Insteel(US:IIIN)2025-10-16 14:00Business Overview - The company is the nation's largest manufacturer of steel wire reinforcing products[8] - The company operates 11 facilities[9] - PC Strand accounts for 66% of sales, while Welded Wire Reinforcement accounts for 34%[13] - Distributors account for 70% of sales, while Rebar Fabricators, Contractors, and Concrete Product Manufacturers account for 30%[17] - Residential Construction accounts for 15% of sales, while Nonresidential Construction accounts for 85%[17] Growth Strategy - The company focuses on 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)[47] - The company has made several acquisitions, including Engineered Wire Products for $67 million in Oct 2024 and O'Brien Wire Products for $5.1 million in Nov 2024[49] Financials - As of September 27, 2025, the company was debt-free with $38.6 million of cash and no borrowings outstanding on its $100 million revolving credit facility[94] - Capital expenditures are expected to total approximately $20 million in fiscal 2026[90] - The company is currently paying a regular quarterly cash dividend of $0.03 per share[96] - The company's current share repurchase program has $17.1 million remaining available, with $2.3 million repurchased in FY 2025 and $1.8 million in FY 2024[100] Market Outlook - In September, the Dodge Momentum Index (DMI) rose by 3.4% for the month and is up 33% year-to-date, driven by commercial construction planning activity[104]