Insteel Industries Inc. (NYSE:IIIN) reported fourth-quarter earnings on Thursday that came in below Wall Street expectations, even as the company posted solid year-over-year gains in both revenue and profit. Shares were little changed in pre-market trading, ticking up 0.16% following the release.
For the quarter, the steel wire reinforcement manufacturer posted earnings of $0.74 per diluted share, missing the analyst consensus of $0.79. Revenue totaled $177.4 million, slightly below expectations of $180.97 million. Still, revenue grew 32.1% from $134.3 million a year earlier, driven by a 20.3% increase in average selling prices and a 9.8% rise in shipment volumes.
Net income surged to $14.6 million, up from $4.7 million in the prior-year period, as gross margin improved to 16.1%, compared with 9.1% a year ago. The better profitability reflected stronger pricing spreads over raw material costs and higher volumes of concrete reinforcement products.
“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 company closed the quarter with $38.6 million in cash and no outstanding debt. Looking ahead to fiscal 2026, Insteel plans to allocate up to $20 million in capital expenditures, targeting cost reductions and productivity improvements.
Management struck a measured tone on the outlook, noting that residential construction remains under pressure. The company will continue monitoring broader economic trends that could influence customer confidence and demand in the months ahead.
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.
Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.