Business Overview - Insteel Industries is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications[6] - In 2019, Welded Wire Reinforcement (WWR) accounted for 64% of sales, while PC Strand accounted for 36%[5] - Nonresidential construction represents 85% of sales, while residential construction accounts for 15%[9] - Concrete product manufacturers account for 70% of sales, while distributors, rebar fabricators, and contractors make up 30%[10] Growth Strategy - Continued conversion of rebar users to Engineered Structural Mesh (ESM) represents a substantial growth opportunity[26] - Focused on pursuing additional strategic acquisition opportunities in existing core businesses[29] Financial Performance - Net sales for fiscal year 2019 were $447.5 million[37] - Raw materials accounted for 74% of the 2019 cost of sales[39] - Capital expenditures are expected to total up to $17.0 million in 2020[55] - As of September 28, 2019, Insteel was debt-free with $38.2 million of cash[58] Market Outlook - Public construction spending for August YTD 2019 was up 5.7% from the prior year[64] - Public highway and street construction spending for August YTD 2019 was up 10.8% from the prior year[67] - Total nonresidential building construction is forecasted to grow 3.8% in 2019 and 2.4% in 2020[70]

Business Overview - Insteel Industries is the largest U S manufacturer of steel wire reinforcing products for concrete construction applications[5] - Nonresidential construction accounts for 85% of sales, while residential construction accounts for 15%[7] - Concrete product manufacturers represent 70% of sales, with distributors, rebar fabricators, and contractors making up the remaining 30%[8] Growth Strategy - Insteel acquired Strand-Tech Manufacturing (STM) in March 2020 for $194 million[29] - The company expects to recover approximately $8 million of investment through the closure and sale of the Summerville facility[29] - The company is focused on pursuing additional strategic opportunities in existing core businesses or related products sold into same markets that offer substantial synergy potential[26] Trade Cases - PC strand imports represented around one-third of the U S market in 2019[33] - Alleged dumping margins for PC strand range from 24% to 194%[33] - Filings covered 89% of 2019 import volume[33] - Alleged dumping margins for SWWR range from 56% to 160%[33] - Filings cover practically 100% of 2019 import volume in Insteel's market area[33] Financials - Capital expenditures are expected to total up to $20 million in fiscal year 2021[55] - As of October 3, 2020, Insteel was debt-free with $687 million of cash and no borrowings outstanding on its $100 million revolving credit facility[58]

Business Overview - Insteel Industries is the largest U S manufacturer of steel wire reinforcing products for concrete construction applications[5] - Nonresidential construction accounts for 85% of sales, while residential construction accounts for 15%[7] - Concrete product manufacturers make up 70% of sales, with distributors, rebar fabricators, and contractors accounting for the remaining 30%[8] Competitive Position and Growth Strategy - The company is the largest domestic producer of WWR and PC strand with a national market presence[20] - A growth strategy involves converting rebar users to ESM, which requires fewer tons of steel due to its higher yield strength (80,000 PSI for ESM versus 60,000 PSI for rebar)[23] - Strategic acquisitions, such as Ivy Steel & Wire for $503 million and American Spring Wire for $335 million, are a key part of the growth strategy[25] Financial Performance - The company was debt-free with $898 million of cash and no borrowings outstanding on its $1000 million revolving credit facility as of July 3, 2021[50] - Capital expenditures are expected to total up to $200 million in fiscal year 2021[47] - Public construction spending for May YTD 2021 was down 71% from the prior year and up 60% from the four-year prior average[56] - Private nonresidential construction for May YTD was down 95% from the prior year and down 40% from the four-year prior average[56] - Private residential construction for May YTD was up 238% from the prior year and up 330% from the four-year prior average[56]

Business Overview - Insteel Industries is the largest U S manufacturer of steel wire reinforcing products for concrete construction applications[5] - Nonresidential construction accounts for 85% of sales, while residential construction accounts for 15%[7] - Concrete product manufacturers represent 70% of sales, with distributors, rebar fabricators, and contractors making up the remaining 30%[8] Financial Performance - Net sales reached $5906 million in 2021[27] - EBITDA for 2021 was $1057 million, with an EBITDA margin of 179%[33, 35] - As of October 2, 2021, Insteel had $899 million in cash and no outstanding borrowings on its $1000 million revolving credit facility[48] Growth Strategy - Continued conversion of rebar users to Engineered Structural Mesh (ESM) represents a substantial growth opportunity[23] - The company has made strategic acquisitions, including Ivy Steel & Wire for $503 million and American Spring Wire for $335 million[25] - Capital expenditures are expected to total up to $250 million in fiscal year 2022[45] Market Outlook - Public construction spending for August YTD 2021 was down 40% from the prior year but up 65% from the four-year prior average[55] - Private nonresidential construction for May YTD was down 91% from the prior year and down 36% from the four-year prior average[55] - Private residential construction for May YTD was up 238% from the prior year and up 247% from the four-year prior average[55]

INDUSTRIES INC. Investor Presentation January 20, 2022 Quant Roll 2017 NE r B Forward-Looking Statements 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 t ...

Business Overview - Insteel Industries is the largest U S manufacturer of steel wire reinforcing products for concrete construction applications[5] - Nonresidential construction accounts for 85% of sales, while residential construction accounts for 15%[7] - Concrete product manufacturers represent 70% of sales, with distributors, rebar fabricators, and contractors making up the remaining 30%[8] Financial Performance - Year-to-date net sales reached $6188 million in 2022[28] - In fiscal year 2022 (39 weeks), net earnings were $100705 thousand and EBITDA was $142169 thousand[37] - As of July 2, 2022, the company had $630 million in cash and no borrowings on its $1000 million revolving credit facility[47] Growth Strategy - Continued conversion of rebar users to Engineered Structural Mesh (ESM) represents a substantial growth opportunity[23] - Capital expenditures are expected to total up to $200 million in fiscal year 2022[45] Market Outlook - Architecture Billings Index (ABI) and Dodge Momentum Index (DMI) are leading indicators for nonresidential building construction activity[53] - Customer sentiment remains positive, and leading indicators for nonresidential construction end markets remain at expansionary levels[54]

Group 1 - Insteel Industries, Inc. (IIIN) shares have increased by 30.9% year-to-date, outperforming the industry and S&P 500, which declined by 8% and 0.4% respectively [1][2] - The stock closed at $35.37, near its 52-week high of $37.61, and is above both its 50-day and 200-day moving averages, indicating strong upward momentum and market confidence [4] - The demand for welded wire reinforcement (WWR) products is a key driver for Insteel Industries, supported by a stable construction market and contributions from acquired assets [6][8] Group 2 - In the second quarter of fiscal 2025, net sales from WWR products rose by 43.3% year-over-year to $100 million, while sales from Prestressed Concrete (PC) strand products increased by 5.2% to $60.6 million [8] - The company anticipates growth in the non-residential construction market, bolstered by federal funding from the Infrastructure Investment and Jobs Act, which is expected to enhance project activity [9] - Insteel Industries has made strategic acquisitions to expand its WWR product portfolio, including the acquisition of EWP and O'Brien Wire Products, strengthening its competitive position [10] Group 3 - The company has implemented shareholder-friendly policies, paying out $20.6 million in dividends and repurchasing $1.7 million in shares in the first half of fiscal 2025 [11] - The Zacks Consensus Estimate projects fiscal 2025 revenues at $640.4 million and fiscal 2026 revenues at $698.7 million, reflecting year-over-year growth of 21% and 9.1% respectively [11] - The earnings estimate for fiscal 2025 is $1.86 per share, indicating a 34.8% increase over the past 60 days and year-over-year growth of 87.9% [13] Group 4 - Despite positive growth indicators, IIIN's valuation is a concern, trading at a forward P/E ratio of 13.59X, higher than the industry average of 10.99X [14] - Positive analyst sentiment and robust growth prospects suggest favorable conditions for potential investors, despite the elevated valuation [18]

Core Viewpoint - Insteel Industries, Inc. (IIIN) and Atkore Inc. (ATKR) are positioned to benefit from growth in the construction sector, driven by repair and remodeling activities, with each company having distinct strengths and challenges in their respective markets [1]. Insteel Industries - IIIN is a leader in manufacturing steel wire reinforcing products for concrete construction, experiencing strong demand due to increased construction activity and contributions from acquired assets [2][3]. - In the second quarter of fiscal 2025, IIIN's net sales rose 26.1% year-over-year to $160.7 million, with shipments increasing by 28.9% [3]. - The company anticipates growth in the non-residential construction market, supported by federal funding from the Infrastructure Investment and Jobs Act, which is expected to enhance project activity [4]. - IIIN is focused on acquisitions to expand its customer base and product lines, including the acquisition of EWP and O'Brien Wire Products, which strengthened its position in the Midwest and enhanced its product offerings [5]. - In the first half of fiscal 2025, IIIN returned $20.6 million to shareholders in dividends and repurchased $1.7 million in shares [6]. Atkore Inc. - ATKR specializes in diversified electrical infrastructure products and is benefiting from strong demand in the data center market for its metal framing and cable management solutions [7]. - The company has invested in enhancing its construction services, leading to a 3.4% year-over-year increase in organic revenues in the Safety & Infrastructure segment in the second quarter of fiscal 2025 [8]. - In the first half of fiscal 2025, ATKR paid $22 million in dividends and repurchased $100 million in shares, with a 3.1% dividend increase announced in April 2025 [9]. - However, ATKR faces challenges with rising operating costs, as its cost of sales increased by 3% year-over-year, leading to a decline in gross margin by 1,040 basis points to 26.4% [10]. Earnings Estimates - The Zacks Consensus Estimate for IIIN's fiscal 2025 earnings is $1.86 per share, reflecting a 34.8% increase over the past 30 days and an 87.9% year-over-year growth [11]. - For ATKR, the fiscal 2025 earnings estimate stands at $6.00 per share, indicating a 3.6% increase over the past 30 days but a year-over-year decline of 52.7% [11]. Stock Performance and Valuation - Over the past three months, IIIN shares have increased by 27.5%, while ATKR stock has gained 4.3% [13]. - IIIN is trading at a forward price-to-earnings ratio of 14.46X, below its two-year median of 15.43X, whereas ATKR's forward earnings multiple is 11.53X, above its median of 9.73X [14]. Final Assessment - IIIN's strong momentum in the non-residential construction market, along with strategic acquisitions and growth investments, positions it favorably for future growth [15]. - In contrast, ATKR's profitability is being impacted by rising costs, despite its strengths in the Safety & Infrastructure segment [15]. - Based on current factors, IIIN is viewed as a more attractive investment compared to ATKR, with IIIN holding a Zacks Rank of 1 (Strong Buy) and ATKR a Zacks Rank of 3 (Hold) [16].

Insteel Industries, Inc. (IIIN) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, IIIN's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average ...

Investors might want to bet on Insteel Industries (IIIN) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the syste ...