[News Release and Company Overview](index=1&type=section&id=News%20Release%20and%20Company%20Overview) Insteel Industries Inc. announced Q3 2025 financial results and detailed its business as the largest US steel wire reinforcing products manufacturer [Introduction](index=1&type=section&id=Introduction) Insteel Industries Inc., the largest US manufacturer of steel wire reinforcing products for concrete construction, announced its financial results for the third quarter of fiscal 2025, ended June 28, 2025 - Insteel Industries Inc. announced financial results for its third quarter of fiscal 2025 ended June 28, 2025[3](index=3&type=chunk) - Insteel is the **largest manufacturer of steel wire reinforcing products** for concrete construction applications in the United States[3](index=3&type=chunk) [About Insteel](index=3&type=section&id=About%20Insteel) Insteel, the nation's largest manufacturer of steel wire reinforcing products for concrete construction, produces prestressed concrete strand and welded wire reinforcement primarily for nonresidential construction, operating eleven US facilities - Insteel is the nation's **largest manufacturer of steel wire reinforcing products** for concrete construction applications[17](index=17&type=chunk) - The company manufactures and markets **prestressed concrete strand and welded wire reinforcement**, including engineered structural mesh (ESM), concrete pipe reinforcement, and standard welded wire reinforcement[17](index=17&type=chunk) - Insteel's products are sold primarily to manufacturers of concrete products and concrete contractors for nonresidential construction, operating **eleven manufacturing facilities** in the United States[17](index=17&type=chunk) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) This section summarizes Insteel's strong financial performance for Q3 and the first nine months of fiscal 2025, showing significant growth in net earnings and sales [Third Quarter 2025 Highlights](index=1&type=section&id=Third%20Quarter%202025%20Highlights) Insteel reported significant increases in Q3 2025 net earnings and net sales, driven by higher shipments and wider spreads, with expanded gross profit and strong operating cash flow Third Quarter 2025 Financial Performance | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Net earnings | $15.2 million | $6.6 million | +130.3% | | EPS | $0.78 | $0.34 | +129.4% | | Net sales | $179.9 million | $145.8 million | +23.4% | | Gross profit | $30.8 million | $15.4 million | +100.0% | | Gross margin | 17.1% | 10.6% | +6.5 pp | | Operating cash flow | $28.2 million | $18.7 million | +50.8% | - Q3 2025 results include **$0.9 million in restructuring charges and acquisition-related costs**, reducing net earnings per share by **$0.03**[4](index=4&type=chunk) - The rise in net sales was driven by an **11.7% rise in average selling prices** and a **10.5% increase in shipments**[5](index=5&type=chunk) - Sequentially, average selling prices increased by **8.2%** and shipments were up **3.5%** from Q2 fiscal 2025[5](index=5&type=chunk) [Nine Month 2025 Highlights](index=2&type=section&id=Nine%20Month%202025%20Highlights) For the first nine months of fiscal 2025, Insteel achieved substantial growth in net earnings and net sales, driven by increased shipments and improved market conditions, alongside expanded gross profit and slightly increased operating cash flow Nine Month 2025 Financial Performance | Metric | 9M 2025 | 9M 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Net earnings | $26.5 million | $14.6 million | +81.5% | | Diluted EPS | $1.35 | $0.75 | +80.0% | | Net sales | $470.3 million | $394.9 million | +19.1% | | Gross profit | $64.8 million | $37.4 million | +73.3% | | Gross margin | 13.8% | 9.5% | +4.3 pp | | Operating cash flow | $44.2 million | $42.0 million | +5.2% | - Nine-month earnings reflect **$2.5 million of restructuring charges and acquisition-related costs**, reducing net earnings per share by **$0.10**[10](index=10&type=chunk) - Net sales increased due to a **16.5% increase in shipments** and a **2.2% rise in average selling prices**[11](index=11&type=chunk) [Detailed Financial Results](index=4&type=section&id=Detailed%20Financial%20Results) This section provides a detailed breakdown of Insteel's consolidated statements of operations for the third quarter and first nine months of fiscal 2025 [Consolidated Statements of Operations - Third Quarter 2025](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20-%20Third%20Quarter%202025) The consolidated statements of operations reveal a strong third quarter for Insteel, with net sales increasing by **23.4%** and net earnings more than doubling year-over-year, as gross profit margin significantly improved to **17.1%** Consolidated Statements of Operations (Q3) | Metric (in thousands) | Q3 2025 | Q3 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Net sales | $179,886 | $145,775 | +23.4% | | Cost of sales | $149,114 | $130,387 | +14.4% | | Gross profit | $30,772 | $15,388 | +100.0% | | Gross margin | 17.1% | 10.6% | +6.5 pp | | Selling, general and administrative expense | $10,607 | $7,879 | +34.6% | | Restructuring charges, net | $843 | $0 | N/A | | Acquisition costs | $27 | $0 | N/A | | Net earnings | $15,159 | $6,565 | +130.9% | | Diluted EPS | $0.78 | $0.34 | +129.4% | [Consolidated Statements of Operations - Nine Month 2025](index=4&type=section&id=Consolidated%20Statements%20of%20Operations%20-%20Nine%20Month%202025) For the first nine months of fiscal 2025, Insteel's net sales grew by **19.1%** and net earnings increased by **80.9%** year-over-year, with gross profit margin expanding to **13.8%** Consolidated Statements of Operations (Nine Months) | Metric (in thousands) | 9M 2025 | 9M 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Net sales | $470,262 | $394,894 | +19.1% | | Cost of sales | $405,432 | $357,521 | +13.4% | | Gross profit | $64,830 | $37,373 | +73.5% | | Gross margin | 13.8% | 9.5% | +4.3 pp | | Selling, general and administrative expense | $29,294 | $22,121 | +32.4% | | Restructuring charges, net | $2,201 | $0 | N/A | | Acquisition costs | $325 | $0 | N/A | | Net earnings | $26,470 | $14,636 | +80.9% | | Diluted EPS | $1.35 | $0.75 | +80.0% | [Capital Allocation and Liquidity](index=2&type=section&id=Capital%20Allocation%20and%20Liquidity) This section details Insteel's capital allocation strategies and strong liquidity position, including cash balances and capital expenditures [Capital Allocation and Liquidity Details](index=2&type=section&id=Capital%20Allocation%20and%20Liquidity%20Details) Insteel maintained a strong liquidity position, ending the quarter debt-free with **$53.7 million** in cash, while nine-month capital expenditures decreased significantly, with full-year outlays focused on cost and productivity improvements Capital Expenditures | Metric | 9M 2025 | 9M 2024 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Capital expenditures | $6.5 million | $17.5 million | -62.9% | - Insteel ended the quarter **debt-free with $53.7 million of cash** and no borrowings on its **$100.0 million revolving credit facility**[13](index=13&type=chunk) - Capital outlays for fiscal 2025 are expected to total up to approximately **$11.0 million**, focused on cost, productivity, and maintenance[12](index=12&type=chunk) - The company's investment program was temporarily slowed by integration activities related to recent acquisitions during fiscal 2025[12](index=12&type=chunk) [Outlook](index=2&type=section&id=Outlook) This section outlines Insteel's business outlook, addressing challenges like supply chain disruptions and rising costs, while highlighting optimism from acquisitions and improved customer demand [Business Outlook and Challenges](index=2&type=section&id=Business%20Outlook%20and%20Challenges) Insteel faced near-term challenges from reduced domestic steel wire rod capacity, escalating prices, and increased Section 232 tariffs, yet remains cautiously optimistic, leveraging acquisitions for performance and noting improved customer demand - Experienced sourcing challenges in Q3 due to **reduced domestic steel wire rod capacity**, disrupting production and impacting customer demand[14](index=14&type=chunk) - Turned to international markets to fill the supply gap, expecting to ease supply constraints into Q4[14](index=14&type=chunk) - Experienced **sharply escalating wire rod prices** in domestic and international markets, exacerbated by doubled Section 232 tariffs on steel imports[15](index=15&type=chunk) - Recent acquisitions are meaningfully contributing to performance by enhancing **shipment volumes** and improving competitive positioning[15](index=15&type=chunk) - Customers express optimism and demand has improved, despite cautious broader macroeconomic indicators for construction[15](index=15&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) This section provides details for Insteel's upcoming conference call to discuss its third-quarter financial results and how to access the webcast [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Insteel scheduled a conference call for July 17, 2025, at 10:00 a.m. ET to discuss its third-quarter financial results, with a live webcast and archived replay available on its investor relations website - Insteel will hold a conference call at **10:00 a.m. ET on July 17, 2025**, to discuss its Q3 financial results[16](index=16&type=chunk) - A live webcast of this call can be accessed on Insteel's website at https://investor.insteel.com and will be archived for replay[16](index=16&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section advises that the news release contains forward-looking statements subject to risks and uncertainties, with no obligation for public updates unless legally required [Forward-Looking Statements and Risks](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risks) This section highlights that the news release contains forward-looking statements subject to various risks and uncertainties, detailed in the company's Form 10-K and other SEC filings, with no public update obligation unless legally required - This news release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, identified by specific terminology[18](index=18&type=chunk) - These statements are subject to risks and uncertainties detailed in the **Annual Report on Form 10-K** for the year ended September 28, 2024, and other SEC filings[18](index=18&type=chunk)[20](index=20&type=chunk) - The company does not undertake to publicly release revisions to these forward-looking statements, except as legally required[19](index=19&type=chunk) - Risks include general economic and competitive conditions, changes in construction spending, raw material cost fluctuations, trade policy changes, and other 'Risk Factors' in SEC filings[20](index=20&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) This section presents Insteel's unaudited consolidated statements of operations, balance sheets, and cash flows for the specified periods [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) The unaudited consolidated statements of operations present the company's revenues, costs, and earnings for the three and nine months ended June 28, 2025, and June 29, 2024, showing significant year-over-year improvements in net sales, gross profit, and net earnings Consolidated Statements of Operations (Unaudited) | Metric (in thousands) | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Nine Months Ended June 28, 2025 | Nine Months Ended June 29, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net sales | $179,886 | $145,775 | $470,262 | $394,894 | | Cost of sales | $149,114 | $130,387 | $405,432 | $357,521 | | Gross profit | $30,772 | $15,388 | $64,830 | $37,373 | | Selling, general and administrative expense | $10,607 | $7,879 | $29,294 | $22,121 | | Restructuring charges, net | $843 | - | $2,201 | - | | Acquisition costs | $27 | - | $325 | - | | Earnings before income taxes | $19,769 | $8,720 | $34,556 | $19,225 | | Income taxes | $4,610 | $2,155 | $8,086 | $4,589 | | Net earnings | $15,159 | $6,565 | $26,470 | $14,636 | | Basic EPS | $0.78 | $0.34 | $1.36 | $0.75 | | Diluted EPS | $0.78 | $0.34 | $1.35 | $0.75 | | Cash dividends declared per share | $0.03 | $0.03 | $1.09 | $2.59 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The unaudited consolidated balance sheets provide a snapshot of Insteel's financial position, showing total assets, liabilities, and shareholders' equity, with increased cash and cash equivalents and a debt-free status as of June 28, 2025 Consolidated Balance Sheets (Unaudited) | Metric (in thousands) | June 28, 2025 | March 29, 2025 | December 28, 2024 | September 28, 2024 | June 29, 2024 | | :-------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Cash and cash equivalents | $53,665 | $28,424 | $35,951 | $111,538 | $97,745 | | Total current assets | $263,542 | $210,785 | $192,485 | $267,294 | $257,124 | | Total assets | $471,892 | $421,860 | $404,699 | $422,552 | $414,615 | | Total current liabilities | $89,725 | $54,425 | $47,084 | $47,034 | $44,715 | | Total liabilities and shareholders' equity | $471,892 | $421,860 | $404,699 | $422,552 | $414,615 | - Accounts receivable, net, increased to **$83,264 thousand** as of June 28, 2025, from **$61,234 thousand** a year prior[24](index=24&type=chunk) - Inventories increased to **$119,171 thousand** as of June 28, 2025, from **$89,379 thousand** a year prior[24](index=24&type=chunk) - Accounts payable increased to **$73,424 thousand** as of June 28, 2025, from **$34,827 thousand** a year prior[24](index=24&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The unaudited consolidated statements of cash flows detail cash generated from operating, investing, and financing activities, with significant operating cash and substantial investing outflows due to business acquisitions Consolidated Statements of Cash Flows (Unaudited) | Metric (in thousands) | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Nine Months Ended June 28, 2025 | Nine Months Ended June 29, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :------------------------------ | :------------------------------ | | Net cash provided by operating activities | $28,199 | $18,738 | $44,170 | $41,978 | | Net cash used for investing activities | $(2,167) | $(3,259) | $(78,811) | $(17,874) | | Net cash used for financing activities | $(791) | $(1,679) | $(23,232) | $(52,029) | | Net increase (decrease) in cash and cash equivalents | $25,241 | $13,800 | $(57,873) | $(27,925) | | Cash and cash equivalents at end of period | $53,665 | $97,745 | $53,665 | $97,745 | - Acquisition of businesses resulted in a significant cash outflow of **$72,056 thousand** for the nine months ended June 28, 2025[26](index=26&type=chunk) - Capital expenditures for the nine months ended June 28, 2025, were **$6,490 thousand**, a decrease from **$17,460 thousand** in the prior year[26](index=26&type=chunk) - Cash dividends paid for the nine months ended June 28, 2025, were **$21,178 thousand**, a decrease from **$50,359 thousand** in the prior year[26](index=26&type=chunk)

Business Overview - Insteel Industries is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications[6] - In 2015, Welded Wire Reinforcement (WWR) accounted for 57% of sales, while PC Strand accounted for 43%[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 & Acquisitions - Existing facilities are capable of generating over $700 million of annualized revenues at current ASPs with minimal incremental capex required[31] - In November 2010, Insteel acquired Ivy Steel & Wire, Inc for $50.3 million[34] - In August 2014, Insteel acquired American Spring Wire Corporation for $33.5 million[37] - Closure of Newnan facility in March 2015 is expected to generate approximately $3.0 million of annualized cost savings[106] Financial Performance - Fiscal Year 2014 net sales were $409 million[29] - EBITDA for 2015 was $46.7 million, representing 10.4% of EBITDA Margin[54] - Capital expenditures are expected to increase to $20.0 million in 2016, including $9.0 million related to the expansion of the Houston PC strand facility[71] - As of October 3, 2015, Insteel was debt-free with $33.3 million of cash and cash equivalents[74] Market Outlook - Total construction spending for 2014 was up 4.8% from the prior year[80] - Total construction spending for August YTD 2015 was up 9.8% from the prior year[84] - Architecture Billings Index rebounded to 53.7 in September 2015[101] - Dodge Momentum Index in September 2015 was up 5.8% from the prior month and 20.9% from a year ago[104]

Business Overview - Insteel Industries is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications[6] - The company manufactures and markets welded wire reinforcement (WWR) which accounts for 61% of 2016 sales, and prestressed concrete strand (PC strand) products which accounts for 39% of 2016 sales[5] - Nonresidential construction accounts for 85% of sales, while residential construction accounts for 15% of sales[9] - Concrete product manufacturers account for 70% of sales, while distributors, rebar fabricators, and contractors account for 30% of sales[10] Growth Strategy - Existing facilities are capable of generating over $700 million of annualized revenues at current ASPs with minimal incremental capex required[31] - In November 2010, Insteel acquired Ivy Steel & Wire, Inc for $50.3 million[34] - In August 2014, Insteel acquired American Spring Wire Corporation for $33.5 million[37] Financial Performance - FY2016 net sales were $418.5 million[40] - The company's gross profit for 2016 was $85.2 million, representing a gross margin of 20.4%[51] - EBITDA for 2016 was $73.1 million, with an EBITDA margin of 17.5%[55] - As of October 1, 2016, Insteel was debt-free with $58.9 million of cash and cash equivalents[77] Market Conditions and Outlook - Total construction spending for 2015 was up 10.6% from the prior year[83] - Total construction spending for August YTD 2016 was up 4.9% from the prior year[86] - The FAST Act authorizes $305 billion of funding over a five-year period, including $226.2 billion for federal highway investment[106] - The first phase of the Texas PC strand expansion is expected to reduce annual operating costs by $5.0 million[107]

Business Overview - Insteel Industries is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications[6] - In 2017, Welded Wire Reinforcement (WWR) accounted for 62% of sales, while PC Strand accounted for 38%[5] - Nonresidential construction accounted for 85% of sales, while residential construction accounted for 15%[9] - Concrete product manufacturers accounted for 70% of sales, while distributors, rebar fabricators, and contractors accounted for 30%[10] Growth Strategy & Acquisitions - Existing facilities are capable of generating over $700 million of annualized revenues at current ASPs with minimal incremental capex required[30] - In November 2010, Insteel acquired Ivy Steel & Wire, Inc for $50.3 million[33] - In August 2014, Insteel acquired American Spring Wire Corporation for $33.5 million[36] Financial Performance - FY2017 net sales were $388.9 million[39] - In 2017, raw materials accounted for 67% of the cost of sales, manufacturing costs accounted for 26%, and freight accounted for 7%[43] - EBITDA in 2017 was $48.2 million, representing 12.4% of EBITDA Margin[55] - Net earnings in 2017 were $1.17 per diluted share[61] - As of September 30, 2017, Insteel was debt-free with $32.1 million of cash and cash equivalents[73] Market & Outlook - Total construction spending for 2016 was up 6.5% from the prior year[80] - Total nonresidential building construction is forecasted to grow 3.8% in 2017 and 3.6% in 2018[100] - The FAST Act authorizes $305 billion of funding over a five-year period, including $226.2 billion for federal highway investment[104]

Business Overview - Insteel Industries is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications[6] - In 2018, Welded Wire Reinforcement (WWR) accounted for 60% of sales, while PC Strand accounted for 40%[5] - Nonresidential construction represents 85% of sales, with residential construction making up the remaining 15%[9] - Concrete product manufacturers account for 70% of sales, while distributors, rebar fabricators, and contractors make up the remaining 30%[10] Acquisitions and Expansions - In November 2010, Insteel acquired Ivy Steel & Wire, Inc for $50.3 million[29] - In August 2014, Insteel acquired American Spring Wire Corporation for $33.5 million[32] - In November 2017, Insteel acquired certain assets of Ortiz Engineered Products, Inc[35] - Capital expenditures are expected to total up to $22.0 million in 2019, primarily focused on cost and productivity improvement initiatives[69] Financial Performance - Net sales for 2018 were $453.2 million[37] - Gross profit for 2018 was $70.8 million, representing a gross margin of 15.6%[48, 50] - EBITDA for 2018 was $57.4 million, representing an EBITDA margin of 12.7%[52, 54] - As of September 29, 2018, Insteel was debt-free with $43.9 million of cash and cash equivalents[72] Market and Outlook - Total construction spending for 2017 was up 4.5% from the prior year[78] - Total nonresidential construction spending for August YTD 2018 rose 4.4% from a year ago to $490.6 billion[89] - Construction employment in September 2018 was up 315,000, or 4.5%, from a year ago[92] - The FAST Act authorizes $305 billion of funding over a five-year period, including $226.2 billion for federal highway investment[102]

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 ...