Insteel Industries Inc. (NYSE:IIIN) reported second-quarter fiscal 2026 results on Thursday that missed analyst forecasts, with adjusted earnings per share of $0.27 falling short of the $0.64 consensus by $0.37. Revenue came in at $172.7 million, below the expected $178.23 million, although it marked a 7.5% increase from $160.7 million in the same quarter last year.
Shares rose slightly by 0.27% in after-hours trading following the release.
The increase in revenue was driven by a 14.2% rise in average selling prices, which was partly offset by a 5.9% drop in shipment volumes.
The company said the decline in shipments was largely due to widespread and prolonged winter weather disruptions across its key markets, which slowed construction activity and affected operations.
Net income fell to $5.2 million from $10.2 million a year earlier, impacted by tighter spreads between selling prices and raw material costs, lower shipment volumes, and higher unit manufacturing expenses. Gross margin narrowed to 9.6%, down from 15.3% in the prior-year period.
“Winter weather affected most of our facilities and geographies during the quarter, limiting shipments as construction activity slowed and the supply chain experienced operational disruptions,” said H.O. Woltz III, Insteel’s President and CEO. “Additionally, certain projects that had initially scheduled deliveries in Q2 were delayed until later in our fiscal year, unrelated to weather conditions. I should emphasize that these are delays rather than cancellations.”
Insteel ended the quarter with $15.1 million in cash and no outstanding debt on its $100 million revolving credit facility. The company expects capital expenditures for fiscal 2026 to reach up to approximately $20 million.