INSTEEL INDUSTRIES INC SEC 10-Q Report

Insteel Industries Inc., a leading manufacturer of steel wire reinforcing products for concrete construction applications, has released its Form 10-Q report for the third quarter of 2025. The report highlights significant improvements in both financial and operational performance, driven by higher average selling prices, increased shipments, and strategic acquisitions.

Financial Highlights

Net Sales: $179.9 million, increased 23.4% from the prior year quarter due to higher average selling prices and increased shipments.

Gross Profit: $30.8 million, representing 17.1% of net sales, up from $15.4 million or 10.6% of net sales in the prior year quarter, driven by higher spreads between selling prices and raw material costs.

Net Earnings: $15.2 million, increased 130.9% from $6.6 million in the prior year quarter, primarily due to increased gross profit.

Net Earnings Per Share: $0.78, up from $0.34 in the prior year quarter, reflecting improved financial performance.

Business Highlights

Revenue Segments: The company reported net sales of $179.9 million for the third quarter of 2025, with a breakdown showing $117.7 million from welded wire reinforcement and $62.2 million from prestressed concrete strand. For the nine months ended June 28, 2025, welded wire reinforcement sales were $300.2 million, and prestressed concrete strand sales were $170.1 million.

Sales Units: There was a 10.5% increase in shipments for the third quarter of 2025 compared to the prior year, driven by acquisitions and improved demand in construction end markets. For the first nine months of 2025, shipments increased by 16.5% compared to the prior year.

New Production Launches: The company completed the acquisition of Engineered Wire Products, Inc. and O’Brien Wire Products of Texas, Inc., which included production facilities and equipment, enhancing their manufacturing capabilities and geographic footprint.

Restructuring Activities: The company incurred restructuring charges related to the closure of the Warren, Ohio facility acquired through the EWP Acquisition, and the consolidation of WWR operations, including equipment relocation and facility closure costs.

Future Outlook: The company remains optimistic about its business outlook, expecting favorable conditions to support increased shipments and improved operating rates. The outlook for public nonresidential construction is strong, supported by federal investment through the Infrastructure Investment and Jobs Act.

Operational Strategy: The company continues to focus on managing expenses, realizing synergies from recent acquisitions, aligning production schedules with demand, and pursuing productivity improvements. They are also evaluating acquisition opportunities to enhance market presence.

SEC Filing: INSTEEL INDUSTRIES INC [ IIIN ] - 10-Q - Jul. 17, 2025