- Net earnings increased by 47.8% year-over-year to $10.2 million in Q2 2025.
- Net sales rose 26.1%, reaching $160.7 million, driven by a 28.9% increase in shipments.
- Insteel Industries (IIIN, Financial) reported a strong financial position with $28.4 million in cash and zero debt.
Insteel Industries Inc. (IIIN), the leading U.S. manufacturer of steel wire reinforcing products for concrete construction, announced robust financial results for the second quarter of fiscal 2025. The company's net earnings soared to $10.2 million, or $0.52 per diluted share, a significant rise from $6.9 million, or $0.35 per share, in the same quarter of the previous year. This notable increase occurred despite incurring $0.7 million in restructuring and acquisition-related costs that dampened earnings by $0.03 per share.
Net sales also demonstrated substantial growth, increasing by 26.1% year-over-year to $160.7 million. This rise was propelled by a 28.9% increase in shipment volumes, although it was partially offset by a 2.2% decline in average selling prices. Gross margin expanded impressively, reaching 15.3% from 12.3% in the prior year, attributed to higher production volumes reducing unit manufacturing costs and the beneficial impact of recent acquisitions.
Insteel maintains a solid financial footing, ending the quarter with $28.4 million in cash and no debt. This cash position was reduced from $111.5 million at the fiscal year-end due to strategic acquisitions costing $71.5 million, which are already contributing positively through increased shipment volumes and margin improvements.
The company's capital expenditures for the first half of fiscal 2025 were $4.9 million, significantly lower than the $14.2 million spent in the same period of the previous year. However, Insteel plans to escalate capital investments to up to $17 million by year-end, focusing on cost reduction and productivity enhancements.
Insteel's outlook appears positive with strengthening demand for its concrete reinforcement products. The company expects this momentum to persist through the summer and into the fall, despite tariff uncertainties. The recent expansion of Section 232 tariffs to derivative products, including PC strand, is expected to reduce low-priced import competition, benefiting Insteel in the competitive landscape.
