Insteel Industries Reports 23.4% Revenue Growth in Latest Quarter

Insteel Industries Inc. reported significant financial growth in its latest quarterly results, with net sales for the three months ended June 28, 2025, reaching $179.9 million, a 23.4% increase from $145.8 million in the same period last year. The company's gross profit also saw a substantial rise, doubling to $30.8 million, or 17.1% of net sales, compared to $15.4 million, or 10.6% of net sales, in the prior year quarter. This increase in profitability was attributed to higher average selling prices and increased shipments, driven by improved demand in construction markets and contributions from recent acquisitions.

For the first nine months of fiscal 2025, Insteel's net sales totaled $470.3 million, up 19.1% from $394.9 million in the same period last year. The increase was supported by a 16.5% rise in shipments and a 2.2% increase in average selling prices. Gross profit for the nine-month period increased 73.5% to $64.8 million, reflecting a significant improvement in the spread between selling prices and raw material costs. However, selling, general, and administrative expenses also rose by 32.4% to $29.3 million, primarily due to higher compensation and amortization expenses related to intangible assets acquired through recent acquisitions.

Insteel has made strategic moves to enhance its market position, including the acquisition of Engineered Wire Products, Inc. for $67 million and O’Brien Wire Products of Texas, Inc. for $5.1 million. These acquisitions are expected to expand Insteel's geographic footprint and strengthen its competitive position in the Midwest and Texas markets. The company has also undertaken restructuring efforts, including the closure of the Warren facility acquired from EWP, which resulted in restructuring charges of $2.2 million for the first nine months of 2025.

Operationally, Insteel's balance sheet reflects a total asset increase to $471.9 million as of June 28, 2025, compared to $422.6 million at the end of the previous fiscal year. The company reported a significant rise in accounts receivable and inventories, indicating increased sales activity. As of the latest reporting period, Insteel had a cash balance of $53.7 million, down from $111.5 million at the end of the previous fiscal year, primarily due to cash used for acquisitions and dividends.

Looking ahead, Insteel remains optimistic about its business outlook, citing improved demand for its products and positive customer sentiment. The company anticipates favorable conditions for increased shipments and lower manufacturing costs, supported by ongoing federal investments in infrastructure. Insteel plans to continue focusing on operational efficiencies and exploring further acquisition opportunities to enhance its market presence.