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MOUNT AIRY, N.C. - On Thursday, Insteel Industries Inc. (NYSE:IIIN), the largest manufacturer of steel wire reinforcing products for concrete construction applications in the United States, reported third-quarter fiscal 2025 earnings that exceeded analyst expectations, with net earnings more than doubling compared to the same period last year.
Insteel’s shares slipped 1.32% following the announcement, suggesting investors may have been concerned about ongoing challenges despite the strong results.
The company posted earnings per share of $0.78, beating the analyst consensus of $0.69 by $0.09. Revenue rose 23.4% YoY to $179.9 million, surpassing the consensus estimate of $176.03 million. The strong performance was driven by an 11.7% increase in average selling prices and a 10.5% rise in shipments.
Gross profit nearly doubled to $30.8 million from $15.4 million in the prior year quarter, with gross margin expanding to 17.1% from 10.6%. The improvement reflected wider spreads between selling prices and raw material costs, partially offset by higher 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 reported operating cash flow of $28.2 million during the quarter, up from $18.7 million in the prior year period. Insteel ended the quarter with a strong financial position, maintaining $53.7 million in cash and no debt outstanding.
Management noted that sourcing challenges related to reduced domestic capacity to produce steel wire rod, the company’s primary raw material, disrupted production schedules and extended lead times during the quarter. The company has turned to international markets to address these supply constraints moving forward.
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