Overview

* Insteel fiscal Q4 net sales rose 32.1% to $177.4 mln, but missed analysts' expectations

* Q4 EPS beats consensus, driven by wider price-material cost spreads

* Insteel remains cautiously optimistic for 2026, citing improved raw material availability

Outlook

* Insteel expects generally strong and stable market conditions for fiscal 2026

* Company is monitoring macroeconomic conditions that could impact demand

* Insteel remains cautiously optimistic about the 2026 outlook

Result Drivers

* PRICE INCREASES - Higher average selling prices, up 20.3%, driven by pricing actions to recover increased raw material and operating costs

* SHIPMENT GROWTH - Shipment volumes rose 9.8% due to acquisitions and recovery in construction demand

* RAW MATERIAL IMPROVEMENT - Improved supply of hot rolled steel wire rod enabled better production alignment with demand

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Sales Miss $177.40 $180.97

mln mln (2

Analysts

)

Q4 EPS Beat $0.74 $0.67 (2

Analysts

)

Q4 Net Miss $14.60 $16.09

Earnings mln mln (1

Analyst)

Q4 Gross 16.10%

Margin

Q4 Gross $28.60

Profit mln

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 ( IIIN ) is $39.00, about 3.7% above its October 15 closing price of $37.54

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

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)