Insteel(US:IIIN)2025-07-02 06:14Business 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]