Core Viewpoint - Insteel Industries Inc. reported a significant increase in net earnings and net sales for the first quarter of fiscal 2026, driven by strong demand for concrete reinforcement products and effective pricing strategies to offset rising costs [3][4][9]. Financial Performance - Net earnings for Q1 2026 rose to $7.6 million, or $0.39 per share, compared to $1.1 million, or $0.06 per share, in the same quarter last year [3][9]. - Net sales increased by 23.3% to $159.9 million from $129.7 million in the prior year quarter, attributed to an 18.8% rise in average selling prices and a 3.8% increase in shipments [4][9]. - Gross margin expanded by 400 basis points to 11.3% from 7.3% in the prior year quarter, driven by wider spreads and higher shipment volumes [4]. Cash Flow and Capital Allocation - Operating activities used $0.7 million in cash during the quarter, a decrease from generating $19.0 million in the prior year quarter, primarily due to changes in net working capital [5]. - Capital expenditures for Q1 2026 decreased to $1.5 million from $2.7 million in the prior year quarter, with total expected capital outlays for fiscal 2026 around $20.0 million [6]. Dividends and Liquidity - On December 12, 2025, Insteel paid a special cash dividend of $19.4 million, or $1.00 per share, in addition to its regular quarterly cash dividend of $0.03 per share [7][9]. - The company ended the quarter with a cash balance of $15.6 million and no outstanding borrowings on its $100.0 million revolving credit facility [7][9]. Market Outlook - Despite indications of softening construction activity, Insteel's markets remained resilient, with nonresidential construction driving demand supported by infrastructure spending [8][10]. - The company remains optimistic about 2026, expecting solid opportunities despite concerns over competitive pressures from imported products [10].

Company Overview - Insteel Industries Inc. is the largest manufacturer of steel wire reinforcing products for concrete construction applications in the United States [2] - The company produces and markets prestressed concrete strand and welded wire reinforcement, including engineered structural mesh and concrete pipe reinforcement [2] - Insteel's products are primarily sold to manufacturers of concrete products and concrete contractors, focusing on nonresidential construction applications [2] - The company is headquartered in Mount Airy, North Carolina, and operates eleven manufacturing facilities across the United States [2] Upcoming Financial Event - Insteel Industries will host a first quarter 2026 earnings conference call on January 15, 2026, at 10:00 a.m. ET [1] - The financial results for the first quarter will be released earlier that day at 6:30 a.m. ET [1] - The conference call will be available for live streaming on the company's website and will be archived for later replay [1]