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Dec 28, 2024
Insteel Q1 2025 Earnings Report
Insteel Industries reported first quarter results with net sales increasing and earnings remaining unchanged.
Key Takeaways
Insteel Industries reported a 6.6% increase in net sales to $129.7 million for the first quarter of fiscal 2025, while net earnings remained unchanged at $1.1 million, or $0.06 per share. The results benefited from higher spreads between selling prices and raw material costs and improved demand, offset by increased expenses.
Net sales increased by 6.6% to $129.7 million.
Gross profit was $9.5 million, representing 7.3% of net sales.
Net income remained unchanged at $1.1 million, or $0.06 per share.
Operating cash flow was $19.0 million.
Insteel
Insteel
Forward Guidance
Insteel is encouraged by recovering order activity and increasing contributions from recent acquisitions. The company is focused on optimizing operations and delivering long-term value to shareholders, while facing headwinds from low-priced PC strand imports.
Positive Outlook
- Recovering order activity experienced during the first quarter.
- Increasing contributions from recent acquisitions.
- Focus on optimizing operations.
- Taking advantage of emerging opportunities in the markets.
- Delivering long-term value to shareholders.
Challenges Ahead
- Facing headwinds of low-priced PC strand imports entering the U.S. market.
- Usual seasonal slowdown.
- Restructuring charges related to the consolidation of the Company’s welded wire manufacturing operations.
- Acquisition costs for legal, accounting and other professional fees associated with the recent acquisitions.
- Optimistic that markets will recover during 2025.