Aspire Biopharma faces potential Nasdaq delisting after compliance shortfall
MOUNT AIRY - On Thursday, Insteel Industries Inc. (NYSE:IIIN), the largest U.S. manufacturer of steel wire reinforcing products for concrete construction, reported fourth quarter earnings that fell short of analyst expectations despite significant YoY growth in both revenue and profit.
Shares of Insteel were relatively unchanged following the report, trading up just 0.16% in pre-market trading.
The company posted fourth quarter earnings of $0.74 per diluted share, missing analyst estimates of $0.79, while revenue reached $177.4 million compared to the consensus estimate of $180.97 million. Despite the miss, revenue increased 32.1% from $134.3 million in the same quarter last year, driven by a 20.3% rise in average selling prices and a 9.8% increase in shipment volumes.
Net earnings for the quarter rose significantly to $14.6 million from $4.7 million a year ago, with gross margin expanding to 16.1% from 9.1% in the prior-year period. The improved performance was primarily attributed to wider spreads between selling prices and raw material costs, along with higher shipments 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 ended the quarter with a solid financial position, reporting $38.6 million in cash and no debt outstanding. Looking ahead to fiscal 2026, Insteel plans capital expenditures of up to approximately $20 million, primarily focused on cost and productivity improvement initiatives.
While expressing cautious optimism about the 2026 outlook, management noted that residential construction remains weak. The company continues to monitor broader macroeconomic conditions that could potentially impact customer sentiment and demand in the coming quarters.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.