Insteel Q3 profit falls on higher costs
IIIN•Q3 results
Insteel's fiscal third-quarter revenue rose 9.9% on higher prices and shipments, but net earnings and gross profit fell year over year as higher costs offset pricing gains.
The company said average selling prices rose 8% year over year, driven by pricing actions to recover higher raw material, freight and operating costs. Shipments increased 1.7% year over year as demand conditions across key construction end markets remained generally favorable.
Key figures
| Metric | Actual | Consensus Estimate |
|---|---|---|
| Q3 Sales | $197.70 million | $192.06 million |
| Q3 EPS | $0.46 | $0.45 |
| Q3 Net Earnings | $9 million | $8.66 million |
Cost pressure and demand
Profitability was impacted by higher costs, as increases in wire rod prices, freight expense and other operating costs outpaced changes in selling prices.
Insteel said it expects to recover higher costs through pricing over time. It also said it sees a supportive business environment and healthy activity in infrastructure markets.
Capital returns and outlook
The company repurchased 75,000 shares for $1.9 million and ended the quarter debt-free.
Insteel expects fiscal 2026 capital expenditures to total $15.0 million, down from $20.0 million.
