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Dec 27, 2025
Insteel Q1 2026 Earnings Report
Insteel Industries Inc. reported an increase in net earnings and sales for the first quarter of fiscal 2026, driven by stronger demand and wider spreads between selling prices and raw material costs.
Key Takeaways
Insteel Industries Inc. reported a significant increase in net earnings to $7.6 million, or $0.39 per share, for the first quarter of fiscal 2026, up from $1.1 million in the prior year. Net sales also rose by 23.3% to $159.9 million, primarily due to an 18.8% increase in average selling prices and a 3.8% rise in shipments, reflecting strong demand in infrastructure and commercial construction markets.
Net earnings for Q1 2026 increased to $7.6 million, or $0.39 per share, compared to $1.1 million, or $0.06 per share, in the prior year quarter.
Net sales increased 23.3% to $159.9 million from $129.7 million in the prior year quarter.
Gross profit expanded by 400 basis points to 11.3% of net sales, driven by wider spreads, higher shipment volumes, and lower unit manufacturing costs.
The company paid a special cash dividend of $19.4 million, or $1.00 per share, and ended the quarter with $15.6 million in cash and no debt.
Forward Guidance
Insteel anticipates solid opportunities for fiscal 2026, driven by positive customer sentiment, the downward trajectory of interest rates, and contributions from recent investments. However, concerns remain regarding the significant steel price premium in the U.S. and competitive finished products markets due to imports.
Positive Outlook
- Positive customer sentiment and solid opportunities for 2026.
- Downward trajectory of interest rates.
- Contributions from recent investments.
- Optimistic about prospects for strong performance.
- Nonresidential construction remains a key demand driver, supported by infrastructure spending and data center activity.
Challenges Ahead
- Significant steel price premium in the U.S. relative to the global market.
- Finished products markets exposed to imports are expected to remain highly competitive.
- Soft residential markets, though showing early signs of stabilization.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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