Insteel(US:IIIN)2025-07-02 06:17Business 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]