Insteel Industries Reports 26.1% Revenue Growth to $160.7 Million in Latest Quarter

Insteel Industries Inc. reported significant financial growth in its latest quarterly results, with net sales for the three months ended March 29, 2025, reaching $160.7 million, a 26.1% increase from $127.4 million in the same period last year. The company's gross profit also saw a substantial rise, climbing 56.1% to $24.5 million, representing 15.3% of net sales, compared to 12.3% in the prior year. Net earnings for the quarter increased by 47.4% to $10.2 million, or $0.52 per diluted share, up from $6.9 million, or $0.35 per diluted share, in the previous year.

The company's performance was bolstered by a 28.9% increase in shipments, attributed to strengthening demand in construction markets and contributions from recent acquisitions. However, this was partially offset by a 2.2% decrease in average selling prices due to competitive market conditions and low-priced imports. For the first half of fiscal 2025, net sales totaled $290.4 million, a 16.6% increase from $249.1 million in the same period last year, with net earnings rising to $11.3 million from $8.1 million.

Insteel's strategic developments included two key acquisitions: Engineered Wire Products, Inc. for $67 million and O’Brien Wire Products of Texas, Inc. for $5.1 million. These acquisitions are expected to enhance the company's geographic footprint and competitive position in the Midwest and Texas markets. Following the EWP acquisition, the company consolidated its welded wire reinforcement operations, resulting in the closure of the Warren facility and the relocation of equipment to existing facilities. The restructuring efforts incurred charges of $662,000 in the second quarter and $1.4 million in the first half of 2025.

Operationally, Insteel's total assets as of March 29, 2025, were $421.9 million, slightly down from $422.6 million at the end of the previous fiscal year. The company reported an increase in accounts receivable and inventories, reflecting higher sales activity. The employee headcount remained stable, with no significant changes reported. Looking ahead, Insteel expressed optimism for continued growth, driven by a recovery in construction markets and seasonal demand increases, alongside the expected benefits from its recent acquisitions. The company anticipates that federal funding from the Infrastructure Investment and Jobs Act will further stimulate project activity in the coming months.