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Jan 01, 2022
Insteel Q1 2022 Earnings Report
Insteel Industries reported record quarterly revenue and record first quarter net earnings.
Key Takeaways
Insteel Industries reported a strong first quarter for fiscal year 2022, with record quarterly revenue of $178.5 million and record first quarter net earnings of $23.1 million, or $1.18 per diluted share. The company benefited from strong demand for concrete reinforcing products and wider spreads between selling prices and raw material costs.
Insteel recorded record quarterly revenue of $178.5 million.
Net earnings reached a record $23.1 million, or $1.18 per diluted share.
Net sales increased by 49.2% compared to the same period last year.
Gross margin widened to 23.7% due to favorable pricing spreads.
Insteel
Insteel
Forward Guidance
Insteel anticipates sustained growth in 2022, driven by robust private and public non-residential construction markets and the expected stimulus from the Infrastructure Investment and Jobs Act.
Positive Outlook
- Optimistic outlook for 2022 with robust construction markets.
- Key leading market indicators signaling sustained growth.
- Expected stimulus from the Infrastructure Investment and Jobs Act starting in late 2022.
- International sourcing strategy to fill gaps in domestic steel wire rod supplies.
- Agreements in principle for nearly $20 million in state-of-the-art technology to expand capacity and improve quality.
Challenges Ahead
- Inadequate availability of domestic hot-rolled steel wire rod.
- Persistent labor challenges impacting operations.
- Operations are expected to be impacted during the current quarter.
- International sourcing strategy going forward will be influenced by the performance of domestic suppliers during our second and third quarters
- Firming up schedules but expect most of these initiatives to come online during fiscal 2023.