Core Viewpoint - The article highlights Insteel Industries (IIIN) as a strong growth stock, supported by its favorable Growth Score and Zacks Rank, indicating solid investment potential [2][10]. Earnings Growth - Insteel Industries has a historical EPS growth rate of 6.3%, but projected EPS growth for this year is expected to be 39.4%, significantly higher than the industry average of 11.2% [4]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets ratio) of 1.31, indicating it generates $1.31 in sales for every dollar in assets, outperforming the industry average of 1.02 [6]. Sales Growth - Insteel Industries is projected to achieve a sales growth of 18.4% this year, compared to the industry average of 9.4%, showcasing its strong sales performance [6]. Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for Insteel Industries, with the Zacks Consensus Estimate increasing by 3.8% over the past month, indicating positive market sentiment [8]. Overall Positioning - The combination of strong earnings growth, efficient asset utilization, promising sales growth, and favorable earnings estimate revisions positions Insteel Industries as a compelling option for growth investors [10].

Company Overview - Insteel Industries (IIIN) is part of the Industrial Products group, which consists of 201 companies and currently ranks 10 within the Zacks Sector Rank [2] - The company belongs to the Wire and Cable Products industry, which includes 3 individual stocks and is ranked 14 in the Zacks Industry Rank [6] Performance Metrics - Insteel Industries has a Zacks Rank of 1 (Strong Buy), indicating a strong potential for outperforming the market in the next one to three months [3] - The Zacks Consensus Estimate for IIIN's full-year earnings has increased by 19.8% over the past quarter, reflecting improved analyst sentiment and earnings outlook [4] - Year-to-date, Insteel Industries has returned approximately 3.2%, outperforming the average return of 1.4% for the Industrial Products sector [4] Comparative Analysis - Insteel Industries is performing better than its industry peers, as the Wire and Cable Products industry has seen a loss of about 6.3% year-to-date [6] - Another stock in the Industrial Products sector, Life360 (LIF), has a year-to-date return of 8% and a Zacks Rank of 2 (Buy), with a significant EPS estimate increase of 2166.7% over the past three months [5][6] Investment Outlook - Both Insteel Industries and Life360 are highlighted as stocks to watch for continued solid performance in the Industrial Products sector [7]

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]

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 currently highlighted as a recommended growth stock by the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - The company specializes in manufacturing steel wire reinforcing for the concrete and construction industry [3] Group 2: Earnings Growth - Insteel Industries has a historical EPS growth rate of 6.3%, but projected EPS growth for this year is significantly higher at 34.3%, surpassing the industry average of 26.8% [4] Group 3: Asset Utilization - The asset utilization ratio for Insteel Industries is 1.31, indicating that the company generates $1.31 in sales for every dollar of assets, which is above the industry average of 1.07 [6] - The company's sales are expected to grow by 18.2% this year, compared to the industry average of 11.4% [6] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Insteel Industries, with the current-year earnings estimates increasing by 19.8% over the past month [7] - This upward revision trend contributes to the company's Zacks Rank of 1 (Strong Buy) and a Growth Score of A, indicating strong potential for growth investors [9]

Group 1 - Insteel Industries, Inc. reported positive financial results for the first quarter of its 2025 fiscal year, leading to a favorable day for its shareholders [1] - The company operates in the steel industry, focusing on producing steel wire and related products [1] Group 2 - Crude Value Insights provides an investment service centered on oil and natural gas, emphasizing cash flow and growth potential [1] - Subscribers to Crude Value Insights benefit from a stock model account, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2]

Financial Data and Key Metrics Changes - Net earnings for Q1 2025 were unchanged at $1.1 million or $0.06 per share, but adjusted net earnings increased to $0.10 per share after accounting for nonrecurring charges [8][12] - Shipments increased by 11.4% year-over-year but declined by 4.5% sequentially from Q4 2024, which is a smaller drop than usual [9][11] - Average selling prices decreased by 4.3% year-over-year but increased by 1.1% sequentially from Q4 2024 [11][12] - Gross profit improved to $9.5 million from $6.3 million a year ago, with gross margin expanding to 7.3% from 5.2% [11][12] Business Line Data and Key Metrics Changes - The increase in shipments was driven by higher order activity in commercial and infrastructure end markets, along with volumes from recent acquisitions [9][10] - SG&A expenses rose to $7.9 million or 6.1% of net sales, up from $6.4 million or 5.2% of net sales in the prior year [15][16] Market Data and Key Metrics Changes - The Architectural Billing Index (ABI) remained below 50 at 49.6, indicating a decline in business conditions, but stabilized after two years of decline [23] - The Dodge Momentum Index rebounded by 10.2% in December, with commercial planning increasing over 14%, indicating a positive outlook for nonresidential construction [24][25] Company Strategy and Development Direction - The company made two acquisitions during Q1 2025, which are expected to deliver solid returns and align with its capital allocation strategy [5][34] - The company is focused on integrating acquisitions efficiently to realize operating synergies and reduce risks [35] - Capital expenditures for the year are targeted at $22 million, aimed at broadening product offerings and enhancing production efficiency [36] Management's Comments on Operating Environment and Future Outlook - The management noted a material uptick in demand during Q1 2025 but remains cautious about sustainability due to seasonal weather impacts [28] - The company is monitoring the tightening domestic raw material supply and expects to see increased imports of wire rod to fill gaps [30][48] - Management expressed optimism about future infrastructure investments but acknowledged uncertainty in forecasting market conditions [79] Other Important Information - The company returned $19.4 million to shareholders through a special cash dividend and continued share buybacks [21][22] - The effective tax rate decreased slightly to 26.1% from 27.2% year-over-year, with expectations to run close to 23% for the remainder of the year [17][18] Q&A Session Summary Question: Demand trends and geographical/product line specifics - Management noted a substantial increase in shipments in November and December, with optimism in the market, but emphasized the difficulty in quantifying the impact of various factors [41][42] Question: Confidence in price increases and competitive pressures - Management indicated that they anticipated tightening domestic supply and proactively raised prices, expecting to see wire rod imports rise to fill supply gaps [46][48] Question: Integration of recent acquisitions - The integration of Engineered Wire Products was described as successful, with positive reception from employees and customers, and the company utilized its own systems for integration [50][54] Question: Revenue growth drivers for 2025 - Management expects revenue growth to be influenced by both acquisitions and potential increases in selling prices due to tight supply conditions [56][58] Question: Impact of tariffs and interest rates - Management believes tariffs have a more significant impact than interest rates, with the current tariff structure causing challenges but potentially benefiting the company if adjusted favorably [70][72] Question: Emerging opportunities in construction markets - Management stated that core markets driving business remain unchanged, with a focus on existing construction markets post-acquisition [74]

Financial Performance - Net sales for the first quarter of 2025 increased by 6.6% to $129.7 million, driven by an 11.4% increase in shipments, despite a 4.3% decrease in average selling prices[83]. - Gross profit rose by 52.0% to $9.5 million, representing 7.3% of net sales, due to higher spreads between average selling prices and raw material costs[84]. - Net earnings remained flat at $1.1 million, as increases in gross profit were offset by higher SG&A expenses and restructuring charges[90]. - The company anticipates continued improvement in financial performance for fiscal 2025, driven by strengthening conditions in construction end markets and contributions from recent acquisitions[108]. Expenses and Charges - Selling, general and administrative expenses increased by 23.9% to $7.9 million, accounting for 6.1% of net sales, primarily due to changes in cash surrender value of life insurance policies and higher amortization expenses[85]. - Restructuring charges of $696,000 were incurred related to the closure of the Warren facility, including asset impairment and facility closure costs[86]. - Acquisition costs totaled $271,000 for legal and professional fees associated with the EWP and OWP acquisitions[87]. Cash Flow and Financing - Net cash provided by operating activities was $18.9 million, a decrease from $21.8 million in the prior year, primarily due to a reduction in accounts receivable[92][93]. - Investing activities used $73.9 million, mainly due to the EWP and OWP acquisitions, compared to $12.4 million in the prior year[96]. - Financing activities used $20.6 million, including $20.0 million for dividend payments, a decrease from $49.5 million in the prior year[98]. - The company has a $100.0 million revolving credit facility with $98.5 million of borrowing capacity available as of December 28, 2024[100]. - Future borrowings under the Credit Facility are subject to variable interest rates, making them sensitive to changes in interest rates[113]. Market Outlook - Customer sentiment remains positive, supported by easing inflation concerns and declining interest rates, which are expected to stimulate demand[108]. - The outlook for public nonresidential construction is strong, bolstered by federal funding from the Infrastructure Investment and Jobs Act, expected to drive significant project activity in fiscal 2025 and beyond[108]. - The ongoing influx of low-cost PC strand imports into the U.S. market remains a headwind, and the company is committed to advocating for the expansion of Section 232 tariffs[108]. Inflation and Cost Management - The company has not experienced material impacts from inflation on sales or earnings during the first quarter of 2025[104]. - The company continues to focus on managing expenses, integrating recent acquisitions, and aligning production schedules with demand to minimize operating costs[109]. Price Sensitivity - A 10% increase in the price of hot-rolled carbon steel wire rod would have resulted in a $7.9 million decrease in pre-tax earnings, assuming no corresponding change in selling prices[112]. Currency Exposure - The company has not typically hedged foreign currency exposures related to transactions denominated in currencies other than U.S. dollars, as these have not been material historically[114].

Company Performance - Insteel Industries reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of a loss of $0.03 per share, and up from earnings of $0.06 per share a year ago [1] - The earnings surprise was 433.33%, with the company having surpassed consensus EPS estimates two times over the last four quarters [2] - Revenues for the quarter ended December 2024 were $129.72 million, surpassing the Zacks Consensus Estimate by 9.24%, compared to $121.73 million in the same quarter last year [3] Market Performance - Insteel Industries shares have declined approximately 8.1% since the beginning of the year, while the S&P 500 has gained 1.2% [4] - The current Zacks Rank for Insteel Industries is 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.24 on revenues of $149.04 million, and for the current fiscal year, it is $1.11 on revenues of $604.84 million [8] - The outlook for the Wire and Cable Products industry, where Insteel operates, is currently in the bottom 7% of over 250 Zacks industries, which may impact stock performance [9]

Vice President, Chief Financial Officer and Treasurer Insteel Industries Inc. (336) 786-2141 INSTEEL INDUSTRIES REPORTS FIRST QUARTER 2025 RESULTS MOUNT AIRY, N.C., January 16, 2025 – Insteel Industries Inc. (NYSE: IIIN) ("Insteel" or the "Company"), the largest manufacturer of steel wire reinforcing products for concrete construction applications in the United States, today reported financial results for its first quarter of fiscal 2025, ended December 28, 2024. First Quarter 2025 Highlights Exhibit 99.1 N ...

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