Insteel Industries beats expectations as revenue jumps 23.4%

Published 17/07/2025, 11:50
 Insteel Industries beats expectations as revenue jumps 23.4%

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.