Overview

• U.S. steel wire reinforcing maker's fiscal Q2 revenue rose 7.5% yr/yr, driven by higher prices

• EPS and net earnings fell yr/yr, impacted by lower shipments and higher costs

• Company says winter weather disruptions led to shipment declines, with delayed projects expected to recover

Outlook

• Company sees ongoing inflationary pressures, including higher energy and freight costs

• Capital expenditures for fiscal 2026 expected to total up to $20 mln

Result Drivers

• WEATHER IMPACT - Widespread and prolonged winter weather disruptions limited construction activity and reduced shipments, according to CEO H.O. Woltz III

• HIGHER COSTS - Elevated operating costs, including increased energy, tariff, and freight expenses, weighed on margins

• NARROWER SPREADS - Reduced spreads between selling prices and raw material costs negatively impacted profitability

Company press release: ID:nBwbjjJnGa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Sales	Miss	$172.70 mln	$178.23 mln (2 Analysts)
Q2 EPS	Miss	$0.27	$0.64 (2 Analysts)
Q2 Net Earnings	Miss	$5.20 mln	$9.39 mln (1 Analyst)

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 $42.00, about 14.8% above its April 15 closing price of $36.60

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

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