Insteel Industries (IIIN) investor relations material

Executive summary

• Fourth quarter net earnings rose to $14.6 million ($0.74 per diluted share), up from $4.7 million ($0.24 per share) year-over-year, driven by higher shipment volumes, improved price-cost spreads, and strong non-residential demand.

• Fiscal 2025 net earnings reached $41.0 million ($2.10 per diluted share), compared to $19.3 million ($0.99 per share) in the prior year, despite $2.6 million in restructuring and acquisition-related costs.

• Net sales for Q4 increased 32.1% year-over-year to $177.4 million, with a 20.3% rise in average selling prices and a 9.8% increase in shipment volumes.

• Non-residential construction demand remained robust, while residential construction continued to lag, comprising about 15% of revenues.

• Recent acquisitions performed well, with successful integration and positive financial contributions.

Financial highlights

• Gross profit for Q4 was $28.6 million (16.1% margin), up from $12.3 million (9.1% margin) a year ago.

• Fiscal 2025 net sales totaled $647.7 million, up from $529.2 million, with gross profit at $93.4 million (14.4% margin) versus $49.6 million (9.4% margin) prior year.

• Quarterly shipments increased 9.8% year-over-year but declined 5.8% sequentially from Q3.

• SG&A expense rose to $9.7 million, mainly due to higher compensation and acquisition-related amortization.

• Ended fiscal year with $38.6 million in cash and no debt.

Outlook and guidance

• Entering fiscal 2026 with solid momentum, expecting continued strength in non-residential markets and cautious optimism due to macroeconomic uncertainty.

• Effective tax rate expected around 23.5% for next year.

• Capital expenditures projected at up to $20 million for 2026, focused on plant, IT infrastructure, productivity, and maintenance.

• Inventory levels expected to remain elevated through Q2 2026 before normalizing.