Insteel Industries, Inc. (NYSE: IIIN) posted a significant improvement in earnings for the third quarter of fiscal 2025, with net income rising to $15.2 million, more than double the $6.6 million reported in the same period last year.
The company’s fiscal third quarter, which ended on June 28, 2025, saw a sharp uptick in performance driven by higher shipments of concrete reinforcement products and wider spreads between selling prices and raw material costs. However, gains were partially offset by increased selling, general, and administrative expenses, primarily due to higher incentive plan costs.
Net sales climbed 23.4% to $179.9 million, up from $145.8 million in Q3 2024. The increase was fueled by an 11.7% rise in average selling prices and a 10.5% jump in shipment volumes. Insteel attributed the shipment growth to both improved demand in construction markets and volume contributions from recent acquisitions.
On a sequential basis, the company noted a 3.5% increase in shipments and an 8.2% rise in average selling prices compared to the second quarter of fiscal 2025.
Despite the gains, Insteel faced raw material sourcing challenges due to reduced domestic availability of steel wire rod — its primary input material.
"Reduced domestic supplies of wire rod disrupted our production schedules, extended lead times, and impacted our ability to fully meet customer demand," said H.O. Woltz III, President and CEO of Insteel. "We turned to international markets to fill the gap, and although this helped ease constraints, we also faced sharply rising prices due in part to the Administration’s decision to double the Section 232 tariff on steel imports."
Woltz emphasized that the company is adapting its pricing strategies to recover increased input costs, and remains optimistic about its trajectory.
"Our recent acquisitions are boosting performance by enhancing shipment volumes and strengthening our position in key regions," Woltz said. "Even as macroeconomic signals for construction remain mixed, customer sentiment has been largely positive, and demand is improving."
Insteel concluded by reaffirming its confidence in long-term growth, citing proactive cost management and a strong competitive position in the construction materials industry.
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