Overview

• US steel wire reinforcing maker's fiscal Q3 revenue rose 9.9% on higher prices and shipments

• Net earnings and gross profit fell yr/yr as higher costs offset pricing gains

• Company repurchased 75,000 shares for $1.9 mln and ended quarter debt-free

Outlook

• Company expects fiscal 2026 capital expenditures to total $15.0 mln, down from $20.0 mln

• Insteel sees supportive business environment and healthy activity in infrastructure markets

• Company expects to recover higher costs through pricing over time

Result Drivers

• HIGHER SELLING PRICES - Co said average selling prices rose 8% yr/yr, driven by pricing actions to recover higher raw material, freight and operating costs

• COST INFLATION - Profitability was impacted by higher costs, as increases in wire rod prices, freight expense, and other operating costs outpaced changes in selling prices

• FAVORABLE DEMAND - Shipments increased 1.7% yr/yr as demand conditions across key construction end markets remained generally favorable

Company press release: ID:nBw1QGXtka

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy."

• Wall Street's median 12-month price target for Insteel Industries Inc is $37.00, about 24.8% above its July 15 closing price of $29.64

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.