results on Thursday, as a surge in both shipment volume and pricing helped drive revenue growth of over 23% and a doubling of net income year-over-year.
Despite the earnings beat, shares dipped 1.32% following the release, reflecting investor caution amid persistent supply chain concerns.
The U.S.-based steel wire reinforcement producer posted quarterly earnings per share of $0.78, ahead of analyst expectations of $0.69. Total revenue reached $179.9 million, surpassing the $176.03 million consensus. The company attributed the performance to an 11.7% rise in average selling prices combined with a 10.5% increase in shipments.
Gross profit improved significantly, climbing to $30.8 million from $15.4 million a year earlier. Gross margin widened to 17.1% from 10.6%, driven by more favorable spreads between product prices and raw material costs. However, these gains were tempered by a rise in selling, general and administrative expenses.
“Despite these challenges, we remain confident in our business outlook,” said H.O. Woltz III, President and CEO of Insteel. “Our recent acquisitions are meaningfully contributing to our performance by enhancing shipment volumes and improving our competitive positioning in certain geographies.”
The company generated $28.2 million in operating cash flow during the quarter, up from $18.7 million in the same period last year. Insteel also reported a strong balance sheet, ending the quarter with $53.7 million in cash and zero debt.
Management acknowledged that difficulties in sourcing steel wire rod—its primary input—disrupted operations during the period due to constrained domestic production. To counter these supply challenges, Insteel has begun securing material from international suppliers to help stabilize production and lead times going forward.
Insteel Industries stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.