Financial Data and Key Metrics Changes - Net earnings for Q2 2025 increased to $10.2 million from $6.9 million a year ago, and earnings per share rose to $0.52 from $0.35 per diluted share in the prior year [5][4] - Shipments for the quarter increased by 0.9% year-over-year and 0.9% sequentially from Q1 [5] - Gross profit for the quarter increased to $24.5 million, an 8.8% increase from a year ago, while gross margin expanded to 12.3% from 11.3% [8][10] Business Line Data and Key Metrics Changes - Improved shipping performance was driven by increased activity across most construction markets and additional tonnage from first-quarter acquisitions [6] - Average selling prices declined by 2.2% year-over-year but rose by 0.1% sequentially from Q1 due to price increases implemented to offset rising raw material costs [6] Market Data and Key Metrics Changes - The supply of wire rod in the US market became more constrained, leading to price increases, with published prices for steel wire rod increasing approximately $150 per ton during Q1 [7] - The architectural billing index (ABI) ratio score was 45.5%, indicating declining billings, while the Dodge Amendment Index saw a decrease of 0.9% in March [20][21] Company Strategy and Development Direction - The company is focused on maximizing shipments and optimizing costs while pursuing growth opportunities, both organic and through acquisitions [34][35] - The recent extension of Section 232 tariffs to downstream products, including PC Strand, is viewed positively as it eliminates competitive disadvantages [25][49] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about market outlook, supported by strong demand and shipment trends, although uncertainties remain due to shifting US trade policies [17][18] - The company is working to ramp up operating hours at all facilities to accommodate increasing business levels, but raw material availability remains a concern [41] Other Important Information - Cash flow from operations used $3.3 million in the quarter compared to providing $1.4 million last year, with net working capital consuming approximately $21.9 million of cash [14] - The company incurred $2.2 million in capital expenditures in the quarter, reducing the full-year target to $17 million from the previous $22 million [15][34] Q&A Session Summary Question: How is the company viewing and managing the broader operating environment? - Management noted a distinct acceleration in business since Q1, with robust shipping comparables through April, although raw material availability is a limiting factor [39][40] Question: What are the thoughts on the disconnect between macro indicators and on-the-ground conditions? - Management acknowledged the frustration with the lack of objective data but emphasized solid quotation activity and customer optimism [43][44] Question: How is the company thinking about pricing in the current environment? - The extension of Section 232 tariffs is seen as positive, but the company still faces challenges due to lower world market prices compared to US prices [48][49] Question: How does the current situation compare to the disruptions experienced during COVID? - Management indicated that the current underlying fundamentals are much more solid than during the COVID recovery, with a better supply-demand relationship [58] Question: Are there any anticipated price increases and how are competitors responding? - Management noted that tight supplies are leading to elevated prices, and it is uncertain how long this will continue into the fourth quarter [62]

April 17, 2025 FORWARD -LOOKING STATEMENTS INVESTOR PRESENTATION This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this presentation, the words "believes," "anticipates," "expects," "estimates," "appears," "plans," "intends," "may," "should," "could" and similar expressions are intended to identify forward- looking statements. Although we believe that our plans, intentions and expectati ...

Financial Performance - Net sales for Q2 2025 increased by 26.1% to $160.7 million, driven by a 28.9% increase in shipments, despite a 2.2% decrease in average selling prices [82]. - Gross profit for Q2 2025 rose 56.1% to $24.5 million, representing 15.3% of net sales, compared to 12.3% in the prior year quarter [83]. - Net earnings for Q2 2025 increased to $10.2 million ($0.52 per diluted share), a 47.4% rise from $6.9 million ($0.35 per diluted share) in the prior year [88]. - For the first half of 2025, net sales increased by 16.6% to $290.4 million, reflecting a 20.2% increase in shipments [89]. - Gross profit for the first half of 2025 increased by 54.9% to $34.1 million, or 11.7% of net sales, compared to 8.8% in the same period last year [90]. Expenses and Charges - SG&A expenses for Q2 2025 increased by 37.1% to $10.8 million, accounting for 6.7% of net sales, up from 6.2% in the prior year [84]. - Restructuring charges of $1.4 million were incurred in the first half of 2025 due to the closure of the Warren facility acquired through the EWP Acquisition [92]. Cash Flow and Investments - Net cash provided by operating activities for the first half of 2025 was $15.7 million, down from $23.2 million in the prior year [98]. - Operating activities generated $15.7 million in cash during the first half of 2025, with a net increase in working capital using $9.6 million of cash due to a $21.5 million increase in accounts receivable [99]. - Investing activities used $76.3 million in cash during the first half of 2025, primarily due to the EWP Acquisition ($66.4 million) and the OWP Acquisition ($5.1 million) [102]. - Financing activities used $22.4 million in cash during the first half of 2025, including $20.6 million for dividend payments and $1.7 million for stock repurchases [104]. Tax and Capital Expenditures - The effective tax rate for the first half of 2025 increased to 23.5% from 23.2% in the same year-ago period [95]. - The company expects capital expenditures for fiscal 2025 to total approximately $17.0 million, down from $14.2 million in the prior year [102]. Market Outlook and Strategy - The company anticipates a strong outlook for public nonresidential construction, supported by federal funding from the Infrastructure Investment and Jobs Act [114]. - The company plans to continue pursuing acquisitions to expand market penetration and support future growth [116]. - The company is focused on managing expenses and realizing synergies from recent acquisitions to improve productivity and effectiveness [116]. Pricing and Earnings Impact - A 10% increase in the price of wire rod would have resulted in a $17.0 million decrease in pre-tax earnings for the first half of 2025 [119]. - The company successfully implemented price increases to recover raw material cost escalations during the first half of 2025 [110]. Borrowing Capacity - As of March 29, 2025, the company had $98.5 million of borrowing capacity available under its $100.0 million revolving credit facility [106].

Insteel Industries (IIIN) came out with quarterly earnings of $0.55 per share, beating the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 66.67%. A quarter ago, it was expected that this maker of steel wire reinforcing for the concrete and construction industry would post a loss of $0.03 per share when it actually produced earnings of $0.10, deliv ...

Financial Performance - Net earnings for Q2 2025 increased to $10.2 million, or $0.52 per diluted share, compared to $6.9 million, or $0.35 per diluted share in Q2 2024[3] - Net earnings for the three months ended March 29, 2025, were $10.23 million, up 47.0% from $6.94 million in the same period last year[24] - For the first six months of fiscal 2025, net earnings increased to $11.3 million, or $0.58 per share, from $8.1 million, or $0.41 per share in the same period a year ago[8] Sales and Revenue - Net sales rose 26.1% to $160.7 million from $127.4 million in the prior-year quarter, driven by a 28.9% increase in shipments[4] Margins and Costs - Gross margin expanded by 300 basis points to 15.3% from 12.3% in the same quarter last year, reflecting higher shipment volumes and lower unit manufacturing costs[4] Cash Flow and Liquidity - Operating activities used $3.3 million of cash during the quarter, compared to generating $1.4 million in the prior year quarter, primarily due to changes in net working capital[5] - Cash and cash equivalents decreased to $28.42 million at the end of March 2025 from $83.95 million at the end of March 2024, a decline of 66.1%[24] - The company reported a net cash used for operating activities of $3.32 million for the three months ended March 29, 2025, compared to a net cash provided of $1.38 million in the same period last year[24] Capital Expenditures - Capital expenditures for the first six months of fiscal 2025 decreased to $4.9 million from $14.2 million in the prior year period[9] - Capital expenditures for the six months ended March 29, 2025, were $4.89 million, down from $14.23 million in the same period last year[24] - The company expects capital outlays for fiscal 2025 to total approximately $17.0 million, focusing on cost and productivity improvement initiatives[9] Assets and Liabilities - Total assets increased to $421.86 million in December 2025 from $404.70 million in September 2024, reflecting a growth of 4.8%[22] - Accounts receivable increased significantly to $79.79 million in December 2025 from $49.44 million in September 2024, a rise of 61.3%[22] - Total current liabilities rose to $54.43 million in December 2025, compared to $47.08 million in September 2024, an increase of 15.0%[22] Shareholder Equity - Retained earnings increased to $234.65 million in December 2025 from $225.91 million in September 2024, a growth of 3.4%[22] - Total shareholders' equity reached $341.41 million in December 2025, up from $331.65 million in September 2024, reflecting an increase of 2.1%[22] Market Outlook - The company is encouraged by strengthening demand and a cautiously positive market outlook, driven by improving business conditions[11] - The expansion of the Section 232 steel tariff to derivative products is expected to reduce the adverse impact of low-priced imports in the U.S. market[12] Business Acquisitions - The company incurred $71.46 million in cash outflows for business acquisitions during the six months ended March 29, 2025[24]

Insteel Industries, Inc. (NYSE: IIIN ) has multiple catalysts at hand that may drive improved pricing and volumes shipped in the coming quarters. In February 2025, the Trump administration reenacted the Section 232 tariffs on steel & aluminum imports, inclusiveMichael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working in industries that range from O&G, OFS, Midst ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Gr ...

Investors interested in Industrial Products stocks should always be looking to find the best-performing companies in the group. Has Insteel Industries (IIIN) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Insteel Industries is one of 201 companies in the Industrial Products group. The Industrial Products group currently sits at #10 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves navigating inherent risks and volatility [1] Group 1: Company Overview - Insteel Industries (IIIN) is highlighted as a promising growth stock, possessing a favorable Growth Score and a top Zacks Rank [2][11] Group 2: Earnings Growth - The historical EPS growth rate for Insteel Industries is 6.3%, but projected EPS growth for this year is expected to be 34.3%, significantly surpassing the industry average of 22% [5] Group 3: Asset Utilization - Insteel Industries has an asset utilization ratio (sales-to-total-assets ratio) of 1.31, indicating that the company generates $1.31 in sales for every dollar in assets, compared to the industry average of 1.02 [7] Group 4: Sales Growth - The company's sales are projected to grow by 18.2% this year, which is higher than the industry average growth of 10.8% [7] Group 5: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Insteel Industries, with the Zacks Consensus Estimate for the current year increasing by 19.8% over the past month [9]

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the tr ...